The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-30
FLORIDA FUNDS TIED UP.
state Treasurer Caught with $3O,OOn
in OcaIa's Defunct Bank.

Tallahassee, Fla, Jan. 29.-State Treasu-
rer Collins has issued the following state
ment: To the people of Florida: The un-
fortunate failure of the Merchants Ma
tional Bank at Ocala has involved the state
treasurer in the sum of $4,000, for which
he has certain securities ample in amount
but of uncertain value. The money so tied
up Is a part OF what is termed the tax
certificate fund" which belongs to the
counties and the state in nearly equal pro-
portion, and was kept in Ocala for quar-
terly distribution. This money never ap-
pears in the treasurers report for the rea-
son that it does not belong in the treasury
until a division is made, when the states
portion Is placed in the general revenue
and the balance RENTED to the counties
direct. The misfortune which has come
upon me is such as might have happened
at any time during the last fifteen years
and such as has happened to nearly every
state in the northwest during recent years.
When l came into office l found over $780,
600 of state money in the bank at Ocala
and | have kept about that average ever
since. If | did wrong it was an error of
Judgment and the error is mine. About
eight-tenths of the money for tax certif-
Gates comes from Eastern and Southern
Florida and I Kept the fund at conven-
lent point for distribution. My long illness
during months of June, July and August
absolutely disqualified me for attending to
the duties of my office and the very large
influx Of tax certificate money during July
and August caused my balance in the
bank to increase. to nearly $4,000 When |
recovered my strength 1 found that the
bank was in such condition that l could
not draw the money except in small sums.
The officials of the bank were making
every effort that meI could make to stem
the downward current and I always trust
- ...4& j. i
of the great freeze were too far-reaching
and the crash came. In conclusion must
beg the people to bear with me and 1 shall
bend every energy to the solution of the
trouble. Very respectfully,
c. B. Collins.
Mr.. Collins says that at no time since
July last could he have withdrawn the
money. In a word, the inability of the
bank to pay the treasurer was a prac-
teal suspension over six months ago, but
the treasurer Kept the matter to himself,
hoping to get the funds from the bank
The money was deposited by the treas
urer at his personal risk, and was not
placed in the bank under the law author
izing the governor, controller and treas
urer to deposit public money in banks
giving security and paying interest Mr.
Collins says he holds securities amount
ing to about $4,000, such as banks usual
ly have, but time and careful attention
Will alone develop what these securities
are worth.
The law on the subject of the deposit
of state funds, which was enacted
in $685. is as folowss THE gov
ernor controller and treasurer are here
by authorized to deposit, subject to call,
the moneys of the state in such banks
in the state as will offer the best in
ducements as to interest and security:
and the interest received for the use of
such moneys shall be paid into the treas
ury on account of general revenue"