The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1898-11-03

tree" for the benefit of it's friends, in
the Peoples bank, it startled the state,
although the public was not unprepared
Tor the cropping out of that sore on the
body polite. But nearly ten years ago
the Democratic minority in the state
legislature, led by Mr.. S. NJ. Wherry. of
Cumberland county, not only pointed
out whole orchard of golden fruit,
dropped into the laps IF the favored
banks OF the state, and shaken for
other purposes, but attempted to pre-
vent treasury plum tree shaking in the
future. On the 22d of March. 1889 Mr..
Wherry introduced the following res
olutions
Resolved, by the senate and house of
representatives in general assembly
met that the sinking fund commission
ers shall invest, on or before June /,
1889, all of the cash surplus in the
sinking fund in the United States
per cent bonds. except six months in
terest on the state debt. and enough
to meet any actually pending negotia-
tions for The purchase of state loans,
and s25O,000 additional, provided such
funds can be purchased at no higher
premium than rs cents on the dollar,
and that after June /. 1889 all the cash
surplus in the sinking fund on the first
day of September, the first day of De-
cember the first day of March, the first
day of June in each year shall be in
vested in United States per cent
bonds. except six months interest on
the state debt, and enough to meet any
actually pending negotiations for the
purchase of state loans. and $3.50, 900 in
addition. providing that the state can
hxyy ,,;..
such bonds until maturity not less than
per cent per annum. But after Aug.
l. 1894. the sinking fund commissioners
snail not purchase any state loans at
so high a premium that the purchase
of such state bonds would not realize
within one-half of 1 per cent as large
an interest as with the purchase of
United States 4 per cent bonds at a
market rate at the time the state
bonds are offered to the commissioners
for purchase to the state; and that II
the state bonds cannot be purchased
at rate showing to within at least one
half of l per cent as large a rate of
interest as would the purchase of Uni
ted States bonds at the market rate,
the commissioners shall proceed to pur-
chase United States bonds at the said
market rate. and to keep them as a re-
serve in the fund until maturity, or
until such time as their sale would en-
able the state to purchase it's own
bonds at a rate which would real
lie to the state an equal interest, or in
terest which shall not be more than
one-half of l per cent less than the
interest which would be realized from
the United States bonds if held to ma
turity.
Also be 1t resolved by the house of
representatives Gf the senate concur),
that the sinking fund commissioners be
directed to report to the legislature
within ten days the amount of cash bal
ance in the sinking fund on the 1st of
March, 1889, together with a statement
of where such surplus is deposited, and
a list of banks and banking institutions
where such funds are deposited with
the amount deposited in each bank.
This was. however, merely prepara-
tion for a further resolution introduced
on March 25, 1889. as follows:
Whereas, the sinking fund commits
sloners have, during the fiscal years
1886 and 1887, and 1887 and 1888. pur-
chased bond at higher rate than the
market rate. thus violating the act of
February, 1876, as amended by the act
of June. 1888. making such purchases at
rates from X to 29s per cent higher than
the market rate at the time fixed by the
act as limit to the purchase of such
bonds, and that the amount of such ex-
cess has been in the aggregate at least
$1,000; and
Whereas, the said sinking fund COM
missioners sold in December 1887, and
January, 1888, Sl.000000 of United
States bonds, which We're invested in
the funds. which sale was in violation
of the act of 1883 which declares that
such bonds shall only be sold when the
money shall be required for the ex-
tinguishment of the public debt: and
Whereas, the proceeds Of these bonds
were not necessary for the extinguish-
ment of the public debt, for the reason
that when such bonds were sold there
was already in the state treasury a
cash balance of over 81. 490, coo, and
that after the said bonds mad been sold,
although 100000 worth of state
bonds had been purchased, there still
remained in the fund, not reckoning
the sale of United States bonds. a cash
balance of more than $1,000,000, and
that at the close of the fiscal year af-
ter the state had met all the obligations
OF the fund ana had purchased nearly
81, 100000 of the state bonds in addition,
there still remained in the treasury,
not reckoning the proceeds of the sale
of such bonds, cash surplus of over
81, 100000. thus demonstrating that
said sale of United States bonds was
not necessary for the extinguishment
of the public debt up to the present
time; and
Whereas, the bondsmen of the said
commissioner are liable to the state
for at least the amount of interest lost
to the state up to date by the sale OF
said $1.000.000 of United States bonds
which now lies useless surplus in the
cash in the state treasury, amounting
to 100000. and at least for the excess
Of premiums paid on the purchase of
state bonds above legal limit, then
their market rate, amounting to at
least $1,000; therefore, be 1t
Resolved Gf the senate concur), that
q committee OF five members Of the
house, and three members of the sem
ate, be appointed to investigate said
ks.af fnYt nf thn Ct ntrt.,