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

she purchase of state bonds. OF course
the commissioners would be perfectly
Justified in buying In their own bonds
at slight loss as compared with an
Investment in the government secur-
tiles; but when the choice shows by
simple arithmetical calculation that the
transaction of buying state bonds at an
enormous premium and refusing to
purchase United States bonds must re-
suit in loss of many thousands of
dollars to the state such an operation
Is manifestly a gross wrong upon the
state, and worse than a mistake en-
the part of the fund. In considering
a transaction of this sort the commits
sioners, If they can hold the govern
ment bonds until maturity, have only
to consider the question of percentage
realized in interest of the two transac-
ttons, and they can then measure to
penny the loss or gain of the state.
But If the government bonds must be
sold before maturity. in order to meet
at maturity the state loans which are
offered to them at certain premium.
the only question for the commissioners
to consider would be as to the lowest
possible point to which the United States
bonds could in any reasonable possi-
bility fall from the time of their pur-
chase to the time the state loan falls
due to meet which they must be sold.
lf, having fixed such a point of pos
stble decline, the transaction of pre-
ferring to purchase state bonds at an
enormous premium to investing the
surplus in United States bonds shows a
very considerable loss, and an enor-
nous loss at what would be considered
reasonable decline in United States
bonds under all circumstances, the
commissioners would certainly be
guilty, either of inexcusable careless
ness or deliberate purpose to sacrifice
hundreds of thousands of dollars of the
states money. This is exactly the di-
lemma in which the operations of the
sinking fund have placed the commits
sioners, and perch upon which horn
they please, they cannot fail to find 1t
an uncomfortable resting place.
1t cannot be fairly said that the facts
and figures herein shown are drawn
from retrospective view. for at the
time of each transaction the commits
sioners could have made the calcula-
tions showing to the state by the adop-
tion of the course pursued in each par
ticular transaction, as we'll as 1t can
be figured out. That such calculation
was not entered into and did not cover
the action of the commissioners shows
either gross ignorance or gross disre-
gard of the states best interests, or
something worse.
1t is because, therefore, of this state
of facts. which has been admitted to be
true by at least one of the present ac-
counting officers of the state, and de-
MED by no one, not even by the gov
ernor of the commonwealth. in a re-
ported interview in the public press,
that I offer this resolution. II the
showing made by this publication
reached no further conclusions than
those I have stated this resolution to
raise an investigating committee would
possibly be unnecessary. But after a
careful examination of the statutes
governing the fiscal and accounting Of
ficers of this state, I am clearly of the
opinion that the purchases of the state
bonds and the sales of the United
States bonds were all made In violation
of law. and that the bondsmen of those
GA ST zTA.
Bsar.sh til. H1h' Kind You Ha.s Always Bought
Signature q; &zHZzZm