The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-03-12
h he W. was heartily in favor of adherIng

ne was heartily in favor Of adhering
to the present system
III provides money when we need It,"
continued the comptroller. land vet il
prevents the accumulation of a large
amount or money on hand to be drafted
upon by the council Under this sys--
tenn the credit of the city has gone I'M
TO very high standard since 1891.
don't think the city would be benefited
by the proposed change"
MI Dean was opposed to the CITY
issuing any more tax levy certificates
he thought the sensible way was to
fund the debt for a long period at a
low rate Of interest
III we can issue bonds to take I'D
lnls noating Indebtedness" said Mr..
Dean, Il should favor bonds running
Tor thirty instead of five or ten years"
Mr. Alness and Judge Lusk both
favored the bond system and declared
certificates
Col. Clough's motion was then put to
vote and title was stricken out by
unanimous consent
The commission then took I'D the
succeeding title, that dealing with "the
CUSTODY or the public moneys and Sc
curities"
The title contains nine sections of
which section provoked nearly all the
discussion. This section prescribes the
rules and restrictions and conditions
regulating the deposit Of the city FUNDS
In the local banks, the furnishing of
the required bonds by the banks, etc.
The section provides first for conn
mittee on bank deposits" composed of
the mayor, comptroller and treasurer,
which committee is charged with the
duty of designating the banks with
reference to their financial strength
and safety. 1t is further provided that
the committee shall fix the maximum
amount to be deposited in any one
bank. which shall not exceed one-third
the amount Of the full paid and unim-
paired capital stock and surplus.
The words land surplus" were added
at the suggestion of Mr.. Alness. SO
likewise was a clause permitting the
banks to furnish surety company
bonds If they desired. The provision
requiring a bond signed by not less
than five freeholders in the penal sum
Of at least double the maximum sum
at any one time on deposit, is also in
corporated.
The bond is made subject to the an,
prevail Of the committee on bank de-
posits.
The remaining para graphs Of section
and all of section 3 contain no i'm
portant changes.
Chairman Horn objected to the first
paragraph OF section 4, which permits
the committee on bank deposits to
make such arrangements with the
banks for the payment of interest on
daily balances as may be for the best
advantage of the city, the safety Of
the deposit being first considered.
Mr.. Horn feared that the paragraph
lett the door open for endangering the
clty's money by depositing it in the
bank which might offer to pay the
highest rate of interest
nf
the commission shared Mr. Horns OBJ
lection, as the chairman discovered
When he put the motion of Mr.. Dean.
made at Mr.. Horns suggestion, to
strike out the paragraph. Not a voice
answered "aye."
Il think it's lost" was Chairman
Horns remark.
Section 5, as proposed by the COM
mlttee, provided that all interest from
the deposit in banks of the public
moneys shall accrue to the city for the
benefit of the funds to which said
moneys shall belong and shall go TO
the credit of such funds.
AIT the suggestion of Comptroller Nc
Cardy the section was amended by pro-
viding that the interest shall go to the
credit of the general fund
section 5, as amended, and the re-
naming four sections of the title were
adopted without further discussion.
The commission then adjourned until
next Monday evening, when the sue
ceeding title relating to 1.-The public
FUNDED debt" will be first considered 4