The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-03-10


it must be under this bill, no possible
harm can come to the taxpayer, since
If the money remains massed in the
vault Of the County Treasury it earns
nothing, whereas if it is put into bank
it goes into circulation, and thus bene-'
fits he~local community.
Every rascally looting of the treas
ury of a community through bank de-
posits has been backed by the same
sort of excuse. It was so at Tacoma,
where three banks went to the wall
with the city money swallowed up in
the wreck. In some places this fat bit Of
plumber has induced the formation OF
banking companies for the sole pur-
pose Of securing money on which to
conduct private business. Something
like two years ago the 'Record-U Mon
exploited the whole subject, and cited
numerous cases to prove that the plan
of deposit is unsafe at best, and unjust
to the people always.
One of the reasons is that it pro-
jects banks into the political campaigns
in which county officers are chosen We
have in this city had some bitter ex-
periences of that kind when the entire
matter of change of the municipal ad-
ministration hinged upon the question
as to who was to be Treasurer. 1t is,
therefore disorganizing, not to say
corrupting, influence. But if it is con-
ceded for moment that a. surety COM
pany cannot possibly be other than
than sound, solvent and impossible of
failure-but which concession is VIC
lent-it is to be remembered that all
human institutions of a financial
character are subject to vicissitudes
that may wreck them, just as many
an old and approved insurance COM
pany has gone to the wall, and surety
company is but an insurance corpora
ton capable of being looted, wrecked
and mismanaged, despite Insurance
Commissioners, Bank Examiners, dras-
tic laws and vigilant officials.
But passing that consideration, there
is one other, namely, that there Is no
reason under the sun why the people
should capitalize banking institution
in this way. If the money Of the treas
worthy of its hire, and that hire should
come to. the people, and not into the
pocket of the Treasurer.
For with no intention of impugndng
the integrity of any County Treasurer.
it is to be said that he has the choice
under the proposed law as to banks in
which he may deposit the county
funds; being human, he will, in at
least the great majority of cases, place
the funds where they will do himself
politically, perhaps materially in an
other way, substantial good.
There remains the other plea that the
deposit in bank puts the money with
drawn from the people for taxes into
circulation 1t will be necessary to
support that claim by evidence of a
very considerable demand on the part
of the people for the proposed change
The fact is, they have made no such
oeIndHu, tIiSll IL d 'oeS uto' @ne 49,
ton could be had to-day the PROPOSE
ton would be overwhelmingly defeated
The money market is not so tight in
California that in order to secure a
sufficiency of circulation on which to
carry ON business the people should
be taxed to furnish bankers with
the capital that is to be loaned back
stored private capital in plenty, and
there will continue to be, which is not
invested with official character. and
that is ready at any moment to pass
into circulation.
The new primary election law will