The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-07-17
State Officers Exercised About
the Public Funds.
Drawn From Treasury and De-
posted in Local Banks.
INTEREST MAY BEPAID
If 1t Is the State Does Not
Get 1t.
Auditor Cole and Treasurer
Grimes Discuss the Question.

1t is rumored that the state admins
tratlon is preparing to take steps to
compel the treasurers of the boards of
regents of the various educa tional in
situations of the state to keep on deposit
in the state treasury the monies used
for the transaction of the business of
the institutions.
1t has been reported to the state
treasurer and state auditor that in some
instances the officials who have to do
with the handling of these funds deposit
them in local banks and receive rernun-
Grafton in the shape of interest on daily
balances
By this method the funds are never
found III the state treasury where the
law cOntemplateS that they should at
all times be deposited.
1t has been the custom of the various
administrations to permit the regents
and treasures to handle the funds for
the various institutions as they have
deemed proper, but the frequent inquiry
as to why the monies are not kept in the
vaults of the state treasury has set on
foot an investigation which it is said is
likely to cause revolution in the old
methods of handling this business
The constitution of the state provides
that all public monies shall be kept in
the state treasury. But this is not done
When a treasurer for the public or char
liable institutions draws several thous-
and dollars from the treasury and de-
L.
issues his personal check against the
sum, he violates the law
Some Of the members Of the executive
council who have been giving this mat
ter some attention advocate the idea
that all persons paid by the state
whether in the capacity of employees in
the capitol or at the state institutions,
should be paid directly through the
state treasurer.
The act of drawing the money and
then checking against it in local banks
saves much trouble: it avoids much
writing and work with vouchers but it
IS maintained, particularly by George
Cole. the state auditor, that the practice
is irregular and should not be permit
ted
Every employe of the state" says
Mr. Cole, should be paid direct by the
state treasury. This would entail con-
siderable additional work and would
come absolutely within the view of the
law.
while the law does not expressly
prohibit this practice. it does provide
that all public monies should be kept
IN the state treasury
Asked if he regarded the drawing and
deposlting Of money in local banks a
violation of the law, Mr. Cole said:
Il do not believe there is a specific
provision against such a transaction
but it has been the custom for several
years and has become the common
practice"
As to the report that some OF these
Fronting by this local bank procedure
state Treasurer Grimes said:
L have no definite knowledge of anv
such transaction 1t has been reported
10 me that such action has been taken
but have never received positive evil
dence of it. I am inclined to the opin-
Ion that the public monies should be
kept in the treasury but have no desire
TO raise technical questions concerning
a practice which has been in vogue for
many years and by which, so far as
am informed. not a single penny has
Deen misapplied. OF my own personal
knowledge I do not know where a sin
gie individual has received a cent from
local banks as interest on daily bal
ances.''
Governor Stanley is interested in this
matter too, and said: IF there is anv
question about the legality of these pro
ceedlngs they should be stopped. have
never examined the law on this subject
ana paid little attention to it. Mr.. cole
ana Mr. Grimes are managing the I'm
anclal end of the administration and
peleve that they would permit nothing
irregular to pass through their DEPART
ments- Whatever action they may deem
port