The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-02-01
The STATES MONEY
interview With a Gentleman
Familiar With Treasury
Operations
Instead Of Having Money 10 Put on Deposit The
State last Year Fad to Sell Bends to
Meet a Opfici'.

A reporter in conversation yesterday
with gentlemen who is familiar with
the operations of the office OF the State
Treasurer and of it's dealings with banks
of this city and of the State was inform
ed that an erroneous impression had
been conveyed by our articles on the
deposit of the States money of yester-
day. IN trie ne said
1T was stated that the aggregate
amount on which interest was paid by
the two Savings Banks in Raleigh was
less than 100000, and both of these de-
posits had remained in these banks un-
touched For a period OF years, and We're
therefore entitled TO interest just as the
deposits Of individuals would be. The
other three banks in the city do not pay
interest 40 Individual depositors. and
Of course. rot to the State. The States
accounts, which are kept in these banks,
are very active accounts, and although
occasionally there seems to be a good
balance, such balance is checked out in
q little while, and it is net infrequently
happens that these accounts are over
drawn. Our informant further stated
that the location Of the various State
institutions in this city necessitated
the handling Of large amounts of
money and entails considerable clerical
work on the Raleigh banks Such be-
ing the case, it would hardly seem fair
to expect interest, or to expect COM
mercial banks to favor the State more
than they would their individual de-
positors. OF course however, the sug-
gestion that banks pay interest was
based upon the idea that the State
might have large sums of idle money
AS is well known, it is not practical
question today, because the State has
but little cash. II large sums of idle
money should accumulate then the
question of time loans to the banks
or to individuals might be considered,
though as matte rof fact, the Treas
urer is simply the custodian OF the
States funds and is not expected to
seek investments. Such a course might
result in great loss. The weakest banks
could we'll afford to offer the highest
rates of interest.
In your paper yesterday you inadver-
family said: The States money is now
deposited in five Raleigh banks As
q matter Of fact, the funds OF the State
are largely distributed sixty-three diff
ferent repositories being used during
last year The policy and practice Of
the department has been to leave the
money collected from the various coun-
ties on deposit in such counties until
actually needed to meet current eXpen-
SEES. These deposits left in the banks
throughout the State are necesa lilly
temporary. and are subject to the
Treasures demand draft. These banks
therefore could not be reasonably ex-
pected 20 pay interest, because they
must always hold such funds in readi-
ness to meet the : fasurer's draft
made at his pleasure, and without no.
tice. The use of sixty-three banks
shows the wide distribution of The
States funds In few States where
q surplus has been accumulated, the in
terest question has become OF somf
moment, but North Carolina was &C
tually forced to sell last year more
than one hundred dollars Of bonds tx
meet current expenses. and is still I'M
able to pay the school warrants thai
have been issued. These bonds hac
I been purchased by former administra.
items out OF the surplus funds that hat