The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-02-25
Would Put Stop to the Treasur-
er's Graft.
is LITTLE OPPOSITION.
Measure Said TO Have Sanction
of Bankers Association.
Will Legalize the Deposit of
State Funds.

the state which shall become state de-
positories has been recommended fol-
passage by the house committee of the
whole. Mr.. Goebel. the Trainer of the
BILL who comes from State Treasurer
Kelly's county. is member of the mi-
nority, but he is a member of the State
Bankers association. and his bill is SAID
to have the support of that body.
Watkins of Reno and Belts of Shaw
nee We're inclined to oppose the measure
I believe this is vicious legislation, and
am against it." said Mr.. Watkins. Il
do not believe it is good plan to de-
post the state funds around in various
banks. What do we have a state treas
urer for if not to keep the state funds2'
The gentleman might raise the same
question with regard to county treas
urers, said Adams of Butler. County
treasurers are elected to keep county
funds. yet every county in the state has
county repositories in which it keeps its
money and it receives interest on the
money"
Suppose there should be a failure in
some of these banks-would the state
treasurer be liable for what the stata
would lose?" asked Mr.. Belts.
NO. he would not" replied Mr..
Who would then. the executive eoun-
No, the bondsmen of the bank. Each
bank which receives deposits is required
to give the state q bond in addition to
have
Then Mr.. Goebel. the author of the
bill took the floor. 7 have presented
this bill in absolute good faith he said
1t simply applies good business meth
DDS 10 the states business. The state is
absolutely protected from any loss
whatever, and it viii receive interest on
its deposits
The bill was then recommended for
passage It is designed to take the con
troll of the state funds out of the hands
OF the state treasurer, other than what
IS needed to transact the business from
day to day. AT present the law prohib-
its the depositing of state money in
banks but this law is nuili6ed by the
county treasurer by turing the drafts
received over to the banks for collection
and then leaving the money in the
banks until it is needed. AS a result
there IS a half million dollars or more
OF state money lying in the banks most
of the time This bill viii legalize the
depoSiting of state money banks but
gives the executive council the right to
say IN What banksit shall be deposited,
and the state receives the benefit Of it
in the way of interest on daily balances.
A bill has already been passed pro-
Viding that the state taxes shall be
drawn from the county treasures
monthly as it is needed, but this applies
largely to the general revenue fund. A
! large amount Of money accumulates in
+ the permanent school fund and other
funds in the treasurer's hands, and this
will form the big end of the"state de-
! posts.
The chief features of the bill are as
/ follows:
Section l. All public funds now in
the state treasury or that hereafter
may be paid into the state treasury for
/ " on receipt thereof be deposited by
the treasurer to the credit of the state
for the benefit of the fund to which
said moneys respectively belong, in
such banks in this state as may from
time to time be selected by the execu-
j tive council, the said banks giving Sc
curity satisfactory to the executive
council for the safe-keeping and pay
ment of such deposits when demanded
by the state treasurer on his draft,
i e0untersigned by the auditor. such
bank or banks to pay for the use of
such deposits, and the said deposits,
together with the interest and the
profits that may accrue thereon, shall
be disbursed by said treasurer accord
ing to law, upon warrants drawn by
the state auditor, and not otherwise;
provided, the state treasurer may keep
on hand an amount not exceeding one
hundred thousand dollars for the pay
ment of warrants that may be present.
ed in current business.
Sec 2. As soon as this act shall take
| effect. and as often thereafter as may
be necessary, it shall be the duty of the
state treasurer to cause to be printed
in the official state paper notice that
/ bids will be received by the executive
council on stated day, and within
/ thirty days from the date of publiea-
ton for the designating of repositories
for the public funds. Said notice shall
state the conditions to be complied
with by the bidders the time during
4-z-1- s1J, of
/ continue, and what each bid shall set
forth. Propositions, bids and all
memoranda received from banks bid
ding shall be first examined by the ex-
eeutive council and kept on file in the
office of the treasurer subject to the
/ inspection of any person desiring 10
examine the same
Section 3 provides that interest shall
be paid on daily balances on the first
Monday of each month, and that no
I bids shall be accepted for less than l12
+ per cent per annum.
Section 4 provides for the manner in
which the executive council snail re-
ceive the bids from banks.
See s. No bank selected as de-
pository for the funds of the state under
I this act shall be designated as deposit
tory for a greater amount than One-half
/ the paid up capital of said bank, and in
no case more than one hundred thous-
/ and dollars in any bank. and the treas
/ urer shall never deposit a greater
amount with any bank For each de-
post made by the treasurer under this
act, the bank receiving same shaIi issue
two receipts. one to be delivered to the
state treasurer and one to the state
auditor
sec. 6. For the security of the funds
deposited by the treasurer under the
/ provisions of this act the executive
I council shall require of said selected and
/ approved banks for the safe keeping
! and payment of said deposits, bond of
a reliable surety company authorized to