Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1903-12-24
NAY GET INTEREST
STATE FUNDS MAY Be Deposit.
ED BY ORDER OF TIE LEais-
LATuRE.
Attempt Was Made Last Year by ths
State Treasurer eibcrtson Ru. tbs
Scheme Was Defeated--May be
Brought UP Again This Winter.

Des Moines, Dec, 22-The approach.
ing session OF the legislature will wit
ness another attempt to have a Law
passed which viii make it pcasihis
Tor the state treasurer to deposit the
state funds where they will draw in
terest. An effort of this kind was
made last winter, but without SUGGEST.
The measure was recommended at the
last session by State Treasurer Gil
hertson, but Notwithstanding this rec
concentration, il failed TO pass.
This year Mr. Gilhertson will take
no position either way. Il did all
could for the measure then, said Mr..
Gilbertson yesterday. Il was aiaitsaa
by both sides. and now | think wilE
not take any position on the nlatte-.''
The proposed measure has been I'M
der discussion among different mem
bers of the legislature. and prcsn;-
nent member of the legislature WHO
was in Des Moines recently, said that
such bill would surely be introduced.
The measure has been defeated
largely through the efforts of the
banks. 1t was opposed by the Des
Moines banks, and to some extent by
outside banks.
State Treasurer's Bond.
Together with the movement to have
the state funds deposited where they
will draw interest, will probably be
movement to have the state pay for the
treasurer's bond. The present state
treasurer, Mr.. Gilbertson. must furnish
a bond in the sum of s1.00o,000, which
costs about $4,000. His salary is S2,700
a year. At present the banks which
get the state deposit furnish his sure
ty. If he We're compelled to do so him
self, the profit in holding the office Of
! the state treasurer would be consider
ably on the wrong side of the ledger.
Would Add to Income.
Those who favor the proposed law
claim the state ought to make 100000
or $4,000 a year on its funds. r aey
say there would be no more risk in
!, making the deposits. Where they would
1 draw interest. than is incurred by hslle
present, manner of depositing state
| funds.
The opponents to this measure, on
the other hand, urge that this is not
tso They claim that banks that are
not on firm foundation would bid the
highest, and intimate there would be
no fair way of distributing the funds
other than by means of a bid.
County Funds Mentioned.
The same question has been raised
in connection with the depositing OF
county funds in which connection
many are of the opinion that the coun.
ty should pay the treasurer's bond and
that the funds should draw interest.
This is now possible, but only one or
two counties are said to take advan-
/ tage of the law.
There are arguments for and
against the measure" said Treasurer
1 Gilbertson yesterday THE efforts
| that have been made in the past
have always failed. The Des
| Moines and the outside banks were op-
| posed to the change Then banker
members feared that they might be-
cut out of receiving state deposits and
they opposed it.
4 Minnesota Makes Provisions.
en- Minnesota they have law of
this nature, and think they get 2 per
cent for their money. In Missouri
they also nave similar law to the one
which is being discussed and they
draw IL per cent, II remember
rightly. In Minnesota they have a
commissioner who examines into the
condition of the banks where the mon
ey is deposited. looks UP the secnri-
4 ties and does other supervisory work
of a similar character.
/ Il don't know how much money we
would make if such law were to be
put into effect in Iowa. 1t would de-
4 pend,of course. upon the average of
money in the hands of the treasurer.
That average would be difficult to obs
tain. If it were taken at the present
time it would be over million IL
taken six years ago it would be consid-
erably less. If the state went back to
] the old borrowing times, and the
treasurer's bond were being paid for
by the state it would work loss to
the state"