Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-03-22
Bill to Require Des Moines
Banks to Pay Interest on
State Funds Passed
WAS FAVORED BY GOVERNOR
Because He Recommended Such Law
pes Moines Banks Fought Him in
che Polk County Preliminaries
Means Saving Of Thousands to the
state-Ban<s May Combine.
Special to Times-R Republican

Special to Times Republican
Des Moines, March 22.-Gov. A. b,
Cunmins, if he was disposed to be re-
wengefnl, might take some unnatural
delight in situation into which the leg
1aaature has thrust him, and he could
hardly be blamed If he should bear
down just bit hard on his pen when
he comes to the signing of the bill TO
require the banks to pay interest on the
states money in their hands. Gov.
Cun,rndnS not only recommended in his
message that such a bill be passed but
he set at work the forces which brought
about the Introduction and passage OF
g bin to carry the ton IN
force. The bill finally passed the house
last evening with 81 votes when there
was nearly one-fourth of the member
ship absent. Senator Lewis, in charge
OF the bill, had gone over to the mouse
side and had sized up the membership
present and he gave the word to Messrs
Crosse, Cummings and others who We're
6or the bill, and it went thru The Dill
requires that the executive council shall
dx a rate of interest for the banks TO
pay on their monthly balances OF state
money. AS the BANKS of Des Moines
hold more than million dollars prac-
ideally all the time it will net the state
something. But the first thing Will De
Tor a conference of the banker. and the
executive council to agree on rate OF
Interest. The bankers will have to walk
slp to the state house and make terms.
There is talk that they will go on
strike and by combine refuse TO pay
any interest or come to any terms. rms
will be demonstrated before the legis-
nature adjouins. But what makes II es-
recially gratifying to Gov. Cummins is
ME fact, we'll known in Des No1nes, at
least, that the bankers OF Des Moines
spada common cause with other large
corporate interests in the recent tight
a., .oiitical affairs which resulted IN
e.fuu,g Polk county an anti-Cummins
Geiegataon to the state convention. "A
large part of the funds came from the
Dee Moines bankers for this work. and
1t was largely actuated by desire 10
humfliate the governor for having re-
rommended in his message that the
state should get interest on Its money
and not furnish such large part OF
ME banking capital for the seventeen
Ioes Moines banks free of cost TO Them
"a considerable fund was raised by the
De.e sMoines bankers ITO fight the plans
OF the governor. Just how 1t was USED
gill not be known; but in view OF the
fact that the state deposits are worth
from $4,000 to $4,000 year 10 Des
Moines banks 1T was not SURPRISING
they should be able to raise money 10
lsieeeat the plans OF the governor. Inc
banks claim an Offset in that they fur-
n,sh the bond for the treasurer, put
This IL not q very important item.
During the past week some fancliui
rurnors have been out as to what was
heing done to check the plans 10 codnpei
.nayment of interest on the states mon
ev. One story was to the effect that
ina hanks had already employed the
legal services of a number or rhe lead
Ding LAWYERS Of the legislature In a COM
bdned effort to break the law When II
Il nassed and that retainer rees mao
aaready been paid. The story was hearo
EVERYWHERE, but was regarded as an
surd as the lawyers have been strong
.est for the bill in the legislature.
Ruf II is regarded as more than prob
able that the banks will refuse 10 MAKE
any offer for the money and thus null
hfv the law. "But, hardly think the
hanks will dare do that" said senator
II ,ewis after the bill had been passed,
ofor this legislature will come back TWO
wears hence and have something to say
again. in case the biennial elections
amendment carries. Even If it does not
carry a good many of the members VIII
he here. 1t would hardly do for the
banks to show rebellious spirit after
they have had such a long period OF
free use OF the states money. Inc law
should be given fair trial, and IL II
IA all right the state should keep II
IN tfie books and give the taxpayers the
hanefft of the use OF their own money.
df the law does not work we can re-
neal 1t two years hence
q was 10 the credit of both members
~ the house from Polk county that
ahev r,efrained from voting on the bill.
The pressure for them to oppose 1t was
strong. and they both simply declined
u vote It affects good many OF their
constituents.
incidentally, it might be stated that
4he Des Moines banks. aside from the
-four national banks, made net profit
an capital invested. last year of more
shan II per cent. Their combined cap
ttal stock is about the same as the
monthly balance Of the state On their
hands.