The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-14
HOW KELLY DID IT
Avoided Using "Not Paid''
Stamp in Treasury.
Used Money Out of Other Than
Revenue Fund.
CALL ON TREASURES.
County Officers Asked to Send
on All Money.
Will Be Used to Reimburse the
Depleted Funds.
Treasurer Admits That This Is
Being Done.

To avoid stamping warrants mot
paid for want of funds,' State Treas
lurer T. T. Kelly has been obliged to
pay the current expenses of the state
tout of other funds in the treasury than
the general revenue fund.
This information came out today
when it became known that the state
will Immediately draw on the county
itreasurers throughout the state for all
the funds they have on hand, about
$446.000, for the purpose of reimburs-
ing the funds which have been
utilized.
The state law on the subject is as
follows:
"Wnen any warrant shall be pre-
sented to the treasurer for redemp-
ton, and the funds appropriated for
the purpose for which such warrant is
issued are exhausted, the treasurer
shall endorse thereon the date of its
presentation. with his signature there
to, and such warrant shall thereafter
bear interest at the rate of per cent
per annum-"
It has been frequently stated by
Treasurer Kelly that the state would
not have to stamp its warrants not
paid for want of funds, but he never
gave a full explanation of just how it
would be done. The method seems to
haye been to use money lying idle in
other funds. In response to questions
Mr.. Kelly would not give very lucid
explanation of how the state has been
paying its expenses.
Has the state been paying its ex-
penses out of other funds than the
him.
NO said Mr.. Kelly.
Hasn't some arrangement been
made which amounts to the same
thing?"
mo, nothing of the Sort
Where did the state get the money
to pay its current expenses 2"
haven't they? We have a lot of ur1-
cancelled warrants on hand haven't
We? We are allowed to hold those
warrants thirty days, and the thirty
days are not up yet"
"Is it the plan to draw on the
county treasurers for enough money to
: cover the July and August expenses, as
l we'll as for the current month 2"
'tI believe that is the plan"
Then is this money to be used to
reimburse other funds?
There isn't any reimbursing nee
essary,' replied Mr.. Kelly.
If the general revenue fund is ex-
hausted, and the state has been pay
ing its current expenses without in
terruption, the question naturally
arises, Where has the money come
from? BY simply going ahead and
paying the warrants, and then holding
them, the state is saved the annoyance
oe placing anything on the books to
coming out of some of the other funds
of the state.
No doubt all the state officers have
been cognizant of what has been 60
ing on. They seem to have accepted
this method as the best way out of a
bad mess.
Juggling funds is not an uncom-
} mon procedure. good many cities
resort to it to save stamping the war
. rants unpaid. For example, a city
might have used all its general reve-
nue. fund, while at the same time it
has 100000 on hand as a sinking
fund. To tide over temporary en-
barrassment, it would be carried by
the bank holding the 100000. To all
intents and purposes it would be
drawing warrants against its sinking
fund which should be paid out of some
? other fund.
Nobody imagines," said a state Of
ficer today, "that the state has been
paying all of its current expenses since
the collapse of the First National bank
out of it's general revenue fund. Some
7 other funds have been tapped to
supply the deficiency. Now the state
will have to draw every cent of mon
: ey it can get from the counties for the
purpose of reimbursing these various
l funds"
!: The deficiency in the various funds
is now said to be above 1865, 900. This
estimate is arrived at from the recent
examination of the state treasury
amining board. This examination
:, contained this item:
: '.Cash and uncancelled warrants,
! $273, 1904"
The amount of the cash was about
$4,000, and the uncancelled warrants
; covered multitude of sins. They
: represented, in fact, it is claimed, the
: amount which the state had over
? drawn its general revenue fund.
: To pull itself out of the hole, the
state will claim that under the new
depository law. it has the right to draw
months of July and August, and the
understanding which has been reached
+ is that State Auditor Wells shall in his
: first estimate under the depository law,
e which is expected at once, include a
. call for the exact amount expended
] an estimate for the current month.
s The expenses for the three months
5 will take about all the money which
4 the counties have to the credit of the
state, sum of about $446,0OO.
: All of this money will be deposited
: in the state repositories. 1t will be
, distributed around to the credit of the
various funds which have been tapped
j. to supply the current expenses OF the
f state.
OF the $547.0OO of state money
which was involved in the First Ma
tional Bank crash. it is known that
4 about 100000 belonged to the general
. revenue fund, and the rest to other
4 funds of the state This has been as
, certained by Treasurer Kelly by going
: over the checks which were deposited
s at the First National Had the First
5 National not faile@I the 100000 lost
would have. on July 1, constituted