The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-06-30
State Treasurer HencefOrth VIII
Handle No Tax Funds.
State Depository Law Goes Into
Effect Saturday.
COUNTIES TO PROFIT.
Can Collect Interest on State
Money Till September.
Advertisement for Depository
Bids VIII Be Issued Monday.

Saturday, July /. is the beginning
Of the end OF the interest graft. .
which for many years Is supposed to
have been worth ten or fifteen thou
sand dollars a year to the state
treasurer of Kansas.
No tax money from the various
counties OF the state can be received
| by the state treasurer after July L.
according to the provisions OF tbs
state depository law which goes into
effect tomorrow. Neither can the state
have any Of this tax money available
Tor its current expenses until the board
OF treasury examiners has selected the
ten or more state repositories pro=
vided for in the new law.
About $2,000.000 a year is the in=
come of the state treasury from direct
taxation. Hence there viii be a little
item of $166,000 or so per month for
July, August, and possibly September.
which viii not be turned over to the
state for the present, and on whicH
the various counties of the state viii
draw the interest instead Of handing
1t over to the state treasurer.
There is no danger. however, that
the state VIII run short of money to
meet its current expenses even though
u44e machinery may not be ready ia
pegln the operation of the new law.
! which requires the state auditor IN
make monthly estimate of the ex-
/ penses of the state institutions There
IS large sum on hand in the general
/ revenue fund; enough to carry things
along IN the old way for some months
Today is supposed to close the is
cal year of the state of Kansas, bus
as matter of fact, the books will be
held open Tor some time, to give the
state institutions a chance to close m
outstanding deals. Meantime. Il Il
supposed the board OF control will Be
getting Its new systems into oDeratfon
ana viii have things in readiness 50
tnat when the books do finally close.
the new fiscal year viii open up with
completely new system Of book
Keeping.
The operations of the state deposf-
tory law TO certain extent compli-
Gates the situation, for under this law
which takes effect July l. an entirely
new method of paying out money to
ton.
On July the state board of treas
ury examiners consisting of the gov
ernor, secretary of state and state
auditor, viii meet in the office of the
state treasurer and prepare a notice
Tor publication stating that on a date
to be named in the notice the board
VIII receive from any state or national
bank doing business in Kansas pro-
posals for the deposit of state funds.
The bank must offer at least 2 per
cent. interest. The date fixed for re-
ceIvlng the bids must be within two
months, but as the law requires that
the notice must be published for thirty
days in the state paper, the bids can
not be opened before August 2. Thirty
days after the contracts are let the
banks which are selected must deposit
with the state treasurer bonds or Sc
curit1es equal in amount to the MAXI
mum amount of state money which
that bank desires to carry. As soon
as the bank gets its bonds on deposit
the treasurer is required to send the
bank its share OF the deposits. and th0
bank at once begins to pay to the
state the amount of interest which Il
offered to pay in its bid.
Thus under the new law, the MAXI
mum amount of time which may be-
consumed in putting the law into on
three months; the minimum amount
of time would probably be about six
weeks.
1t is therefore figured tnat the new
state repositories will be ready for
business about September 1, and be-
tween July l, when the state deposit
tory law goes into effect and Septeua-
Der I, when the repositories are ready
for business. the county treasurers are
not required to send IN any taxes to
the state treasurer.
Money other than. taxes must be
sent to the state treasurer on or be-
fore January 10 and July 10 Of each
year.
While the state treasurer will not
get any money from the county treas
urers for current expenses until Sep
tember, he will still keep in his own
possession all the money row in the
state treasury He viii not be re-
quired to relinquish his possession of
this money until the state repositories
are selected in September. Or when
ever that event may take place