The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-26
CLOSE TO SHORE.
StateHas OnlyOne Hundred Fifty
Thousand Dollars Left.
Books, However, Show a Very
Much Larger Sum.
ONE FUND OVERDRAWN.
General Revenue Is Short One
Hundred Forty Thousand.
Queer System of Doing Business
in the Treasury.

According to the semi-annual ex-
animation of the state treasury, made
today by State Auditor Seth Wells,
there is really only about s150.OOO
cash in the state treasury, to repre-
sent the sS65. .0S6.9s which is sup
posed to be there.
In other words, if by some chance,
there should be a heavy draft made
on number of the important funds,
the state would be absolutely without
money. in spite Of the fact that the
books show it to have $685.. 5.O86.98 on
hand.
The general revenue fund, which
appears on the books as credited with
$443,865, is really overdrawn about
$4,000. and of course the money to
meet this ovedrfat comes out of other
funds, though this is absolutely con-
trary to law.
1t is the purpose Of the law to pre-
vent transfers from one fund to an
other, so that if the books show $780,
UOO to the credit of a certain fund,
and $4,000 to some other fund, the
treasurer can actually produce that
much cash if the occasion demands.
OF course the treasurer deposits all the
funds in a lump, as it were, but his
p
gregate of the funds.
In order to avoid stamping war
rants not paid for want of funds
State Treasurer Kelly has adopted the
risky plan of simply using whatever
money he happened to have on hand
to pay whatever warrants might come
in, regardless of whether he drained
other funds or not. The real condition
OF affairs is concealed under the item
'uncancelled warrants" Until the
warrants 70
ditor and cancelled, they DO not stand
against any particular fund.
There are therefore two items in
MI kely's list of offsets which repre-
sent cash, and which are really not
cash, nor are they at present cOnVerti-
BILE into cash. One of these items is
the $54T.000 in the First National
bank; the other is the item Of S164-
coo of "Uncancelled warrants" >" Added
these make a total of S711.OOO, and
this, subtracted from the SS65, 900
presumably on hand in cash. leaves
S154,00O as the real amount of money
which the treasurer has on hand to
meet his liability for SS65,0S6 shown
by the funds for which he is respon-
sible.
Kelly's System" would be exposed
if the state school fund commissioners
should decide to invest the S165,00O
which stands to their credit for invest
ment in permanent school fund bonds.
DuL d ppdIEiltys the SCHOOL IQIQ com
missioners have no intention of caus-
ing Mr.. Kelly any embarrassment of
this kind. They will let him use the
money which stands to their credit.
According to the books, there is
$443,00O in the general revenue fund.
but of course about S42O.0O0 of this
is involved in the First National crash.
Mr.. Kelly probably does not know
just how much general revenue funds
is thus involved; if he does he will not
fol If ie oTFfd fInA he fc a fra III
to drawn down much harder on the
general revenue fund, for fear it
should let the cat out of the bag, and
show that he is really using money for
current expenses which can not law
fully be used for that purpose. He
prefers to hold the game back for a
time by the 'uncanceHed warrant
scheme. When the First National
dividend comes, he will slap that in
the banks, crediting enough of 1t to
the general revenue fund to warrant
him in turning over the $164 900 in
uncancelled warrants to the auditor
for cancellation.
The s145,OOO in real money
which the state has left is scattered
around among % state repositories,
with one item at the New York fiscal
agency and a few cash items. The
maximum on deposit in any one bank
is $4,000, in the Bank of Topeka, and
the minimum is S31.30 in the First Ma
tional bank of Clifton. There is quite
a list of banks which have no money
this month and which have not had
any since the depository law went
into effect. though money has been re
ceived and deposited in other banks
meantime.
The law requires that this semi
annual examination shall be made on
the fourth Monday in December. The
fourth Monday fell on Christmas, but
Auditor Wells was on hand this morn
ing when the treasurer's Office opened,
and at once took possession. The state
ment made as a result of the examina-
ton is for the close of business last
Saturday night Dec. %.
Tt seems to be somewhat doubtful
whether the board of treasury exam
iners shall make their regular monthly
examination this month. It would of
course make practically the same
showing as the examination made to-
day by the auditor, and Mr.. Wells
states that it has been customary to
omit the regular monthly examination
on the semi-annual examination
months.