The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-28
TWENTY BIDS IN.
For Deposits of State Funds
Under New Law.
Propositions From All Parts of
Kansas Submitted.
COMPETITION BRISK.
Offers Will All Exceed Two Per
Cent Limit.
Treasury Examiners to Open
COMPETITION BRISK,
Treasury Examiners to Open
Bids Tuesday Afternoon.

Twenty bids for state money under
the new depository law have already
been placed in my hands, said State
Treasurer T. T. Kelly today, land 1
anticipate that before the time for open
ing bids arrives, there wifi soe twice that
number on hand"
The state board of treasury exam
iners, composed of Governor Hoch, Au-
ditor Wells and Secretary of State Bur-
row. will meet in office of the state
treasurer Tuesday afternoon at o'clock
and proceed to open the bids.
Quite a number of bankers from var
ious parts of the state arrived in town
today. and more are expected tomor-
row.
There promises to be brisk competi-
tion for the money. though there are
rumors of pool for the purpose of
keeping the interest down to as low
mark as possible.
| Treasurer Kelly says that he antiei-
pates that good many bids will be re-
ceived offering over 2 per cent. Il
don't think, however," he added, that
the bids will run much over 2 IGOR 2sz
per cent The depository law fixes
? per cent as the minimum. THE west
ern banks,'' continued Mr.. Kelly, will
| bid higher than the banks in the east
| ern part of the state. There is more
demand for money out there, and the
banks can afford to pay interest. In
| the west and southwest 1 expect the
banks will be willing to pay quite a
premium
J. w. Bergman, of Ashland, a mem
Der of the last house of representatives.
which passed the depository law, is in
| town, and will bid for some of the state
money on behalf of a string of western
| banks in which he is interested.
| P. W. Goebel, of Louisburg, Miami
| county, is also here and will bid on the
money. Goebel is one of the rich men
of the state. Among others here today
are A. l. Biggar, of Hutchinson, and
L. S. Naftzgar of Wichita.
| Under the provisions of the new de-
pository law, the entire system of
handling the state funds is changed.
In the first place. the general revenue
fund is almost wiped out of existence
| so far as the state treasurer is con-
cerned by that provision of the law
which allows the county treasurers to
keep that fund on hand until it is
| called for as the current expenses de-
mand. There will probably not be
more than fifty or one hundred thou
sand in this fund at any time, which
will be held simply as a reserve for
cases of emergency.
The various other state funds. which
will probably amount on an average to
about half a million dollars, will be
distributed among the banks of the
state which are willing to take 1t under
the conditions of the law.
! These conditions provide that every
| two years, the state shall ask for pro-
posals from the banks of the state,
stating how much money the bank
| wants to carry, how much interest it
will pay on daily balances, not less
than ? per cent; and certifying that
the said bank will deposit Kansas
municipal bonds with the state treas
urer to the full amount OF the deposit
| ,;oI, he 70 fo n nlaRR with if
| Each proposal must be accompanied
by a certified check for $3.50. 1t is
unlawful for the treasury board to
select any bank as state depository
| in which either the treasurer or any
| member of the board is interested as a
| Stockholder.
| The board must designate not less
than 10 banks as state repositories,
and no bank can be given the right to
keep on deposit funds to the amount
of more than one-hlf the capital
stock of the bank. Nor can the board
designate any one bank as the de-
The state treasurer is made the sec
retary of the meeting, and it is his
duty to publish in the official state
paper a list of all the bids.
awarded a contract the bank must de-
posit with the treasurer bonds or Sc
curities of some county, city, township
or school district of the state equal III
| amount TO In0 luIlQS CIV dA oCOh ~ L.
All depository banks are required
to collect all warrants, checks and
drafts deposited by the state treas
urer without charge to the state.
The state treasurer is made the Gus
| todian of the bonds which are de-
posted with hirp, and he is required
to hand over the coupons on the
bonds whenever the owners OF the
bonds file proper demand.
After the repositories are ready foI
business, the state treasurer shall dis
tribute the state money among them
as he sees fit, under the limitations
| provided by the law. Whenever q
bank receives a deposit, it shall report
that fact to the state auditor, and the
auditor must keep a record showing
where the state money is placed.
| Each month the depository banks
shall file a statement showing the
amount of interest due the state, and
it shall at once credit that amount te
the states account