Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1905-01-26
THE RICHARDS BILL
A "Sop" to Political Funds at
States Expense.

To the FREE PREss:-Through
the courtesy Of representative Ad-
kinson l have been favored with
copy of the Richards bill, provid-
ing for the deposit, care and keep
ing Of all moneys and securities
held by the treasurer of the state
Of Idaho, as the official custodian
thereof; providing for the payment
Of interest on such deposits and for
the approval of the securities taken
therefor, and for reports and ex-
aminations iu relation thereto; pro-
hibiting the making Of profit by the
state treasurer from public moneys,
or securities taken under this act;
repeating conflicting acts and pre-
scribing penalties for failure to
comply with the provisions of this
act"
This bill, in brief, provides for
the depositing Of the finds of the
state in the custody Of banks giving
security to be approved by the
state treasurer, and for the pay ment
of q small interest by said banks
for the use of the public funds.
The bill is simply sop to that
portion of the public who object to
the use Of the public funds by pri-
vate persons or state officials for
private gain.
l am. one of those who believe
that the state, county and muni-
cipal government should be provid-
cd with legislation whereby they
may be enabled to pay their indebt-
edness as soon as funds accumulate.
Legislation of this character would
apply the public funds 20 the legit-
innate purpose for which it is col
lected, and the need OF such legis-
lation as the proposed Richards
bill would not be felt. There is a
large and growing state bonded
debt upon which the people have
to pay interest, and every dollar
of accumulated revenues should be
re-loaned to private citizens at a
higher rate of interest. I realize
the necessity for keeping this
money in circulation. We all
know that, notwithstanding the
vastly increasing amount of money
in circulation throughout ID G
country, caused by the immense
of production OF gold through
out the world which has given us
an immense increase in the money
of commerce, yet the business in
crease has more than kept pace
with the money supply, and it il
therefore necessary that the lock
ing up Of large sums Of state, coun
ty and municipal funds through
out the country should cease.
By applying the accumulated reve-
nues of the state and county anG
municipal governments to the re-
ducticn Of their bonded indebted
ness, those funds will be released
and allowed to fructify in the pock
ct of the people in the promotion
Of their private enterprises upor
the prosperity of which all com.
monwealths are founded.
The Richards bill is more dan
gerous for what may be done unde
it than for what is in it. Unde
it's provisions the state treasurer i
for all practical purposes given tn
right to designate the banks il
which the public funds shall b
placed. Now, we all know wha
human nature is. And it is almos
impossible for the state treasure
not to have preference for tn
} class of men with whom he come
in contact, and whom he regard
as friendly to himself and to tn
administration under which he
holding Office. This applies, {
course, equally to q democratic a
to q republican administration. 1t
not good system which puts int
the hand of any official the powe
to discriminate in favor Of one elias
OF banks which may be controlle
by those whom he may regard a
his political opponents. Neithe
is it a good system which enabl,
the state treasurer to discriminat
against one class of securities ,
gainst another class which may |
offered by a competing bank Il
the security of the public funds.
furthermore, as a sound bushes
proposition l submit that no ban
should be subjected to the tenn
tations to pay interest upon it's d.
posits, except they run for at lea
q year or six months. The idea
any bank paying upon daily ba
ances is unsound in principle ar
practice. In order to make som
thing out Of these deposits Of publ
funds the banks must reloan the
to the public at higher rate of il
,terest, and in their anxiety to g
back the interest it has paid, the
is the danger that it will make il
proper and unsafe loans.
The experience which Idal
has undergone in the past in th
matter of depositing the publ
funds in banks has cost q tidy SUI
The failure Of the Bunting bank
Blackfoot some years since cost t