The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-08-30
DOES NOT RECEIVE
INTEREST ON FUND
Interesting Figures Regarding
the Finances of Salt
Lake City.
CITY CREDIT IS FL0ATED
WITHOUT ANY COST
Taxpayers of Zion Do Not
Pay Interest to Meet
Warrants.

he was receiving interest, of which, it
was alleged, he vas defrauding tho tax
payers. Like everything else that EN-.
anates from those organs, the charge
has no foundation IN matter nor in fact,
Frank Swenseu is not receiving interest
upon SS00,000 or $500.000 or 100000
or upon any of the city's funds. In
this connection it might be said that no
bank west of Chicago pays interest
upon daily balances. But to the main
question. The cash received by the City
Treasurer is divided into SIX funds.
They are:
Bond.
Special
General
Public library.
Water rates
Water meters
None Of the moneys in either Of these
funds can be used to pay the demands
upon the other. In other words, you
cannot rob Peter to pay Paul The
general fund is tho only fund that is
available for all purposes. The bond
fund cannot be used for any other pur-
pose than that for which the bonds
were issued. In this instance it is the
special fund voted by the taxpayers for
special purpose. The special fund
consists largely Of money paid in for
sidewalk purposes; the public library,
as also water rates and water meters,
speak for themselves 1t is therefore
plain to be seen that even had the City
Treasurer $4,000 on hand that war.
rants issued could only be paid from the
fund upon which it was drawn. There
fore warrants issued upon general fund
would probably go unpaid and be
hawked about the streets and the holder
would have to dispose of them at
discount and the credit Of the city be
impaired. 10 obviate this the banks
do what? The present City Treasurer
never draws n check upon the bank to
pay claims against the city. Instead
the Auditor issues n warrant and the
treasurer redeems the warrant when he
has funds available. Under the pres
ent system this warrant Is rs good as
cash, and when presented at any bank
1t Is paid regardless of the fund drawn
upon and is cleared the next day on the
bank where the Treasurer keeps his
accounts. What is the result7 The
city floats its credit for half million
dollars without the outlay Of a penny.
70 illustrate: In other words, of the
SSoo,O0O said to be on deposit there had
been warrants issued upon the several
funds and paid and carried by the bank
$45O,0O0. This would leave $3.50. 900.
Now, if Treasurer Swensen was paid
interest upon this sum two per cent
would be the maximum, which would
amount to $1,000 per annum. If this
were done the bank would have to
charge interest upon the money ad-
vanced, which, at the minimum, would
be SIX per cent and which would amount
TO ,OoO per annum, or a loss to the
people Of $4,000. Hence, instead of
the taxpayers losing, they are way
ahead.
The procedure in the city differs
from that of the State and county. On
July 81 the Treasurer Of State had on
hand in the banks of Salt Lake the sum
OF S274, ,443. At two per cent this
would mean $54SS per annum in the
event that the State Treasurer receives
interest. In addition the State does
not take up warrants like the city. If
the fund drawn upon is exhausted the
State borrows the money and pays five
per cent thereon. The State is now a
borrower for $250,00O. This sum at FIVE
per cent is $12,500, TO which should be
the Treasurer could receive if he would,
making the loss to the State Sl7,6S8. AS
to the county to preserve its credit and
prevent a discount upon its warrants.
the County Treasurer, when the war
rant is presented, stamps it not paid for
want Of funds and at once the warrant
begins to draw interest at six per cent
and the taxpayers put up the interest.
This. then, shows the difference in
mlnistration rule the city floats its debt
without interest. Under Republican or
Smootite rule the State and county
taxpayers are mulcted. You pays your
money and you takes your choice.
Which method do you preferi
A large number of the church Dem
ocrats are kicking because the tithing
they pay into the church is said to be
put up to sustain "the Official organ
Of the Republican Party in UtaR."
They contend that it is tough enough
to pay tithes, but when it comes to put
ting up to help Smoot run his morn
ing organ, they object, and object
strenuously.
Down in Utah county Judge Noon of
Democratic nominee, and Marshal Henry
Of Provo is to make the race for
Sheriff on the same ticket. The infor-
nation is given out that Smoot and his
crowd will support the two men,
D. II. Crowther, one of the four
men who are accused by the Herald of
being, dishonest because of having re-
celved money for a days work which
was not done, the same money going
to the Democratic campaign fund, says
that he cannot see where accepting
money which is forced upon him with
a threat that if he refused to accept
and deliver it into the campaign fund
he would be Immediately put on the
list Of fred Mr.. Crowther states
that at first the demand was made for
10 per cent Of his wages, but this he
and the rest Of the employees refused
to pay, Later the foreman, William
Watson, called on the men and told
them that an extra days pay was to be
put on their payroll, which was to be
given upon demand to a man who
would be sent around for the purpose of |
collecting the money for the Democratic
campaign fund.