The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-09-01
OLD SYSTEM GONE;
BANKING IMPROVED
No Longer Lending and Invest
ing of Public Funds for
private Gain.
BRANCH BANKS DISAPPEAR.
UP TO THIS TIME FORTY PRIVATE
BANKS HAVE ASKED THAT
THEY BE EXAMINED PRIOR TO
DECEMBER I.


according TO announcements that come |
from the state auditors ONCE. Sew
eral weeks ago Auditor Billheimer
ordered all the state and private
branch banks closed pursuant to an
opinion by Attorney General James
Bingham to the effect that they were
without lawful existence.
For several days following the ord
er anonymous letters were received
at the ONCE telling OF banks that were
In operation ION the sly but the aud
itor hunted down the banks and
forced them to close. A total of eight
branch banks closed their doors, the
last being the branch bank operated
by the Peoples State bank at Browns
town.
This action was taken under law
enacted by the recent Legislature
which the Democratic politicians and
editors delighted to criticise. This
law has speedily enabled the auditor
to rid the state of a dangerous and
very undesirable class of banks where
the peoples money was not always
safe.
"systen" Has Short Life.
II will be only short time until
the complete passing of the old sys-
tenn of lending and investing public
funds for the benefit of the officials
will be witnessed 1t will be great
day for the Republican party whose
representatives took the initiative for
the publication of public offices.
Almost from the earliest history OF
the state officials entrusted with pub
lie funds have invested them in their
own behalf. The result of long years
of untrammeled growth was that the
system was deeply imbedded in the
political side of public life.
The hope of obtaining this unfair
reward caused many good men to
enter politics and do degrading things
Men became willing law violators just
for the sake OF reaping a reward that
did not belong to them.
AS bad as the system" was its
yotaries were numerous and powerful
When the Republican party took
definite stand against them In It's
platform a great hue and cry went up
from one end of the state to the other.
That was the beginning Of the end OF
the system however, for in spite OF
the efforts of the Democrats the Re
publicans passed the public deposit
tories law, under which the public
and not the officials will receive the
investment of all public money.
A State Financial Board.
The repositories law will become
effective Dec .16. On that day the
governor. auditor and treasurer of
state will meet in the auditors office
to organize the state board OF finances,
which shall have charge of finding
repositories for the states money.
The city. county and township boards
of finance will be formed at the same
time. as the new system is to supplant
the old in every Office.
Governor Hanly will be chairman of
the state board and Auditor Billheimer
secretary.
The opponents of the new plan pre-
dicted during the recent session OF
the legislature that bankers would
refuse to handle the public money,
but the indications are that there will
be strong competition for it.
There is no means now of estimat-
ing how much revenue the various
forms of government will reap, but in
longtime deposits 3 per cent interest
will be received; in other deposits,
per cent.
The amount is sure to be sufficient
so far as the states funds here are
concerned, to pay the expenses or
many departments.
Private Banks Helped.
In order that private banks may be-
come public repositories John G. Bill
heimer. auditor of state. is sending
letters to all the banks in the state,
telling them that they may be exam
ined In advance of Dec. /. The letter
is as follows:
ITO the Private Banks of Indiana:
at has been decided by the state
board of finance that no bank will be
accepted under the public depository
law of 1907 except such as have been
shown by recent examination to be sol
vent and in good condition. The effect
OF this decision is that private banks
desiring to accept the benefit of the
depository law must be examined by
me through the bank department be-
fore they can do so. Under the law Of
1907 governing private banks the ex.
aminations of such banks will not be
commenced until Dec. !, at the same
time the depository law becomes effec.
tive.
las a matter of convenience to any
private bank desiring 10 act under the
depository law | will arrange to ex
anime il in advance on receipt of a
request therefor and an agreement
TO pay the statutory fee for examina
ton. In order 70 prevent rush IL
December, | suggest that such re
quests be sent to me early"
Auditor Billleheimer says that up tC
date forty private banks have asked
that they be examined before Dec.
The belief is growing that this new
piece of Republican legislation vii
not only do away with perniciou:
system, but will give the public more
assurance that It's money is handled
safely l4