The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1907-09-05
~ " " = ~ r y ~ y " y y - v - y
v PASSING OF THE OLD sYS- y
v TEN OF LENDING AMI IN. v
u vEsTINo PUBLIC FUNDS "
" FOR BENEFIT OF INTER. "
Y ESTED OFFICIALS. Y
" " " X " y y y ~ X y " X Z: v y y
Especial Correspondence

y ESTED OFFICIALS. y
v " " y " " y y y X y y X x v y v
Especial Correspondence
Indianapolis, Ind, Sept. Indiana
is now entirely without branch banks.
according to announcements that come
from the state auditors Office. 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 Office 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 q 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.
"eystem" hss Short Life.
It will be only a 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 a 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 untrammeied growth was that the
system" was deeply imbeddec 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 reward that
did not belong. to them.
AS bad as the system" was its
votaries were numerous and powerful.
When the Republican party took a
definite stand against them IN its
platform a great hue and cry went up
nom 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 off1cials will receive the
Investment Of all public money.
A State Financial Board.
The depositories law will become
effective Dee. 1e. On that day the
governor, auditor and treasurer OF
state VIII meet In the auditors once
to organize the state board Of finances.
which shall have charge Of finding
repositories Tor the states money.
The city, county and township boards
Of finance win be formed at the same
time. as the new system is to supplant
the old In every ONCE.
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 indicstions 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 8 per cent interest
will be received: IN other deposits.
per cent.
The amount Is sure TO be sufficient
20 far as the states funds here are
concerned. 70 pay the expenses of
many Departments.
Private Banks Helped.
In order that private banks may be-
come public depositeries John c. Bill
hsimer, 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. 1. The letter
IL as follows:
ITO the Private Banks Of Indiana:
"It 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. 1. at the same
time the depository law becomes effec.
tive
AS q matter OF convenience to any
private bank desiring TO act under the
depository law / will arrange to ex-
anime II In advance on receipt of
request therefor, and an agreement
to pay the statutory fee for examina-
ton. In order to prevent rush in
December. / suggest that such re-
quests be sent to me early"
Auditor Billleheimer says that up to
date forty private bapks have asked
that they be examined before Dec. /.
The belief 10 growing that this new
piece Of Republican legislation will
not only do away with a pernicious
system. but viii give the pubic moro
assurance that it, money n handled