Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1907-04-08

Following is summary of the
new measures passed by the recent
legislature which affect the revenue
of the state:
Taking up these new bills in the
order of their Importance, first
place belongs naturally to what may
be termed the public finance bills.
These are respectively the three de-
pcsitory bills. state, county and
city, requiring deposit of all public
funds in banks which are required
to pay interest; Carlyon's bill crc-
ating the state board of finance;
Carlyon's bill providing for the con-
solidation of state funds, and
George T. Reid's bill requiring
state officers to make daily deposits
with the treasurer of all state mon
eys received. From these six bills
alone, increased public revenues ag-
gregatng 100000 per annum are
anticipated.
The depository bills need no ex-
PLANTATION. The state board of fl
nance consists of the treasurer,
governor and auditor, with one OF
the clerks in the auditors office as
secretary In the past no provision
was made by law for investing any
OF the state permanent funds, other
than common school funds, so that
receipts from such sources as sale
of university, state college, normal
and such granted lands have simply
accumulated in bank. The laws
prevent spending the principal
they are permanent. Now the state
beard of finance can invest these
funds in national, state and muni-
cipal bonds, so they will earn a rev.
enue right along.
From interest on sales Of these
university and other granted bonds,
from rentals, etc., funds had accum-
ulated for years, and lay idle in
bank These funds were current"
as "differential" from "permanent,"
and could have been used. This
legislature was the first to make
use of this idle money, the others
preferring to levy taxes to raise
money for needs, rather than use
what cash was on hand. This year
$4,000 of these current funds are
appropriated in the omnibus bill.
The university must first use up its
university current fund before draw
ing on the state general fund; so
fund; the Ellensburg school on the
normal current fund; the state in
stitution for feeble minded on the
charitable, penal and reformatory
current funds, to be appropriated
The consolidation of state funds
was another important move. Here
tofore the state with a multiplicity
OF separate funds, often containing
hundreds of thousands of dollars,
was issuing warrants and paying in
terest because other funds were
bare. 1t was like a man with his
pockets full of coin pawning bis
watch to- get cash to buy theater
tickets, because his theater money
pocket was empty. Take the peni
tentiary revolving fund. Year after
year that fund carried about $780,
900, which 1S months of every two
years lay idle in bank. 1t could
only be used to buy jute. When
jute was bought and the jute prod
ucts sold, the sale put back the mon
ey with profit, and the cash had
to lie in bank till another legislat-
ure would authorize more jute to be
purchased.
Now the state funds are all con-
solidated, the state will issue no in
terest-bearing warrants nor bonds
so long as it has cash in any pocket
(except, of course, 1t cannot use
permanent funds).
The bill requiring daily remit
tances to the state treasurer means
a great deal Of extra work to many
state officers, but considerable prof.
1t to the state. Aside from school
tax money, the states chief receipts