Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1908-07-13
BANKS MUST
PAY INTEREST
STATE TREASURER HASTINGS
ADJUSTS MANNER OF HAND.
LING COLLECTION ACCOUNTS
BANKS PAY ON BALANCES.

BOISE, Ida, July 13.-At a
meeting of the state depository
board yesterday the manner in
which State Treasurer Hastings has
been handling the states money
was taken up and plan adopted
which will change the procedure
somewhat, says the Boise States !
man. Secretary of State Lansdon |
was not present, being absent from
the city. Gov. Gooding and Attor-
ney General Guheen, the other men,
bers of the board, conferred with
State Treasurer Hastings. with the
result that an understanding was
reached as to how the business is to
be conducted in the future on ba-
sis which the Boise City National
bank and the Bank of Commerce
both agree to handle the collections
on paying interest on the daily bal
ances.
In substance all banks having
"collection accounts" or being au-
thorized to handle collections Will
be required to furnish surety bond
in some responsible surety company
for the safekeeping Of the money,
the bond to be given by one OF the
companies regularly authorized to
engage in business in Idaho, and
subject to the approval OF the state
depository board. All such deposits
or evidences of credit deposited Tor
collection will bear interest at the
rate of 2h per cent as determined
bv the depository board, as compar-
ed with 31s per cent paid by the
other deposit banks. The fact tnat
there is a discrepancy in the rates
was explained by the board to tne
effect that the collection accounts
will be naturally checked on more
fre,lv and subject to greater Hue
tuation. -
The. amount of the bonds to be
reou,red was not made known as 10
the Boise City National bank ano
the Bank of Commerce, but 1t was
announced that the law governlns
the bonds required under the oe'
nository act would apply, and tine
amount of the deposits are to of
likewise regulated, the statute say
ing. 1.-The amount Of the deposit ma.
he ,oual. but shall not exceed ~
nor cent of the penalty of the bond
hut in no case shall the amount oe
nosited by him (meaning the state
treasurer) exceed Is per cent O
the paid-up capital stock OF th'
bank" -
Gov. Gooding, when seen at TN
Idanha last evening stated as
member of the state deposltor
hoard he believed that the chang
nronosed would place the "col'ec
tion accounts" on a just OASIS
comnared with the deposits unoe
the depository law. and while nc
IN strict accordance with the le'te
Of the law, the board recognized .l'
necessitv for such accounts. lie p'
,;eved the banks would have pee
willing to pay interest on daily oa
oncas If Treasurer Hastings had
demanded several months ago.
citing a reason for such account
the governor stated: he ia'.
,nterest was fixed lower Una
charged on the depository depos,
b.cause these accounts are 10
used more for checking purpoae
The law provides that the treasur'
NOV check on the deposits au'ho
,zed under the depository Jaw d
with an interest rate OF Sh p
cont the small banks. those Il
having large circulation couid
atford to handle the deposits we
thew to be continually checn @
npon. At least such checklhs w. ~'a :,
have a tendency to make the
nosits less desirable" 49,.
Attorney General Guheen s',, :,
he did not know as the poa'u ~, T.
the authority to require MI :. m -
t;res to demand interest pu. II .
within its jurisdiction to hS
rate after the treasurer haa ueS.e 49,
20 do so. The board would app,
Tho bonds as provided by law.
was satisfied with the mahne.
which Treasurer Hastings prop'
t., handle the funds.