The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-04-16
Congressman MurdOck Has
Stirred Up Much Interest.
His Move to Have States Return
Borrowed Money.
FEW HAVE RECORDS
Claim There Is Nothing to In.
dicate Sum Due.
New York Only One That Has
Kept Loan Intact.

Washington, April 16.-Intense inter-
est has been aroused among officials Of
twenty-six states to which the federal
government, in 1886, loaned $2S, S,000.0 600
out of the treasury surplus, in the bill
recently introduced in the house of rep
resentatives by Congressman Victor
Murdock of Kansas, authorizing the
secretary of the treasury to call for
the repayment Of the money.
Dispatches from many of the capitals
OF the states which were beneficiaries
OF this generous act on the part of the
federal government show that the re-
spective authorities are quoted as say
ing they could find no record of the
loan. The officials of Little Rock, Ark;
Jackson. Miss, and Baton Rouge, La,
for example, said they had no records
of such a transaction, while other
states officials. those at Madison, Wis,
and Frankfort, KY, for instance, re-
ported that the conditions of the state
treasures were such that the money
could not be repaid unless it were
raised by special taxation or issue of
bonds.
Mr. Murdock's bill seems to have
caused considerable anxiety among the
officials of most of the states which re-
celNeQ d portion OF the 1eQerdl surplus
nearly three-quarters Of a century ago.
While his bill will not pass during the
extra session of congress, it is likely to
excite considerable discussion next
winter, when its author expects to
press it for passage
In the meantime Mr.. Murdoch is COL
lecting all the data possible on the sub
ject. with a view to presenting them to
the house when the measure comes up
for consideration. In an interview with
the State Journal correspondent last
evening, he said:
Judging from the informa ton have
received, the proposition of repayment
is viewed in two ways. One view is that
the money ought to be returned volun-
tarily. The other view is that repay
ment is out of the question because the
federal government did not ask repay
ment long ago and the states have lost
account of it. The proper spirit is
shown, however by Assemblyman
Cuvillier, of New York, who has intro
duced a bill at Albany calling on the
state comptroller to make restitution of
the S4,O00,0o0 New York owes the ma
ton. This is eminently the proper view
of the matter. New York received the
money. I have seen within a week
slomen pledge of repayment signed by
the state treasurer of New York, in
1886, Kayser by name, backed up by
formal pledge of the state assembly
which authorized him to accept the
money.
/ In the Twenty-fourth congress,
when the advisability of the loan was
under discussion some one expressed
an evil doubt as to the honorable full
| fillment of the obligation of repayment
by the state. Rising in his place on the
floor of the house, Representative Smith
of Maine Indignantly repelled such a
charge, and, expressing the majority
sentiment of the house, delivered him
self as follows:
xyi1Iincr 10 fr,,c =,
sovereign states? 1 have confidence in
the fidelity and integrity of the people
and the state governments. I hold
them in infinite esteem. 1 will not go
ahead of events to call in question the
honesty of the people and of the state
governments, which are under the peo-
pies immediate influence. 1 have full
and entire faith in the state govern
ments. / believe they are incapable of
entering into any relationship with the
federal government and proving
treacherous to that relationship. / be-
lieve that no assurance which any state
government shall give the federal gov
ernment will be violated. No, sir.
would deal with them in good faith,
and in good faith they will fulfill their
every obligation
Bearing out this spirit of mutual
faith between the nation and the state,
Secretary of the Treasury Woodbury.,
in his annual report December, 1886.
WIolt. w Lille lleSe QcPOSllS Will the
states are to be treated in the nature of
a temporary deposit or investment on
the credit of each state respectively
without interest. the profits or income
of it alone to be expended, the prin-
cipal is to be held ever sacred and
ready for repayment whenever needed.
like a fund that is providently designed
to meet any future contingencies
New York" continued Mr. Murdock,
(which has held her sum intact to this
Il yar,f full foff in ho% ~,-I
There remains merely the act of repay
ment to close the books on the whole
transaction
Now, this is not true of most of the
other benefiting states. Take Indiana.
for instance. A dispatch says that
Deputy State Auditor Reed has gone
through the books and is unable to find
any trace of the sum of $3.50, ,254. A
which was loaned the state. And yet
the money went to Indiana have
carefully gone into the records and find
it was paid May 5, 1897 1t was trans
mitted by drafts upon the branch
banks at Lawrenceburg, New Albany
and Madison. N. B. Palmer, state
being witnessed by Sam Merrill and
Jacob B. McChesney. Mr.. Palmer
signed formal pledge which is on file
and which reads in part as follows:
"'I, N. B. Palmer, do hereby certify
| that the said sum has been deposited
| by the secretary of the treasury with
| the state of Indiana, and that for the
| safe-keeping and repayment of the
same to the United States, in conform
| ity to said act of congress, the state of
Indiana is legally bound. and it's faith
I, is solemnly pledged And in pursuance
| of the authority of the act of the legis-
| lature (passed December q, 1886, au-
| thorizin~ the receipt of the money! for,
and in behalf of the state. hereby af-
| fix my signature and seal in testimony
| of the premises. and of the faith of the
said state to pay the said money so de-
posted, and every part thereof from