Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-01-12
THE STATE FUNDS.

A great deal has been said i'll the
past few days of the condition OF the
funds in the office of the state treasurer.
1t seems generally admitted fact that
at the time of the incoming of the new
state treasurer, there were on hand
and carried as cash some $GV,OQ0 i'll
certificates of deposit on the bank at
Bowbells, of which the retiring state
treasurer was the principal officer. The
laws of the state provide how the state
funds shall be disposed of, and they
provide among other things that all
funds of the state shall be carried III
designated depositaries, which are bond
ed to the state for the safe keeping of
the funds that may be deposited there.
The observance of this law makes all
funds of the state Immediately available
at any time, as funds are carried sub
ject to check and interest is paid on
daily balances. Inasmuch as the bank
deposits are protected by bonds given
by the banks to the state, it is impos-
sible for the state to suffer loss or delay
in the calling in of its funds.
There is no provision Of law, as we
understand it, by which funds may be
carried on certificates of deposit, from
any bank. Neither is there any means
by which the funds of the state, other
than school land institution funds, can
lawfully be invested i'll securities, as
would appear was possible from the
following editorial comment from the
Grand Forks Herald:
While the official report of the aud
iting board is not ready. from private
sources it is learned that Mr. Bick-
ford has, through the practice of en-
ploying the Bowbells bank as clear
ing house for many of the transactions
Of the office, permitted the bank to
become the temporary depository for
some $4,000 more than could legally be
placed there on permanent deposit That
sum is represented in the state treasury
by certificates of deposit which the new
treasurer, Mr.. Olson, is advised that
he cannot properly accept as cash. That
being true, and there seems to be no
question that MIR. Olson is entirely right
in his attitude, it becomes necessary to
turn those certificates into cash in or
der that proper settlement may be
made. This we are informed that MIR.
Blckford is now arranging to do, and
as the bank has among its assets gilt
edged securities representing a value
several times the demands upon it, it
is expected that this can be done with
i'll a few days without impairing the
banks reserve.
The only difficulty i'll the situation is
that this is not a good year to market
securities. no matter what their value
In an ordinary year the necessary tinan-
cial arrangements could have been made
without effort, and there would not
have been even the suggestion Of de-
lay in the closing up of the accounts.
In the present condition of the money
market, the placing of large blocks of
securities for cash is not so easy a
matter
If the funds of the state are carried
in designated depositaries, there is no
need for the marketing of securities to
make them available Either the Herald
is laboring under misunderstanding, or
there is a serious misunderstanding
somewhere as to the whole matter of
this carrying of certificates of deposit
as cash. The Tribune has refrained
from charging upon this matter of the
state funds until some official statement
should be made from the treasurer's
office, or from some one i'll authority to
speak 1t has not desired to do injus-
tice to anyone concerned, and has
hoped that no one might be culpably |
concerned. So many statements and
such conflicting statements have been
made regarding the matter that it would !!
appear all official investigation is the
only means by which the matter may be ::
put right before the public, which will ]
certainly want exact and accurate in
formation as to the whole matter I'll
the law providing for the safekeeping
of the state funds is not adequate, if |
the law providing for the examination
of the office of the treasurer is not
adequate. or il; there are means possible |
by which the law may be avoided or
set aside. these facts should be known
in order that the legislature may take