The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1911-01-31
When Bill By Treasurer
CTedmef Is Passed
Requires That Funds Be
Placed At Interest
On Competitive Bids By The
Banks Uf The State

| Columbus, o., Jan. 30-Another big
reform measure of the Democratic par.
ty, one that will prevent public offic
lals fIom grating interest on public
money, is the bill introduced in the
senate by Senator Cetone of Dayton,
at the request of State Treasurer
Creamer. 1t compels all state money
to be deposited by competitive bid
ding every two years, and also re-
quires the state treasurer to make
out and transmit daily to the Auditor
OF State statement of the condition
of all money under his control, and
at the same time send copy to the
| Governor.
This bill will prevent a repetition of
the boodling policy of former State Re-
publican treasurers, who became ar
rogant during so many years of con-
tinuous Republican power, became dis
satisfied with the $6,500 annual salary
paid them by the public, and began de-
posting public funds in banks in their
own name, and pocketed the interest
earnings thereon.
In the investigation conducted by
Governor Harmon with the assistance
of State Treasurer Creamer, it was dis
closed that on January the 11th, 1906,
total of 100000 of the states mon
ey was on deposit in boss Cox's bank
in Cincinnati. OF this, 100000 was
not in the name of the Republican
State Treasurer, and on which the
state drew not one cent of the inter-
est.
AS the result of other similar dis
closures there are pending suits
against the estate of Former State
Treasurer McKinnon and his bonds
men to recover $116,7S5 and interest
thereon, and against former State
Treasurer I. B. Cameron and his
bondsmen to recover $211,721, with
interest, claimed to be due the state
as interest on state funds carried in
various banks during the administra-
LlOUS OIL Lne TWO.
Under the Republican system it was
the custom to call into the State
Treasurer this money loaned out for
private gain, just before the regular
quarterly examinations of the state
treasury so that the examiners would
find the money there. Then it would
be returned to the banks. 1t will be
impossible to do this under Treasurer
| Creamer's bill which requires the
state treasurer to make sworn state
ment daily to the Governor and State
Auditor showing daily balances in the
state treasury.
During the Republican regime it
was customary for the State
Treasurer to have from 100000 to ST.
100000 of cash on hand so that it
could be loaned out to swell his per-
sonal income. The Creamer bill will
stop this under the provision which
says that not more than $50,000.00 as
reserve shall be carried In the treas
ury vault.
That Republican extravaganza in
the state treasury department has
been succeeded by an economical poll
cy during the Democratic administra-
ton is shown when a searchlight is
thrown on affairs there. When finally
forced by law to loan money at inter-
est, Republican treasurers followed
the law drawn in the interest of
banks and placed it out, obtaining one
per cent interest on active accounts,
and two per cent on inactive accounts.
The incumbent disregarded this law
and placed the money out at competi'
tive bidding, securing rates Of 3 lilo
for active deposits, and A lilo for In
active deposits. AS a result notwith
standing he had $1,500,000 less mon
ey to deposit than his predecessor, the
interest earnings on public money IN
| 1910 were $3S,344.71 more under the
competitive bidding system than they
would have been If the custom OF Re
}. publican State treasurers had beeI
followed.
One of the most significant facts Il
j that the banks which had been paying
, one and one.half per cent for activ'
; deposits under the Republican sys
TEN, voluntarily bid two and one-hal
' per cent for the same kind OF an at
Q count under the Creamer system o
competitive bidding.