The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1911-11-13
Statement Of State Treasurer.


To the Public.
Certain newsT pers In Oklahoma
City have attempted 10 create the i'm
preston that | have impaired the
states credit in the manner OF hand
ling public funds. The state treasurer
now has on hand over $500, 600 OF
state warrants, all taken BY me as
security for deposits OF state money in
banks throughout Oklahoma More
than five months ago the banks hold
in- state deposits We're given TO un
derstand that they must deposit with
my department, state warrants, and
that they must not discount state war
rants. The banks understand that
this has been my policy whether the
newspapers and public generally do or
not. In this way have done every
thing that was possible to do TO IRE
serve and protect the states credit.
With very few isolated exceptions the
demand that state warrants must be
offered as security for deposits. has
been compiled with. In no case dur
inr the last five months have | ac-
cepted anything except state warrants
for new deposits. and so far as | know
every bank holding state deposits
from my department has paid par for
state warrants. If any bank holding
such deposits should discount state
warrants, I would withdraw the de-
rOsit and put the money in banks
which would cooperate with the other
banks OF the state doing business with
my department, TO maintain lAe states
credit.
An attempt has been made in GER
tain quarters TO show that the money
controlled by the Commissioners uf
the Land Office had been used to bet
ter advantage in protecting the states
credit than the money in the treasur-
er's Office. | call attention to the fact
that prior to November 3, 1911, the
money controlled by the commission
ers of the land Office amounting TO at
least 100000, had been deposited in
banks on surety bonds, thus denying
a market in the state for 100000
worth OF state warrants which could
have been used as security for this
money. Governor Cruce is chairman
of that board and, although his at.
tention was called to the condition OF
the state warrants, some months ago
by the state treasurer, it was not un.
til November 3rd that he observed
the necessity of dispensing with sure
ty company bonds, and giving a mar
ket to state warrants to the extent
of 100000. The resolution of the
board changing the character OF Sc
cur.ty taken for the deposits of money
belonging to that department, will he
a great relief, and go a considerable
extent in aiding the treasurer in pre-
serving the states credit. The states
credit would not have been impaired
to any appreciable extent IL this
policy had been pursued in the past
by the commissioners OF the land Of
fiC.
At all times | have been ready to
cooperate with the school land de-
partment in furnishing market for
state warrants and the governor will
always find me ready to cooperate
with him in preserving the states
credit, Notwithstanding the purported
public statement that the school land
department would preserve the credit
If the state Independently OF Treasurer
Dun.or.
The school land money can be han
died much better through the state
-reasurer's department. The law pro- 7.
i bits the state treasurer from depos- |.
iting in any bank more than the I.
capital stock of that bank, while the /
school land department is not restrict |
I'd aS to the amount of money it may
deposit in a bank. If all the money
we're with the state treasurer de- /
lartment, the law would require fair
md equitable distribution among the /
banks OF the state, while this is not I
iequired of the school land depart |
nent. For instance, in one bank ] |
lave on deposit secured by state war ,
ants, money equal to the capital /
stock of the bank. In this same bank .
I'D TO a few DAYS ago. the school land .
department. had. secured by a surety
bond, $4,000. This cOndi- .
ion illustrates the disadvantage of .
having the states money handled /
through two de artments.
There are many reasons why there
5 such a large number of state war
ants outstanding. The largest items
ire over S650,OO0 uncollected delin-
luent tax of the various counties;
,250.O00 or more of gross revenue or
Toss production tax unpaid: also
deficiency appropriation by the last .
legislature amounting over s700,000 a .
otal of sl,600.O0O; and a large
amount of tax revenues held up by .
uits pending in the federal courts.
II VII be impossible for the treas
Irer and the commissioners of the .
and office, acting together, to afford .
permanent relief. and in my opinion, .
he only way to secure permanent re- .
icf and stability 10 the states credit .
$ for the deficiency warrants, which .
mount to about S3,0OO,OOO. 10 be .
unded in the form of state bonds,
1earing say four per cent interest. .
rhe outstanding warrants at present .
iraw six Ter cent. The bonds of the .
.tate would find n ready market in .
he east. and the state would save
100000 per year in the difference be-
ween the rate of interest which the
ponds bear. and that paid on the