The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1912-10-24


a bond as he offered to furnish could
not have been lawfully accepted by
the state. and, certainly 1t would not
have furnished me with protection
and in the event OF loss, both myself
and my bondsmen would become the
liable parties. Because Of this stu
alton, therefore, and for the further
reason that | did not feel justified in
accommodating Mr.. Cutler at the pos.
sible expense of losing the bondsmen
! already had, his proposition was
not accepted. In taking this posi-.
ton, l was not only following my
own best judgment and the text of
the law, as | understood 1t, but
was likewise acting in strict accord.
ance with the law as Mr. Cutler ex-
pounded it in his splendid message
to the legislature in 1907.
Clear Exposition
In this message Mr.. Cutler recon-
mended that the present laws be so
amended as to allow the state to
earn interest on its funds; and I'M
der the title-"Care Of Public Funds"
i find these very words of his:
I'm this connection, | respectfully
call your attention to the fact that
under the present law the $4,000
collected as interest on the reservoir
fund cannot be lent out. 1t lies idle
in the hands of the state treasurer.
Yet with this fund (now over $780,
000) in its possession, the state last
year was under the necessity Of Dor.
rowing and paying interest on some
$390,O0O.
This fact should further empha-
size the recommendation made above
that the laws be so amended as to
allow all public moneys to be lent
on approved security, and the inter-
est used for the benefit of the state
or the subdivisions to which the
'nds belong"
1t is clearly evident by this that
during his own administration, Mr..
Cutler fully recognized the fact that
the states moneys could not be law
fully loaned. Hence the above rec
ommendation for remedial legislation.
Therefore, in refusing Mr.. Cutters
proposition, you must agree with me
that no better defense Of my actions
could possibly be found than his own
attitude on this question when gov
ernor of the state.
Banks Do Benefit.
The charge that the banks de ben
eft from the use of the state funds
is true. But they benefit from the
use of public moneys just as they
benefit from the use of the moneys
| of private individuals. The banks
as a rule, never pay interest on in
dividual checking accounts, no mat
ter how large the amount. Now the
states accounts in the several banks
70 necessarily of a similar character
for were they in the shape of time
| or savings deposits, they would still
| be loans and not subject to call in
cases of emergency. The charge
that very few banks are favored
with the benefits acruing from the
use of the state funds is mistake,
Let me summarize from my most
recent statement as state treasurer
of the public funds in my keeping
and Of their disposition. This state
ment was issued September 30, 1912:
| Receipts.
Total for the month of
| September, 1912 ......$ 42,293 IS
Balance on hand August
| 81, 1912 ............. 1,606,274 81
Total ...............$1,6 4s,56S OE
| Disbursements.
Total for. the month of
September, 1912 ......$ 9S,442 75
Balance on hand Septem-
Der 80, 1912. 81, $50, 1876. "a
Division Of Funds.
Then follows supplementary
statement of the present disposition
of the state funds, showing in what
banks the funds are deposited and
the credit balance in each:
Utah state National bank
of Salt Lake City ....s 262,561 OC
w. S. Mccormick & Co
Salt Lake City ...... 1854 IS
Merchants Bank of Salt
Lake City ............ 510,OS4. 19
Pingree National Bank of
Ogden ........ ...... 324,263 81
First National Bank,
Ogden ........ ...... 1O5,475. IS
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