The Mena weekly star., 1913-09-25
STATES MONEY
 OUT ON INTEREST
T, Is inc First Time in HistOry-Is Subiect to Check by the State and May Be Withdrawn
 at Any Time.

For fhe first time III the history ol ,rkansas the state is receiving in- toros, on funds carried by the state
 troosurv. A total of $275,000 has hoon nIaced on interest among ten hanks of the state, under terms of tcf i30 approved June 1, 1911.
 The money thus deposited, and tbo rales of interest paid upon such deposits, are as follows:
 Rank of Jonesboro, $l0,000 at i per cent.
 Lawrence County Bank, Walnut Ridge si5OOO at 31a per cent. Irnion Bank and Trust Company, Ratesville, S25,OOO at 3A per cent. Mercantile Trust Company Little Rock. $iO,OOO at i per cent. Hampstead County Bank, Hope, s25,OOO at i per cent.
 Arkansas Trust and Banking Company, Ashdown, $25,0OO at 6.S6 Il
 per cent.
 First National Bank of Hunts yille Si5,O0O at per cent. Marshall Bank, of Marshall, $25,- GOO at l13 per cent.
 Citizens National Bank, Arkadel- nhia. S25.O00 at per cent. Bank of Rogers, Sl0,000 at 49-l6 per cent. :,
 This makes total of S275,000, all of which has been placed on deposit in fine various banks with the eX- cepton of that allotted to the Huntsville bank. The bond was onIv recently approved and the bank was notified that the money is ready for it upon call. By the terms of the act there may be one depositary in each of inc thirty-six senatorial districts. There were only fifteen bids, and there are no Repositories in twenty five counties.
 The money that has thus been placed on deposit is from the state rapitol fund, with the exception of S25.O00 from the Confederate pen sion fund, which the board consid- cred might be placed out at inter est temporarily.
 The money is subject to check by the state at any time, and may be Withdrawn upon demand. No bank i, permitted to handle more than SJ0000 nor more than the amount of ifs paid-up capital. It is also required to give approved bond to the stale for two and one-half times the amount deposited, and the state is therefore in the pres ant instance protected by aggre- gate bonds of S550000.
 There is still left in the state treasury in actual money about S100Ooo Of this sum about S200, coo is in the state capitol fund, while the rest of it is in the school and pension funds, which are being paid out and diminished daily. The board having control of the state depositories consists of the treasurer, attorney general and the governor. The previous board consisting of Governor Donaghey, Attorney General Norwood and Treasurer Crockett, did not consid- er that it was good public policy to lend the money under the proVi- sons of the act, and no advantage has been taken of it heretofore un- til the present time.
 One of the objectionable features Of the act, in the opinion of those who have made a study of it, is that the collector of a county where there IS depository is required to make his settlement with the de- poSltory rather than with the state treasurer, and the depository is not required to pay over to the state any surplus above the amount all lowed by law until the last of the month. Under this provision it would be possible for some small bank which had made its bond as a depository to receive from a col Iector sums largely in excess of the amount Of deposits it is permitted to carry, in which event the state
 would be very indifTerently secured against failure of the bank and
 consequent loss of it's funds. Under these conditions" re- marked a state official, "it is indeed remarkable condition that. with
 half million dollars in actual cash m the treasury, the state is unable to meet it's obligations" Acquisition is being made on the capitol fund now for the comple-
 uon of the building, and when the commission has awarded it's con-