The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1913-01-09

cessions mentioned above. | have
made reference to this matter not
only to show that the state funds
have been managed as judicious'y rs
tho circumstances would permit, but
Z demonstrate the fact that We have
to considerable extent, satisfied me
emands of those citizens of the
state who believe that interest should
acknowledge the justice Of these
claims and 1t becomes our duty TO
give heed to them. The people are de
inanC.ng prompt action In The in,tte.'
AID by every RUE Of reason they arc
right in their contentious. The prop
csition, therefore, as | view 1t re-
solves itself into a clear question O.
just what course to pursue to best
accomplished the results.
''In this connection, | am firmly of
the opinion that it will be necessary
to enact new legislation completely
covering this subject before we can
reasonably hope to secure permanent
and substantial earnings on our, pub
lie funds. 1t is very true that the
state funds have shown a fair earn
ing during the past four years, but
then 1t should be observed that the
condition of the states finances was
extraordinary during this time and
that such conditions is not likely to
prevail much longer. That is to say
that had it not been for the existence
of the reservoir fund overdraft and
state road bonds, the state treasury
would have had no opportunity to ef-
feet such favorable negotiations for
the state. 1t is also true that here
and there throughout the state the
funds Of some local governments are
earning interest, but these are ex-
ceptional cases, and venture the as
sertion that the great bulk of the
county, city, town. and school funds
in the state are not earning interest
And / deem the same to be likewise
true Of large portion of the state
funds which are in the hands of the
several state boards, officers and in.
situations, and over which the state
treasurer has no control.
AS the matter now stands in this
state, the collection of interest on
public funds is optional with the Of
fetal or officials having the custody
Of the same. 1t Is an open question
however, whether any such official
can legally loan public funds. But
whatever the legal status of this
question may be, it is my opinion
that the collection of interest in any
instance presumes the existence OF
loan in some form o. another; and
that loan in any form always en-
| tails risk. Therefore, any custodi-
an of public funds in this state who
negotiated such a transaction would
be liable on his official bond for any
losses resulting, and because OF tnis
situation there are none who care to
assume the risk. ] hold, therefore,
that in view OF such conditions as
now hold in this state, it would be
eminently unfair to compel by law,
or even to expect, the collection OF
interest on public funds until the Gus.
todans of such funds have first been
relieved Of at least major portion
of their present liabilities, and those
liabilities fixed elsewhere.
Public agitation has thus far
seemed content to center its demand
for the collection of interest on the
state funds alone. 1t should be OBJ
served, however, that the state funds
comprise but a small fraction of the
combined total of all the public funds
in the state. 1t is my judgment tina
II interest be collected on all public
funds, and there is no good argumen
! to the contrary. Therefore when W,
undertake to compel by law the col
1
will If We are sincere in our purpos,
! provide accordingly for the collection
\ of interest on the respective funds o
I the several counties, cities, towns
and school districts in the state. An,
We will further provide for the co.
lection of a uniform rate Of interes
on all of these separate funds. From
this viewpoint, the question assume
great magnitude, and | am firmly col
WINGED that we will never obtain sal
isfsctory results until we enact a dc
pository law, with sweeping prov
sions affecting every public fund
great and small in the state. In thi
respect l am not alone in my opir
ion; the experience Of other state
will fully bear me out in these cor
tentions."