The log cabin Democrat. [volume] (Conway, Ark.) 1901-1982, 1913-09-25
TREASURY'S FUNDS
BEARING INTEREST
FIRST TINE IN HISTORY
S275.O0O DEPOSITED IN TEN
ARKANSAS BANKS BY
STATE BOARD.

! time in the history of Arkansas the
state is receiving interest on funds
carried by the state treasury. A total
of s275,000 has been placed on in
terest among ten banks of the state,
under terms of Act 430, approved
June /, 1911.
The money thus deposited, and the
rates of interest paid upon such de-
bosits, are as follows:
Bank of Jonesboro, $4,000, at
! per cent.
Ridge, 10000, at 3 IL per cent.
Union Bank and Trust Co., Bats
vile, S25 200, at 3 "a per cent
Mercantile Trust Co., Little Rock,
$4,000, at per cent.
Hampstead County Bank, at Hope,
$4,000, at per cent.
Arkansas Trust and Banking Co.,
Ashdown, $4,000, at 6 :3-6 per cent.
First National Bank of Huntsville,
81 1000, at 4 per cent.
Marshall Bank, at Marshall, $685.
900, at 1-2 per cent
Citizens National Bank, Arkadel-
phia, S25 200, at 4 per cent.
Bank of Rogers, 100000, at 1916
per cent.
This makes d total of S275,Oo0, all
of which has been placed on deposit
in the various banks with the excep-
ton of that allotted to the Huntsville
Bank. The bond was only 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 depository in each of the 35
Senatorial districts. There were only
Is bids, and there are no depositori
es in 25 counties.
The money that has thus been
placed on deposit is from the State
Capitol Fund, with the exception of
S25 900 from Confederate pension
fund, which the board considered
might be placed out on interest tenn
porarily.
The money is subject to check by
the state at any time, and may be
withdrawn upon demand. No bank
lis permitted TO handle more than
$50 900. nor more than the amount
of its paid up capitol. 1t is also re-
ouired to give approval bond to the
state for two and one-half times the
amount deposited, and the state is
thereforein the present instances
protected by aggregate bonds of
S55O,OO0.
| There is still left in the state treas
ury in actual money about 100000
OF this sum about S200,000 is in the
state capitol fund, while the rest OF
It is in the school and pension funds
which are being paid out and dimin-
ished daily
The Board having control of the
state repositories consist of the
treasurer. Attorney General anC
Governor. The previous board, con
eietjr2 Of Gov. Donaghey, Attorney
General Norwood and Treasurer
Crockett. did not consider that it was
GOOD cubic policy TO lend the money
under the provisions of the Act, anc
mo advantage has been taken of il
therefore n'.ll the present time.
Requisitions is being made on the
Capitol Fund now for the completion
of the building. and when the Com
imission has awarded it's contracts fol
the rest Of the work, it will be useC
rapidly.
One cf the Objectionable features
Of the act. in the opinion of those
who nave mace 4 study of it, is tha
the collections q & county where
there is . depository is required t.
make als settlement with the depos
itory rather tban with the State
I Trea sure. the depository is MOI
required 10 pay over to the state any
surplus above the amount allowed by
Law. nntil ne .ast day of the month
Under this provision it would be pos
lsible for some small bank which hac
lv7ade it's bonc as 2 depository. to re
lceive fro.r collector sums largely
lin excess q the amount of deposits
permitted tc larry; in which event
the state wonld te very Indifferent!
secured against failure of the banl