Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-01-09
YOUNG POINTS TO
SHRINKING BALANCE
Says That He Will Not Draw Out
the State Money All at Once,
But as Needed

State Treasurer Robert K. Young
last night supplemented his warning
to bankers that the time was coming
when he would have to withdraw
money of the States general fund
from all but active depositories by a
statement in which he said that he did
not expect to take out the money ex-
to meet the demands on the Treasury.
He said that his warming should be
understood by bankers who are ar
ranging at this time for their bonds
for State deposits and reiterated his
fear that the balance would go very
low during 1914.
"I do not intend to make a whole
sale call on banks for funds, but 1
want to warn them" said he. TO
day. for instance, there is about three.
quarters of a million in the active
repositories and they have given
bonds for three millions. ON which
they are paying"
1t is estimated that about 225 active
repositories are hit. The 100 or SO in
active repositories of the sinking fund,
which amounts to about $500, 900, are
not affected. Only those with gen.
eral funds are likely to be called upon
The Shrinking Balance
Just how the general fund of the
State. which a. few years ago was over
ten millions, has been shrinking be-
cause of the lavish legislative appro-
priations Is illustrated by this table
of the balances at the end of eight
months Of 1913:
May 81 .......$s,377,862.ss
June 80 ....... 7.791.96747
July 81 ....... 7,449.166.3s
August 81 ..... 8,452.003.01
September 80 :. 5.774.2s9.O1
November so :. .6,765,497.60
December 81 :. 5,601,s47.18
The jump in November was due to
the close of the fiscal year and the
effort to break all records in receipts.
Some large payments were also made
In December. but this is the slack sea-
son in State receipts. and the balance
may go down to $3,000,00e.
Mr.. Young says:
Young's View
Owing to communications from
various banks during the last twenty
four hours. L conclude there Is mis-
apprehension on the part of some with
reference to the statement given to
the press yesterday by me relating to
the subject of State deposits and the
general condition of the Treasury.
The withdrawal of State funds from
inactive repositories has been a mat
ter or necessity to meet the disburse-
of the State government. 1t
seems to have been the financial policy
OF the Legislature for some years past,
II they have a financial policy, to
diminish the balance In the State
Treasury by making appropriations in
excess of the annual revenues.
Withdrawals from inactive deposi-
tories will be made from time to time
only when necessary to meet the pay
ments due from the State. This not a
matter of policy on the part of the
treasurer, but a matter of necessity.
If the revenues should exceed the pay
ments, no settled plan of Withdrawals
from present inactive repositories will
be followed. Not many years since. in
fact. at the time of the completion of
the building and furnishing of the
State Capitol. the balance in the gen.
eral fund of the Treasury was about
$13,OOO.OOO. This balance has steadily
decreased since that time until now it
has reached the sum of about
$4,000. 900 or Sc, 600, 900, varying some
what from month to month. No trans
fer of funds from inactive to active
repositories has been found to be
necessary during the last week and
may not be necessary again for some
weeks to come. My statement of yes
terday was made with view to in
forming the public In general. and
bankers in particular, of the diminish
ing balance in the Treasury and to
state my conviction that a point NAV
be reached during the present year
when 1t will be necessary to carry all
of the general fund In the active de-
positor1es In order to meet current
expenses"