Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-01-08
STATE DEPOSITS
TO GO GRADUALLY
Will Be Withdrawn as the Need
Arises and There Will Be
No Ripping Done
YOUNG MAKES A STATEMENT
Says His Remarks of Last Night
Were in the Nature of a
Warning to Banks
YOUNG MAKES A STATEMENT


will not be withdrawn from the banks
and trust companies listed as inactive
repositories except as needed to meet
the appropriations, although there is
danger that before the end of the
year there will be little more than
enough to keep the six active deposit
tories going according to State Treas
urer Robert *. Young. Mr.. Young
last night issued a statement declaring
that because of the lavish appropria-
tions there were indications that the
general fund. already lower than 1t
had been for many years. would drop
so low that the accounts might be
concentrated in the active depositor
les.
In the neighborhood of 230 banks,
national and State. and trust COM
panies, will be affected by the with
drawal of State deposits to meet ap-
propriations. On January / the gem
eral fund balance stood at s5,601.-
947.1S, about a million less than it was
at the end of November. and since
that time over half million dollars
have been withdrawn. 1t is probable
that funds will be drawn out before
the end of the month as there are
heavy appropriations due and this is
the slack period of State income. The
sinking fund is not affected
MY statement of last night was in
the matter of a warning" said Treas
urer Young this morning. The ap-
propriations made were very heavy
and the demands are going to be large
this winter and Spring. Now at this
season of the year wes have had to
make large Withdrawals of State funds
to meet the expenses of government
and the objects of legislation and this
is also the time when the repositories
renew their bonds / have had many
letters from bankers asking about
probabilities of deposits and asking
what they should do about keeping
up bonds. l simply wanted them to
know the facts. 1t is not my inten-
ton to withdraw money from the
banks except as | must to meet the
Sta te's requirements.
Mr. Young said last night
This statement is with with view
of informing the public, and bankers
in particular, that appropriations
made by the Legislature of 1918, and
approved by the Governor, will reSult
in reducing the general fund balance
in the State Treasury to a point much
lower, during the present year, than
has ever been reached since / have
neen familiar with the fiscal affairs of
the State.
Observing the decrease of the
Treasury's general fund during the
first seven months of the present ap-
preparation period of two years, that
is. from June l to December 81, 1913,
IL is probable that during a large part
of the remainder of the present appro-
priation period the balance of the gen.
eral fund might be kept in the six
active repositories of the State with
out any increase of their present
bonds. BY active repositories are
meant banks designated by the Boaro
of Revenue Commissioners, on which
the Treasurer draws checks in daily
payment of current expenses: inactive
repositories being those banks hold
ing deposits of State funds upon which
the Treasurer does not draw checks in
payment of current expenses. The ac-
tive repositories are six in number,
two in Philadelphia county, two in
Dauphin county, and two in Allegheny
county. This distribution of active de-
positories is regulated by the act of
Assembly of 1906, and all repositories
are designated by the Board of Rev
enue Commissioners, with which
board sits the Commissioner of Bank
ing for this purpose, under the provis-
ions of said act. During all the period
of my somewhat intimate knowledge
with the States finances, the Treasury
balances have approXimated SS.000,-
600, S10.000,000, and even as high as
s14, 100000, whereas bby the last
statement of the Treasurer, at the
end of the month of December, at
which period the Treasury balances
are ordinarily as high as at any period
during the year, or higher. the general
fund balance was $5,600,000.
The States portion of personal
property tax. which last year amount
ed to S1,32S, ,043.S7, has been by act
of the last Legislature. diverted to the
counties, and it is doubtful If any sum
arising from tax on anthracite coal
will reach the Treasury during the
present year.
MY purpose in making this state
ment at this time is primarily to ex-
plain to banking institutions, which
have heretofore been inactive deposi-
tories of State funds, that many. If not
all, such inactive repositories must be
discontinued. Bankers should have
knowledge of the condition of the
Treasury and of the condition which
is likely to prevail in the future, so
that they may adjust themselves ac-
cordingly with reference to the cor
porate bonds required to secure State
deposits, and either surrender the
same in whole or in part.
Balances in the Treasury are likely
to continue to diminish as long as
Legislature, in its wisdom, continues
to appropriate large sums to widely
diversified objects which have no di-
rect relation to the State government.
unless corresponding provision is m made
for increasing the States revenues"