The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-04-22
RUNS ON CREDIT
Board of Education Is Issuing
Warrants to Teachers.
They Are Marked "Unpaid for
Lack of Funds"
and $50. 900 IS IN THE BANKS
But the Board Must Pay Six
Per Cent on Its Debts
While 1t Receives but Three
Per Cent on Deposits.
IND $4,000 IS IN THE BANKS

Defects in the laws governing the
board of education in the expenditure
Of money and favoring the city
hanks came to light this morning when
fhe fact was announced from the
office of the city treasurer, that the
BOARD has now on deposit some SoV'-
900 TO its credit in various BANKS anu
fiscal agencies in Topeka YET S-,os-;
90 worth of warrants were presenter
for registration from two banks Whlcn
had cashed them and which VIII draw
six per cent interest until money can
ue raised by taxation to replenlsh ire
General fund on which these warrants
Mere drawn In other words the
hoard has over $4,000 in actual mon
e. on hand yet because one fund on
Which these warrants have been
drawn. is short of ready cash the city
must pay to the banks six per cent
interest until they are redeemed.
Z There are six different funds on the
citv books which have cash to their
credit in banks in Topeka today one
al these. the building fund carries
K1S4512O. This amount has been
carried over from last year ana the
atv has received three per cent IN
trrest on this amount all or the time II
has been in bank. The board OF edu-
etion has been saving this fund for
some time to build the Lincoln school
fn order that they may do so on
cash basis, but on account OF pelnS
compelled by a law on the statute
books they can not borrow from TINS
fund. for one day, any amount to pay
4 warrant. even if they know that
the money could be paid back into
fhat fund the next day
2 Warrants today are being cashed
bv various banks in Topeka, that have
been issued by the board TO the school
teachers. When the attention of some
Of hnI rI called to
the fact that the general fund. from
which such warrants are paid, was
short of ready cash, they acknowl-
edged that such was the case but SAID
ii could not be helped and that this
practice of drawing warrants on the
general fund when it had no money
t. pay them had been in vogue FOR
several years.
Il Can't BE Helped.
Z When the attention of NJ. c. Hol-
hlan. clerk of the board, was called to
f1nis fact he said. ''It can not be helped
For we simply have to have money to
bun the schools. From July 1, 1915,
IL date. we have paid out S2,229.l6 in
interest to hanks on warrants stamped
not paid for want of sufficient FUNDS
and we have lately issued about S26,-
600 worth of warrants so stamped that
will carry interest and not be taken
care of till some time in July"
p This simply means that while the
city has on deposit plenty of money to
nav these warrants, if it could be ham
dlcd like anv business man would ham
die his business, its hands are tied by
raws which prevent it from saving the
interest it must pay until the warrants
are taken up.
Interest on the $4,000 must be paid
till July, which means that the city
must pay $3.50 per month to the banks
for the use of money it already has but
can not use and at the same time the
banks are receiving six per cent inter-
est on the amounts they pay out, yet
they are paying the city but three per
cent on the amount they now hold for
the CITY.