Western liberal. (Lordsburg, N.M.) 1887-1919, 1916-11-03
HANDLING STATE LAND FUND DEPOSITS
NO CINCH FOR BANKS, SAYS BANKER

,n.ti Santa tsa F'i NEW ~ M Mexico MSy'% BaSas l which have S.,s S' S.ps s9%'V 03 siai SH I l%6
funds realize large profits tnerefrom. and in view of our own expert
ence IS the chief depository of those funds it has caused me some
bank of Santa Fe today, in response to. an inquiry for some detailed
land commissioner check for siiGs0488, being the total of accumu.
lated funds for the annual October settlement of the department, was
drawn on the First National here, and is one of the largest checks
People have an idea l think" said Mr.. Hughes, "r at least
around nTS Di,; and leaves large sums I'm of, Of money ng witt, with I'll the banks for i n1er
interest rates and make large profits The impression if it really
e ans Son rs r %nony wrong SanSr ms aso1 Danh' 1 IS Dor rG os 1Od Oh Oh o se SI aI
ume of the departments business and deposits than any other bank
have it entrusted to us. The commissioner has made our bank the
expense to the minimum. 1t is a compliment to the institution which
upon S aG te handling ~ Of thy these se'n mnd ds' is 0e ent GoG W %a@Is M large o
"As a matter of fact a bank finds it difficult to realize any profit
tain. The money is liable to be withdrawn at any time, and because
of this its use in current commercial loans is not practical for a CON
servative banking institution. 1t is true that at times the state land
deposits help swell our balances with our reserve banks in the east
on such deposits is very small.
state land office, pracdcally uses up al all profit accruing from interests
it represents a total of $3.50 separate and distinct items ranging from
50 up, all of which require separate handling, separate clearing on
other banks. scattered all through the United States and Canada, and
ment periods. The only times when our deposits of state land funds
wholly to the month Of October when the business is very heavy ryG in.
Ge o@ o as Shown 6orI by by THIS neuL large orsstt check x, to = ee od state treasurer nyam clearing earring
for this year, and establishing a new record in such payments to the
"onCe every SO often a check comes back anad we have the task
all the way back to its source. The land office deposits made here
during the past thirty days will asgregate half a million dollars To
nces the land commissioner would have required a special force of
trained banking men almost as large as our whole bank force here.
We handle all that detail, but we cannot make loans from these de-
posts, for we have notice that they are subject to immediate with,
drawal, or at any time.
The present land commissioner is exacting in his care for de-
tail, and while this is highly commendable on his part, 1t makes the
handling of his banking business a very arduous undertaking, Ere
quenty payments are made in excess of the amount due. Whenever
such an excess is under twenty cents the commissioner refunds 1t in
postage stamps. But over twenty cents we are required to issue a
cashiers check for the surplus which goes back to the man sending
in the overpayment mention this a s an illustration of the vast de-
tail work which goes vita this deposit. We are glad to have the land
department business; in many ways it is a benefit to this bank as 1t
OUT De TO any bank, ut anyone who thinks it highly profitable to
the bank handling it simply does not know what the expense of han
ding that business il.
There is one feature OF the drawing of this 100000 check on
our bank which is Of real interest not only to bankers but to all the
people of New Mexico. II shows an enormous increase in the rev.
enue the state is deriving from its lands. Those of us who are ia
mlhar with the transactions of the land office have been amazed at
the growth of the income for abe state If the operation of the state
land department and the administration of our lands is continued
upon its present efficient basis it is only a matter of a little time IN.
til our schools and practically all of our public institutions will be
maintained very largely from the income from state lands alone, thus
lifting a heavy load from the taxpayers. In the eleven months Of
this year the income from state lands has reached nearly 100000 90.
The time is now very near at hand when this income viii be over the
million dollar mark each year."