The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1918-10-25
RECORD INTEREST
FOR OHIO FUNDS
Rate Runs at 5.5 Per Cent Un-
der Cox'S Administration.
RURAL BANKS ARE AIDED

Competitive Bidding System Proves
Its Worth and Results Not Only In
Greater Earning For State Funds
but Also In Wider and More Equit-
able Distribution.
Columbus, O-(Special.) Ohio Is
receiving higher rate of interest
on its money at the present time than
ever before. This and other inter-
esting facts are set forth in the an
nual report of State Treasurer Ches-
ter E. Bryan to Governor James M.
Cox.
A, new mark for Ohio interest earn
ings was set during the fiscal year
ending June 30 last, the period COW
cred by the report, when a total of
$500, ,397.88 was collected in interest.
The interest on $7,1O3,5OO in general
funds is drawn by the state at 4, Az
per cent and more. Less than 4 per
cent was secured on only $57S,50O,
while on the remainder of the state
funds, unusually high rates were
made possible. For instance: On
$3,256,e25 slightly less than 5 per
cent was paid by the depositaries,
and on $345,000 the rate was 5 per
cent and more.
Record Rate Established.
The interest which the state gets
on the general fund ranges from 9.S5
to As per cent, while on the insur-
ance funds the rate is from 4.35 to
$50 per cent. The last named rate
Is the highest rate ever received by
the state on any of its funds and
speaks volumes for the management
and financial perspicacity of the
present administration.
At the letting of inactive general
funds last year, Treasurer Bryan
placed the sum of $S,719,500 at AZ
per cent interest Two years before,
$7,385, 800 was let out at 3.9 per cent
interest.
Inactive insurance funds, placed on
deposit by Treasurer Bryan last
March and amounting to $3,601,6
are drawing interest at 4.9 per cent.
Two years ago, $1,191,570 in these
funds were placed at AZ per cent.
In other words, the Cox administra-
ton has placed more funds at
higher rate of interest than its pre-
decessOr.
BY prompt action in depositing the
funds at the new rates of interest,
gain OF 100000 was made in the
transfer of funds, the successful bids
being approved by the board of de-
posits the day Immediately following
the bidding. BY this action, state
moneys were placed in banks and
drawing interest from two to four
weeks earlier than usual.
Country Banks Profit.
1t 10 interesting to note In this
connection, that during the Republi-
can administration preceding the
Harmon administration, earnings on
state funds during the fiscal year
amounted to only $135,099, less than
one-fourth of the present income
from this source. The highest rate
of interest secured then was IN per
cent, as compared with 512 per cent
under the Cox administration.
The competitive bidding system,
now in vogue, was condemned at that
time as involving danger of loss and
that funds would be diverted to the
larger cities to the detriment of the
country banks. This has been dis
proved in every way and the expert
administrator of funds by the pres
ent administration has demonstrated
that funds are given a wider and
more equitable distribution and coun-
try banks get their full share OF the
monies of the state by the system
In vogue.