The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1919-07-24

essary to register warrants during the |
year. To me, the registration Of war
rants was not bright prospect, as
realized they would likely be dis
counted, because the local banks would
not be able to carry all of these regis
tered warrants issued during the year,
and that would mean that the indi-
viduals in whose favor the warrants
were drawn, would have to either hold
themor discount them in order to
cash them, which meant impairing the
states credit, as these warrants would
be scattered all over the United States
in the transaction of the states bus
mess
This condition of affairs could not
be ignored, and had to be met at once.
These problems caused many anxious
hours and in discussing them with
the Governor, i made the suggestion
that If law could be passed author
izing the issuance of treasury certifi-
Gates or notes, based on the tax levy,
1t would in my judgment, take care of
the situation until the taxes could be
levied and collected, as it would ena-
BILE the state to go on a cash basis
without having to levy an extra years
taxes in order to have cash on hand
with which to meet state expenses,
which / believed would save many
thousands of dollars each year In in
terest, and save the credit Of the state
as well.
: This suggestion seemed to lit into
the needs of the state, and the nee
essary laws were enacted by the legis-
lature authorizing the issuance of $751;
! 100000 of treasury notes for general
expense, and 81 10000 for road work
4 during the year 1919 and 1920, to run
one year from date of issuance, based
ON the tax levy made by the legisla
!, ture In other words, these notes are
: In anticipation of the taxes, the sale
of which will allow us to pay our ex
penses as we go, instead of having Il
register warrants, and wait until tn,
taxes are collected in January and Jul.
| 1920, in order to pay the expenses o
the state for 1919.
In order that these notes nigh
bring the very best price, we had tn
legality of the law authorizing thei
issuance passed on by the SupreIh
Court, and just as soon as its decis
ion was rendered approving the legal
ity of the law, $1,T00,O00 of thes
notes were sold at par and accrue
interest, bearing four and three-qual
tiers per cent while registered stat
warrants six per cent interest SO tina
this difference in interest resulted /
saving to the state of $21,250 Thi
is new departure in Idaho finances
but has been used quite eXtensivel
in eastern states and l am very pleai
notes, Ca little more athan one-thir
of the entire issue authorized) prove
the success of this plan of financing
The cash received from the sale {
i these treasury notes will be used to pa
= the registered state warrants just d
"a fast as we can figure the interest, an
+ take care of them.
< Another law which / suggested ths
Z has already proven its success, is ii
I one authorizing the State Treasure
I &c invest part of the surplus noni,
z In the various funds In the Treasure
!: other than the Endowment Funds,
4 state and county warrants and U.
Z Government Certificates. Through tn
! law, this department has been able
! increase its earnings $3.423.10 over al
Z above the 3 per cent this money woul
4 have drawn ON daily balances, sin,
/ May 9th, 1919, the date the law wei
Z into effect, and the prospects now al
. thai the passais, uf this one law. wi
4 annlle this department to increase i
I earnings Ia "a sum that will eAs-.d Il
Z total sum appropriated for the mai
4 fenances OF the department for the ~
\ year term For the month of Jul
Z alone. the increased earnings on a
I count of these Investments were s
Z $500
z Following H. n statement OF the
4 yestments made under this authority
~ Investment: State Warrants, RIA