El Paso herald. (El Paso, Tex.) 1901-1931, 1919-07-12
arizona STATE
TREASURY Low
Cash Balance Dwindles Be
cause Warrants Cannot
Be Disposed OF.

Phoenix, ARK. July 12--HiSh rates
for money in New York and othei
eastern financial ceHters have inter
ferred with the registration Of war
rants Of the state Of Arizona to such
a degree that the state reasurer's Of
flee now has on hand warrants
amounting 10 SCI. 990.9e- Ordinarily
state warrants are registered and de-
posted with various banks. which in
turn are able TO negotiate them in
New York. But owing to the fact
that under the state law. the state
Of Arizona cannot pay in excess Of ;
percent interest. eastern banks have
declined 10 enter into the customary
arrangements FOR accommodating this
state rntn SUCH time as money from
the payment OF taxes is available.
Registration OF state warrants be-
came necessary earlier this year than
at any tine since statehood. it being
necessary for the state treasurer to
begin the registration Of warrants on
July 1. The cash balance remaining
in the general fund Of the state was
only S15.z22.56. and against this there
were warrants amounting TO s30t.5S5
drawn on the general fund alone.
leaving deficit in the general fund
OF the state Of approximately S2SS. COO.
Arrangement Proposed.
Arrangements are now being made
BY state treasurer H S. Ross with the
1laricOpa county highway commits
sion which has lust sold $4,000 0OG
worth OF road bonds. Wherein II Is
expected that the warrants Of the
state now on hand 10 be registered
viii be taken up by the county high
way commission It is pointed out
krH he =
such an ARRANGEMENT. The state will
be advanced the money on its war
rants while the county highway COM
mission, with only a limited amount
be enabled to loan funds not neces- I
sary at this time for a short period at
the rate Of percent on the best pos
sible security II Is expected that !
the state viii redeem the warrants in /
December. making the loans average 1
about five months.
Numerous emergency appropria- 4
tons. amounting TO $3.50. 600. together 4
with other appropriations made by 4
the last legislature. are RESPONSIBLE in /
part for the depletion OF the general /
fund at such an early date. according i
20 deputy state treasurer George Ear
hardt. An additional sum Of money.
estimated At 100000, has been tied
up By reason Of the mine tax suits
brought IN ella county, and through
the standard Oil corDany's tax suit,
Which Is yet TO be determined in the
federal court.
Solution in sight.
The supreme court OF the state re-
cently decided the mine tax suits in
favor of the state and It is expected
that the rather slim condition Of the
states strong box viii be relieved to
a degree within few days when
this money. representing the taxes
paid IN IN 1917 and 1913 by the In
s7iration Consolidated Copper COM
pany and the International Smelling
co1nan-- will become available.
Creation Of a general fund. embrace
ing III other funds rs subdivisions.
would result IN a saving to the state
o. S2o,en1 annually IN interest on
registered warrants. according TO
'1arhardt However. under existing
laws. moneys placed 10 the credit Of
7ne fund cannot be used 10 help out
mother fu1d- with the result that the ]
tate Al The present time. with over
100000 In ware rts &c be registered
,as over 100000 in a redemption
md which cannot he touched. al
nnush the money will not he needed J
'ntll long after money would he
n Table from taxes to replenish the
md ,