Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1920-10-22
of Idaho
Is Not Broke
Las BEEN OPERATING ON CASH
BASIS UP TO SEP
TENDER
The State of Idaho is not Bank

The State of Idaho is not Bank
I'M. The non-partisan league press
IDAHO, including the mendacious
kofino Tribune, have been telling
beir readers that the state of Idaho
now bankrupt which is a lie and
en- 50 saying are either ignoramus-
cr liars and know it. Political
Initial is being made of letter
To-. D. F. Banks, Commissioner Of
nance of the state to state deposit
bry banks, asking that they alb
brb state warrants until January
irhcut discounting them. The let
er itself proves the lie. The pur-
|oea of the press in making these
Itatements is to discredit the pres
nt state administration by playing
ID9n the limited knowledge the aer-
tge person has of state finance af-
.airs. The letter follows:
"State of Idaho, Department of
Finance, D. F. Banks, Acting Com
missioner of Finance.
D ". Davis, Governor.
Boise, September Goth. 1920.
pear Sir:
| Up to the present time idle funds
b the hands of the various state
ffiras have been able to absorb the
furrent issues of statee warrants.
Fhase funds have been exhausted.
fnd because of existing financial
fonditions the state is confronted
fith the danger of state warrants
baing discounted.
Such oction may -umu 20 impair
fhe credit OF the state and prove
bp4 more disturbing factor in 3 stu
bti0n which is calling for most care
r. consideration by the banking in
Ferests of the state. Under the
circumstances it has been decided to
ap9-al to the depository banks,
which under normal conditions en-
joF substantial, deposits Of state
money at low rate of interest. TO
ear absorb portion OF the war
raats to be issued during the next
three months. These warrants Of
|corrse are regular state warrants is
sued for expenditures authorized by
the last legislature and bearing s
per cent interest. They will probab-
y re called during January and
February with funds received from
the first installment of taxes, en-
foWment funds and annual interest
payments.
We will be very glad indeed If
YOU will advise this department just
~nat amount of these warrants you
Will use between the first and fif-
eenth of the following three months
october, November and December.
Thanking you in advance for
Fcur prompt attention and assurine
Fo,i that your cooperation and help
Will he appreciated.
Very truly yours.
Department OF Finance.
D F. Banks, Acting Commissioner
fou will note the first para,
,ranh OF the letter where 1t says
Idle funds in the various state Of
lcees have been able TO absorb the
,urrent issues of state warrants
anyone with an ounce OF brains who
'nows anything about state finance
Snows that the money which Is sup
,aTed to pay the bills for this year
ls20, do not come into the public
.,.eesury until January and July Of
,ne Following year In this instance
wi From the above quotation
,rom the first paragraph II Is plain
y evident that the state has run OF
cash basis for more than the hal
" the year. It IL customary to IL
We and register warrants to pay al
y the years expenses and these
aarrants are drawn on the incom
ne taxes, OF the 1920 taxes which
VII be received In January and Jul,
'f 1891 Now az regard to the "ex
sting financial conditions" spoken
f in the letter and 1.-The danger o.
"a states warrants being discount
I'd let us say that call money II
worth 8 per cent. or the highest tina
.as been known for years and a!
lhe state warrants only draw six pc
'rsht II can readily be seen tina
IN are in danger Of discount.
" discounted the holder OF tn
warrant would not get the full val
0e intended for the services he ha
,,'hdered the state. thereby impair
.h2 the states credit. And 1t !
'"'s phase Of the situation the stat