The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1921-01-20
Treasury Has More
Money Than Banks
Can Legally Hold

Bingham county commissioners
are up against a strange problem
They spent most of Thursday after
noon and all of Friday forenoon try
ing to figure out way to take care
of the county money that has been
paid in for taxes. They had more
than they could legally deposit in
the banks.
Only month ago a mass meeting
was called to try to arrange for a
postponement of the date of paying
taxes and to provide for the remit
tance of the penalty on delinquent
taxes on the theory that people could
not possibly pay their taxes this
winter. The statement was repeat
edly made that people were unable
to pay their taxes and that it would
be ruinOus to require them to pay it
or let them go delinquent with the
penalties added.
OF course, nothing could be done
by the mass meeting and many men
in the meeting advised that people
were as able to pay their taxes as
usual or so near able that they could
go ahead and pay all they could
They pointed out that the difficulties
would only be increased by not pay
ing the taxes and that the county
government would be unable to meet
it's obligations if that course were
taken.
Each bank is required to give
bond covering as much as they care
to have the custody Of and then they
keen track of the daily balances on
hand, of the county money, and they
pay the county 8 per cent interest
on the balances. If the bank can
loan that money and get it back
again with enough interest to make
it profitable to them. that is their
gain. If they cannot, it is their loss.
Different banks give bonds for the
amounts they want to, and the
treasurer deposits money with them
as he wishes to.
The banks have made a practice
of furnishing surety bond bought
of some guaranty company, for about
half of the total amount of bonds
they decide to furnish to the county,
paying the premium on them, and
then furnish personal bond signed
by local men for the rest. They con-
slider that the commercial, or surety
bond covers the normal amount of
money on deposit with them, and the
personal covers the overflow at the
time the taxes are being paid in, and
which remains on deposit only for
a short time
The amount of business done now
at county expense is greater than it
used to be, but the old law has never
been amended. The volume of money
handled by the treasurer is so great
hat if it is all deposited in the banks
1T taxpaying time for safe keeping
'or the short period till it is drawn
'or use, it is more than they have
given bonds for. And the banks |
cannot legally give bonds for any
more because the law provides that
hey must not give bonds for any |
more than the amount of their |
,apital stock. If the banks cannot
Increase their capital stock they can
lot legally store all the money. The
county treasurer has no safe place to
leposit the money in the court house
10 has to take it to the banks and
hove it at them, hoping they will
axe it in violation Of the law. If
hey do not do that then the treas
lrer would have to rent a safety de-
'osit box and stuff the money into
hat. Then the bank would become
liable for it's safekeeping and would
AVE to take out burglary insurance
t an extra expense to cover the pos
ible looting of the vault, and that
n turn would have to be charged to
he treasurer by including it in the
entail price of the box.
The other alternative would be to
end the money out of the county to
ONE other bank or out Of the state
o some place like Salt Lake. The
anks in all the other counties are
n the same condition at this time,
nd If the money were sent to Salt
AXE, there would be the cost of
hipping it down, the risk of loss by