Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-10-08
STATE ON CASH !
BASIS; SCHOOL
FUNDS SH|F TED
Surplus Receipts From
Sale of Bonds Put
Temporarily Into Use.
Will Draw 7 Per Cent
Interest Instead of T.:
Costs State 81 ?. c.
Special to The Tribune.

/ Special to The Tribune.
Helena. Oct. 7.-Througll the trans
fer Of 100000 belonging to the state
educational building fund. the general
fund Of the state was put back on a
cash basis Friday afternoon and the
necessity Of further registration of
| general fund warrants was obviated for
a period. at least.
The action was taken upon the au-
thority of the board of examiners, in
secret session. after the condition Of
the treasury had been presented by
Assistant Treasurer J. W. Rogers. He
stated that on Thursda.a $4,000 in
general fund warrants had been pre-
sented and that. under the law the
treasurer was compelled to pay cash
for the warrants or else register them.
One bank. he said. had presented S13.-
600 in warrants and insisted upon the
cash or the registering of the warrants.
Accordingly, he was compelled to regis
ter this amount and the warrants are
now to be sent back to the banks which
had forwarded them for collection, one
warrant going back to New York.
Governor Shows Interest Saving.
He was asked what had become of
the money of various accumulated
funds Of S25O,O0O which had been
transferred to the general fund and he
replied that this was exhausted in adj
dition to $3.50. 600 which had been OBJ
tanned from the sale ofstreasury certifi-
Gates.
Governor Dixon said the treasury
now holds S9OOOO0 received from the
sale of educational building bonds and
that no more than 100000 would be
required for the building program this
fall. leaving $3OO,0OO to remain in the
banks. drawing but > IL per cent in
terest, while the state is paying IL
per cent on this same money. He ex-
planned it was desired to use this $780,
600 to take up state warrants which
will be redeemed in December. To
allow these warrants to go to discount
be said would mean loss to the hold
ers Of from . to ) per cent: whereas
the state. by cashing them. would re-
ceive the difference between the IL
per cent which the banks will pay and
the Z per cent earned upon the war
rants, making a saving to the state Of
4 l. per cent.
Rankin Uneasy Over Plan.
Are we going to get money enough
to replace this money!" asked At
WI hSS Aduhlu we dTt III
ready pledged up to $S5O.OOO upon
the repayment of the treasury Ger
tificates.'
I'VE will have to re-foat that
loan" replied the governor "By
taking this action the state will ac-
tuallly save $50 day, without
taking into consideration the loss
which it would sustain through the
Of these warrants
II am very anxious to do what the
governor suggests" said Mr.. Rankin.
IF | can be assured that We will have
enough coming in in taxes to repay
the loan. insist upon gcttins
financial statement from the treas
urer before | act on this. We have
not been getting it and I want it"
Decide in Secret Session.
Mr.. Rogers informed the board that !
his estimate on receipts for the year
Of 1921 was $2.2S7O 900. that the
treasury holds little more than |
S7O0,OO0 in state warrants which must |
be paid out of this money and that |
this will leave over $1.3OO,OGO from
which must be deducted the admins |
tration costs of about $25O,OOO per
month, for the remainder Of the tax |
year. He said he had not the slightest
fear but that this 100000 would be
repaid a January.
The governor then moved acting
upon the assurance OF the assistant I
treasurer. that he be authorized to
transfer 100000 from the educational
building fund to the general fund for
he purpose Of taking up warrants.
Mr.. Rankin objected to the putting
IF the motion until the board had
more fully discussed the matter, and
IN his motion the board went into
secret session, during which it author
zed the transfer of funds.