Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-02-16
'1[VD JUGGLING
o[ STATE DEPOSITS
=, p,svents Political Favorit-
~, and Gives Funds to Banks
m Interest Bidding
HAS SUPPORT OF sPRouL
GEORGE NOX MCCAIN

'nu ..oo made famous by Matthew
pn,ov pun Quay. will soon be at an end
'',I a. more will graft grabbing houris'
D" S,a,Iomen with predatory instincts
o,,st on state funds and the interest
thereof. :, ,,,o t,ouso h,
Walker. chairman of the
''", ,;,,oc nm banking. becomes Ia"
cOmiiIlii,,,t OIi ,,,,t nm end 10 the scandals, pub
j wiz nrivotr. that at intervals dur ,
lc ahu ast forty years have clustered
s,nd the state treasury -, r..
foHnu %n.o will be no more tragedies from
| ln,ihb ln,ihsbnndling of state funds /; no op-
he lni,y l, for officials TO favor certain
poIiu"IS poInn Sy giving them large deposits
m9A,h .homn " IN return asking for an ac =
inu inuoJotion .nt for themselves or their
tyad t,isnds in discounted notes ana oor
rcwed money ,n,L, ,,d;+or Con
...iaelect H." Samuel $. Lewis. Ihe
d,r,I feature OF it is the elimination
etuto' .Lo nrcscnt system Of paying HAT
Wv prr cent on state deposits.
@ @,a,o,d Il IS proposed to invite bids
i,"n, trS,' banks and trust companies
Deposits Subject to Bidding
S,o,o depositorics would he desig -
,.J trom among the banks and trust
p'm~,nips psru offering the highest rate OF
Nnp"t talost doposits to be amply protected
Nv security bonds.
There will be- two classes OF state
dsnosi.rips known ms active ana IN
.,,;rc The active banks or dep0sl
s.,;es will be those carrying check
,,s balance available from day to day.
Iu,ct;yc dcpostorics will receive state
t~Ss an prrmanpnt deposit. but sub
SCt to withdrawal upon ten days no
Us State repositories will be limited in
rnmbrr and confined exclusively to the
hanks. trust companies or private
S,rEInc concerns that offer the highest
interest with the greatest amount oil
security. ,.
Tho advantages of the new system
raI bc apparent TO those who desire to
20 cean. honest administration OF
state funds.
Kills fOIItlCal fTlNhcsc
Va longer will it be possible for state
o6ciols 70 kite checks and have notes
S'sronntcd on the strength of state de-
rositS in certain banks. as IL was in
| other years.
Political combinations can no longer
benefit bv the collection of surplus
interest over and above the legal rate.
The scheme Of political favorites
making deposits in such repositories.
Ihsn ovcrdrawing their accounts. as
has been the case. will be at an end.
The ancient device of obtaining the
|rolilical assistance of bankers and bank
directors by throwing them n sop in the
vay Of state deposits can no more be
worked
Moreover. the game of putting out
Mate money as an inducement to banks
b favored to discount notes of officials
Interested in business enterprises on the
kiie, as has been done in the past, will
be at an end.
4 repetition of the Quay Haywood
scandal will be rendered impossible.
Big Return for State
| Auditor General elect Lewis declares
frQlalifcdy that if this bill is enacted
nO law and is honestly and .mdiCiously
iri"d into effect there will be sufficient
fdjitOnaI money paid into the state
treasury to pay the running expenses of
BAT department Of the state govern
)nnt
II is worth while for the people TO
ftop and consider JUST what that meals.
An additional fact is that the bill
fllI not Great" any new positions or
|npos" any additional expense on the
IoMmonWraIth. The record of all trans
CllonS' all bids nnd awards are to be
}pen 10 the public
ranking concerns will be asked
{nrough advertisements in daily news
aperS To submit bids for state deposits
l't a. Il contractor would bid on a slky-
tIdper; or an engineer on steel mill
Y cracker factory.
No concern can receive for depOsit
Pore th3n - per cent of the total
myun, ot lis capital stock. surplus and
fndyided profits. r''' '
FUNDS to BE Secured
"'"rl'l must be given by surety com.
PaGPS or private individuals from three
4 i've times the amount of state MONEYS
f'Rositod, '"'' '''''s
The state treasurer, ouditor BANANA,
eTerary Of tho COMMUNICATIVE sr"SrI., and a.
tate commissioner of bonking "nu ara 'tc ne
NIm the state dcpositorv h"arJ are uho to
u! nav" charge Of the diStrihutinn
I'd supervision of the stoIa's % 'U",,on mnnon
nG'r the Lewis bin. "'' "'o''eS
"9e other very wise and imnortort
IovjSion is that where nrivatn % I'I"rtino borE;na
onicrFnS o,iS ar" selected as state % denHsis
l!eS they obligate themselves +" Smh.
" 10 examinations by the stotc honG oup
department. or by the oxominor" nm.
'I1I"d WI,"d by the depository hoard up
""en any bank bids for A state dc.
%', j. must submit a "omnIctc ' Me- Is
Itcl OI iut,r.., ''|'' . anu avery