Arizona republican., 1921-01-06
ID MAKE CHANGE
 IN HANDLING IF FUNDS OF STATE
Custom Of Paying Out From General Cash To Be Abandoned By Treas urer-Temporary Deficit In Some Funds

Through the refusal of Raymond Earhart. state treasurer. to pay any warrants drawn on exhausted state funds % became known yesterday that IT, S. Ross. former state treasurer had paid out SS6S,S7s.75 from the gen eral cash which he had carried as cash items.
 That this custom has been followed by the state treasurer's office for some time past. before the term of Mir. Ross, also became known and that it will not bc continued was the emphatic state rncnt made by Mir. Earhart
 ~I will follow the law in the mat ter" declared Mir. 1sarhart.
 Mir. Earhart is registering every war rant presented 10 him, which will bear interest at s per cent until paid.
 Because of the present low rate of interest. the banks are refusing the warrants and the only way in which the matter can be corrected. according to Mr. Earhart is to raise the rate of interest. which in his opinion should not exceed s per cent. He will ask the legislature to make an optional rate cf interest so that the banks will ac- Ccpt the warrants. It is understood that the salary fund. while not yet ex- hausted. is on a wobbling basis, and that in less than SO days this. too. will Dc exhausted. While there is $1.69S,- sS4s7 In the general cash Earhart re- fuses Co touch this amount except for ends for which it is meant, and will handle all other funds in the same manner. he declares.
 There is nothing better than state credit" said Mir. Earhart. This is merely a temporary condition, a deficit in funds that can be relieved by a raise in the rate of interest. The state has not received it's funds. due to the money stringency. which is respon- sinle for the fact that 32 per cent of the county taxes of the different coun- tics are delinquent"
 Although it is said that Mir. Ross, as treasurer. did not make an equal dis tribution of funds to the different banks of the state. Mir. Earhart said that he would not redistribute the funds in any drastic manner, although there would be some change in the matter of handling state accounts.
 Nr. EarhaVt went through a some what similar experience in Santa Cruz when. as county treasurer, he found funds had been handled in much the same irregular manner in which the monies of the state are alleged to have been handled. He was successful in strengthening out the county, as he hopes to be with the state funds.
 Exhausted Funds
 He is every day refusing to pay the warrants drawn on exhausted funds, which up to date include the funds set aside for state hospital maintenance; state hospital building and improve ment. date palm orchard; date palm orchard and horticulture; Northern Arizona Normal school maintenance; Northern Arizona Normal school real estate: Northern Arizona Normal school building; Pioneers home main tcnance. Prescott dry farm; Salt riv- or valley experimental farm; state fair maintenance: state road tax general fund: state road tax Cochise county; state road tax Coconino county; state road tax Gila county; state road tax Graham county; state road tax Mari copa county. state road tax Mohave county. state road tax Navajo county; state road tax Pima county: state road tax Pinal county; state road tax Yuma county: Tempe Normal school main tenance. Tempe Normal school i'm provement: Tempe Normal school re- pairs. Tempe Normal school land; Tempe Normal school building: Uni. versity of Arizona improvement; Uni. wcrsity of Arizona farm; University o Arizona campus extension, and Uni. Ncrsity of Arizona citrus investment