Capital journal. (Salem, Or.) 1919-1980, 1921-07-30
Hoff Asks
Changesl In
OregonAct
Report of Treasurer
Indicates Increase In
Business Of Depart
ment

The policy governing the use OF
state funds in the state treasurer
office should be more elastic, so
that when there is large balance
lying idle in one fund and short
age exists in another fund, the
first might be used to help the sec
ond, according to o. P. Hoff, state
treasurer, who today issued a
statement covering the activities
of his office in handling funds
during the last two years.
state money. Mr.. Hoff explain
ed, is deposited in the active ana
inactive repositories. The money
in the active repositories draws no
interest as it is drawn on daily to
meet current expenses. The mon
ey in the inactive repositories,
however, draws two per cent In
terest. During the last two years
OF the previous administration, the
average daily balance in the active
depository, which was not draw
ing interest, was s3S7, 200. Dur
ing the two years covered by Mr..
Hoff's report, the average daily
balance has been SIS, 900, and the
difference between the two funds
has been drawing an increased in
terest amounting to more than
$4,000. AT the same time the vol
ume OF business has increased from
$4,000, 900 for 1917-1S to $780,
100000 in 1890.
This increased business, Mr..
Hoff said, has contributed but lit
tie to the additional interest
earnings as the greater part OF 1t
is highway money which is almost
Immediately checked out.
The Industrial accident fund,
Including the segregated accident
fund, earned in interest in 1917
IS $8S, ,S65.95 and during 1920
$27O,514.65. The cash balance in
this fund, uninvested and lying In
the state repositories at two per
cent, when Mr.. Hoff assumed of
flee, was $9S5,000. Il
~ have kept this entire fund in
vested in good bonds" Mr.. Hoff
said, with the exception or g..
average balance of $159,000 which
is sufficient for current opera
tions. The difference, 1895, 900,
has been drawing approximately 9
per cent interest. The average
amount in these funds increased
from $1,S9S,256.31 for 1918, to
$3,75S,175.29 for the period COW
cred by this report. This is an in
crease of 100 per cent.
"Prlor to the time assumed of
flee. 1t was the general practice to
accept all appraisements OF prop
erty without examination. I start
ed the policy OF examining all such
with the result that
during the two-year period, 1919
20, more than $4,000 was re
ceived by the state on account of
taxes, over and above
what 1t would have received had
this examination not been made.
the last two years OF the previous
the receipts OF
this department were $15S,000, as
against $4,000 for the two years
covered by my report"
When the general fund Is ex-
hausted, Mr.. Hoff explained, the
law requires the treasurer to in
iorse warrants drawn against this
Iund, mot paid for want of
lunds," and the state then pays 6
per cent interest on such warrants.
Several times this shortage has
occurred" Mr. Hoff stated, but |
nave avoided the payment Of such
interest by investing the trust .
unds in these warrants. The last {
legislature, however, enacted intoi
aw a bill which prohibits the 1
tate investing its funds in state /
or certificates. So when
he general fund became exhaust {
d in June of this year was un {
bic to carry on by use of other q
unds. However, I made arrange 4
nents with Salem banks to pay /
.eneral fund warrants up to a