Arizona republican., 1922-03-23
STATE WARRANTS
HEREAF TER ARE To
DRAW 8 PER CENT

To protect the credit of the state
it was found necessary, at a meet
ing of the state loan board held yes
terday afternoon following a confer
ence between the board and the men,
bers OF the Phoenix clearing house
representing the banks of Phoenix. to
| place the rate Of interest to be paid
by the state on its registered war
rants at per cent The conference
and the meeting of the board was
called after Governor Thomas T.
Campbell had approved senate bill
No. 3, an emergency measure. which
authorizes the loan board to fix the
rate of interest which unpaid war
rants shall bear.
The rate OF interest fixed yesterday
viii become effective this morning.
the board said, and will apply to
state warrants dated March %. 1922.
and after. BY placing the rate of
interest at s per cent. the board
stated, the merchants receiving the
warrants in payment of state sup
plies, contractors, employees, ETC.,
will be able to receive face value for
the warrants from the banks instead
Of being forced to discount the war
the past, the board stated drew S
per cent interest and were generally
discounted by the banks throughout
the state. No warrants bearing 8
per cent interest. the board stated,
will be discounted in the future by
the banks.
The state loan board is composed
of Governor Thomas Z. Campbell:
Ernest r. Hall. secretary OF state;
and Raymond r. Earhart. state
treasurer.
Senate bill No. 8, which was ap-
proved by Governor Campbell yes
terday morning and passed to Ernest
r. Hall, secretary of state, was a
measure passed by the special session
of the fifth legislature to re-inact the
same measure which was passed by
the fifth legislature IN regular session
but was found unconstitutional be-
cause the enacting clause had been
omitted from the bill.
The bill, as passed by the special
session, amends paragraph No. 103 of
chapter 3 of the revised statutes of
1913 entitled "State Treasurer. It
is made an emergency measure be-
cause the state is at present without
funds to pay expense warrants drawn
upon certain funds, and became a law
yesterday with the approval of Gov
ernor Campbell.
The bill provides that all state
warrants. when drawn according to
the law. shall be paid by the state
treasurer in the order of their pre-
sentation. II no funds are available
with which to pay the warrants, the
bin provides. the treasurer shall en-
dorse the date of the presentation for
payment on the back of the warrant
and when it is paid. interest not to
exceed 8 per cent per annum shall be
allowed from the date of endorse
ment and shall be paid in addition to
the face value Of the warrant. The
interest, the bill provides, is to be
paid from the general fund Of the
state.
The bin further provides that Jan.
1, 1928, the rate OF interest on the
warrants shall not exceed 5 per cent
per annum and provides further that
1t shall be the duty of the state loan
commission under the authority
vested in them by the act, to fix. and
change from time to time the rate
Of interest to be paid, the amount not
to exceed that provided by the bill.
The bill was passed by the senate
on March . and by the house on
March Is.