Evening star., 1942-01-10
Change Sought
In County Fund
Deposit Law
Arlington Treasurer
Troubled by Excess
Money Banks Refuse
BY ALEXANDER r. PRESTON.

=
A feature Of the Virginia law
which discourages some banks from
accepting public funds for deposit
would be changed to make such de-
posits desirable. under a plan an
nounced today by John Locke Green,
treasurer of Arlington County, Va.
Mr.. Green said he will discuss with
State Senator William D. Medley
and Delegate Charles R. Fenwick a
special act for Arlington County dur
ing the Virginia General Assembly,
which convenes Wednesday at Rich
mond.
Because of rapidly mounting rev.
enues from year to year. Mr.. Green
has found himself in the uncomfort-
able position of having on hand
more of the publics funds than the
banks will accept The county treas
urer has had to resort to depositing
the excess collections. which this
year amounted to $4,000, in bank
safe deposit vault until regular bank
accounts drop to point where the
banks would accept the money from
the vault.
Would Amend Tax Code.
Mr.. Green will ask the legislators
to seek an amendment to the tax
code which now requires that before
any public funds may be deposited IN
any Virginia bank, the bank must
deposit with some other depository
or trust company sufficient bonds to
cover the amount of the deposit.
The effect on Arlington County,
where tax revenues are rapidly
growing larger each year, is to cause
all of the banks doing business with
the county, to put up large number
of bonds which must be insured.
The result is that most of the
banks are reluctant to be put TO the
expense of paying insurance pre-
miums on bonds which are to serve as
security for money on which there
is no profit.
For the past two years, Mr.. Green
has utilized to the fullest extent the
deposit margins allowed by Airing
ton and Alexandria banks, and TINS
wear he made arrangements with
depository in Charlottesville to ac-
cept part of the county's money.
At the close of 1941. Mr.. Green had
s1239,0O0 on deposit in several
banks. The sum represents about
the maximum amount of bonds the
financial institutions would offer
as security.
Sees Highe.' Level.
IF business conditions continue
at the present level" Mr.. Green de-
clared, I'VE will have even more
money to place in safe deposit vaults
this year"
The treasurer will ask that legis-
lation permit the banks doing busi-
ness with Arlington County to de-
post their bonds securing the
accounts with the State treasurer
Office at no charge for the custody
and insurance Of these bonds. The
banks would be permitted to do this
in lieu of the present procedure.
The legislation would also provide
that, in the event of any litiga-
ton concerning the custody of the
bonds depisited with the State
treasurer, the State would give its
consent to be sued and would desig-
nate a proper official to act as de-
fendant in the suit.
BY this method. Mr.. Green said,
banks which have bonds available,
would be more agreeable to match
the county's deposits because no ex-
penses would be incurred in hand
ling the county's money.
Several bankers with whom I
have discussed the plan have ex-
pressed the opinion that it would
be of great help to the county," Mr..
Green declared