Show SAViNG SA VING TO STATE WOULD BE SLIGHT ASSERTS JEWKES No Steps Have Been Made T To Toward Toward To- To 0 ward Putting Scheme Into Effect Although an arrangement has been effected whereby the state funds ma may bear interest at 2 per cent no steps toward placing the plan i In operation havo have been taken This was the ex- ex ex explanation of State Treasurer Jesse D. D Je Jewkes kes In commenting on tho the report that he had devised a new now method for tor handling the state funds Uri Under tinder er th tho new now arrangement the financial saving to the tho state Mr Jewkes said yesterday yesterday yester yester- day would be comparatively slight Mr Nr r. r declared that thai tho the announcement an that tho the funds could be b placed at at l Interest terest was not made to tod d de teat leat teat the Kelly Kelly bi bill l or an any other thor bill bUl pending In the tho legislature I Fourteen banks which are no now nou state depositories depositories- said sald Mr Ir Jewkes I have signified their willingness to pa pay I Iper 2 per cent Interest Int on the state funds deposited with them M My object in learning learning- their attitude on this matter was to place myself In a position where the iho state funds could be placed at In Interest Interest interest In- In terest If It the tile occasion demanded Would ouM Effect ct Savin Saving While this arrangement in Itself ml might ht effect a saving of ot about OOOO there are other consideration which would materially cut down the net savIng saving sav say ing lag to the state Concessions now granted the state would cease as gratuities Tho The state would be required reQuired re re- ro- ro to pa pay interest at 6 5 per cent on the overdrafts which exist in different state funds at certain periods of ot the year car Extra clerical help would be re required re- re In the office of ot the state treasurer treas trees Rent wo would wod d have to be paid wherever the treasurers treasurer's office was es- es Continued on P Page Pago gO 3 3 Column 1 SAVING SA VING TO ST STATE STATEr ATE r r WOULD BE SLIGHT l i 1 ASSERTS JEWKES JEKE t I No Steps Have Been Bees Made To Toward Toward To- To ward d Putting Scheme Into Effect r. r I 1 f Continued from Page 1 Then there would be an nn ad ad- j ad expense Incurred in establish one ona bank bank for state clearings Th The I on the treasurers treasurer's bond on would premium have to be met by the state I All of ot these things at present cost the state nothing being conc concessions granted in lieu of or interest Of Ot course II it It might be arranged so so that the state co could ld still have han some or all of ot these concessions conces- conces conces lens as W well N as the Interest Conse Conso- Consequently I Que tl it would be difficult to estimate estimate estimate esti esti- mate the amount nt the state te would lose losa in concessions by b demanding demanding- Interest en on its funds The net nn financial gain to the state sute either way would bo be slight One year rear a slight saving a would bo be ef of- of Another year the tho states state's balance balance bal bal- ance anee might be lower and there might be bea I a slight sigh loss to the state c 1 Make lake lak Little Difference nc I R It really would make little differ differ- difference ence once either wa way and my only object in j advocating the tho interest system would sf h boand bo to satisfy the whim of ot the people and place the office of the the state sato treasurer treasurer treasurer treas treas- ona business basis While I would authority for making a 1 have e a no legal change of or this kind who would comI complain com coin I plain so long as a saving was effected for tor the state slate states As s arrangements stand at present Ir Jewkes believed it impossible to tomake tomake make a fair tair estimate of or what the th saving sav- sav Ing ing- ing would have ha been to the state last If r. r year tar ear with interest b because auge it depends ij 1 f argel on what concessions concession could be bo had together with the Interest With j an average deposit of ot last lastu u I j year jear tr the interest at ate ate- 2 per cent would e have amounted to Rental for fe offices would have amounted to 1200 Another Another deputy deput would have required 1500 OO and the premiums on the treasurers treasurer's treas- treas 5 bond would have hwe amounted to i 2100 An overdraft of or in the tho state reservoir fund bearing interest rat at 5 Ii per per cent would have necessitated I i the th expenditure of or This would make lI sake a total expenditure of ot for tor I what are rc now concessions exclusive of he charges of ot the bank acting as ag a s ch clearing aring house for tor state warrants and 6 5 Inter Interest t on overdrafts o that might arise In In other state state funds Replies In Negative I Asked i if It he lie thought the vote ote on the constitutional amendment amr providing for Cor I ft IL change e In the regulation of tho state treasurers treasurer's office indicated that the i people wanted a a. change chang in the present arrangement Mr r. r Jewkes replied in int t r the negative The results of or tho election said Mr Ir Jewkes indicated that the people wanted no chan change c. c However this ma may have been been- because the people were contused l confused on the constitutional amendments amend- amend i j ments as arranged arran ed on the voting voting- machino ma- ma mahine chino hine at nt the la last t gen general ral El election fi 11 the they ma may have favored this par par- amendment the they were opposed to others which ma may have led them themo par par-I to o vote no on all aU the proposed amendments amendments amendments amend- amend i ments The sentiment expressed In the n as I found It seemed to indi- indi indicate tate cate that the people favored a change chang That the banks s which would carr cary carry s the th Inte funds would be bo selected b by byi c- c i the state treasurer under the new new ai ar nr- nr Just as at under th the presen present system Is the declaration of ot M Mr J Jewkes The treasurer said he tie Is the tod Ian of or the states state's mone money He lIe is undo under bond and consequently should be allowed al allowed allowed al- al lowed to use his own discretion In sc se Ie- Ie testing lesting the tho depositories Allowing th th banks of the state to bid would permit an unsafe bank to submit the highest highes bid thus placing the tho states state's wealth 1 In Ina a hazardous position It would b be dlf l- l to say whether nn any change woul be made in the present list lI t of ot tortes However Howe r. r the number would woul not be increased very ver much as that thu would handicap the treasurer in hi hl work ork Not Rend Re-nd Kelly icily DIM Dill Questioned as to whether or not th the announcement ment of this atran arrangement wa waI made with the view of ot defeating th the I Kelly Kell bill pending In the tho legislature Ic Mr lr Jewkes replied I do not know what the Kell Kelly bill bil Is I 1 haven't read it h. I 1 have hae done n no nc lobbying for or or against any bill pendInG pending pending pend pend- ing in the legislature I have not riot spon spent ten minutes In the legislative halls hall I I since tho the legislature convened I However I am opposed to nn any measure measure measure mea mea- sure that would prorate the tho deposits deposit of ot state funds runds among among- the banks of th the state It is impractical and would work u-orP a n serious handicap on the office of or the state stat e treasurer The prorating of ot th the state deposits would make a number of transactions necessary where on one suffices now A deposit of ot would have to be divided among amon twenty different banks making twenty transactions transactions trans trans- I actions take tako the place of ot one The deposits deposits de de- posits cannot be prorated without applying P ap- ap applying plying the same tame principle to the dis dis- bill that thai This makes an any has for tor its object the pi prorating orating of or the states state's funds Impractical Favor Amendment m nt Nevertheless I would favor an amendment to the constitution as submitted submitted sub sub- mUted to the tho people last year ear Legislation Legislation Legis Leis lation that would handicap iho rho treasurer treasurer treasurer treas treas- in his work I would take to be un- un constitutional The constitution makes the state treasurer the custodian of the states state's money Consequently 1 would consider that that if if the treasurer was tied with laws I a L prorating the states state's funds he ie would be working under an unconstitutional unconstitutional la law David Mattson former stale slate treas- treas treasurer treasurer said yesterday that he believed in inthe inthe the he state stat receiving Interest on Its dally daily deposit balances but ho was rather Inclined in- in lined to believe that Mr Ir Jewkes would rind ind upon experience that his plan for tor retting getting it would not net the results ex- ex and would not bring the state an my more gain than the system of ot concessions con- con cessions secured by b himself during the lh thenet net last No concessions were secured ec r d from flom the he banks at all said Mr lr Mattson until during my term of ot office Of Ot course ourse when I came into o office there vas was an overdraft and before e that the state tate had to borrow money monc and of or course ourse there was nothing to secure conce con- con ce upon But Dut during my m term the treasury received a large amount of or none mone noney and Instead of ot having haing to borow borrow borrow bor- bor row ow row during the last two years cars there has las tas been an average daily balance In Inthe he the treasury of ot about Certain Concessions Gh Given nI n. n I got the tho banks to give certain concessions con- con cessions which in savings to the state as ms s shown by m my biennial report gated an amount equal to 2 per pel cent interest interest- on the average dally daily balances The report to which Mr Mattson re- re erred shows that he saved 1000 to the he state on his official bond b by saving the he premium through h g-h hawing having the banks In n which state deposits were made go gos o oas as s security without charge an additional addi- addi tonal lonal by b having tho the banks anks charge hurge no Interest on overdrawn fund reservoir warrants and Interest on n bond issues b by selling the bonds at atI atar atar of ot 4 43 i cent par ar at 4 per cent instead per merest Interest in the east The bonds were I old sold to the banks having state dc- dc posits Mr lr Mattson figures s that the concessions concessions conces- conces lons secured by b him really netted the i of or sawing saving than an tate state more in the wa way say average 2 per p r cent Inter Interest st on dally balances would have ha produced Such an arrangement t as Mr Ir Jewkes I outlines was not open to me m during my I term erm erns said Mr lr Mattson I OIl got the I best est concessions concession possible from the anks banks and I believe the they were as good bood goods Of course as cs s the plan now proposed I collection of ot Interest on state deposits Is s all rl right ht but m my biennial report I I shows howl the method by which I believe bellove i It t can be brought about successfully I and nd the tho only onh way wa in which it can be bedone lone done one The plan referred to b by the tho ex treas is that outlined in a proposed bill bills made jade a part of or his biennial report That bill ill provides for tor the creation of boards ot f finance for the state cities towns counties aunties and school districts the boards to act in conjunction with treasurers 3 o and nd and be responsible for the handling of or public funds fund designating designating- depositories the thc payment of ot interest and andic the he ic bidding by isy b banks for funds through h setting forth their ions ons and fitness and their conditions I |