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nants on the state treasurer in cer- tain matters. It is the duty of the state treasurer to receive and pay with- out delay all warrants presented to him # ANNUAL REVENUES ACCOUNTED FOR. Fourth. There was paid into the state treasury from all sources during the fiscal year 1896, $12,635,127.59. Of this amount there was transferred to the sinking fund, as provided by law, $369,371.50. There was returned to the counties three-fourths of the state tax on personal property received, amounting to $2,038,936.04, thus leaving a balance for general appropriation purposes of $10,226,820.05. According to the testimony of the state treasurer the appropriation exceeded the revenues of the last fiscal year about $2,500,000. Although a large amount of money has been received and paid out by the present treasurer, there has not been any loss to the state. The Chester County Guarantee, Trust and Safe Deposit company at the time it went into the hands of a receiver had a deposit of state funds amounting to $60,000, but the persons who had given a bond for the security of this fund paid into the state treasury the full amount of money held by said trust company, and thus relieved the treasurer of any further responsibility in connection therewith. So far as your committee is advised this is the only banking institution having a deposit of state funds that has become financially embarrassed during the incumbency of the present treasurer. According to the testimony of the state treasurer there was in the general fund on Jan. 29 last, in the 61 depositories named by him, $2,984,104.65. A list of the banks and amounts deposited with each will be found in the notes of testimony, which is made a part of this report. This statement does not include the sinking fund. # IN FIFTY-SIX YEARS ENTIRE LOSS TO STATE FROM ALL SOURCES 23 10-1000 OF 1 PER CENTUM. Fifth. At the request of the committee the state treasurer submitted a statement showing the annual receipts and expenditures of the commonwealth from 1840 to 1896, inclusive. In this period, 56 years, the state has received from all sources $410,974,961.73. During the same period it paid out $407,131,131.68. The loss to the state in this time has been very small. So far as the committee was able to ascertain no loss has ever occurred by reason of the default of a state treasurer or his bondsmen. Several years ago an item of $9,432.61, which had been carried along in the sinking fund account, was dropped in pursuance of a resolution of the board of sinking fund commissioners. This was done on the opinion of the attorney general, who reported the item uncollectable. This loss was the result of the old system which allowed county officers to deposit fees belonging to the state in such home banks as were designated by the state treasurer. Prior to 1880 the Bank of Commerce, of Erie, was designated as such a depository. The county officers deposited to the credit of the state certain fees of office. The bank failed, and the state treasurer took the position that inasmuch as the depository was fixed under authority of law he was relieved of personal responsibility by reason of any loss that might occur. The claim was submitted to the court of common pleas of Dauphin county, No. 309, August term, 1881, and it was decided that the treasurer was not personally responsible, yet the fact remained that the state lost the sum of $9,432.61, but this is the only loss of any kind the state has suffered since 1840. Prior to that time the committee could not obtain records giving the exact data in reference to our finances. The loss expressed in a fraction is about 23 10-1000 of 1 per centum of the amount received. It is very doubtful if any banking institution in this or any other country can show so small a percentage of loss in the handling of money, and it will be seen that the records made by the commonwealth and her state treasurers, beginning with Almon H. Reed in 1840, and continuing down to and including the term of B. J. Haywood in 1896, is one in which every Pennsylvanian may feel a just degree of pride. # NO INTEREST PAID TO THE STATE TREASURER FOR USE OF FUNDS. Sixth. Under the law neither the commonwealth nor the state treasurer are authorized to receive interest on deposits. Inasmuch as it has been alleged that interest has been paid on these deposits, the committee deemed it advisable to investigate this question. The state treasurer, cashier, assistant cashier and corporation clerk all testified that no interest had been paid to them or any of them on account of state moneys deposited in any banking institution. The testimony of these officers refutes the charges that state money had been loaned for political or campaign purposes; that money had been paid out of the treasury to persons who did not render service to the state, and that persons were required to receipt for a larger sum than they were entitled to receive. All these questions were directly asked by the committee, and the answers were positive and unequivocal denials of the several allegations. In order to keep down expenses the committee deemed it inexpedient to subpoena officers of banking institutions to appear in person. but required each banking insti-