Repository: UIHistories Project: Board of Trustees Minutes - 1932 [PAGE 446]

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444

board of trustees

[September 29

pay interest on daily balances in his custody at the rate of two (2%) per centum per annum. During the period ensuing there has occurred a continuous loss on behalf of the treasurer owing to the impossibility of employing the funds to bring enough income to equal the required two per cent. Inasmuch as obligations of the United States in an amount aggregating the general funds in the hands of the treasurer have been purchased and pledged as security therefor, and the average yield on such investments based upon market prices obtaining during the period has been less than two per cent, the treasurer has sustained a loss therefor. The rate paid upon bank balances, funds on deposit at the credit of depositary banks, by clearing house members at N e w York, Chicago, and other reserve cities is but one-half (yi) of one per cent (i % ) per annum. The depositary of the treasurer is required to maintain a reserve percentage of its deposits in cash upon which it receives no return. Under these conditions the treasurer makes request of the Board that the requirement for interest upon funds be changed from two (2%) per centum to one (1 % ) per centum from and after September I, 1931, and also that the balances upon which interest shall be calculated shall permit the deduction therefrom of unrealized amounts represented by checks, warrants, and other credit instruments in process of collection. In the opinion of the treasurer the suggested lowering of the rate will more fairly equalize the present arrangement, leaving the way open to adjustment i and when a f change is reasonable. The treasurer will be glad to appear before you for further explanation i you f so desire. Respectfully submitted,

Hazen S. Capron

Treasurer, Board of Trustees, University of Illinois On motion of Dr. Noble, the requirement for interest upon funds in the custody of the Treasurer w a s changed from t w o ( 2 % ) per centum to one ( 1 % ) per c e n t u m per a n n u m from a n d after September 1, 1931, until further action b y the Board with the provision that the balances u p o n which interest shall be calculated shall permit the deduction therefrom of unrealized a m o u n t s represented b y checks, warrants, a n d other credit instruments in process of collection. O n motion of D r . Noble, the question of working out a basis of compensation for the Treasurer w a s referred to the Finance C o m mittee for consideration a n d report.

MATTERS PRESENTED BY THE PRESIDENT OF T H E UNIVERSITY The Board considered the following matters presented by the President of the University. APPROPRIATION FOR DREDGING BONEYARD

(31) A recommendation that the Board of Trustees of the University of Illinois share with the City of Urbana the expense of deepening and widening the Boneyard from Wright Street east through Urbana to prevent the over-flowing caused by that stream during the high-water seasons and that an appropriation of $2,300, or so much thereof as may be necessary, be made from the Reserve and Contingent Fund for this purpose. O n motion of M r . Trees, this appropriation w a s m a d e b y the following vote: A y e , M r . Armstrong, M r . Barr, M r . Blair, M r s . Grigsby, Dr. Noble, M r . Trees; no, none; absent, M r . Barrett, M r . E m m e r s o n , M r s . Evans, M r s . Hopkins, M r . Williams.

REQUEST OF ILLINOIS POWER AND LIGHT CORPORATION

(32) A request from the Illinois gas apparatus station on certain property of the struct, maintain, and operate a Power and Light Corporation for a license to conUniversity of Illinois.