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98 F. G. YOUNG warrants were based. This commission in its report holds that it cut down all such bills to cash prices. It took the view that it was enough for the state to pay interest at ten per cent "without any such extraordinary increase of prices" as had been charged. Yet Governor Grover in 1876 speaks of the warrant indebtedness then existing as "greatly increased by the failure of the legislature of 1868 to make any appropria- tions for general current state expenses, leaving the state to be conducted on exorbitant and uncertain vouchers and un- lawful warrants, and interest to accumulate in large amounts, while the revenues in the treasury were locked up and dor- mant." 1 The state treasurer's report for 1870 gives the fol- lowing figures for the locked up funds in the treasury : Receipts during the fiscal years of 1869 and 1870, including former balances reported to the legisla- tive assembly $404,530.28 Disbursements during this period 136,590.80 Leaving a balance in the treasury of $267,939.48 An even greater congestion of treasury funds was brought about again in 1897 and 1898. The legislative assembly that was to have met in January, 1897, failed to effect an organ- ization. Enough of the members elect lent themselves to the machinations of the adherents to the candidates contesting for election to the United States Senate as to bring about this "legislative hold-up." A special session was not called until October, 1898. In the interim some $729,000 of outstanding warrants were accumulated. The interest paid by the state on these amounted to about $45, 000. 2 As the law then stood this interest was easily turned into the pocket of the state treasurer. He had the funds lying idle in the treasury with i Messages and Documents, 1876, p. 12. The State Supreme Court in 1871, held that it was illegal for Secretary of State to issue warrants to claimants under such conditions without appropriations. In 1897, however, this opinion was re- versed and the Secretary of State was ordered to audit claims and draw warrants for all claims which "the Legislature has through its enactments permitted and directed, either expressly or impliedly." Brown v. Fleischner, 4 Or. 132; Shat- tuck v. Kincaid, 31 Or. 379. 2State Treasurer's Report, 1899, p. 3.