The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1890-08-12
BANKS OF WICHITA.
TERSE STATEMENTS AND REVIEW
OF BANKING INTERESTS.
This Year Promises to Show 50 per cent
Increase Over the Business of the Pre-
ceding Year---Several Points
Which are Known but Some
times Overlooked.


issue circulation, hence as all classes of
banks are represented in this city it wonld
be only proper to speak of the numerous
branches of the business common to them
all. And in reference to the advantages
derived from the banking system in gen
eral and the banks of this city in particu-
lar, reference will be made only to such as
are solvent and are conducted upon sound
and conservative BUSINESS principles, as
it is only such banks that can be of any
possible advantage to the business inter
ests. And under this head it is eminently
proper to place every bank in the city as
no one will question that the record made
by each of them during the past four
years justly entities them to such a posi-
ton.
Banks furnish place of security for sur
plus and uninvested funds. No business
can be so regulated that its daily receipts
and disbursements will be of equal
amount, the receipts from various sources
must be gathered in to meet payments as
they from time to time fall due. Con-
venience as well as prudence will lead the
sagacious business man to seek some place
of safety for such funds until the time ar
rives when they can be used for whatever
purpose he may desire. Funds thus de
posted have the double advantage of being
equal to money in hand and at the same
time Invested of the risk which their care
and custody impose. And in addition to
this such funds are not attended with eX-
pense, but on the other hand under
special arrangement, may yield an income
to their possessor. The next great adj
vantage offered by the banks is their
facilities for making exchanges and coliec-
tions. In a country of such vast extent
of territory as this and of such diversity
and variety of business carried on, 1t
would be an utter impossibility
to make the necessary collections
and payments growing out OF these
extensive business transactions with
out some well regulated system.
1t is impossible to accomplish this by a
personal meeting of debtor and creditor.
1t is unsafe to transmit the money through
the mails. 1t is not practicable to make
these collections and payments through
the express companies, even if they are
safe and responsible, for in addition to the
great amount of labor it would impose, far
too much OF the currency of the country
offices of the express companies. But
through the agency Of the banks and their
system of credits. collections can be made
with promptness, with accuracy with
safety and with but very small expense.
| In fact it is the only safe and practical
method that has yet been devised. The
amount of business transacted under this
! system, while it is capable of mathemati-
| cal demonstration, is almost beyond hui
man comprehension.
| The exchanges made through the Wich-
| tia clearing house for the year ending De
cember 81, 1889, were $50 633, 04LOO, and for
the first half of the present year they were
S23 6l3, $1,000, which increase, if the gain
for the last half of the year Is
| proportionate with that of the first,
| will be SO per cent over the
| business of 1889. This business IS in adj
dition to the checks and drafts received at
the counters of the various banks, which
| if added to the footings of the clearing
| house transactions would increase this
volume of business twelve or fifteen mil
! lions more. In this estimate there Is lef
out altogether the matter of collections
which the banks have collected for theil
|
count would swell the grand total by sew
eral millions of dollars. There are eight
| banks in the city, five national, two state
and one private bank Their aggregate
capital. surplus and profits as shown by
their recent statements is s. 230, 900. i
has been estimated that these banks sole
exchange on their various correspondent!
during the year ending July 3lst, 1890
| amounting TO S4OOO0,OOO for which the
received premium of $3.50 Had 1t beer
necessary for the bank customers to hav'
sent these remittanceS by express and tax
ing Chicago as the mean point to which
their average remittance would have beer
made. to which point the express charge
are 81 per 81, 900 there would have been an
expense incurred to the customer of $4,000
deduct from this the amount charged by
the banks-S6, 975-and you have saving
to the customers of the Wichita banks il
one year on the item of exchange alone o
S73, 125. This system keeps the currenc.
where it can be used for business purposes
1t pre- vents loss from theft and robber
and guards against error and misrepresen
tation These checks and drafts are re
ceipts and vouchers in the settlement o
accounts. and valuable evidence in the al
iustment of controversies and disputes
claims. and it is but proper and right tina
theb bank should furnish its customer witt
all legitimate means at hand TO facilitate
his business transactions. Yet the Gus
toner should not expect this service 10
nothing; he should expect his banker
be Just as prudent in his transactions a
is the dry goods merchant, the grocer o
the ieweler. and he should he allowed
reasonable compensation for any valuabl
service which the customer may receive a
his hands. A bankers profits are contine
to two lines VIZ; One is discount and tn
other exchange, and it is equally as untaI
as unjust and as unbusiness like, to as
him to disregard or waive one OF thos
lines of profit as it would be 10 ask tn
merchant to sell yard of silk or barre
of -four at a price resulting In loss |
himself
The other great advantage which NIGH
be mentioned Is the banks ability an
their system of loaning money. In th1
all classes Of business and every depar
meut of labor are interested, they assist
the development of the great agriculture
resources. in the cultivation, gatherln
and marketing of farm products, and b
: furnishing the means they render valnabl
assistance TO all mechanical manufactu
ing and merchantile interests. These las
remarks are particularly applicable 10 n
banks of this city, who have at all time
held themselves in readiness 70 meet a
demands for loanable funds 10 be used /