The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-08-23
KANSAS BANKS.

KANSAS BANKS.
TOPEKA, Kan, August 22-On Septem-
Der Il, next, all banks in Kansas except
national banks will be amenable TO the
provisions of the banking law passed at
the last session Of the Legislature, and will
| he under the supervision of Charles +.
Johnson, state bank examiner The law,
| while by no means perfect, provides Sc
we're penalties for violation of its provis-
| ions, and the banker who attempts to do
! business without first having consulted
! with Mr.. johnson or his assistant. John
| T. ShOwalter, OF Sumner county, after the
| 2lst day of next month will be subject to a
| fine of not less than $500 nor more than
! 81 900, or imprisonment in the county Jail
for not less than thirty days nor more than
| one year.
| Up to date only AS banks have complied
| with the law and considerable more than
| twice that number must yet be examined
| before they can transact legal banking
! business after the law goes into effect. In
| the opinion of the bank examiner there are
| COO state and private banks now doing
| business in Kansas. The last report of
| the secretary of state showed that charters
| had been issued to 467 banks up to June
| !, 1896. Some Of these have gone out of
\ business, but many charters have been
granted since then, so it is probable that
the secretary's report about represents the
exact number of state banks doing busi
ness.
Charters for new banks and for reor-
ganizatiOn of old ones under the new law
are pouring into the Office of the secretary
of state in large numbers ,ily to be filed
for record An examination of them
shows many things which are exceedingly
commendatOry of the credit of Kansas in
the east and of the financial condition of
farmers throughout the state. Dozens of
bank charters have been filed within the
past two weeks in which the rincipal
stockholders are farmers No one of them
owns any considerable amount OF stock,
but the majority OF the holders are farm
ers who live in the vicinity of the bank
headquarters, who have subscribed for all
the way from one to twenty shares. This
shows that the farmers are getting in easy
financial circumstances and that all of
their earnings are not required to pay in
terest on Indebtedness. Another class of
stockholders in these new banks are resi-
dents of the New England states-people
who have been furnished with incontro-
vertible evidence of the immense crops
yielded by Kansas soil this year.
They do not believe the widely circulated
stories of the debt ridden poverty of Kan
saS farmers, else they would hesitate
about making Investments here.
The report of the condition of banks
filed with the secretary of state last Jan
uary i'll MANY Instances were so unfavor-
able that under the new law they would
not be permitted to transact business
These banks are now being examined and
their conditions have been so vastly i'm
proved that they are coming up to the re-
Qulrements and are able to show that
they are safe financial institutions No
better evidence could be desired of the
improved financial condition of the state
Examiner johnson today stated that in
his trips over the state examining banks
he had been greatly surprised at the
amount of deposits which they contained.
Country banks he declares are well sup
Piled with money, the savings of its Gus
TONER'S and in localities where all visible
evidence indicated the poverty of residents,
the bank deposits were far beyond his ex-
pectationS
New banks are being organized in towns
which never had bank before Iu some
instances this is being done by neigh boring
farmers. In others large national banks
which want small country banks as feeders
are the prime movers in the new enterprises
OF the l45 banks examined up to date
and authorized to do business under the
new law thirty-nine are private banks,
the average paid up capital of which is
Sl4 500 This does not include surplus or
undivided profits. The leo banks so far
examined show an average paid up capital
OF So, ,21G. If the surplus which the exam
nations show them to have on hand,
should be counted as capital. this average
would be increased 25 per cent. The new
laws requires bank to have capital of
at leafs s. 600, one-half of which must be
paid liz before the doors can be opened for
business and 10 per cent of the residue
must be paid each month until the capital
Is fully paid up. Many of the small banks
already doing business under the new law
have paid in only one half of the capital
The country cross roads banker is the
one who objects TO the new bank law He
runs store, buys and sells wheat and /
owns a safe in which be pac the deposits /
of his customers. His entire capital, bank, ,
store and grain. will probably not exceed /
50, 600. If he continues to be n mixer all /
his capital must be utilized in that bust
ness alone or he must give it up entirely. |
As the new law declares any person who /
receives money on deposit 70 be a banker /
many country merchants will be seriously (
affected by 1t. 1t is in these small com
munities where the banker is also the .
grr Ger, postmaster and everything else /
that tha new state banks are being organ
lied with the assistance of the farmers
The office os the state bank examiner is /
self supporting. the fees collected for ex
amining banks, all Of which ara covered /
into the state treasury, being sufficient 10
pay the salaries and travelling expenses Of
the examiner and his assistant There is
no provision made for clerk hire, and as a
the Office has to be closed a
large share of the time while the officers
are out on the road examining bank, (
Neither position IS a sinecuTe under the
present arrau cement and it is fortunate
for the good Of the office that the new
e. ight-hour-iaw does not apply TO either
j OhnsO1 or Showalter, for II it did the
bank examiners Office would soon be rs
far behind 10 It's work as the supreme
court. 1t Will be physical impossibiity
for all the banks that viii make spplica-
ton 10 be examined before the law goes
into effect.
HALE AND HEARTY
These two adjectives by no means imply
tue possession OF great muscular strength I
There are many men and women OF slight