Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1893-08-31
a BANK clRculAR.

commissioner EreideDthaI Notifies Kan.
sas Banks That They Must Withdraw
Balances from New York Banks, as They
Are Me- Paying Ont Currency.
TOPEKA, Kan, Aug. 26.-State Bank
Commissioner Breidenthal has issued
the following circular letter to all state
and private banks in Kansas:
Topeka, Kan Aug. 81. 1923
To the Cashiers of all State and Private Banks
in Kansas:
Dear Sir: desire TO call your attention to
the fact that the banks of New York cft7 are
refusing and do absolutely refuse 10 paw drafts
made upon them except through the New
York clearing house, and have to nv GER
tain knowledge refused requests for pay
ment OF amounts due Kansas banks except in
their own certificates OF deposit which
made pay ble through the said clearing house
ana not in lawful money. And further, that
they have given instructions to make all drafts
on them payable through said clearing house.
This action on the part of such banks would in
d1cate that they are insolvent The United
States supreme court declares insolvency to be
inability to meet obligations in the usual or or
binary course Of business. which applied to a
bank means inability to pay the demands that
are made upon them. not in clearing house GER
1hcateS. but in cash. lawful money. Section
IL OF the Kansas banking law provides that
leach bank shall at all times have hand 20 per
cent of its deposits, half of which may
consist of balances due TO it from good solvent
banks In view of these facts balances due
from New York city banks in excess of per
cent Of your deposits will not be considered s
a part or Your legal reserve, until such banks
shall again resume payment in lawful money OF
the United States The per cent referred TO
is permitted for the purpose of enabling you to
supply your local demand for New York
change. Please furnish the of your
New York CORES pondent and statement OF
the amount you have deposit there Also
advise me whether you indebted to any
New York bank and If so state the amount OF
such Indebtedness Very truly yours.
JOHN w. BREIDENTH L.
Bank Commissioner.
EFFECTS OF THE CIRCULAR
Asked why he had issued the circu-
lar, Commissioner Breidenthal said that
his reason was apparent in the circular
itself. 1t was done for the protection
Of the banks of Kansas. He denied
that there was any politics in it or that
it was intended to bolster up Senator
PETER in the stand ne took on the floor
of the senate Wednesday. He said the
circular had been in contemplation
fully ten days, week before Senator
PETER made his speech.
Asked what effect the circular would
have. Mr.. Breidenthal said that it
would result in the withdrawal of the
Kansas banks of their balances in New
York and the transfer of them to other
money centers. This was about all the
ChSSD IL "OuAN nave 4hOISN hON Oh
deposit in New York would be gradual
ly withdrawn by the sale of exchange
until balances should become reduced
to the per cent allowed by law.
Local bankers think the effect of the
circular on the banks affected by it
will be more serious than Commissioner
Breidenthal anticipates. A large num-
Der of the banks of Kansas are borrow
ers in New York, by means OF re-dis-
counting, and when they begin to with
draw their balances the New YORK
banks in retaliat ton viii call for their
loans.
Asked if the clearing house system
of meeting demands on the New York
banks had affected the Topeka banks,
P. /. Bonebrake, president Of the Gem
trail national bank, said his bank and,
so far as he knew, the local banks had
not felt it; that business with the New
York banks was transacted as
promptly as before. He said he
thought all the banks of the country
would testify the same eXcep
those of Chicago, which has grown to
be the rival money center to New York,
and there New York exchange was at
a discount and the bankers We're pro-
testing against the New York way Of
meeting the present emergency.
p. G.. Noel, president of the First ma
tional bank, confirmed Mr.. Bone brakes
statement and said he was meeting
with neither trouble nor delay ID deal
ing with his New York correspondents.
Kansas Worlds Fair Programme.
CHICAGO, Aug. 26.-The official pro-
gralnme for Kansas week at the worlds
fol hoe Iaa-,
announced. Thursday morning at the
Kansas building NJ. w. Cobun. presi-
dent of the state board, will make the
address of welcome. and Commissioner
Burton will make an address on behalf
of the exposition Gov. Lewelling will
respond on behalf of the people of Kan
sas, Wednesday morning the governor
will deliver the welcome address at the
gathering of the Clan Mckinley at the
Kansas building, and Gov. Mckinley,
of Ohio, will respond. Other speeches
will be made at Festival hall during
the week by Senators PETER and Mar
tin, congressman Harris, Simpson,
Baker and Hudson and Mrs Mary E.
Lease.
Free Silver Men In New York.
NEW YORK, Aug. 26.-Three thou
sand people gathered in Cooper Union
last night to hear addresses in behalf
OF free silver coinage. The principal
speaker was Congressman w. J. Bryan,
of Nebraska, who caused cheers by de-
claring that there were more New York
people in the audience than had ever
signed resolutions for the repeal of the
Sherman law. Gen. A J. Warner also
spoke in denunciation of gold con-
spirators' and was roundly applauded.
Resolutions declaring for free silver
were adopted amid cheers.
To Test the Eight Hour Law.
CHICAGO. Aug. 26.-Tke initial step
| toward making test case of the eight
hour and female labor law was taken
at meeting of we'll known manufact-
| urers yesterday when the Manufacture
ers' Protective association was organ
| lied with membership of twenty. 1t
was agreed that the cost of production
| was being enhanced one-third and the
routine of business interfered with by
| the present law.
Homeseekers n Arkansas City.
| ARKANSAS CITY, Kan, Aug. ga
| large number of homeseelSers arrived
here in wagons and went into camp on