The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-07-21
HOARD GOLD.
Kansas City Banks Have Ceased
Issuing 1t.
Expect 1t to Go to Premium
Soon.
COUNTRY BANKS ASK
For Gold and Private Individ-
ualS Desire It.
Topeka Banks Have Lots of
Gold But Issue 1t, Too.
COUNTRY BANKS ASK

Kansas City, July 21-AlI banks in
Kansas City have ceased issuing gold
either in exchange for large bills as
payment of checks or Withdrawals of
deposits Cashier Rule of the Bank
OF Commerce, who returned from St.
Louis this morning, says the same is
true of the banks in that city and he
believes the same may be said of banks
throughout the country.
Cashiers of several banks in this city.
who We're interviewed on the subject,
gave the same reason for refusing to
pay out gold. They said that the evil
dent intention of many people who are
now asking for gold is to hoard it on
the suDposition that it will go to a
premium and that this would put it out
of circulation.
viii not the refusal of the banks to
issue gold in itself force gold to a pre-
mium?' Mr.. Rule was asked.
Gold is now practically at a premi-
UNI of one-half of one per cent" he re-
piled. THAT is So on the thousand. A
demand for gold such as that now be-
ing made will undoubtedly force it to
a higher premium. 1t will easily go to
1 percent in a short time.
Two or three weeks ago" said Mr..
Rule, I'VE were meeting our clearing
house balances in gold and paying and
taking gold regularly. Since the Chi
cagO convention there was steady
withdrawal of gold until the banks had
to call halt in order to keep the proper
reserves. This morning we had a half
dozen requests for gold from country
banks that have usually preferred cur
rency. With the movement of grain
there is a demand for currency to pay
farmers labor and for similar purposes.
We get orders of that kind now; also
orders for gold. The orders for gold
mean but one thing-that it is to be
I boarded. Some of these orders come
from the strongest free silver com
munities.
The bankers must act in a safe, con-
sentative way and they intend to keep
as much gold back of them in their re-
serve fund as possible. The amount of
gold in Kansas City is good compared
with that of other reserve cities though
is is somewhat lighter than it should
be. We do not find much gold in the
deposits now being received; it is evil
IDENTIFY being boarded away. I was asked
this morning if we would wish to accept
a special deposit of $4,000 to be paid in
gold, and | replied that would not
favor it. We would only have to store
the gold away and could not use it,
Topeka banks are not following the
example of Kansas City banks and gold
is being paid out and received just the
same as usual. While a Journal re-
porter was standing at the receiving
teller's window of the Central National
bank $3.50 in gold was received and
piled up on the counter.
None of the banks has refused to
pay out gold and in every bank the re-
serve is about the same as usual. Pres
ident VIM. Sims of the First National
said: I'VE have noticed no difference
There is no special demand for gold
and things are moving along about the
same as usual It happens by pure
accident that our reserve is now nearly
all in gold We have made no effort
to hoard gold and have observed no
tendency of that kind among our de-
positOrs."
Another banker said: Even if gold
were to 90 to premium it would be a
long time before it would do So If it
would go to a per cent premium in a
7 year it would amount to only per
cent interest to the man who boards his
gold and it is not at all likely that
it will go to any such premium IS that,
so it would not pay to hoard gold in any
event"