The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-30

CT revolution in the kingdom.
Banking. as system, was probably
| most developed by the Italians, who
| seem, about the thirteenth century, TO
nave attained to the principal functions.
that now characterize this business. The
words ''checque," draft" and other bank
Ing terms, still in use. come from the
literature OF Rome. Another evidence
that the Latins, early developed great
aptitude in this business, is revealed by
a few lines of history which state, that
IL the year 449 B. c., the Roman De-
cemvirate made stringent laws against
! uyury. Thus you see now readily we
bankers, Of the earlier manner in Sun
ny Kansas," trace our lineage back to
those wo. thies Of Sunny Italy,
TIE invention OF bank notes is at
tri5uted by some writer's to the Repub-
lie Of Carthage, and by others to the
Chinese, with the odds in favor Of the
former. The Cartiagenians, go the an
mails state, issued kind of money, con-
sisting Of a small piece Of leather, in
which was wrapped and sealed mys-
ferrous substance, whose value was
known only 10 one maker. The same air
of mystery that surrounded this early
circulating medium, as to whether IL
was value itself, or only the represen-
tat.ve and shadow Of value, seems to
have hung around all fat notes since
.hat time.
Leaving the genisis % banking, let US
consider what il is now doing for the
world. In speaking Of banks I shall
have reference in the main, only to what
are usually termed commercial banks,
and such az come Close touch with the
active operations of trade and business.
Hence statistics given will usually omit
Institutions doing business as trust COM
panies or savings banks. They can be
estimated in, for good measure, If you
like
Banks call together tine scattered sums
OF money in the hands Of the people for
which they have no immediate use. fur
nishing convenient and practically
safe place Of deposit for same, without
charge and some times upon an earning
basis; they re-circulate these funds
among those needing them for the con-
duct Of their business, and above all,
provide nine-tenths of the circulating
medium OF the country.
The first three functions are well
known to the business community.
though their importance and usefulness
may be frequently passed over without
thought. but I apprehend that the lat
ter claim will arouse some questioning.
AS an illustration Of the magnitude Of
what 1t means to bring together the
money that would otherwise remain hid
den in old socks dark corners OF cellars
or other sequestered hooks, the Stats
tics, show, that. on July i, 1896 there
was on deposit in the state and nation
al banks Of this country, from whom
definite reports were obtained, 1884
1886. Allowing for private banks and
those in states where reports are not
published, the total amount Of deposits
is estimated at $1,000, 900, 600 owned by
10.oJ0,0o0 Of deposltols. At this time, in
view Of the apparently numerous ex-
cept;ons to the rule. brought about
largely by long period Of almost I'M
precedentei business depFessions. il re-
quires some nerve to speak OF banks as
"a practically safe place of deposits"
but have said it, and propose to stand
by TIE statement. Such term must, Of
course, be considered relatively, as COM
pared with. any other method OF keep
ing the money so that 1t will be avail
able for the needs Of the owner, when
ever he shall have use for same. To
keep money about the person, involves
the. constant risk Of loss, is an incentive
20 burglary and is perpetual menace
to the life Of him who carries 1t; to hide
1T is no better. To invest in any kind
Of property, expecting to dispose Of
same whenever the money may be
wanted for immediate use, would in
volve forced sales, which plan would
soon bankrupt any one.
Out Of 1888 banks, national, state,
savings and private, doing business in
the United States for the year ending
October 81. 1895 (and snail we ever see
a more trying oneO there were 1877 fail
ures, or only Los per cent Of the whole
number. Can any other leading line Of
business make such a showing? I add,
not as plea for any system but az
matter Of information, that OF national
banks, the failures were only 73-100 OF
! per cent Of the whole number in bust
ness or all the bank failures from 1853
to 1895. the national banks paid divi-
dends 10 depositors averaging 70 per
cent and the state banks 46 per cent.
Hence We see, taking the average, that
only about 40 per cent OF the money de-
posted in the banks which failed dur
ing that period, was lost 70 the deposit
ors. Taking this ratio, which has OBJ
tanned for thirty-three years Of actual
experience and which would therefore
seem to be fair, applying it to the 1877
banks which failed during the year end
ing October 81, 1896, we find that the
loss 70 the depositors. for this most dis
astrous business year, 10 nave been
about one-tnird OF 1 per cent of all the
money on deposit in the banks OF thi.
The motto OF the great state in which |
live is: "Sslus populi suprema lex |
esto." the Safety Of the people snail be |
the highest law" Likewise the security |
and protection OF depositors. the people |
VINO give il business and income, should |
be the first ana abiding concern OF every |
bank and banking system.
A. one identified with banking in |
for a quarter OF century. having |
been about fifteen years in active lbusi- |
ness in the state, and subsequently in |
its principal reserve center. 1 note with |
pride ana pleasure. the progress that has |
been made in this great commonwealth !
toward the more effectual guarding cf /
the deposito.' 5 money. l congratulate |
the state upon its present banking Law |
AMI upon it, able bank commissioner. |
His vigorous and capable management: |
mas been noted by the finsnciers OF our |
country, and has maintained confidence |
in the institutions under his charge. |
iIriny a ri-,ne Nhen rndr1a ana aa,Ssh