The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-06-06
JOBES IN REPLY
P0NOFUPES STATEMENT THAT
THERE Is A BOOM IN BANKING.

New Law has Some Valuable and Neritor-
fous Features But No Boom of New
Banks has Struck Kan.as-Explains
How Banking Institutions Were Oper-
nted Under Law of IS79-Many Old
Banks Compelled to Reorganze or
Consolidate With Other Concentrating
itai Must be Reduced or Paid In.
Bank Commissioner Breidenthal is out
with hestatement that his new banking
law has brought about something Of q
boom in the banking business. Concern
ing this statement Of Mr.. BreidenthaPs
in yesterdays Kansas City Journal, 4.
c. Jobes. president OF the Kansas Bank
ers' associa ton and the Bank OF Com
merce of this city. said:
Very few new banks are being or
ganized 10 operate where none existed
before The law Of 1879 permitted banks
70 take out charters upon $4,000 sub
scribed capital by paying in 5000. with
Put any requirement to pay in the other
30 per cent. Thus they would continue
10 do business on $4,000, SO. 900 or SIS
OtV actual capital, and advertise a cap
ital Of $4,000 or $780, 900, as the case
might be-
The law Of 1891 permitted these banks
to continue under their original char
ters, but required them to report to the
banking department and publish in their
statements such capital as was actually
paid in.
The law enacted last winter requires
that the entire capital Of a bank shall
be fully paid, hence all such banks as
are chartered for $4,000 and 500. 900 cap
ital, with but a small portion OF il paid
IN. are now compelled 10 reorganize and
cause the sum stipulated in their char
tiers as capital, 70 conform 20 the actual
amount OF funds they have to do bust
ness upon This accounts for the large
number Of new charters which have
bean taken Out and IS no indication of
any Doom in the banking business in
Kansas
The banks throughout the state are
In a healthier condition and are pur-
suing more conservative methods than
they have done for years. though very
little, 4 any, outside capital is seeking
Investment in banking channels, for
The reason that the business does not
yield large profits. Very few banks are
earning more than 70 8 per cent above
expenses, and large majority Of them
pay no dividends at all Upon the whole,
do not think the new law advantageous
to the banks.
Yes, Mr.. BreidenthaI's new law con-
iains many very wise provisions, and up
On IN whole It is a very good law. Ii
s taken largely from the national bank
ing act, which is the best law this coun-
try has ever had, though il will not.
g experience has shown, prevent bank
failures; neither viii Mr.. BreidenthaI's
law prevent them, the Journal article 10
the contrary notwithstanding. Expert
ence, conservatism, economy and a cor
rect discrimination between good and
bad securities. are the essentials TO pre-
vent bank failures. and it is safe to pre- |
ciet that such institutions as have run |
the gauntlet &c the trying times from |
81 70 81. as general thing possess those |
attributes
The present banking law is so framed |
as to render It almost impossible for a !
private bank 10 do business. This ac- |
counts for the large number of private |
banks which are going out OF business /
Or preparing 70 take out charters under |
the present law.
That section Of the new lay which |
provides that the total investments Of a