The Wichita daily eagle., 1897-12-10
The auhita ary Eagle riday gorne neeember TO- 1887
elected for that purpose. can have moth
in, else than a salIrsarY effect.

!
be now, but such institutions were the
exception rather than the rule A more
generally systematic coniuct OF affairs
must necessarily be the result Of the en-
forcement of this law. and whatever
tends 10 systematic business conse-
quently strengthens it.
"Iyfe making Of reports. both 10 tie
Banking board and depositors. 5 re-
quired by sections IS and IS. will occa-
sion greater diligence and closer at
tention to details 10y the active officers.
in order that DE affairs of the bank
may appear well so its patrons and to
the banking board.
.sThe speculative tendency of mana
gers and officers of banks. which almost
invaria bly, brings disaster, ruin and dis |
grace and (which more than any one |
thing breeds dlstrust and suspicion in |
the mind Of the puolic concerning our !
business, and which is 50 contrary 10 |
the legitimate purposes Of banking. IS /
sought 20 be controlled by section IL
..The enforcement OF the provisions OF
this section will DOUBTLESS be productive |
of much good in reducing the volume OF J
past due paper, and increasing class /,
verted into cash in case OF emergency. I
as any banker knows that any require
mant or process by which the assets OF
an institution are most nearly kept to
an Immediately convertible and cash (
basis is healuhful and should 0e en-
couraged.
'The same general remarks might ap-
ply to those sections prohibiting loans
on real estate and other securities, the
collection OF which when enforced by
legal methods is a tedious and expen-
sive process and invariably gives the at
fairs of the bank too much ppolicity
and consequently unfavcrable advertis-
ing.
Those sections limiting loans to cor
oorations and individual stockholders
and officers, which in some instances
may work a hardship. will. in a general
sense, be found to foe wise. and afford
bankers a plausible reason for restrain
ing speculative tendencies OF very often
otherwise desirable customers; it can do
noharm. and it would rather be assumed
from the proviso 10 section 81 as follows:
That if the bank shall violate the pro-
vision of this section, 1t snail oe no de-
fense by the borrower to an action by
the bank on the obligation that it was
expected the limit might be enlarged in
case of emergency.
! THE effect OF section 23, governing
reserve fund, may prove disastrous to
some banks. To say that the limit or
Is per cent is the same as that required
by the national -Ianking act (and the
| mind OF the author OF this bill was
/ doubtless influenced by that provision)
! scarcely meets tire case; the conditions
are entirely different. The national law
requires a minimum capital such as
would presumably only be used in a
community offering a deposit account
that would justify an outlay OF so large
an investment
while this afw is intended TO meet
the varie dwants of our territory. the
sparcely settled. where deposits are
small. as well as the more comparatively
wealthy districts, the smaller the de-
posit. the less net result Of the business,
the greater the inclination to increase
profits by oyerloaning, and who snail
saw nay SO long as the required re
serve is maintained?
"Any man who stood behind the coun-
ter during the summer Of 1893 will read
! lily acquiesce in the statement that IN
its general application this section IS
weak. Its effect on the banks or our
territory will depend entirely on the
sound Judgment and business sense OF
the managers OF each individual insa-
tuition.
Passing to those sections having ap-
| 16.a u-ip n T.
fairs of failed banks (and il is to be SIN
cerely hoped that practical application
Of those sections may never be had IN
this territory in which provision is IN
tended to be made so that the entire
assets shall go to depositors. even going
| 50 far as to declare a waiver OF all ben
efts Of exemption laws of debtor as
against the enforcement of any claim
due the bank in the hands OF receiver
and which provisions IL generally under
stood ought to and would have the ef-
feet OF giving greater confidence in ter
ritor1al banking institutions. the gen.
eral effect of these sections viii no
doubt be beneficial and conclusive to
better banking.
The profession Of the banker ought
to be as sacred as that Of the minister
OF the gospel. To succeed ne must have
: the confidence of the community; that
confidence is worth more than capital
, he may make a brilliant success without
a dollar invested as is attested by unf
savings banks in the New England
/ states. but must utterly fail without the
/, confidence Of the people, and may fai
, with it, but only by pad and inDruien'
: business methods. such as prevailed n
, too many instances in fhe early history
! ! of this territory and whicn invariably
: nurtured ami influenced public senti-
J ment. bearing fruit in Legislative enact
: ments. such as we are now discussing
l | the prime object OF which Is that such
: safeguards may be thrown sooUt tilsse
z / institutions that the purpose OF their es
l ! tabh51msnt may no1 oe defeated BY ths
> improper handling OF funds entrusted q
? their care. and Snat the community may
, safely enjoy the benefits TO be legia
: mately derived from their organization
a That this doject IN a measure nas
been attained is witnessed by rne In
creased confidence and consequent en-
largsment of deposits. as shown by tn'
report Of Bank Examiner Pugh; the in
crease from July %. 1897. 20 SepteDoeI
80. 1897, being 1855 900. and which IA.
doubtless been more than doubled since
z IN this day Of general desire to1
5 government oversight of matters u !
very PROB z5le o1at q large pe-csntss'
. Of this increase mas been brought %
Eight and placed xsle-s Il properly oe
= longs because psoPie feel tslat under tni'
!; new law they now have sone P7otectioa
D and 20 E-aateve- extent 50 desirable I