, 1897-10-19

He believes that there is now in these
banks about $11 900, 900 in cash, or about
81. 1000. 900 OF available cash above the
per cent legal reserve. The safe keep
Ing OF this money is a serious question
to the country banks OF Kansas. Mr..
B~reidenthal opened one report at ran
dom and read from the return that it
had q capital stock OF 5 1000. deposits
amounting to $68, 900, cash in the sum
o. $11.000 locked up in an old iron safe.
and SIG. 900 more in a Kansas City bank
for security. The situation as regards
this accumulation OF cash in the Kan
sas banks grows more marvellous every
day.
What Is going to be done with this
swelling surplus in the Kansas banks?
Mr.. Breidenthal says that enough Of it
will be used to wipe out $25, o00, 900 Of
the farm mortgages remaining in Kan
sas. He Is in a position to know this.
One Of the provisions of the new bank
ing law requires directors to meet ev-
cry three months. A cop OF the pro-
ceedings OF the meeting must be filed
with the commissioner. The object is
to make the directors such in fact as
well as in name. From these quarterly
reports the commissioner is able to in
form himself fully as to the details OF
the banks business. Better than any
one else in the state, Mr.. B~reidenthal
can speak Of the loan and mortgage
movement.
There will be released in Kansas this
year" the commissioner said, 4 10000
900 of farm mortgages. | mean released
not paid, as I have Deen quoted by mis-
take. Our farmers will pay indebted
ness from this money received this year
to the mount o: SIS, OOO, 900. That will
release $40, OOO, 900 OF mortgages. In
1890 a law was passed by which partial
payments OF 500 or multip,es Of 800
can be made on farm mortgages. Our
farmers have been making such partial
payments since 1890, SO that the appli-
cation OF $25, 900, 900 will extinguish
$40, O0O, 900 of indebtedness as it appears
on the books.
AFTER this years clean up" continn-
ed MIR. Breidenthal, there will not be
over $50, 900, 900 Of farm mortgages in
Kansas. A few years ago the farmers
Of this state owed $3.50, 900. 900. The in
terest on that ate up the profit OF a
good crop. Now the amount owed by
the farmers is below 800. 900. 900, prob
ably $4O,0 200. 900. The interest charges
were enormous. Bur the farmers have
now reached the point where their in
come Is greater than the fixed charges.
Even the $50, 600, 900 in farm mortgages
remaining will be apparent rather than
real. 1t will include many loans ON
which partial payments have been made
this year"
There is significance in the liquida-
ton other than the payment Of $685.
600, 900 on mortgages. The east is to
be deprived O. a good deal more than
the apparent proportion OF its interest
bearing investment in Kansas. Infor-
nation Of what is going on through the
local banks establishes The fact.
Our banks" Mr.. Breidenthal said,
"are. now engaged in hunting up the
Kansas mar with an eastern loan. Ii
he isn't in a position to pay they are
offering to take up the mortgage, make
a new one at a lower rate OF interest,
with the privilege OF partial payments
at any time. In this way the surplus
home capital in the banks is taking the
place Of the eastern money, and the
farmer who can not pay off entirely is
getting a lower rate cs interest. Pos
sibly the mount Of eastern money on
Kansas mortgages will be cut down one
half by this substitution OF home CAPT
tai. The interest will remain here in
stead OF going east"
In his call Of last week the commits
sioner respectfully suggests that banks
make a special effort to dispose OF all
real estate holdings other than bank
buildings. The next 80 days" he says,
"a lSSS - NV oPPcl IL III
cleaning up slow paper and reducing
excess loans than any period since
1892"
The commissioner addresses the
banks mildly. He has been having some
queer experiences lately with his bank
ers. One concern had S, 900 loaned on
a farm. Mr.. Breidenthal considered it
excessive. He wrote to the bank urg-
ing that the loan be reduced, and ex-
pressing his doubt whether there was
any farm in the locality hat would JUS
tify such a loan. Back wrote the bank
er: The land upon which that IS, 900
was loaned raised a $12, 1000 crop Of
wheat. The farmers has paid of the
loan and has $4,000 on deposit with
u.s."
Another bank had taken in six quar-
ter sections of land under a mortgage
and listed the land at $1.25 an acre. Mr..
Breidenthal thought he couldn't allow
the land to figure in the assets at more
than 500 a quarter section. He wrote
to the bank urging that the land be dis
posed OF. Back came the answer that
one quarter had been sold for $500 and
that the ether quarters would go at
the same price. " whereabouts. In quite
a number Of cases recently the commits
sioner, on taking up reports several