The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-11-22
some BANK STATISTICS
Given Out in John BreidenthaPs An.
nual Report

State Bank Commissioner BreidenthaI
has received from the state printer the
advance sheets of a portion of his bien-
NAL report, which will soon be ready for
the public. In his letter Of tranSmittal
to Governor Leedy Mr.. Breidenthal
states that there are now 286 state Gn-
Guiding three savings banks) and 81
private banks under the supervision of
his department. OF this number, three
state and seven private are in process
of liquidation. During the period COW
cred by his report (two years. 65 state
banks, with an aggregate capital of
S4S4,6OO, have been organized. OF this
number, % We're reorganized private
banks, eight reOrganiZed national banks,
four reorganized state banks and 80
were new organizations. During the
same period, As state and IS private
banks with a capital of $1,049, $50, have
gone into voluntary liquidation, and ID
state and two private banks, with a
capital of $4O9, 500, have been closed by
the department.
The report continues:
while not one these failures can be
attributed to bad conditions existing at
the present time, there are some special
features connected with several Of them
that are worthy Of notice. The Hutch
insOn bank, which was closed within q
year after it commenced business, per-
petrated fraud upon the community
and practiced deception upon this de-
partment that cannot be too severely
condemned, and / regret that there is
no provision of law whereby the guilty
parties could be punished or, at least,
required to make restitution of the
funds appropriated.
"A number of failures were due to
the misuse Of the banks funds by it's
officers and an utter disregard of the
provisions and requirements of our law.
refrain from mentioning these by
name for the reason that criminal pro-
ceedingS are pending against the off,
GERS Of several such banks, but I would
impress upon the minds of all bankers
the fact that they are trustees for the
funds placed in their hands, and that
as such trustees they cannot handle or
invest the money under their control in
the same reckless manner that many
individuals employ their own funds, but
must exercise the utmost care and the
best of judgment in their every act;
and, in the matter of observance of law,
they should set an example for their
entire community"
Further Mr.. Breidenthal says:
"Since 1892 the banking business of
the state has undergone many changes.
Seventy-six banks, representing a cap
ital Of $2143, $40. have been closed; 157,
representing a capital of So. 346, $50, have
gone into voluntary liquidation; and 65
have reduced their capital to the
amount of ST. 1885, $50. making an aggre-
gate withdrawal of bank capital of So,
645,610 Perhaps 10 per cent of this
amount has been used in the reOrganl-
cation of banks, leaving net withdraw
al of nominal capital of $5,981, 100
while there are a number of points
be established with reasonable assur-
ance of success, am of the opinion that
from this time the number of banks
will not materially increase.
while some of our very best banks
are conducted as private banks by indi-
viduals or firms, there are many serious
objections to their continuance. The
fact that the death of the owner or any
one of the owners Of a private bank will
force its closing is in itself sufficient
reason why the state should prohibit in
dividuals or partnerships from en-
gaging in the banking business. Where
private banker has no other business
and deVOtes his entire time to banking,
he will probably conduct his bank in a
safe and business-like manner, and,
We're 1t not for his liability to death, he
might be permitted to continue without
subjecting his customers to unnecessary
risk; but where he is engaged in other
enterprises, as he usually is, it is a diff
ficult matter to keep his private affairs
separate and distinct from his bank,
and to mingle his private business with
his banking business is liable to subject
the bank and it's funds to risks that
may result in its failure.
IT therefore recommend that our
banking law be so amended as to re-
Quire all banks to incorporate"