The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-05-31
KANSAS news.
Bankers Will Make a Protest at
Abilene.
They Want the General Funds of
the State
DEPOSITED IN BANKS
Offering Most Interest - Are
Preparing a Bill
And the Next Legislature VIII
Be Asked to Act.

Wichita, May 31.-The meeting Of the
State Bankers association at Abilene
will be of more than ordinary interest
both to the bankers and business men
of the state.
The mode of handling the funds Of
the state viii be taken up and a bill
probably outlined, which win be pre-
scented at the next session of the legis-
lature. A mode of handling the cattle
business of the state, SO that the Kan
sas City banks will not reap two or
three profits off every transaction will
also be discussed.
The bankers of the state at large are
not satisfied with the present mode of
handling the states funds. There is
always an average balance of over
$4,000 This is deposited in the banks
of Topeka, generally. In the name of
the state treasurer, and the state does
not receive any benefit whatever from
this idle money. The banks. it is true,
pay interests on the deposits but it is
certain the state does not receive a
cent of it.
Mr. c. Q. Chandler president of the
Kansas National bank in speaking of
the matter said:
THE proposition is that the state ad-
vertise for bids every year for the
handling of the states funds. The bids
will be made open to any bank in the
state and those who offer to pay the
largest rate of interest will be given the
money. For convenience sake the bids
will be for a specified amount, like one
tenth on one-twentieth Of the total
amount.
In order to make the amount alb
solutely safe the banks which are the
successful bidders, will be compelled to
deposit with the state treasurer an
equal amount of municipal, township or
county bonds. No bonds to be accepted
where the county, township or munich
patty has bonds outstanding for a
greater amount than five per cent OF its
assessed valuation.
by following this plan the state will
receive a large income from its sur
plus funds; it would be absolutely pro-
| tected from loss, and a market will be
provided for an immense amount Of
good Kansas bonds on the home mar
ket. The state and the people will profit
| by such an arrangement and few peo-
pie would not reap rich returns from the
states money.
The bankers will also propose a new
mode for handling cattle paper At
| present the banks in the eastern part
| of the state have large SURPRISES. In
| order to invest this idle money profit
| ably they go to Kansas City and buy
| cattle paper from the commission firms.
| The commission men in return obtain
! their money to buy the paper from the
| Kansas City banks. The banks in the
! cattle districts of western Kansas han
] die every year many times the amount
| of cattle paper they can take care Of
They dispose of it to the banks in Kan
sas City. By reason of this method of
| doing business, the Kansas City banks
| make two or three profits off every
| transaction in cattle paper.
THE idea is to have the banks in
| eastern Kansas which have idle money
make their wants known to the secre-
tary of the State Bankers association
| The western banks which have cattle
paper to dispose of are expected to noti-
! fy the secretary and the interchange OF
cash for paper can be accomplished
| without the Kansas City banks reaping
a middle-man's profits"