The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-05-10

OKLAHOMA
is NOW IN
GOOD SHAPE
100000 on Deposit in
Her Banks
INCREASE OF BUSINESS
Small Towns Have Two or
Small Towns Have Two or
Three Banks

! Guthrie, o. T., May $40 illustrate
that Oklahoma people are prospecting. 1t
needs only to be stated that an aggre-
gate of over s25. cOoO0O is on deposit in the
banks of the territory. At the present
time there are 240 territorial banks and
about sixty-five National banks. Within
the past year there have been many
new banks esta blished and the increase
of banking BUSINESS has been phenome-
nal There are fewer private banks IN
Oklahoma than in adjoining states, and
it is anticipated that these will eventu-
ally become territorial or national insti-
tutions.
Within the past few years there has
been a tendency to nationalize territorial
banks The principal reason for secur-
ing a national charter is that II gives the
appearance of soIidity and the banking
public takes II for granted that an insti-
tuition with a government charter is
stronger institution than a territorial
organization This is not the case, how
ever, but bankers appreciate the differ
ence and as soon as conditions permit.
territorial banks are merged into national
concerns.
1t is not an unusual thing to find that
towns of a few hundred inhabitants have
from two to three banks. All OF them
do a paying BUSINESS and it will not Re
until financial conditions change that con-
solicitations will be effected. or bankers go
out of business. In some of these smaller
towns there are National banks. These
banks are under the supervision Of ma
tionaI bank examiner, while the terrific
rial banks are examined by territorial
examiner appointed by the governor of the
territory The examination by the ter
ritorial examiner is just as rigid as the
examination by the national examiner
and when a bank is reported in good con-
dition it is in good condition regardless
of the fact it may not have national
charter
A few years ago there were only a few
banks in Oklahoma. The large per cent
of the banks then doing business Were
territorial banks with a small capital
stock. With prosperous times and an
influx of people to the territory who
were looking for investments, the bank
ing business began to grow, until now it
is one of the big enterprises of Okla
homa The opening of the new country
caused the establishment of many new
banks and these concerns are all doing
a safe. conservative business. While the
banks in the new country have been doing
a good business. yet the real test has not
vet come At the present time the mat
ter>of securities has to be closely watched
If good crop years prevail. the matter
o fsecurities will be an easy thing to con-
slider. but until crops are produced in the
three new counties, the man who desires
to borrow money has to have something
more in sight than crop prospects" In
the western part of the territory the Sc
curity for loans is usually livestock.
Many banks employ inspectors who so
out to look up the security offered on
loan. Yet if a man is Well known, and
has had many transactions with the bank
his word is usually taken. unless the
amount desired is large. In some of the
western counties, towns of many hundred
inhabitants. were for years without
bank As people have fiocked to the ter
ritory it has been found profitable to es
tablish banks in these towns and the
men interested in the institutions have
ascertained that they are usually GOOD
investments.
For years in the cattle districts it was
the customs to borrow money on live
stock from large concerns in Kansas or
Missouri. but at the present time these
loans are taken up by banks in Oklahoma.
The day of the big herds in the territory
is about over and it is now found that
the men who own the graded herds can
~ -
on business from Oklahoma bankers
1t is a matter of note that within a
number OF years there have been no bank
failures In Oklahoma. Times have been
good and the banks have been run on 4
conservative basis Mary bankers came
here from the states. and have had ex-
perience in financial crises. They are not
to be caught as many were, not so many
years ago. and are willing to do business
on the safe side Of the ledger
The new law enacted by the last leg
islature has been very beneficial to the
banking business" said Assistant Bank
Commissioner H. w. Perticost today.
The law requires that banks shall be
capitalized al $4,000 before they can be
opened. Heretofore the law made II pos
sible for banks TO open with $3.50 capital
and only a portion of that amount paid
in.
IT do not know Of time in Oklahoma
when the banking business was more
prosperous than right now. Good crop
years and general business activity has
had much TO do with the bringing about
OF this condition. The influx Of people
into the territory has helped the banking
business. fer many years 70 come to Okla
homa with the idea Of Investing and
brought money with them"
Returned From Trip.
Guthrie. o. T. May Superintendent.