The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-12-09

practically nothing. But banking ike
everything else in Kansas, has inn
sible in the seventies and eighties have
been rendered impossible by experience
and legal enactment. The supervision
of national banks has in recent years
been made much more thorough and
effective. The law of 1897, governing
state and private banks, has given to
them a character of supervision uni
versally conceded to be no less effec-
tive.
WHY BANKS FAILED.
AS a result of this valuable expert
ence, of wise legal restrictions and inn
proved supervision, failures in Kansas
banks have become almost unknown
and the few that have occurred in re-
cent years have occasioned practically
no loss to the depositors. Since March
1, 1901, period of almost three years,
there have been but three failures of
Kansas banks.
The Bank of Dexter failed on June II,
1901. 1t was the result of speculation
upon the part of the cashier and of
negligence upon the part of the di-
rectors. 1t was a small bank with LA
bilities of about $4,000. The total loss
to the depositorS will, in the end, not
exceed $40, 900 or SIS, 900.
The Cimarron State bank failed on
September Is, 1903. Its liabilities were
SCI, 600. It was the result of dissipation
upon the part of the managing officer
anu negligence OF the ulT0ClOIS. L III
total loss to the depositors in this bank
will not exceed $4,000.
The Toronto bank failed on January
IA, 1903, with liabilities of $4,000. It
was private bank and w. P. Dicker-
son, the owner, did all the work on the
books and all the business connected
with the bank. He fa1sified the books,
speculated on the board of trade with
the banks money and lost, and the de-
positors will be losers in this case to
| the amount of probably $4,000 to $780,
| 600.
| But think of this showing. Seven hun
| dred and fifty individual business en-
! terprises with a total capital of $1S.-
600 900, carrying depositors' money en-
trusted to them, approaching $lO0,OOO.-
| 900 and yet losses in two years and nine
months, in the aggregate to these de-
positors, of only $4,000, and a loss OF
| but $4,000 to the stockholders.
| Could the safety of our banking in
terests be put in any stronger light, or
the honesty integrity, prudence and
business ability of our managers be in
any way more highly lauded than in
| this mere presentation of facts? With
these 1853 individuals banks, it has been
almost year now since there has been
a single failure.
Anyone, who may have watched the
! bank reports in Kansas, has doubtless
noted the fact that the combined cap
itaI of the state and national banks II
1
| deposits likewise are almost the same
In short, that the banking business Of
! the state is about equally divided as
| between these institutions. l have nj
record of the national banks, but during
| the year of 1902, with a capital of abou
1 81 500 600 the state and private banks
| declared dividends of $840, 900 and car
ried to surplus 1872, 800 and had lef
as undivided profits, 1871, 400. 1t is fail
to assume that the national bank:
would show equally gratifying result:
and it is not probable that the showing
for this year will be any less satisfac
tory.
COUNTIES WITHOUT BANKS.
| Today, practically every community
in Kansas has banking facilities at it
| door. All the counties in the state, ex
cept fve-Greeley, Grant. Johnson, Nor
ton and SteVens-haye one or NOR
banks within their borders. The advo
cate Of branch banking will not fint
| any encourag cement in the Kansas stu
alton, when he bases his argument upon
/ the proposition that banking facilitie
within the state are lacking
| The Kansas banks were material.
| strengthened by the amendment to TIL
banking law last winter, providing tina
the minimum capital for which stat
bank could be organized in the futur
should be $4,000 and providing furthe
that those now in existence, with les
capital, should be required to increase
within two years from the date the Law
took effect It is the desire of the bank
ers. as well as of the people generally
that all future legislation tend to tn
strengthening of the individual banks o
the state.