The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-05-22

I resulted in the so-called Jay Cooke panic
of 1873. This panic was a slayer. and its
baneful effects. augmented by our
drought and our short crops, with low
values and widespread hard times, lasted
until the SOS. During this time there
were constant bank failures east and west
and in 81 and SO all the banks in Kan
sas City except two small ones suspended.
and in Leavenworth, all; in st. Louis
and Chicago there were a great many
failures. The distress was general, but
! it had its many comical as well as its
serious sides. In Topeka we all got ia
| tigued and took rest. Ny bank de-
posits shrank in six months from s60o.-
G00.00 to s135, 10000 and / had $50, 090.00 cash
still on hand. There seemed to be no
cooling off, and on January q, 1873. We de-
, manded an investigation of the bank, with
the result that we showed up more than
$40, COCO good assets over and above all
liability. Our suspension was a heroic
remedy, but a wise move and it cleared
the atmosphere at once. A banks credit.
like Caesars wife's virtue, should be
above suspicion.
The general law requiring banks to
make statements to the secretary Of state
was practically nullity. In 1870 two
banks turned in statements and there is
therefore not much state data to be had,
but from our best information we esti-
mate that about Sl,50o 10000 would have
covered the entire capital of the banks of
the state, and the deposits could not have
exceeded four millions. the number of
banks in the state al that time being not
over fifty. The resumption of specie pay
ments could not have exceeded four mil
lions, the number OF banks in the state at
that time being not over fifty. The re-
sumption of specie payments in 1879 re-
lieveu the aftermath of the Jay Cooke
panic, and from 1880, for a few years.
banks multiplied until this activity was
cut short by the currency panic and rag
money craze of 1883 10 1891, followed by
the Observation-Disclosures agitation, or
more commonly called silver craze of 1891
to 1896. This was also a time of general
distress and the memory of the raids of
the Colorado tramps and hoboes generally
with the Coke crusade in Washington,
has not yet been obliterated. The num-
erous failures in 1891 to 1893, the want of
confidence and the hiding of currency,
soon brought exchange on New York to
a discount. We sold currency at a pre-
MUM of eight per cent. But conditions
changed once more and the closing years
of the old century witnessed the most
prosperous times this country has ever
known, the last general statement of 1903
showing that there were at the open
ing of the present year in the state of
Kansas five hundred and thirteen state
banks and l think one hundred and forty
national banks, with a gross capital, sur
plus and profits of ss6,566, 10000, loans of
s79 0i2, 10000, bonds amounting to 1884,
10000, cash and sight exchange, S3i542,-
10000, and deposits of $685., 900. The
statement of January, 1904, shows the
deposits to have increased to $103. 900, 0O000
From an earnings statement issued in
March by the bank commissioner for the
year 1903, the gross earnings of the state
banks appear to be $3,sS6, 762. 90. out of
which came their expenses of all kinds,
dividends s947,767.00 and S4699 $4,000 added
to their surplus. The dividends and sur
plus at this time about equal the cap
ital stock of all the banks in 1870.
The laws of the state were so meager
and inadequate that L was induced to
make efforts to get through our legisla-
the result each time until 1891, when we
had a hold-Over senate, Republican. and
a house of representatives which was pop
ulist to the extent of eighty per cent.
1he speaker OF the house was Hon. P. p.
Elder a very worthy able man. / got
a good bill through the senate but it was
tabled in the house. Hon. Sam Wood,
blessed be his memory, warm personal
friend, said to me, John. your heart is
stuck on that bill; you have helped me