The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-04-02

men OF the commercial centers of the
east and have had opportunities to loan
many times the amount which we have
| accepted The fact that they are offer
ing from six to seven per cent for
money with gilt edged securities as COL
lateral indicates that there IS cIoseuess
in the money markets OF the east which
has not been experienced in years
F. w Freeman, vice president of the
Merchants National bank, said: We
have receive requests for money from
eastern brokers for years but within
the past few months there has been q
big increase in the number which would
seem 10 Indicate that there is a marked
sCrfngency in the money markets Of the
east We have plenty Of money and
our deposits were never in as good
shape as they are today but We are
passing these offers by for the money
which we have on hand We can loan
in Kansas where We know that the Sc
curities are good
Money is easy in Topeka. as It IS
in the entire west, and the pinch seems
70 be in the east 1t has always been
our policy TO look after our own pa
irons and this is one Of the reasons
why we are not looking with favor
On these requests for eastern loans
The securities offered are gflt-edged
apparently. and it is all right for those
who care TO send their money east TO
get back some OF the interest which
in the past has gone TO that part OF
the world, but Kansas and Topeka
securities are good enough for US"
J. R MuIvane. president of the Bank
Of Topeka. said: Not a dollar OF the
money OF this bank viii be sent east.
for we are investing in Kansas Sc
cr1rfties which we are sure are all
right Some Of the greatest and sup
posed-to-be weaIthiest Institutions in
the east have become insOlvent within
the past year and when we make
loan We want TO feel that We are Sc
cured
Whenever we are offered a high
rate of interest IL seems 10 me to be
suspicious matter and one which II
will be well TO let alone Every morn
ing we receive hundreds OF requests
for loans paying as high as per cent
Just step in here and will show you
what We are doing with our surplus
continued Mr. Mulvane as he led the
way TO the bank vault In that safe
there are nearly three and one-haIr
million dollars worth OF Kansas Sc
curftfes
They represent bonds and indsbt-
eduess OF counties and townships OF
eastern Kansas which We have refund
ed within the past year. and are as
good as government bonds Out OF
total OF nearly four million dollars
worth OF bonds which we have re-
deemed less than half q million dol
Iars, worth OF them have gone east. /
and we are handling the rest OF them
ourselves No, sir. 10 eastern invest
meuts for Us When we have Kansas
securities for our loans we know that
there are no better. and while many
OF the eastern loans are probably all
right we are willing to let well enough
alone"
Peter Smith. president Of the Cfti- |
zeus' bank Of North Topeka. when |
asked about the demands from eastern
brokers for money. said: The east I
arners seem to have drummers on the /
road looking for loans to be placed [
on their securities There must be q I
and for once the shoe is on the other
foot. and is ptHchfng-
Il remember back thirty years ago, |
when 7 first went into q bank in this 4
city. that when we got little cramped 4
for funds II was necessary for me to 4
get on a train and go back east after 4
the funds. and a person had 10 leave /
an eye or something OF that kind be- I
fore he could get an accommodation 1
Now times have changed and the L
stream Of interest is flowing westward i
"Our vault IS q little crowded and 4
there Is not much room left but as i
we are not paying interest on our de-
posts we viii Just let the money pile /
10 until good Kansas securities are
offered and let the east take care Of
Itself I regard Sha vince county secur-
Ity the best collateral that can be Of
sered and it IS on this that our larger
loans viii be made"
2 P EInore Of the Shawnee County
State bank said Yes, We have re-
,efved lots OF circulars from eastern
brokers offering Us loans at from s TO
per cent interest. but are paying no
attention 70 them. as the loans which /
We make are made here at home where
We know what we are doing