The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-12-14
Kansas Banks Ready to rake
Off the Lid"
GIVES OUT STATEMENT
Contains Some Pointed Advice
to DepositOrs.
Advises Those Who Want to
Hoard Cash to Get Bonds.

This is the announcement made to-
dav by Bank Commissioner John O.
Rovce Mr. Royce accompanies his
announcement of the end of the
"bankers' furry by some good ad-
vice to the depositors of the state.
eff a deDositor feels that he abso-
lutelv must get his money out of the
hank. let him go to his banker and ask
for the amount of the deposit in
bonds. or other gilt edged security.
He can hoard the securities all he
pleases without interfering with bust
ness. and at the same time be getting
interest on his money instead of let
ting il lay idle. Many depositors de-
mand cash because they don't know
that they can get something even bet
ter for the purpose of boarding.
This is the substance of written
statement given out by Mr.. Royce To-
day. The following is Mr.. Royce's
statement:
.The financial trouble so far as the
banks are concerned is about over,
but there is danger that the COM
mercial interests of the country may
suffer unless the deposltors IN banks
refrain from withdrawing their de-
posts except as the needs of their
business demands. Not from cholce
nor in obedience to law put as an
emergency measure the banks OF Ine
country have been forced, as result
of the action of the New York banks,
to restrain the payment of currency
This action on the part of the banks
has resulted in conserving the money
of the country, has kept the actual
money from finding its way into safety
depOSit boxes and has been directly
in the interest of the depositors as 1t
has saved the banks from closing their
doors and the assets being eaten up by
expensive receivership litigation to the
detriment of the creditors of banks
who are in fact the depositors.
1.-The restrictions which have pre-
vented the depositor from drawing his
money as fast as he has, thought he
wanted it, has served to, alarm deposit
tors to a greater extent than may pc
imagined by those who are not famf-
liar with the facts. Many depos1tors
have already drawn their deposits and
the forthcoming report Will snow that
deposits have been reduced by several
millions of dollars and there are
doubtless many who are only awaiting
the raising of the lid to further reduce
the deposits
''The depositor should think twice
before withdrawing actual cash from
the bank for boarding purposes. He
should first remember that money
has no intrinsic value but is only the
measure of value. the yardstick by
which commodities are measured. The
sufficiently large to transact the bust
ness of the country and it is good the
world over. The commercial interests
of the country require that all or the
money be kept in circulation and ev-
erv man who hides away any amount
of actual money reduces the circulat-
ing medium to that extent and his act
may seriously interfere with busine ss
No man should question the right of
any depositor to withdraw his deposit
from a bank, whether the bank is SOL
vent or insolvent, but if 1t is with
drawn from the bank for the purpose
of hiding away in a safety deposit box.
II should be in the form of some val
ua HE mortgage or other good interest
bearing security and the actual money
should remain in the banks to serve
the purpose for which it has been
created.
"Banks are permitted by law to
loan rs per cent of all moneys depos-
fled with them, but must keep re-
serve of Is per cent in cash. Every
body understands this who deposits
money in bank and the banker rare
" ever fails to keep all of his surplus
funds well employed. Now suppose
q bank has its money loaned down
close to its reserve and a depositor
mands his money. 1t simply means
that the banker must demand pay
nnent of at least the same amount
from the borrowing patrons OF his
bank. and all demands of depositors
must be met by the banker demand
ing payment from those who have
borrowed at his bank, so that II you
are required to pay your note at the
bank, regardless of whether you are
prepared or not, do not be too severe
on the banker who makes the demand
for II may not be his fault as he mas
probably asked you to pay your note
in order that he may pay the money
to the depositor who has become
frightened The law compels the bank
to keep its 25 per cent reserve in ac-
tual cash and outstanding notes must
be collected if the depositor insists
the depositor would demand his de-
post in some good first mortgage
bonds or other valuable interest bear
ing securities he could hoard that re-
ceive a good interest and not in the
least interfere with the business of
the country.
Need Money in Business.
1.-The large merchants, the manufac-
turers. the railroads, the mine owners
and the men of the business world
must have money to transact their
business or they will be required to
suspend, but if all of the depositors are
insisting upon the payment of their de-
posits in cash there will probably be
no money left in the banks. to be loan
ed and such a condition may cause
great inconvenience to operators and
may also result in many. artisans and
laborers being thrown out of employ
ment.
1.-The matter is of such great import
ance that the depositor should study
the situation very carefully and while
no man has right to advise another
what he shall do with his money, yet
the gravity of the situation is so great
as to demand that the circulating
nT @r~ry ,asr lie