The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-29
HURT LITTLE ONES
Closing of Bankers Trust Com.
pany Slightly Felt.
Affects About Twenty-Five
Smaller Kansas Banks.
COMETO THEIRRESCUE
Other Financial Institutions
May Tide Them Over.
Conditions Throughout State
Are Excellent Say Bankers.

! Somewhere in the neighborhood of q
/ of the smaller banks in the state all
| in country towns, are embarrassed, but
/ only temporarily it is believed by John
| @. Royce the state bank commissioner
/ through the suspension of business yes
| terday morning by the Bankers Trust
| company of Kansas City, No., which
| institution closed its doors through its
/ own volition.
| These affected banks are ones which
kept greater portion of their reserve
| funds on deposit with the Bankers
| Trust company, and are now unable to
avail themselves of these funds be-
cause Of the closing of the Kansas City
| institution. Three of the Kansas state
banks had practically all of their re-
serve funds deposited with the Bank
ers' Trust and these will be most seri-
ously affected
But plans are already under way for
other banks to come to the aid of the
Kansas banks which were depoSitors
with the Bankers Trust company and
it is the opinion of Mr.. Royce that not
one of these Kansas banks will have to
suspend business for minute.
Mr. Royce leaves for Kansas City,
Mo-, this afternoon to confer with bank
ers there about tiding over these KAN
sas banks and is certain that plan
will be worked out to this end. This
certainty on the part of Mr.. Royce is
due to information he received this
morning that the Bankers Trust COM
pany is in a practically solvent eondi-
ton and will be able to pay depos1torS
dollar for dollar.
This information came to me, sald
Mr.. Royce this morning, by long dis
lance telephone from John SWanger,
the secretary of state of Missouri who
has taken charge of the affairs of the
Bankers Trust company under the laws
of Missouri. Mr.. Swanger told me he
was sure that the Bankers Trust COM
pauy would be able to pay deposltors
dollar for dollar and that its suspen-
sion of business was only temporary
He suggested that under these con-
ditions it would not be hard to make
arrangements with the other banking
interests in the city and perhaps in the
larger centers of Kansas to formulate
a plan of helping out the Kansas banks
who have deposits with the Blankets
Trust company and asked me to come
bankers and himself on the proposition
I called I'D number of the Kansas
City bankers to find out II tney
thought my presence there would De
of any material benefit and they told
me that it would SO 1 will go up there
tbjs~ a f+arp0orr. fIpSfsl-- 4
.sIt seems that the banks in Kansas
City will be glad TO cooperate in any
which are depositors with Bankers
Trust company, and 1 am certain that
anv embarrassment which any of these
kansas banks may suffer will be of a
decidedly temporary character. L don {
think any of them will be hurt bit.
up to noon today, added MI.
Royce 1--WE have not heard single
word here to the effect that there is
single bank in Kansas which IS en-
barrassed in any way by the present
conditions in other money centers. This
is most encouraging and do not think
that any bank in the state will expert
ence any trouble unless 1t is or a most
temporary character. The Kansas
banks. one and all, are in the best pos
sible condition.
Otis L. Atherton former state treas
urer. and president of the Russell state
bank of Russell, Kan, was visitor at
the office of the bank commissioners
this morning.
He was really jubilant over the
banking conditions as they now main |
tain through the northwestern part OF
the state.
''Why. I don't believe this money |
furry will worry US in the least. he |
said "All the banks up in our section
of the country are blessed with good |
big reserve funds and believe that we
will go on doing business Just as usual. |
No steps have been taken by the bank |
ers in that section to limit the amount |
of deposits that may be Withdrawn. |
Nor do I believe any such steps Will |
be taken. We have plenty of cash On |
hand and will go on doing business as |
usual. l believe that the money Will |
keep coming into us through the regu. |
lar channels just as 1t has been In the /