The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-12-05
DOES NOT HURT.
Kansas City Failure Isn't Felt
i'm Topeka.
No Local Banks Have Large
Deposits There.
USED FOR COLLECTION
Aggregate Amounts to Only a
Few Thousand.
Topeka Institutions Allin Ex-
cellent Condition.
Statements of All of Them
Published Today.

There is no doubt that the Topeka
banks are in better condition today
than they were when the clearing
house rule was adopted on the 2sth
of October, as their statements pub
hshed today prove. Some deposits
have been withdrawn, but they are
the small accounts which belong to
pepole who are always the first to take
alarm at any unusual condition in the
banking world on account of their
lack of knowledge of financial mat
ters.
There seems to be no disposition on
the part of the depositors in Topeka
banks to become panic-stricken and
the business of the banks today Is
normal: The statements published
today show that the banks in this city
are in excellent shape and that there
Is an abundance of currency on hands
for the purpose Of actual business
transa ctions.
The news of the suspension of the
National Bank of Commerce of Kan
sas City was received in banking cir
cles in Topeka early this morning
through numerous private kilograms
and telephone messages and caused
but little surprise and no excitement.
There seems to have been a well de-
fined opinion in banking circles in To-
peka for some time past that the in
sttution was not in the best condition
to Withstand the strain brought upon
1t by the financial conditions which
have existed since the adoption of the
clearing house rule the latter part OF
October.
The National Bank of Commerce of
Kansas City was used by the banks of
Topeka as collection agency rather
than as depository and the loss to
Topeka bankers will not amount to
more than a few thousand dollars at
the most. The Topeka banks which
have carried small deposits in the
Kansas City institution in the past
have used the financial furry as an
excuse for Withdrawing their funds
and the bank examiner will find at
least one Topeka bank which is a
creditor of the Kansas City institution,
though the sum involved amounts to
but few hundred dollars; a collec-
ton made late yesterday.
ALI i'm Cheerful Mood.
The bankers of Topeka are not averse
to discussing the suspension of the
Kansas City institution. They are
unit in their opinion that the closing of
the bank will in no way affect the
banking interests in this city. J. r.
Mulvane. president Of the Bank of To-
peka, said:
There is no reason for a feeling of
concern among Topeka bankers as to
the result of the Kansas City suspen-
sion on the institutions in this city as
far as 7 can see.
"None of the banks in this city were
depositors to any great extent and at
most, the money tied up by the suspen-
sion will amount to but few thousand
compared to the resources Of the banks
in Topeka. For that matter the total
of all of the deposits from Topeka
banks could be charged off as total
loss and it would not he felt, though it
is nv opinion that the institution is
solvent and will in time pay out.
'It is natural that we should get our
reserve in our own banks
as fast as possible and that is just what |
we have been doing for the past month |
and the result is that our reserve in |
Kansas City is at very low point. AS
far as I can see there has not been |
particle of excitement about the city !
today since the suspension has been
generally known The Kansas City bank |
has been used more as collection |
agency by bankers of Topeka for some |
time rather than bank of deposit and |
this in a large measure accounts Tor |
the small reserves carried there at TINS |
time"
F. w. Freeman, vice president of the !
National bank, said: There |
is hardly possibility that the Kansas
City suspension will affect banking IN
Topeka in any way. AS I understand |
the situation the banks in this city |
which have carried deposits in the Kan
sas City institution have Withdrawn
the larger amount of them and the loss
will be light If any at all. The enor-
nous Iiquidations made by the Bank
IF Commerce during the past 40 days
Indicate that it's assets are good and
he loss will in all probabilities be
small"
Expected the Failure.
c. w. Snyder, president of the To-
peka State bank, said: Topeka has
been fortunate in this failure and if
any of its banking institutions are hit
at all the loss will be light and hardly
worth mentioning. Most of US have
heard rumors which have been af1oat
for some time and those who had de-
posits in the institution have governed
themselves accordingly
William Macferran, cashier of the
State Savings bank said There is
out little money belonging to Topeka
banks in the Bank of Commerce which
suspended payment this morning and it
IS my opinion that it will not be lost
and that the unfortunate affair is
suspension and not a failure. In my
opinion this IS another instance of
where a bank was talked to death by
ts enemies and I feel that its assets
will enable the bank examiner to pay
off all claims in full, in time
~f