The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-30
Banks Have More Cash Than
They Had Monday.
Situation Among Merchants Is
Also Improving.
DO NOT USE CHECKS
Have Been Able to Transact
business in Regular Way.
Provision Is Made to Meet the
Pay Rolls.

The financial condition in Topeka has
improved since Monday morning when
the clearing house decided to adopt the
New York clearing house plan as a
precautionary measure and protection
for the merchants and bankers of the
city as well as the patrons of the
banks There was more currency in
the banks Tuesday than there was the
preceding day and there is more there
today than there was yesterday and a
general feeling of confidence prevails in
every locality.
But few of the stores of the city have
been compelled to resort to the ex-
pedfency of issuing their checks in the
transaction of business, and in most in
stances this was done as a precaution-
airy measure so that they will be able
to take care of the checks of their en-
ployes Saturday night
At clearing house meeting held this
morning resolution was adopted which
Will bring the currency which has been
held back by the merchants for this
purpose into the banking institutions Of
the city. Each depositor will be per-
mitted to withdraw the amount of cur
rency deposited through the week at
any time he may SO desire and in this
way 1t is felt that the pay rolls about
the city will be cared for with ease.
Before this plan was suggested many
of the merchants withheld their cur
rency when making daily deposits for
fear that they would be cramped for
cash with which to meet their obliga-
tons to those in their employ. The is
suance of clearing house certificates
has not been commenced and it is hard
~ likely that the public will ever see
a specimen of this emergency money
which the banks propose to issue n
case the necessity arises.
A committee consisting Of F. W. Free
man. J. r. Mulvane, P. L Bonebrake
and William Macferrau was appointed
at the meeting of the clearing house
members yesterday afternoon to have
charge of the details, if it becomes nee
essary to issue clearing house certth-
Gates to the public. The bankers or
the city are a unit in declaring their
belief that an emergency will not arise
necessitattng this action.
The committee have not agreed up
on the details of the issue if it should
become a necessity and there are
about as many ideas as there are
mem bers of the committee though all
agree upon the one detail that the
banks as a body will guarantee the
issue
"I am reminded somewhat of the
conditions during war times" said J.
R. MuIvane. when we were COM
PEELED to issue shinplasters for use
as fractional currency. But the plan
which is proposed by the members
of the clearing house is much differ
eut as we will issue clearing house
certificates If necessary and every
bank in the city will be back of them
For instance If one of the banks
should feel the need of currency a
thousand dollars worth of securities
will be deposited with the clearing
house and certificates to about this
amount. perhaps one hundred dollars
less will be issued to the bank asking
for the certificates
THE clearing house will in this way
be secured against loss and at the
same time the certificates will become
an obligation binding every bank in
the city for their payment But it's
all over now, in my Judgment and in
less than a week the restrictions plac-
ed on patrons OF the bank as to the
withdrawal of their deposits will be
removed and the banks will be trans
acting business as usual
The general tone about the city
including patrons as well as mer-
chants and bankers is hopeful and
there Is no dissatisfaction as to the
action Of the bankers Now and then
some depositor with a few hundred
dollars in deposit will demand their
money owing to the fact that they do
not understand the situation but these
demands have been met with fat re-
vince them of the safety of the irstf-
tuition.
I'VE have more currency in our
bank than we have had at any time
since we opened for business said
c. w. Snyder of the Topeka State
bank, strange as it may seem and we
have not made an attempt to get
money from the outside either. It
Just happened that our deposits were |
heavy yesterday in currency
and that but a small part Of it was
paid out"
There seems to be plenty of cur
rency for the transaction of business" |
said w. W. Mills of the Mills Dry Goods |
company, and SO far we have not
been compelled to issue a check in |
making change for our patrons and ouI |
reserve supply of cash is ample for all |
Of our needs The statements of Mr. !
Snyder and Mr.. Mills express the opfn- |
ions Of the bankers and business men |
Of the city without an exception.
All are confident that the situation |
has been met and that the action of |
the bankers of the city in taking the |
action which they did Monday morning |
Is largely responsible for the feeling of |
absolute safety which prevails. The /
accept the situation grace /
fully though some of them have been |
slightly embarrassed on account of not /
being able to get cash with which to /
their desires. This is /
particularly true in the case of the
hotel men who are called upon each |
day to cash drafts for travelling men