The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-28
Governor Frantz Issues Pro-
clamatiOn Covering Oklahoma.
Financial Institutions to Re-
main Closed a Week.
THE NEW YORK PLAN.
Kansas City and Other Cities
Adopt Clearing House Plan.
Bankers Trust Of Kansas City,
Mo. Suspends Payment.

Oklahoma City, Okla, Oct. 2S.-On
demand of the bankers of the terri
tory Charles Filson, acting territorial
governor. has issued procla-
nation closing the banks of the
territory for a week The action was
taken because the banks of Kansas
City and st. Louis refused to forward
cash to the banks of the southwest. 1t
is said that a consultation of the
bankers of Oklahoma. Indian terri
tory, Arkansas and northern Texas by
means of telephone took place during
the early hours this morning and all
have taken a similar action.
There had been no uneasiness in
this city and the bankers say the de-
poSitS last week were greater than at
any previous week in the month. The
closing is for the purpose of protect
ing the banks in case of a run. Since
the banks here could not get cash
from Kansas City in case of run,
they considered the risk too great.
The banks of this city are carrying
many of the small banks over this
territory.
They have arranged to issue clear
ing house certificates to carry them
until conditions have improved.
The Governors Proclamation.
Oklahoma City, Ok, Oct. 2S.-The
governors proclamation closing the
banks was as follows:
Whereas, 1t appears to the under
signed acting governor of the territory
of Oklahoma that all of the leading
cities of the United States through
their clearing house associations have
entered into an agreement to protect
themselves against conditions which
they are apparently unable to control
and by such concerted action are re-
fusing to ship currency to country
banks which have deposits with them
or to honor the bills of lading drawn
upon the banks of such, or to paw checks
of customers over the counters; and
Whereas, Such action makes it i'm
possible for the banks of Oklahoma to
meet the immediate demands upon them
Tor currency to pay for the cotton and
other products of the territory; and
Whereas. Our banks appear to be in
a solvent condition; therefore,
Be 1t ordained that legal holiday
extending from October %, six days to |
November 2, be proclaimed
CHARLES FILSON,
Acting Governor.
Bankers Trust Closes.
Kansas City, Mo, Oct. 28.-The |
Bankers Trust company of Kansas |
CITY, Mo- with deposits of $500, 1000,
The cashier, ]. c. Hughes. said
that they had decided to close tenn
porarily because the clearing house |
association had refused to extend to |
- Inc p14ILeSeS granted the thirty |
other leading banks here of issuing
clearing house certificates
inc bankers Trust company was
ORGANIZED last year, and had a capital |
OF s5Oo'OO0 and a surplus of $14, 1000.
1t took over the business of the Citv
National bank, which failed in JULY.
1905. The Bankers Trust company,
was not a member of the clearing
house and while no run was exper-
fenced at this bank at the opening of
business this morning it was decided
that temporary suspension was nee
essary TO protect depositors and
stockholders Cashier Hughes said
that the bank had ample assets to
pondents are the Oriental Bank of
New York and the Prairie National
bank of Chicago.
There was no appearance of any
thing like run at any of the other
local banks up to 1890 o'clock.
Members of the Clearing House as
socfation today advised their cores
pondents in the southwest by tele-
phone to restrict payments to deposit
.ors to a small amount until the pres
ent furry had passed, and the indica-
lions were that this advice was gem
orally being accepted
The banks of the southwest are
further embarrassed because of the
demand for cash to move the cotton
crop.
1t was necessary to get cash from
he east to meet the demands. = The
refusal of those banks to forward
ash caused the banks to take radical
steps to protect themselves
The Bankers Trust company had
asked aid of the clearing house, but
t was declined because of the class of
collateral offered. James E Down
ng president of the clearing house
said that no other bank
ng institution here had requested aid
md he believed them in safe con-
lition.