The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-28
NO FURRY HERE.
Topeka Banks Not Affected by
Eastern Conditions.
Clearing House Takes Steps to
Protect Institutions.
A nADH NJ INV NARK DI NJ
ADOPTNEWYORK
May Issue Clearing House
Certificates Here
Should Emergency Arise and
Will Stand by Each Other.

At regular meeting of the bankers
of the city composing the Topeka
Clearing House ssociation this morn
ing a resolution was adopted prac-
tically the same as that now in force
in Kansas City and New York. The
resolution embodies the adoption of
the New York clearing house certifi-
cate plan of accepting exchange in
clearing house balances.
Another resolution was adopted
binding all the banks of the city to
stand as unit for their own and de-
positors' protection which means that
in case of trouble at any bank that the
others will stand back of the institu-
ton The action taken at the meeting
this morning is not in anticipation of
trouble Of any kind but merely as
precautionary measure and to insure
the safety of every bank and every
depositor in the city.
The Prudential Trust company is
the only institution of its kind in To-
peka and is included as a member of
the clearing house association and
will be afforded the same protection
as the remainder of the banking in
stitutions.
In Kansas City the clearing house
association adopted a resolution doing
away with the possibility of the heavy
withdrawal of currency by patrons. 1t
provides that a depositor may with
draw in cash not more than S1OO IN
single day or double the amount during
any seven consecutive days.
This matter was discussed at the
meeting this morning but such reso-
luton was not offered though the now
er to declare an emergency at any time
and put this ruling into effect was left
in the hands of J. R. Mulvane, preSi-
dent of the association.
"The banks of the city were never in
better condition than at the present
time" said J. r. MulVane, president of
the clearing house association. we
do not anticipate trouble of any kind
and the resolutions adopted at the |
meeting this morning were merely as a |
precautionary measure. we Will prop |
ably not7feel to any extent the financial |
furry which exists in the east, but felt |
that the public would anDreciate any |
precautions that we might feel like |
taking for their safety.
Our action this morning" said F. w. |
Freeman, vice president of the Mer-
chants National bank, ''in adopting the I
New York Clearing house plan does
not mean that we anticipate trouble of
any kind or that there is an institu-
ton in the city of the banking class
which is not able to care for itself and
the interests of it's patrons. We feel,
however, that in union there Is strength I
and that by taking the action which we
ack Of confidence in the ability of any
If the banks of the city to meet their
obligations on demand"
How Clearing House Certificates Work.
Kansas City, Oct. 2S.-"It just
mounts to this" John F. Down
ng, president of the New England
National bank, said, 1.-The clearing
house association will receive certif1-
.ates from the various banks in place
# cash to pay their clearing house bal
ho will 6nnOSif |
collateral with the clearing house to
ecure it against any loss. The banks
which have balances coming to them
or any days business will be given
redit certificates for the amounts by
he clearing house association.
''It simply means that the banks
ave entered into an agreement to do
heir business upon certificate basis
With gilt edge securities for mutual
rotection, instead of taking gold and
urrency from their vaults to re-estab-
sh each days balances.
with the individual and country
ank depositors it is just the same. A |
nan may not go to the bank and draw !
ut 81, 900 cash to pay his contractor for
house, but he can sign his :
anne to a certified check for that ,,
mount and it will be certified and paid :
trough the clearing house. The check :
I this way does exactly the same ser
ice that the cash would have perform
d and leaves the cash in the depositor's
ank's vaults undisturbed."
No Inconvenience i'm Banking.
Its merely an extension of the credit
DR.. w. S. Woods, president of Z
he National Bank of Commerce. said.
Every check presented at the various
anks will be honored, but payments
ill be made through the clearing house a
lstead of by cash Every country v
ank will b9eXtended all the credit de- il
red. but no currency will be sent out T
There is no more danger of a panic Z
/ the west today than there was year {,
go. We are simply taking these steps
reassure depositors and business b
len in general 1t is only a matter of u
ays when there will be plenty of cash t
nd only the action of eastern financial
enters causes us to take this step now.
''The only thing we desire to do is to
0nserve for the west the cash the
estern banks now have"
I'VE did the same thing in 'S4,'' Mr. 7
owning said, that we're doing today
caused no panicky condition what
yer and in a short time conditions il
ere again on the same normal basis.'' c.