The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-11-22
JACKSON TO HELP
Attorney General Will Try to
Rescue Three Little Banks.
Ones Affected by Bankers Trust
Crash.
ROYCE A BUSY MAN.
Having a Time to Straighten
Out Tangles.
Situation in Financial Circles
Apparently Frightening Up.

Attorney General F. S. Jackson has
taken hand in the effort to save the
three little Kansas banks which went
10 the wall as result of the collapse
of the Bankers Trust company in
Kansas City. These three banks are
located at Mulberry, Coyville and Gar
land.
Mr.. Jackson was in Kansas City
Wednesday, and the purpose of his
visit was to investigate some of the
matters connected with the Mulberry
bank, which is now. in the hands of a
receiver.
There are rumors that the appear
ance Of the attorney general in the
case means that criminal prosecutions
may be started against some parties
who We're instrumental in loading up
the Mulberry bank with worthless
paper This worthless paper was
placed in the bank, and cash was
drawn out in its stead. and now the
receiver is trying to compel the par
ties responsible to make good.
Bank Commissioner John Q. Royce
is also devoting his whole time at pres
ent to his efforts to help the three lit
tie banks out of their trouble The
banks at Coyville and Garland are in
better shape than the one at Mulberry,
and no receivers have been appointed
are willing to buy the stock of the
two banks. and continue the operation
or the banks, but the receiver of the
Bankers Trust, who holds the stock
wants too high price. The Mulberry
bank was largely the private enter
prise of a man named Brady who was
prominent in Bankers Trust affairs
There are about twenty other banks
in Kansas which were tied up more
or less with the Bankers Trust. but
ca o
their stock by purchase from the re-
ceiver. and are in as good condition
as ever.
1t was announced today at the state
banking department that all reports
received from Kansas banks are of
an encouraging nature There are no
other banks aside from those involved
in the Bankers Trust affair which
have shown signs of distress.
conditions are steadily improy-
ing" said the state banking officials
1.-The reserve of the Kansas banks is
larger today than it ever has been in
the history of the state. There is also
more cash on hand today than ever
limited withdrawals. and have been
gradually getting in more and more
money from their correspondent
banks in the east. The only thing to
be guarded against is the panicky
which might follow a re-
moval of the lid. Money withdrawn
in that way is out of circulation and
becomes menace. AS long as 1t stays
in the bank it is a safeguard
Bank Commissioner John @. Royce
said: eff I should issue a call for a
statement of the condition of Kansas
banks today, I am confident that it
would show that the reserve is larger
than at the time of the last call, when
all previous records were broken. The
Kansas banks are also gradually ac-
more currency and bust
ness will gradually resume normal con-
ditions. Before people know it, they
will find that the lid has been lifted,
and that money is circulating as freely
as ever
Mr.. Royce yesterday received a long
distance telephone communication from
the southern part of the state from an
indignant bank patron.
st have $4,000 in the bank here he
said land 1 am all packed up ready to
move to Texas. I want my money and
they won't give it to me-"
Wont they give you draft?' asked
Mr.. Royce.
"Oh, yes, they'll give me a draft
as 1t on good bank?"
Eyes. the banks all right
well then" said Mr.. Royce, eff I
were you, I'd take the draft
But want the cash." said the man.
"Why won't they give it to your in
quired Mr.. Royce, innocently.
They haven't got it, was the frank
reply.
"Wen, do you want me to come down
and close up the bank?'' said Mr. Royce.
ooh, no. I don't want you to do that"
said the man hastily.
s'Well, how can I make the bank pay
you your 50, 900 in cash if they haven't
got it ?" inquired Mr.. Royce.
'Well 1 don't know admitted the
man. But I think they ought to give
me three or four hundred dollars in
cash, anyway"
II think so too" said Mr.. Royce.
Now you're getting down to business
and I'll see what I can do for you.
I'll tell the bank officials that in my
Judgment, they ought to let you have