The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-31
State Pays All the Money on
Hand.
Some of Employees Compelled to
Take Checks.
LAST PAID IN SILVER.
Little Girl Carried Away Load
of Fifty Dollars.
State Treasurer Tulley Says
Situation Is Strange.

ter sustaining run" for two hours
and paying out $7,OOO-aIl the cash on
hand-the Kansas state treasury was
obliged to suspend specie payments.
and resort to checks on depository
banks to pay off the remainder Of the
state house employees.
AS long as the cash lasted the state
house employees had their warrants ta-
ken VI, at the state treasurers window.
but owing to the fact that it became
known that the supply of currency was
limited. there was a good deal Of rush
to get in early and get money.
Toward the last, there was nothing
left to pay off with except silver. One
little girl who was sent in to cash her
fathers pay check walked out Juggling
fifty silver dollars.
Lost of the employees, when they
found that they would have to accept
checks on depository banks instead of
cash. said that they would prefer to
hold their warrants, and wait until the
treasury could gather in some more
funds 1t is expected that this will be
within a few days, and that by the end
of the week. all of the state house war
rants will be taken up.
State Treasurer Mark Tulley said this
morning: 1T is a very peculiar condi-
tion. Of course it is merely a matter
of accommodation that we are paying
off the state house employees in cash,
but it has long been the custom, and
we have done our best to continue it.
I have paid out about 81 900 this morn
ing and have no more available at
present. The best I can do is to pay
with checks on our depository banks.
I am offering to do that, but most OF
the people prefer to hold their warrants
Some of the checks which 1 offer are
on Topeka, but most of them are on
out of town banks. We aim to check
out from the bank having the largest
percentage of it's limit on hand.
These treasury warrants are just
about as good as cash. anyway. A man
can take them to the grocery and pay
his bill with them. They go about as
we'll as cash. They can also be deposit
ed in the bank. and then become sub
ject to the general rules for checking.
1 don't know how long this will con-
tinue but we will get the money as
fast as possible"
There has been no great amount of
objection to the inability of the state
treasury to pay the warrants in cash.
Most of the state house employees are
able to get along for a few days with
out cashing their warrants, and by tho
time a check on depository bank could
be cashed, the chances are that the
stringency will be relieved.
Brighter in Topeka.
There is but little If any change in
the financial situation in the city to-
day though if anything there is an
air of hopefulneSs which adds aSSur-
ance to the bankers and business men
that the. course adopted Tuesday is
approved generally. There is little
hope that the clearing house rule now
in affect permitting depositors to
withdraw but 500 in a single day or
5000 in a week will be changed until
the announcement comes from that
center that such a course has been
adopted.
The feeling which caused the adop-
ton of this rule originated in New
York and it is expected that the relief
will come from this point. However,
as it was stated this morning by one
of the best authorities On money mat
ters a change may be expected at any
time as currency has been pouring
into New York for nearly a week for
commodities which have been sent
across the water and this money is
being withheld from the west
AS soon as the eastern bankers feel |
that 1t is safe to raise the ruling so
that a depositor may withdraw his en- |
tire deposit the wave will sweep west |
ward and be adopted first in New York, |
then in Chicago, followed by ST. Louis |
and Kansas City and then Topeka The |
wave of confidence will then continue |
westward as it did when the feeling of |
unrest first exhibited itself in New |
York and created the currency panic |
Topeka merchants yet have not |
felt the shortage of currency in their |
business affairs and but few of them |
have been compelled to resort to the |
expediency of issuing checks in settle
ment of accounts. Owing to the ruling
adopted Tuesday against paying out |
sums not to exceed 5000 in a week the |
currency reserve in the banks of the |
city has increased to such an extent |
that there is no doubt that the banks |
will be able to take care of the pay
rolls Saturday night.
Embarrassing Incidents.
Numerous situations embarrassing in
the extreme have occurred on account
of the inability of the banks to dole out
currency desired by their customers
their nature. This morning a man
from small town in Oklahoma en-
tered the Bank of Topeka with a letter
of credit for $1,000 and asked that 1t
be cashed. This was refused under the
house rule providing that cur
rency to the extent of but 500 will be
issued in any day.
But continued the man. address,
ing Mr.. Freeman, my banker told me
that this letter of credit would be as
good as gold in any part of the world |
and now here 1 am in Topeka and not
was explained to him and while he
may not have been satisfied he was
to content himself with the
idea that he will get his money some
time.
At the Throop hotel a travelling man
presented a New York draft for $500
and asked the manager, Mr.. Chambers,
TO take out the amount of his bill and !
give him the balance in currency. This
Of course was refused and accepted by
the travelling man in matter of fact
way. But" he continued 'I have
carried that piece of paper all the way
from New York with me and tried for
The past week at every stopping place