The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-10-02
HITS HIGH MARK,
Kansas Bank Deposits the Larg-
est on Record.
mr.. Royce Says They Have
Reached SO Millions.
MAKES SOME REMARKS
EavOIS the Guarantee of De-
pOsits by State Law.
Have Effect OF Stopping All
Runs ON Banks.
MAKES SOME REMARKS

about the panic" the information is
given out from the office of Bank
Commissioner John Royce that the
deposits in the state banks of Kansas
have reached SO millions of dollars.
the highest mark in the whole history
of the state.
National bank deposits in Kansas
always run about the same as state
banks. which would make the total
money on deposit in Kansas about
31T0. 900.
Bank Commissioner Royce. in Civ
ing out this wonderful statement,
takes occasion to make an argument
in behalf of the guaranty of bank de-
posits, not on the ground that Kan
sas banks are unsafe, but on the
ground that such a law would insure
confidence, encourage deposits, and
stop all danger of runs"
Mr.. Royce says:
The statement which goes out from
this office today shows the financial
condition of the state banks of Kan
sas at the close of business on Septem-
Der 1st in comparison with their con-
dition at the date of the last call. on
June 18th. and in many respects is
the most remarkable statement ever
Issued by the banking department of
Kansas.
ten months from the stringency in
the money market, caused by the wild
speculations of Wall street brokers,
sometimes incorrectly dignified by the
name of 'panic," not onIy a return of
the full amount of the deposits which
were withdrawn by the more tlmid
ones at (hat time, but that the de-
posits are higher now than were
ever known in the history of the state.
Deposits in our state banks have in
= ha ole lax- h
tween the calls on June 18th and
September 1st at the rate of one hun
dred thousand per day. making a net
increase of eight million dollars for
the period Of less than three months.
An equally large increase has prob
ably been made in the national banks
of this state.
This wonderful increase of deposits
and the exceedingly healthy condition
of our state banks as shown by this
statement, indicates very clearly that
people are not losing confidence in the
security Of their deposits by the agita-
tion of the question of public guaranty
OF deposits. At time like this, when
there Is so much talk of the necessitv
for guaranteeing deposits in banks. II
is perhaps wise that those who have
surplus money to deposit in banks be
made as well acquainted with the am
pie protection which they now nave as
posi- BILE. To secure the $S3, 33S, 563 09 of
deposits in our state banks on Septem-
ber 1st, the banks have of unquestion-
able assets $67. .542, ,29713; in addition to
this they have in actual cash on hand
43 cents for every dollar which they
have on deposit or $35, ,520, ,453.52. making
q total of $103, ,062. .75065. Nor is this all.
but In addition there is a stockholders
liability of $13562s50 which when
added to the total assests of the banks
makes nearly two dollars of security
for every dollar Of deposit liability
10 Of these HANKS urhfoh CT nd
as security for the payment of deposits
IS carefully inspected, at least four
times each year by the board Of di-
rectors of the various banks and twice
each year by the examining deputies
OF this department, so that I have no
hesitancy in saying that every dollar
of deposited money in the Kansas
banks Is as safe today as though each
depositor had government bond be-
hind his deposit OF Its full value. The
orator who seeks to gain advantage for
his party in the heat of a political cam
paign such as we are in the midst 4
s.at the present time, by the statement
that II will be necessary for a ma
tority of the votes to be cast for his
marty In order that their bank deposits
rvill be made secure. even though such
orator be a candidate for the presi-
dency. makes statement which the
facts do not warrant. Deposits are Sc
cure now and the safe security which
the depositor has will not be disturbed
by the present election whatever may
be the result.
I have for more than three years
been an earnest advocate of the pas
sage of a law providing for the
gathering of a fund to be placed in
the hands Of the state treasurer to
guarantee the prompt and immediate
Dayment of the depositors in all closed
banks in this state. The position
which 1 have taken is not in response
TO the demand of depositors nor to
Increase the security which they now
have, but in my opinion such a fund
held by the state treasurer and ad-
roinistered by the banking depart
rnent. will so inspire those who do not
now deposit their money in banks
with confidence that all of the surplus
money of the country will be de-
nosited in the banks and by them put
IN circulation. thus increasing the cir
cuiation medium of the country to the
Great advantage of the business in
ferests OF all the people. All people
will not deposit their money in banks,
security is ample, for they argue that
their money might be indefinitely with
held by the closing of the bank, but
~ such people could know that there
was ready fund in the hands of
tbc state treasurer and that there was
state law requiring the immediate
L,,avment OF all deposits in a closed
INK L confidently believe that the
boarding of money would stop en-
tireIy. and all money come out of hid
inp and perform the function for
witch It was created. The expense
- the creation of such a fund would
be very small on the banks whose
etockholders would receive a benefit
.bat would more than compensate
then for such small expense.
such a law, in my opinion, would
atop runs upon banks for the reason
fhat the depositor would feel as secure