The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-01-02
ONLY II Per CENT
Decrease in Kansas Bank De-
pOsits Is Immaterial.
Considered But Little More
Than Normal.
NOT BOARDING MONEY
People Of State Have Confidence
in Banks.
Actual Cash in the Banks Has
Greatly Increased.
Bank missioner Royce
Greatly Pleased at Showing.

decrease of only II per cent in the
deposits of Kansas banks since August
22 is shown in the report made public
today by Bank Commissioner John @.
Royce of the condition of the state and
national banks of Kansas
one year ago-according to the state
ment of the condition of the banks in
November, 1906-the total deposits were
1886, 725,030. At the present time the de-
posits are $147, ,355, ,O95. %. This is an in
crease of 81, 100000 The highest point
ever reached by the deposits was in
August. 1907, when the total was $685.
sS9, 1929.
The actual cash in the vaults of the
banks has increased s2,3s5,9 ,9Ss since
August %
Morton Albaugh. former bank COM
missioner, said of the report: "It is
little short of remarkable and means
that no money is being boarded in
Kansas. The normal decrease would
be about 71a per cent and the rest may
De accounted for by the decline in the
prices of cattle and hogs"
Bankers are evidently calling in
loans, and to this is no doubt due in
considerable measure the decrease in
deposits. A loan made by a banker to
a customer is in the nature of a credit
When the customer borrows 81 900 the
money is placed to his credit, and be-
comes a deposit. Many bank customers
nave not used this credit but instead
have decided to cancel it They have
simply taken up their note. and can
celled the credit. This reduced the
bank deposits without in any way in
dicating that there is anv 'hoardfng"
going on. One of the best bankers in
the state gave it as his opinion today
that practically none of the $18 GOO, 900
decrease in bank deposits is due to
boarding. and that the paying of debts
from customers to banks, and the pay
ment OF. debts outside of the state is
the cause of the decrease in the total
deposits.
Mr. Royce's Cheerful Statement
Referring to the different items. as
SHOWN in this statement, John Q. Royce,
bank commissioner. makes the follow
ng comments:
The appended report showing the
financial condition of all state and ma
tfonal banks in Kansas at the close of
business on December compared with
the condition of the same banks on
August % will serve to strengthen the
confidence of the people of Kansas in
the solvency of her banks. With two
months of the most severe financial
stringency through which the country
has passed for many years, there has
been a shrinkage in total deposits of
only 1S million dollars, or IL per cent
from the highest point ever known in
the history of the state, and much of
this reduction of deposits is occasioned
by the withdrawal of funds for the
purpose of moving crops and also for
the payment of taxes.
Had the statement been made two
months ago that the deposits would not
have shrunken more than 33 1-3 per
cent, the average person would have
thought the person making it was not
acquainted with the serious condition
which confronted the state at that time.
Those who were more familiar with.
the actual condition of banks were
thought to be unwise prophets when
they predicted that deposits would not
fall off more than from Is to 20 per
cent so that it is q pleasure to present
a compilation of figures which shows a
reduction in deposits of only IL per
cent.
While there has been quite loss of
deposits during the three months be-
tween August 2. 1907, and December 8,
1907 the strength of our Kansas banks
is further shown in the fact that they
show 81, ,3S5, ,9S9 more actual cash in
their vaults than they had on August
% when their deposits were 18 million
dollars more than they are today.
During this same period the banks