The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-02-27
Bankers Panic and Its Effect
on Kansas.
Only Two Banks That Closed for
Good.
DUE TO OTHER CAUSES.
In Both Cases Dishonest Man.
agement Did 1t.
Eleven Others That Quit Have
Resumed Business.

Now that the bankers panic is
over, it is interesting to foot up the net
results in the state of Kansas.
Things looked bad at one time When
the Bankers Trust company of Kansas
CITY went down, closely followed by the
Bank of Commerce both of which were
heavily patronized by Kansas banks, 1t
was expected that the state of Kansas
would be lucky If it escaped without
most serious difficulties.
The reports in the office of State
Bank Commissioner John @. Royce
show that during the whole Of the
panic" only 13 state banks in Kansas
closed their doors and eleven of these
are again doing business.
Seven banks closed because of the
Bankers Trust failure, and six of these
have resumed business
Three banks closed because of the
Bank or Commerce failure and all have
resumed business.
Three banks became involved by
dishonest officials, and one of these re-
sumed business. Another paid out in
full and quit.
The only banks in the state which
closed for keeps during the panic"
were the Citizens State bank of Null
berry, Crawford county, and the Bank
of Elinwood (Barton county,.
The Citizens State bank of Mulberry
was owned entirely by President Brady
of the Bankers Trust. Brady borrowed
all the money Of the Mulberry bank,
and left it strapped. The Ellinwood
bank was robbed blind by Bochemole,
who later committed suicide.
The history of the eleven banks
which closed and then resumed is in
teresting because it shows on what a
solid basis the banks of Kansas have
been doing business. As this history is
well known in the localities where the
banks are doing business, no harm can
be done in making it public. In fact,
the thing which saved these banks was
the fact that they took their stockhold-
ers and depositors into their confidence,
and showed them exactly where they
stood. The public stood by the bank
ers and helped them to continue in bus
iness.
The Bank of Scottsvine was closed
because of bad management on the part
| of its officials. However, the depositors
have been paid UP in full, and a new
! bank has been started at Scottsville
to take the place of the old one.
| The Arcadia State bank failed be-
cause its president lived too high, and
| bank. When he came to the finish, his
| relatives stepped in and made good all
the shortage. The bank continued in
| business with a new president.
| The seven banks which were thrown
into difficulty by the Bankers Trust
| failure were these:
| Mulberry State bank, Crawford coun-
ty.
| Citizens State bank, of Mulberry.
| Coyyille State bank Wilson county
| Garland State bank, Bourbon county.
F'ontana State bank, Miami county.
| Peoples State bank Of Richmond,
Franklin county.
| Heston State bank. Harvey county
| The Mulberry State bank closed be-
| cause its money was tied up in the
Bankers Trust. The same day 1t was
| sold to Miller Bros. who opened the
| bank up for business as usual the next
/ day, and it has been doing business
| ever since.
The Coyville bank had $500 in the
Bankers Trust, and the Bankers Trust
| owned 81 shares of stock in the bank
| The bank forfeited it's $500, and got
| it's stock back. 1t sold the stock and
! resumed business today. This is the
bank Of which Senator Robertson is
| president.
The Citizens State Bank of Garland
closed and it's stockholders at once
/ started a new bank known as the Home
State bank. One Of the officers of the
| Home State bank was appointed receiver
for the Citizens, and all the assets of
the Citizens are being handled through
the new bank This bank will pay its
depositors In full, and it might be said
that the Home bank is practically the
same as the old Citizens State bank.
/ When the F'ontana State bank found
that it was involved in the Bankers
/ Trust crash, a meeting of the stock
/ holders was quickly called, and it was
decided to shut up the bank temporarily
/ and send the cashier to Kansas City to
see what could be done. This prompt
action enabled the cashier to get hold
/ of all the paper in the Bankers Trust
| he fon ho II haf
| a receiver was named. The bank was
closed from October 20 till November Is
and then resumed business
The Peoples State Bank Of Richmond
and the Heston State bank were closed
only few days until the officers could
find out where they were al"
The three failures due to the Bank OF
Commerce crash were not even as ser
ious as those due to the Bankers Trust
disaster, for the Commerce failure was
an honest failure, while the Bankers
Trust trouble was due to dishonest
methods on the part Of the manage
ment.
when the news Of the Commerce fail
ure reached it, remained open until
O'Clock in the afternoon. Then the
cashier became alarmed for fear that
his bank was insolvent, and that he
would be liable to punishment for TAX
ing deposits and closed his bank. II
was closed for Just one business hour
for the next morning it opened up as
usual.
The State Bank of Admire in Lyor
county and the Piedmont State banl
in Greenwood county, both closed fol
. day or two. and then resumed bust
. ness as usual.
,, There were hundreds of Kansas banks
with large balances in the Bank Of
Commerce, and none of them will lost
q cent 1t is admitted that this bani