The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-01-23
BANKERS HEARD.
Make Pleas Before the House
and Senate Committees.
Discuss Injustice of Proposed
Depository Law.
MIR. BRADLEY'S SPEECH
Would Not Prevent the Failure
of Banks He Says.
James Of Bonner Springs
MIR. BRADLEY'S SPEECH
JamesWaters Of Bonner Springs
Only One FavOring the Bill.

From O'CLOCK till II o'clock We'd
nesday night, representatives of the
Kansas banks. both state and national.
pleaded with the banking committees
! of the house and senate in joint ses-
sion in the senate chamber to enact
just as little legislation as possible on
the subject of guaranteeing deposits.
Some of the foremost bankers of the
state were present, and out of the en-
tire representation of forty or fifty
bankers, there seemed to be not more
than eight or ten who looked with
favor on the straight deposit guarantee
plan.
Most of the opponents of that plan
were willing to compromise on some
sort of mutual ms urance for bank de-
posts, and it is likely that the bank
ing committees of the two houses will
get up some sort of a law providing
for a deposit insurance scheme under
the close supervision of the state.
Among the prominent bankers who
attended last nights meeting were: A.
G. Jobes, Wichita; c. Q. Chandler,
Wichita; P. w. Geobel, Kansas City;
]. T. Bradley, Sedan; John R. Null
| vane. Topeka; E. R. Moses. Great
Bend; W. F. March, Lawrence. Frank
thony; W. F. Burks. Wellington; J. NJ.
| Jarvis, Winfield; w. M. Peck, Con-
cordia; E. r. Goode, Olathe; William
Westwood, Peabody; Eli Williams, Nc
Pherson; E. H. Branch, Wichita; Don
Kinney, Newton; C. M: Sawyer, Nor
ton; J. R. Balinger, Winfield; Scott
Hopkins, Topeka; L. L. Northrup,
lola; P. I. Bonebrake, Topeka; Frank
Bonebrake, Topeka; Chester w. Sny-
der, Topeka; William Macferran, To-
peka; A. A. GODDARD, Topeka, and L.
L. Copeland, treasurer of the Santa Fe
railway. In addition there were many
banker members Of the house ana
senate.
One of the most telling arguments
against the guarantee deposit plan was
made by ]. T. Bradley, national bank
examiner, and receiver of the First
National bank of Topeka. Mr.. Brad
ley said in part:
You can not prevent bank failures
by this kind of legislation. It does not
reach the evil that causes failures. Not
only will it fail to reach that evil. but
it will serve to aggravate it. Does
such a law make men more honest.
them with better judgment? 1t is
necessary to develop those qualities to
prevent bank failures. No business is
free from hazard; why should the
banking business be free? Failures
make bankers more careful and more
conservative. Increase the severity of
your supervision and regulation by the
state if you would develop safer bank
ing methods. I am against the guar
antee law. There is no equality in it.
The bank with small capital and
large deposits is put on the same basis
as the bank with large capital and
small deposits. 1 believe that some
scheme of insurance of deposits might
work because under that plan you can
regulate your charges according to the
risk.
Furthermore, I want to say that I
have it direct from the office Of the
comptroller of the currency that ma
tional banks will not be allowed to par
ticipate in any guarantee deposit PLAN
In response to questions, Mr.. Bradley
said: Il do not think that the surplus
of the bank could be used by nation
al bank for the purpose of participating
In bank guaranty scheme. The di-
rectors have no right to vote any of the
banks funds for that purpose. After
the surplus has been distributed to the
stockholders, L expect they could use 1t
in any way they please. The reason the
comptroller does not want national
banks to go into this is because there
is no limit to their liability. If half the
banks in Kansas should fail the bank
commissioner has right to force the
other half to the wall to pay the de-
positors of the first half. There is no
limit to the liability of bank going in
to this scheme. I believe that ma
tional bank could take out deposit in
paying a certain amount for a certain,
specified protection"
Only One Banker for the Law.
E. r. Moses of Great Bend, said: mo
law should be passed which will take
from the banker his individuality. The
banks don't need any more law. We
are tied down by more stringent laws
than any other business now. There is
not any business which has lost as lit
tie money for the investors as the
banking business, We object to the law
lsproposed by Senator Quincy. We don't
want a law in which we have no voice.
| Adopt a law which puts the good bank
i er On par with the poor banker and
! you run the good banker out of bust
/ ness. Did you ever hear of any insur-
ance scheme which assessed all risks
| alike?"
Eli Williams of Mcpherson. for 80
years a banker under the state banking
! law. and one of the old time warriors
| against the guarantee deposit plan, told
how he has assisted in the fight on the
| guarantee laws proposed by Breiden-
| thai, Burkhalter and others. THE o.
| ject of these laws" he said. lis the only
| good thing about them. They destroy
| Individuality"
| James Waters of Bonner Springs was
the only banker to get up and make
| a fight for the guarantee deposit law.
He said: I'VE favor the Davidson bill.
| We want a guarantee deposit plan in
| which we have some voice and control.
The cause of most bank failures is lack
of confidence with the people. In 1893
| many honest banks failed because they
| could not call in their loans fast enough
| to satisfy their depositors' demands for
! money. No banker can pay all his de-
positors at once I own some stock in
a national bank, and 1 say I don't care
| what law you pass protecting deposits
| In national banks. We want some
|
believe nine-tenths of the state banks
| want a guarantee deposit law. Unless
| we have such a law, every conservative
| banker in the state is going to continue
to call in his loans. Eighty per cent OF
| the people of Kansas are borrowers
| They don't want to be forced to pay
| their loans. Unless you pass a law. il
| will be an issue in the next camnaien