The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-05-26

cent, the total sum realized there
from would be $165,00O. The maxi
mum strength of this fund, when all
the banks participate, will be between
100000 and 100000 and will be in
creased by annual assessments until it
reaches one million dollars, which is
the permanent amount of the fund.
Should it be depleted by failure, it
will be promptly restored by an as
sessment.
safeguards Thrown Around the Law.
sThe bank depositors' guaranty law
is under the strict supervision of the
estate bank commissioners attorney
generals and state treaSurer'S depart
ments. There is no expense attached
to the banks for its operation-not
single dollar. Rigid scrutiny should
and will be exercised in every instance
in the acceptance of the banks for
this fund, and only.such banks as are
thoroughly solvent, clean, well-man-
aged and operating in full compliance
with the Kansas banking laws will be
accepted under any conditions. Very
close and exacting examinations will
be made at the time the bank makes
application to come under the law.
Losses From Kansas Bank Failures.
THE net losses from the failures of
state banks in Kansas during the past
twenty years, which includes the
wholesale failures of banks during the
more than an average of $25, 900 per
annum. There is no probability,
might say possibility, that Kansas
Will ever have as many bank failures
within the same time or as great
loss through the suspension of banks
in the future as in the past, and
hold, financially Speaking-and I be-
lieve that any fair-minded person of
business affairs, especially q banker,
will agree with me-that the afore-
70 a
ity and the assessments as provided
under the bank depositors' guaranty
law are equal to any emergency that
will probably arise in Kansas; that
the provisions of this law are abso-
lutely sound from business stand
point and provide sufficient sums of
money to thoroughly and safely pro-
tect every dollar of deposits in the
state banks of Kansas; and that ev-
cry depositor who places his or her
money in a guaranteed state bank
takes no possible chance of losing
single penny. The liability is limited
and the possible expense to the banks
cannot become a burden in any event.
AS to Wildcat Banking.
1.-THE statement has been made that
the guaranty of deposits will increase
wildcat, speculative, loose and UNI E.
liable banking. 1 differ entirely as to
this. 1 am of the firm belief that the
law will reduce very materially these
very undesirable features. I believe
that the organization of a bank has
much to do with its success. Banks
should only be organized in communi-
ties where they can be proftably sup
ported, and the stockholders and pro-
motors should be men of that COM
munity, financially responsible for their
double liability and the bank should
be differed by competent men of I'M
questionable business integrity. I ex-
pect to watch very closely the organ
ization of all new banks during my
administration.
The Law Is Right in Principle.
1.-THE Kansas guaranty law is right
in principle and adequate as to the Sc
curity of deposits. The people of Kan
sas demanded this protection, and they
are entitled to it, and 1 trust every
state bank will participate under the
law and thereby make it splendid
success.
Banker Should Fall With His Bank.
1.-THE true banker should be at all
times thoroughly imbued with the
spirit that is found in a ships captain.
You are aware that it is an unwritten
nautical law among sea-faring men
that the captain of the ship must go
down with the ship. if need be, and uIi-
der no circumstances or conditions de-
sert his vessel as long as 1t floats.
The same spirit Of devotion to his call
ing should make the banker risk his
all If necessary, yes, 1 might say his
life. in the preservation of his bank,
and give up every dollar Of his own
fortune to save the interests of de-
positors who in confidence have en-
trusted their fortunes and their all tc
his keeping. Unless a man is ever i'm
bued with the sense of responsibility
for the welfare of his customers and oe
the community in which he lives, and
which have placed confidence in him, 1
would advise that he never enter the
banking business. I am pleased to
say that the most Of the bankers apprc-
ciate the enormous responsibility which
at all times rests upon them.
VIII Cooperate With Bankers.
''Now, gentlemen of this convention,
1 wish to say to you in closing that as
bank commissioner Of Kansas my
policy will at all times be to aid, help
and assist, in every way possible, each
and every bank and banker, and help
in every way the profession of bank
ing and place our banks and our hon
orabIe calling upon a higher level. No
duty will be too great no task too
arduous, at any and all times, for me
to perform in behalf of our mutual adj |
and greater success"
MAY DIVIDE TERRITORY.
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