Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1909-05-27
BANKS USEFULNESS TO KANSAS
FARMERS.

Te question of the attitude Of the
banks toward the farmer raised by
an eastern agricultural paper, Is OF
so great Importance that in addition
to the replies of leading bankers OF
Topeka recently given in Kansas
Farmer, answers have been obtained
from various portions of Kansas.
These are presented in brief, begin
ming on the first page of this number.
They disclose a most friendly atti-
tude, indeed a great desire to serve
the farmer in every way consistent
with sound banking.
While the owership of the banks
was not subject Of present inquiry,
yet it is true that very large pro-
portion of the shares in Kansas
banks are held by farmers who have
found in trese stocks safe and profit
able investments for accumulations.
Under these conditions there could
be here no antagonism such as was
indicated as existing in the East.
The usefulness of the banks has
long been recognized by the best
farmers in the food-producing West.
It was realized that we'll conducted
bank is a reservoir for the funds Of
its community. Not only does the,
bank furnish a safe depository for
money not Immediately needed, a
depository from which the owner
can draw his money at any time, but
1t conduces greatly to the usefulness
of the money of the community by
being the reservoir for money of Its
depositors from which supplies may
be borrowed for undertakings that
require more ready cash than would
otherwise be easily available.
1t is a necessary condition that the
loans of bank be made for but short
fife. This results from the obhga-
ton of the bank to produce the
money of its depositors on demand.
Banking experience has shown that
loans for thirty or sixty days are de-
sirable, and that three or four
months loans are permissible. But
in case a safe borrower needs money
for 4 longer time than is usual on
bank loans he can generally secure
renewal Of the loan.
1t is the experience of all prosper
GUS communities that there is good
deal Of money for which the owners
have no immediate need and that
portions Of these owners have a sur
plus at some times while other por-
lions have idle money at other times.
II such a community has the habit |
Of depositing its money in the bank,
1t is evident that there will always
be loan funds available. In many |
cases these funds available for loans
are many times greater in amount
than the capital Of the bank.
Since the bank must be at all times
in readiness to honor the drafts of
its depositors, and since its loans
are largely the money Of its deposit
tors, It follows that 1t Is in duty |
bound to be careful that 1t loans this
money to persons who can and will
provide for its prompt payment
when due. The bank is really act
ing as a trustee Of its depositors' |
money.
The fact that Kansas banks find
loans to farmers so exceedingly de-
sirable as lie shown by these replies
to Kansas Farmers inquiries demon
strates both The business ability and |
the prosperity Of the tillers Of the
soil in this state.
There are doubtless some farmers
who do not patronize any bank.
Time was when hey had little or
nothing to deposit. Later they we're
afraiu Of bank failures Or, some
have a timidity about opening a bank |
account. not knowing Just how to 60
about Il. The Kansas guaranty law
which viii soon 90 into effect will
make banks in this state even safer
than heretofore As repositories for
money. They have always been
safer than any plan Of carrying |
money or conosaiinE H. On tie
score Of timidily, remember nat TIE