The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-05-27
Otis l.. Benton Resigns His
Government Position.
Call of Kansas Could Not Be
Disregarded.
GIVES IDEAS ON BANKING
Would Prohibit Bank Officers
From Personal Loans.
Kansas Has Leading Interest in
Good Crops.

Washington. May 27.-Otis L. Ben
ton of Oberlin, Kan, one of the most
prominent bankers of Kansas, has re-
signed his position of supervisor of
Indian funds in the interior depart
ment, and has returned to Kansas
with his family. Some time ago Mr..
Benton was appointed to a specially
created office charged with the in
vestigation as to the manner in which
Indian funds, amounting to many
thousands, were being handled by $50
banks of the United States, and as to
how the Indian was spending his
money when it was drawn from the
banks He found that the red man
and his children's money was being
cared for in a haphazard sort of man
ner.
Through Mr.. Benton's services
Uncle Sam has established a stringent
banking system whereby Poor Lo VIII
in the future be found nara 10 ROD
by white tricksters, and also put into
operation a plan to teach the young
Indian boy and girl in government
schools how to properly care for the
funds they have to their credit in
banks of places where their schools
are located.
Mr.. Benton indicated his strong de-
sire to retire from office early in
March, but the officials of the interior
department insisted that he remain in
office until his recommendations
could be put into practical operation.
The success and popularity of Mr.
Benton is heartily attested by the
many friends he has made during ms
residence in Washington.
While talking with the Topeka State
Journal of his experiences in the led
eraI service, Mr.. Benton expressed the
highest opinion of his, associates in
the interior department and predicted
a successful administration under the
wise and able mana cement OF such
7 EQlIf
said Mr.. Benton. "this is my longest
absence from Kansas in all my life.
1 naturally long for the beautiful pra1-
ries of the Sunflower state. 1t has
been we'll said, Once kansan, always
Before leaving Washington Mr.. Ben
ton expressed his views in an interest
ing manner on the financial situation,
banking problem from a Kansan's
standpoint He said:
Benton's Banking Ideas.
There is much talk at present
about currency reform and kindred
subjects BY means of the national
bank act some very great financial
institutions have grown up in this
land. during a period unparalleled in
the worlds history for human prog
ress and commercial activities. 1t
would seem that the laws governing
banks as the present national bank
law does, fostering and protecting not
only deposftors but stockholders,
should be changed and amended with
great deIiberation. There is, no doubt,
great need for some means for ex-
pansion of our currency in times of
great stringency. 1t is hoped, how
ever, that any changes made will be
upon wise and very conservative lines.
The strict enforcement of our present
banking laws has made bank failures
very rare and financial loss very
slight indeed. What we most desire
in this country is the entire elimina-
ton of panics. There will be no more
panics when the people with money
on deposit in the banks, regardless of
financial depressions which recur at
stated periods, become convinced that
banks are well managed and will not
fail and no loss to depositors will oc
cur When certain of this fact, the
depositing public will have no cause
for alarm; bankers panics, shortage
of currency, and financial ruin as eX-
perienced in the past will be over.
Rigid enforcement of our present ma
tionaI bank laws has done much to
bring about this opinion and feeling
of security.
Not Borrow From Own Banks.
LAS further safeguard. 1 would
suggest law prohibiting bank Off
GERS from borrowing of their own
banks. 1 have, for many years, be-
for bank failures is the practice of ac-
tive bank officers to become too
heavy borrowers of their own insti
buttons. 1t is quite natural, when ne
cessity requires it, for men to grant
too liberal credit to themselves; to
have too high an opinion of their own
financial condition.
'Therefore, in order to effectively
prevent this condition, those engaged
in the active mana cement of banks
~
quests for loans before officers of 9th
er banks. I know there is some OBJ
lection to this plan, but a close study
of the bank failures for the past fifty
years develops the fact that a very
large degree of financial trouble in
banks has been caused, not by the in
territorial dishonesty of the bank Off
GERS. but because of their proclivities
to speculate in enterprises outside of
the bank with the banks funds. which
in the end brings ruin to themselves
and to their institutions
'As a Kansas banker, we are more
interested in good crops than in more
legislation. If Kansas can produce
the 100, 600, 600 bushels of wheat which
We now have in prospect and can raise
a good crop of corn and feed, the
bankers will be happy, and business
will flourish. Kansas is naturally a
producing state. We have something
to sell; therefore we are interested in
good prices for all the products of the
farm. When the Kansas farmer pros
pers, all our people are happy and
business is profitable. AS the agricul-
tural and livestock interests of Kansas
have been developed and the virgin
soil has been put to work, the Kansas
farmers have surprised the world.
Smith County's Record.
"Smith county, Kansas, not far from
where 1 live, produced over 5000, 900
bushels of corn last year, and is the
banner corn county of the United
states A quarter of a century ago
that part of the country was consid-