The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-12-30

sent one Of his examiners to take
charge of The bank, to straighten Out
the accounts, hurry up collections, Sc
cure extra collateral on questionable
paper and II necessary perfect a plan
for recognising the bank and putting
it on its feet again.
Two state banks which encountered
trouble last spring were ''nursed
back to ,-ealth and strength and are
now doing business again. With q re-
ceiver on the job these banks would
still be closed no doubt with the re-
ceiver discussine the political eitua-
ton with his friends behind the drawn
blinds. But instead Of that plan. the
banks were -eorganized. placed under
new management. given added IMAM
cial strength and reopened for busl-
ness.
Recently two other state banks sent
s. o. s. signals to the state bank COM
missioner. State examiners were sent
to take char Of institutions and In
both of these cases plans for reorgan-
ization and reopening of the banks are
we'll under way.
Keeps Down Expenses.
THE plan keeps down expenses.
prevents unnecessary delays and en-
ables the depositors to get their mon
ey as soon as possible" was the way
in which Sawyer modestly explained
his new system. ''It is only the fair
thing for every one concerned and the
creditors are entitled to every protec-
ton. Personally I don't believe in re-
ceiverships, Sometimes they are nee
essary. But until find case of that
kind. no receivers will be appointed
by this departn ant"
claim any especial credit. for the plan
which he has adopted. In fact he Is
not inclined to say anything about 1t.
But the Kansas bankers who watch
his new method OF procedure realize
and appreciate what Sawyer IL doing
for the banking industry in the state.
Every day Sawyer keeps in touch with
his two examiners who are managing
the affairs of the two crippled Kansas
banks. He sits at his desk and studies
the confidential reports and sends
back instructions as to the best meth
cd to proceed in the reorganization
Bank Failures Arc Unnecessary.
In the mind OF Sawyer-himself q
thoroughly practical banker-there IL
seldom q real excuse for q bank fall
ure. And under that theory he be-
lieves that but few banks which en-
counter ordinary embarrassment can
not be handled in such a manner as to
protect the interests of the creditors
and depositors.
Only recently a report came to
Sawyer which showed that a Kansas
bank was carrying too large q load of
paper signed by an individual custom
er. The bank was needing money,
couldn't make prompt collections and
was calling for help. Sawyer sent an
examiner to look over conditions. He
found that the individual customer for
whom the bank was carrying largo
loans owned a large amount Of land.
1t was a safe loan. but a slow collec-
ton. So Sawyer suggested the simple
remedy OF securing loan on the farm
through q real estate loan agency and
cleaning up the past due notes. The
local banker hadn't thought Of 1t.
Banks need help sometimes, the
same as Individuals continued Saw
yer. THE mission Of this ONCE isn't
to tie them up in endless and compli-
Gated financial difficulties. but to keen
them going and put them back on
their feet. And whenever 1t can be
done without an expensive and LONG
drawn out receivership. intend to
follow that policy