The Topeka state journal., 1914-02-21

I'VE checked it all up to New York
and expected them to do the impos-
sible. when no provision had ever been
made by law for relief. New York
banks and Kansas banks might all
have been filled with gilt edge bonds.
loans and mortgages, but no means
were at hand for realizing upon, or
against them in a crisis. We bumped
the last pin, in q dangerous and unsat
isfactory system, and were always un-
easy. Not SO now. for at last common
sense has caught up with the banking
and commercial interests of the coun-
try, safety is now available to every
prudent bank and prudent business
institution. Each bank can now use
it's own sound collateral. for the relief
Of its community. eliminating all dan
ger Of the pins knocking each other
down. because a disturbance hits one
The 1907 Panic.
I'm 1907 it was the bankers, not the
people. who were frightened, and the
entire business of the nation was para
lized for weeks. Kansas was full OF
corn, wheat, hogs and cattle, but even
the markets were stopped, and while
the commonwealth was teeming fun of
the best security, the most liquid as
sets in all the world, a republic had
forgotten to provide q safety valve.
There was no provision making it pos
sible for advances to be secured on
lnl9 uHQuCSS1OIcO COAAlGAdA anu a AAA
went on in twenty-three thousand
banks and the wheels of commerce
ceased to run. True, this only lasted
a short time, but it was long enough
to send thousands to ruin. Suicides.
financial wrecks and despair were the
monuments to this oversight, and the
scars remain to this day and time VIII
not restore to the guiltless who suffer-
ed what they lost in that crisis.
s"This new law will make impossible
the closing of every avenue OF hope TO
the industrious citizen. He can buy
a farm with much greater confidence
of being able to pay for it. and not be
crushed because of some panic started
In a distant state. Under this system.
no one with plenty Of the proper kind
Of security can be ruined. Under the
old system, the borrower was con-
place to which his banker could feel
certain he could turn in emergency for
temporary assistance. Under this sys-
tenn, the banker can turn the key.
unlocking the door of commercial sal
walton for the man with sound credit,
while the borrower with poor credit
will secure less consideration than ever
before.
No Inflated Securities.
There will be no imitation. as a closer
supervision than ever will follow as
to banks and securities. The banking
system will now have a safety valve.
head, and the ba ks handling the
deposits Of the public will not be played
against each other by fnffators and
SPECTATORS. no destructive blind ami
hilating competition, but healthy CO.
operation under the guidance of the
government, with chances for losses
and mistakes ten times less than ever
before. Already the steadying effect,
the moral influence of the new system
Is felt throughout the country.
stiffening OF values is already ap-
parent in all good investments and
also in real estate. We are no longer
in peril because of one mans blunder,
one bankers mistakes. We have In
terwoven the people and the interests
of the entire nation into system OF
cooperation that meets every possible
Of the future. We will have
no more raids on prosperity. because
the people of the nation will not raid
themselves. We may have depressions.
crop failures and dull spells. but no
wholesale crumbling Of business can
follow. In the future there will al
ways be help for the man with good
security, all he should have is reason.
but no getting something for nothing.
and no imitation for a marked distinc-
tion will be made as between good
and questionable assets
Promise of Wonderful Future.
This means a new era OF prosperity to
the country.and Kansas will be benefited
as much as any state Our produc-
tive farm land will keep on increasing in
value with the increasing population
of the nation that now consumes all
It can produce. and within so years
Kansas soil will sell as high az the
lands OF the German empire. which
range from two to five times our pres
ent values. This means smaller farms,