The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-06-24
They Are Knocking on the Fed
eraI Reserve Law.
Officers of the State Association
Hold q Meeting.
THEY DON'T like THE SYSTEM
Will Advise Kansas Banks to
Say Out of 1t.
Not to Exceed 20 Per Cent of
Them Eligible.

Without a single protest, officers of
the Kansas State Bankers associa-
ton today went on record in opposi-
ton to participation of state banks
under provisions of the federal re-
serve act Not only did the bankers
protest against participation with ma
tional bankers under the reserve act
at this time, but they were most Wig
orous in denunciation of the rule per-
mitting free clearance of foreign pa
per for banks under the federal act.
More than a dozen well known KAN
sas bankers were in attendance today
at the meeting in the offices of w. F..
Benson, state bank commissioner. At
no time in the proceedings, were
there evidences that the state bankers
desired to come under the reserve act
in its present form. While a rule had
been adopted permitting certain banks
to participate, it was pointed out that
the law itself l-eeded fixing and that
the Kansas bankers preferred to stay
out until such conditions were rem
edied.
Not to exceed twenty per cent of
the state banks in Kansas are eligible
to come under provisions of the fed
ment by w. F. Benson, state bank
commissioner. Under existing pro-
visions. no bank with capital of less
than $25,00O is eligible. That means
state banks would be required to in
crease their capitalization to come un-
der the law.
Kansas to Take Lead.
The stand of bankers at today's
meeting means that any chance for
an amalgamation of the two banking
associations is vain hopc-fOr the
present at least. Not until the federal
reserve question is determined will
the state bankers give up their organi-
zation. 1t was urged that national
organization of state bankers be per-
fected and that Kansas pioneer the
way
Such a move, it was believed, would
mean further enforcement of the
State and national banks and that the
reserve law would be the stone on
which the institutions would break
'It is not that we do not like the
national bankers said Will Wayman
of Emporia. 1T S that we do not like
their policies adopted in Kansas in
furtherancc of better banking facili-
ties and organization"
IF only 20 per cent of the state
banks are eligible under the reserve
law, we must keep our organization to
hold those 20 per cent with u.s." was
the sentiment of E. Otis Perkins of
Lawrence.
Urge Bankers to Stay Out.
AS a result of the conference today,
letters will be sent to all state bankers
urging that they do not come under
provisions of the federal law. A spe-
cial committee will prepare advertis-
ing matter for the state bankers that
they may further their business stand
ing. Another committee will prepare
arguments touching the state bank
er's side of the federal law.
After a noon luncheon, the bankers
this afternoon took free and gener-
Gus swat at the plan which permits
banks under the federal act to secure
free exchange on foreign paper. In
other words, an eastern bank would
charge exchange on check drawn on
a bank not under the reserve provi-
sion, while a bank which participates
would receive free clearance.
1T is just rank discrimination"
said Walter E. Wilson, state senator
from Washington county and presi-
dent of the state association. I'VE
expect to protest most vigorously
against the rule
Want to Hear From Bristow.
Joseph L. Bristow, former United
States senator, was this afternoon ex-
tended an invitation to discuss pro-
visions of the federal reserve law.
When the meeting adjourns this
evening, all of the visiting bankers.
it appears, will go home with a ham,
mer for the reserve act as it now af-
fects the state bankers. They will
urge a change in the law and a pro-
vision permitting state bankers to
come under the act on equal footing
with representatives of national banks.
In short they want a voice in its oper-
alton.
Bankers attending today's meetings
in the office of W. F. Benson, state
bank commissioner, are: w. E. Will
son, president, Washington; j. l..
Raines, vice president, Perry; I. J..
Sweeney, second vice president, Law
renee; Will Wayman, secretary, En-
poria; George w. Robinson, treasurer,
Wichita; S. E. Cobb, Topeka; E. Otis
Perkins, Lawrence; Sennett Kirk,
Garnett; w. L. Payne, Burlingame;
c. A. Hale, Yates Center; Emery l..
Wickizer. Quinter; Fred Taintor,
Englewood; H. H. Johnson, Newton; !;
district vice presidents; c. n. Prouty,
Kansas City; c. c. X Scoville, former
president, Seneca; William MacFer-
ran, Topeka. ]. R. Mulvane, Topeka !;
w. F. Benson, state bank commission
er and P. E. Laughlin, assistant bank
commissioner.