The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-04-14
CITY DECIDES
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think about it. However, there are
several things we can do.
Send Money Away?
I'm the first place the law does not
require the county to keep its money
in Shawnee county As L understand
it we have authority to advertise for
bids and place the money anywhere
in Kansas we see fit.
Again, we might instruct the
county treasurer to deposit a large
part of the county's money and take
out time certificates. In that way
the county would draw four per cent
on its time deposits, but would get
only two per cent on the checking ac-
count which would be necessary TO
have in at least one bank"
In Country Banks.
Boyd Pollom, a member of the
board, favors placing the money in
the country banks in Shawnee county
if they are willing to pay a higher rate
than the Topeka banks.
This much is certain said Chair
man Nipps, IF there is any bank in
Topeka or the county willing to pay
more interest than the Topeka banks
who have written us it can have all the
county funds it can handle"
Then the commissioners are not
going to accept two per cent without a
protest.? was asked.
by all means no. replied Mr..
Nipps.
Loss of $1,000 a Year
A reduction of one-half of one per
cent in the interest rate on the daily
balances of Shawnee county will mean
q loss exceeding 1900 a year, based
upon balances carried in the past. The
average daily balance for the year is
in excess of 100000.
The excuse given by the Topeka
bankers for their reduction in interest
rates, apparently discovered by most
of the bankers the same day, is that
interest rates on bonds and CONNER
cial paper have fallen in the last six
months.
The Letter in Full.
| The following letter. sent to the
commissioners by one of the leading
banks of Topeka is typical of the six
! received:
Gentlemen: For the last six
! months interest rates on municipal
bonds and commercial paper have
fallen from a half per cent on the
former to three and over on the lat
ter and Kansas City and other eastern
banks have notified us that they ca.
pay but two per cent interest in this
future on our demand daily bank bal
ances. We were not altogether taker
| by surprise, as rumOrS for the las
three months have indicated that this
would happen. We think ii is con-
dition produced by the war slowini
! down SO many large NEUTRALITY-SUSPICIOUS.
establishments of staples for hons
and foreign consumption. thus Hood
ing the market with idle money"
1--WE do not know whether it will b'
permanents but think the action OF thu
! eastern banks. indicates that they havl
despaired of conditions. We are, there
fore, compelled to reduce the interes
on our daily balances to the same rat
of interest we are receiving, namely
two per cent, beginning May L, 1915
thus paying the county about tn
same as paid it about a year ago
which action we hope will not NEE
with your disapproval All banker
hope that money will soon be in nor
NAL or better demand but as long a
the war lasts can only guess whei
| that will be-"
One of the banks states In its lette
| that it intends to reduce the interes
rates on all public money carried OIL
daily balances except in cases wher
there is an existing contract for
higher rate of interest. This is tn
saving clause with reference to tn
states money.