The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-04-14
Effort to Receive More for
Their Funds in Banks.
COUNTY IS GIVEN SETBACK
Bankers Say They Can
Pay Only 2 Per Cent Now.
New Rate Will Cost Shawnee
S1,6OO in One Year.

the city and county for a larger rate
of interest on the daily balances in
the Topeka banks, two important ac-
tions were taken at the court house
and at the city hall today.
The board of city commissioners
went on record in an effort to gain
a higher rate by officially proposing
to ask bids on the municipal funds.
The county commissioners were IN
formed in letters from local financial
institutions that effective May 1 only
2 per cent would be paid on county
daily balances.
The contention arose from the reve-
lation that the banks in Topeka pay
3 B per cent to the state of Kansas,
per cent to the school board, " per
cent to the county and only 2 per
cent to the city.
The county commissioners were in
formed through communications from
six leading Topeka banks that after
May 1 it would be impossible for them
to pay more than per cent on daily
balances. 1t is probable that at a
meeting soon of the board of county
commissioners the citys action in ad-
vertising for bids will be followed out.
One of the county commissioners in
sinuated today that it might be ad-
visable for the county to place funds
in the country banks in Shawnee out
side Topeka.
City's Action.
Behind closed doors, in the office
of Commissioner of Finance Wasson.
today a conference of all city COM
missioners, as well as Mayor House,
was held regarding the action the city
was officially to take regarding the
rate of interest the city is RECEIVING for
its daily balances from the banks. II
was decided to have Commissioner
Wasson direct the city clerk to adver-
tise for bids for the use of the city
money, which he did.
After the meeting. which instructed
the city clerk to advertise for bids
for the use of the city's money, Was
son was asked:
Were all of the commissioners. as
well as the mayor in accord with your
action this morning."
'"They were" he replied, land they
were all here in this office at the con-
ference"
Have you, within the past few days
interviewed all of the bankers who
have on deposit in their banks city
money, asking them to increase the
rate of interest and pay the city at
least three per cent for the use of its
money!"
81 have" was the reply, land they
all turned me down.
Did you let all of the commission
ers and the mayor know of the result
of your efforts, at this meeting this
morning?"
81 did, and we all discussed the
fact"
Knowing the attitude and opinion
of the various bankers as you state
how do you figure that advertising for
bids will get the city more interest for
its money!"
Put Them on Record.
well. it's this way. we want to put
them on record" he said.
Has it not been suggested to you
to introduce an ordinance to make it
receive not less than three per cent
for all money on daily balances, and
has not this suggestion come from
practical business men?" he was
asked.
well, yes, that is so, but we all
thought this way better''
When the attention of Commission
er Porter was called to the fact that
Wasson had called on all of the bank
ers and had been turned down in his
request for more interest, he said:
"OfficialIy I know nothing about that
What 1 want is to get the bankers on
record, then we can go after them if
it is necessary"
County Action.
Topeka banks, now paying two and
one-half interest on daily balances,
did not wait for the county commits
SiOnerS to demand that the rate be in
creased to three per cent. Instead.
they got together and today showered
the commissioners with letters, an
nouncing that beginning with May l
they would pay only two per cent in
terest on daily balances-that they
would cut the rate one-half of one per
cent.
The action of the banks was totally
unexpected by the county commission
ers The first intimation they had
came in the morning mail in the form
of letters from six Topeka banks, all
following much the same form. The
arguments used in explaining the re-
duction are the same in all the letters
Funny how the minds of all bank
ers run in the same channel" remark
ed a commissioner after the letters
had been opened.
Effective May 1.
The letters all announcing the cut
of one-half of one per cent beginnir
with May 1. are from the Merchants
National bank, the Central National
bank the German-American State
bank, the State Savings bank. the
Shawnee State bank and the Citizens
State bank.
The commissioners are expecting
similar letters from all other Topeka
banks with which they do business.
How will you meet the bankers on
this proposition ?" was asked of Fred
Nipps. chairman of the board of COM
missioners.
I've known about it only five min
utes.'' he replied, and want time to
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