The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-04-19
FOOD EoR THouGHr.

Pending tomorrow'S chapter on the
banking situation as existing today
1.-The State journal would suggest to the
City Commissioners that they might
take this $392,615.99 which the city
had on deposit in the banks of Tope-
ka on the 31st day of March and place
it in banks in Kansas City or Wichita,
Emporia, Manhattan and elsewhere,
wherever the city may be amply and
legally secured and where the banks
are willing to pay three per cent for
municipal money. Sedgwick county is
paying three per cent for public mon
ey. To be sure, if the city did this, it
would be a violation of the charter
provision requiring it to deposit its
money in the banks of the city of To-
peka. The city has an ordinance which
would permit this, but the Joker" in
the charter conflicts. Suppose the
city go ahead and place surplus funds
in these outside banks, then let the
banks in Topeka seek to enjoin the
commissioners from doing this
That will get the matter into the
courts and testimony can be taken on
the whole proceedings. the city bear
ing in mind what appears to be il
legal, the joint action, or at least
individual actions on one and the same
notice to the county commissioners
saying that within two weeks each
bank in Topeka will pay only two per
cent interest, on county funds. There
is the combination, dear reader, and
if it is not a combination, any one or
all of the banks may withdraw from
inf ort cd
action on the county funds are prac
ticaIly in it on the city funds, thus
the city as we'll as the county is alb
soluteIy blocked today from any opeE
competition on placing its funds.
Therefore, the commissioners in honor
bound might without contempt OF
court place this money elsewhere.
Last December City Warrants were
paid by the banks of the City of To-
peka, the Warrants stamped Not paid
for want of funds" and the banks col
lected six per cent interest; that six
per cent came out of the Taxpayers of
this City, and everybody knows that
that stamp on these warrants-''NOt
paid for want of funds" was a mere
technicality, because the records show
that at this very time when the people
were given to understand that the city
had no money in the banks, the To-
peka banks actually held over $780,
900 of the city's money.
At no time during the month of De-
cember last when these banks were
paying these Warrants and having
them stamped Not paid for want of
funds did the city fail to have less
than s199,74O.71 on deposit; except on
one date, December %, the amount
was above that. In other words,
banks paid the school fund warrants
out of city money that they had on
deposit, and they charged the city
per cent to pay this interest out of the
city's own money.
OF course, the banks will say that
the school fund was out of money. In
other words, the bank is supposed to
have several burglar proof pigeon
holes in which it keeps the city's mon
ey; the pigeon hole which should
contain the school funds was empty;
but the pigeon holes which contained
other city funds had plenty of money.
One More Thought and That Will
Be Enough for Today: A few months
ago the banks of the city of Topeka
entered into a contest to secure some
state money, which is now carried ir
the City banks, and the State receives
for it a trifle above three per cent.
Now the banks say that they are not
in position to take care of the City
and County funds for more than
per cent. Why should the banks of
the City of Topeka look after the
States funds, pay the State it's money
for interest, and not safeguard our
COnptv9