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

basis, do you not see that you are
forcing the Shawnee County Commits
sioners to place this money elsewhere,
! because by doing so, they can make
so per cent more for the County on
1 interest than they could make under
| the letters sent last week by the banks
of Topeka.
Do the b INKS of this city realize
what they are doing? Probably they
do not. but it is not too late to revise
their estimates The county commits
sioners meet on Friday. Are the great
banking institutions of this city going
to let this money slip out of their
vaults? Are they going to see not
! only thousands but possibly hundreds
of thousands withdrawn from this
community on account of thoughtless.
revengeful, ungrateful and unwarrant-
ed hasty action upon their part last
week?
There were in addition to the above
amounts, in the banks of the city of
Topeka on the 31st day of March, city
money amounting to $392, $3.50. How
about this. gentlemen? Do any of
you want this money? Do you want
these hundreds of thousands of dol
lars to slip away from you. too?
The State Journal wants to confess
that in all of its business transactions
in the city of Topeka, we never knew
of SUCH an absurd, unbusinesslike pro-
ceeding as the apparently united
stand the banks of Topeka have taken
upon themselves during the last week,
against the city and county.
Now about this great amount of
money in the hands of the banks as
averred by the Topeka bankers in the
position they have taken in regard to
the city and county funds. Fortunate
ly the State Journal has at hand the
report of the bank commissioner just
made public yesterday, and here is
what that statement shows in addition
to falling off in the reserve, of seven
per cent over the reserve twelve
months ago.
Here is another point that we want
the reader to understand in the chap
ter printed here today. Some shrewd
man, apparently a Topeka banker, had
a joker put into the charter under
which the city of Topeka is now oper-
ated. Here is the joker: A City
Ordinance permits the city to place
deposits in the banks, of Topeka, or
Shawnee County. or the State of Kan
sas, as the commissioners see fit, for
the best interests of the City; but the
charter provides that the commission
ers shall place this money only in the
I,a
sary for the city to change this char
ter, but the bankers can depend upon
it If they take advantage of this pro-
vision in the charter, which is in con-
flict with the ordinance. the people of
Topeka are going to amend that char
ter
1t appears that some very skilfuI,
shrewd work was done by certain
bankers when the charter law effect
ing the city was enacted by the legis-
lature. Topeka is operating under
that general law, and consequently, if
the city desired to amend its charter
in the provision governing deposits of
moneys, it would have to join with
other cities in seeking an amendment
to the general law, to prevent any CITY
from being the victim of a combina-
ton of the city's own banks. Then
there is, too, the antitrust law, and
nti-dfscrimination law, for the banks
of this city are apparently discriminate
ing against their home town and their
home county in favor of the state.
The bankers are inviting legis-
lation by just such action as they
stood for last week in this community.
They can get all the agitation and all
the publicity they wish, or they can
be square and avoid discussion and
legislation, that might be unjust and
drastic. The only thing they need to
do to quiet things down now is to be
absolutely square with the City and
County, and they were not square last
week in the drafting of the hasty let
ters which they sent to the County
Commissioners.
But to yesterdays bank report!
In spite of the growth of bank de-
posts in Kansas during the last year,
there has been an equally growing de-
mand for money. Recent statements
of Topeka bankers to the effect that
the Kansas money market has
slumped are not proven by the records
of the state bank commissioners Of
flee.
Reports from nearly $50 Kansas
state banks last year, showed a rapid
increase in deposits and an equally
rapid reduction in the reserve. That
is the combination which shows the
condition of the banks. A reduction
IN the reserve means an increas a IL,