The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-04-15
Fair Proportion viii Be Al
Iotted to Each Bank.
BANKERS GIVE THEIR VIEWS
After War Is Over, Then City
May Be Attended To.
Conditions Now Prohibit Pay
ment of Higher Interest.

more for the use of the city's money
at once, according to an announce
ment made by Commissioner of FL
nance WATSON this morning MY
plans are to place just rs large an
amount on time deposits with the var
ious banks as is practicable, and to do
so at once" he said. 1T must be re-
membered that we will be unable to
place all of the city's money on such
deposit for the reason we have to have
certain amounts from various funds
available for instant use and it would
not be practicable to place all of the
funds of the city on time deposit In
fact, we could not do so for the reason
that we are called on every day to
pay certain amounts for work now
being done and we must pay our bills
as they come due.
THE report in the morning paper
that we are to place $4,000 on time
deposit in each of the eleven banks
is not true for with some of the larger
banks we will place more money than
we will in the smaller banks, but the
matter will be so handled that a fair
proportion will be allotted to each
bank and there can be no complaint
on that score"
Bankers Side of 1t.
Relative to the money market sew
eral bankers were. this morning in
terviewed in order to obtain their side
of the question of the city's obtaining
higher interest rates for the use of its
money.
F. NJ. Bonebrake, of the Merchants
National bank, said: THE present con-
dition of the money market does not
warrant the local banks at this time,
in paying more interest for the use
of city money"
]. r. Burrow, president of the Cen
| trail National bank, was asked for his
opinion regarding the matter. He
said: mo more inopportune time
could have been selected than now to
ask the bankers of Topeka to pay
more interest for the use of the city
money for we simply have more mon
| ey now than we can advantag eously
dispose of as our statement shows q
| large amount of cash on hand In
| fact we have right now more than we
| have had for the past six months and
judging from the tone of eastern mar
kets there is no relief in sight for US.
! "A banker to make money must
have a good demand for his cash in
the bank vaults. To him money is
| just like sugar or flour is to the gro
| ceryman. He must turn it over to
| it is a dead asset Conditions in the
east are such that banks are cutting
down their rate of interest for the use
of outside money and it is a big prob
lem with us to find a market for our
money.
Commercial paper, that is Al paper,
is simply not on the market and this
cuts off one of our best and largest
customers. Brokers are flooding the
market all over the country, from the
east, with kilograms asking big Dor
rowerS for their paper at rates of in
terest that are simply out of the ques-
/ ton with us, if we are to make any
| money at all. 1t must be remember
ed we have a big overhead expense
that must be carried every day in our
| business.
After War Is Over.
81 am in favor of the city's getting
all the money that the market will
| warrant and 1 will say this: The time
! may come, but I do not look for it
until after the war is over, that the
banks can afford to pay more for the
c1ty's money, but right now we can
not afford to do so unless we wish to
take loss, and no good business man
| wants to do that, and I do not believe
it is the spirit or intent of any city
official that we should do so.''
County Chorus Complete.
The bank chorus, singing the two
per cent song, was filled out today
when four more Topeka banks sent
| letters to the county commissioners of
shawnee county notifying that body
that beginning May l it would be i'm
possible for them to pay more than
two per cent on the county's daily bal
ances. Six banks sent letters of this
character yesterday.
The four banks from which let
tiers were received today are: The
Farmers National, the Bank of To-
peka, the Topeka State and the Central
Trust company.
! The county is now receiving two and
one-half per cent on daily balances
and unless the county commissioners
forestall the action of the banks. will
receive one-half of one per cent less
after May l. Figures compiled in the
county clerks office show that this
reduction will mean a loss of more
than $1,000 a year to the county
| None of the country banks in Shaw
nee county have notified the commits
sioners of proposed reduction in in
| terest rates and this fact has been
noted with satisfaction by the commits
sioners. There is a chance that sew
eral of the county banks will get large
slices of the county's funds following
May 1. That is. unless they become
| infected and cut the interest rates
! So far the county commissioners
have agreed upon no plan for saving
| the $1,000 annually received by the
| county, which will be cut off by the
| proposed reduction. The commission
ers held a meeting yesterday but did
not get the letters in time to act upol
| them.