The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-03-22

Gerry business or the dry goods bust
ness. He hoped that some bank here
in Topeka would see the justice of
paying the city per cent as well as
paying the state or the city school
board or other institutions per cent.
At that time--last spring-no bank
would agree to this, each bank declar-
ing that it would pay only 2 per cent
for city morey at the same moment it
was paying SO per cent more for other
municipal money.
The result of this was that, if the
State Journal meant to make good it's
voluntary pledge to the mayor and the
per cent for this money, the proprietor
of the State journal would have to go
into the banking business.
Upon careful canvass of the stu
alton, it was found another bank could
be we'll supported in the capital city
of Kansas. and the editor Of this paper
proceeded to organize such a bank,
which he did, with the assistance of
State Treasurer Akers. F. c. Kaths,
r. d McKeever and other good, strong
friends who saw the opportunity of
building up a new and strong insti-
tuition in this city.
After many delays and the overcom-
ing of many obstacles, the capital
stock and surplus of the bank were
fully subscribed and the institution
fully paid up capital of 100000 and
a FULLY paid up surplus of $4,000, in
modern banking room, well equipped
with the best facilities to carefully and
safely conduct the responsible bust
ness of the bank.
A day or two before the bank omen.
ed on November 1, representatives,
| from five important banks of the citI
waited upon Mayor House and urged
him not to permit the change of ar
ordinance which would insure the cit,
receiving 8 per cent instead of . no,
| cent for these funds. Great pressure
was brought to bear upon Mr. House
| by these bankers. Mr.. House, as we
understand it, told them, however
that it was simply a business PROPOSE
tom: there was nothing personal in
| it; that the new bank had offered tc
pay the city 3 per cent and he thought
he would be derelict in his duty if he
| failed to take advantage of the offer
and let the city remain receiving only
2 per cent-that was all there was tt
| the matter.
In providing for what Mayor House
thought was a good transaction for the
city whereby it would receive so pei
cent more in interest on its daily bal
| anceS, the mayor went counter to the
interests of some of his best friends
| these, by the way, have since recog.
nized that the mayor was right in do
they are now among his warm sup
porterS in the present campaign.
These bankers, we think, have sine,
regretted their action, and the Stat,
Journal only mentions this, because i
was driven to mention it in its owl
self-defense. 1t has no desire to ever
attempt to humiliate any of the bank
| here, because the banks are good
strong institutions; their deposits ar,
larger now than they were when thu
bank started; and the object of tn,
| new bank was to add financia
strength to the financial institution
here and to secure for the city the in
terest which should be paid anC
which could be profitably paid by tbs
| banks as demonstrated by the fac
that they were paying per cent TO
other municipal money as abov'
noted.
The new bank realized that in orde
to carry out it's plan of strengthenin:
Topeka and doing everything possible
for the welfare of the city and it
financial and other institutions, tn
banks must work in harmony to tina
end. That is the policy of the nev
bank, and it may be said that its sue
cess has exceeded all expectations o
/ those behind it. 1t has now, accordin,
to the statement issued a few day
ago, over a million dollars in re
sources entrusted to it and alread,
stands fourth or fifth in deposits an,
loans compared with the ten bank
in Topeka. 1t is even now, with les
than five months of existence, paying
expenses and has small profit a
shown in the official statement pub
lished a few days ago and filed witt
the bank commissioner.
This week the city of Topeka ha
on deposit in the banks of the cit
drawing 8 per cent interest, s400,0 90
or, to be exact, 1856. 910.27 and of tina
amount the Kansas Reserve Stat
bank only holds one-fourth or 500,
900. The city has four hundred cd
thousand dollars on deposit, part O
which is in the New York Fisca
Agency, part in the Topeka Fisca
Agency, on neither of which is an
interest paid; the rest of the amount /
scattered in eight other banks.
So gratified was the commissions