The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-05-08
STATE BANKS DO
NOTFAVOR GOING
TO FED. RESERVE
Only Few Very Large Institu-
tiOns Are Doing So.
T.. l.. WickiZer Selected as
Next President.
KANSAS RESERVE STATE BANK
OF Topeka One of the Few
State Banks
Affiliated With and Part OF
Federal Reserve System.

Animated WIN anu al VI
Federal Reserve System.
Heads of the Kansas state oanks
generally will stay with their brothers
in any action which they may take
concerning participation under the
federal reserve system. Unless con-
gress takes steps which will permit
the small town state banker to come
under the law, many of the large
town bankers will refuse to take ad-
vantage of the system. Present reGu-
lations do not permit the small bank
ers to enter. Until these provisions
are changed, many of the large town
bankers say they will stay out
The present federal reserve system
was on the slate for red hot discus
sion during the closing hour OF the
days session of the Kansas state
Bankers association, which today
closes its ninth annual convention IN
Topeka. Certain few Objectionable
features, as well as the many COM
mendable features of the Federal Re-
serve law were pointed out in speech
by Breckenridge Jones of st. Louis
To the average Kansas banker, how
ever, the refusal of admittance 10
banks with small capitalizations is one
of the retarding rules.
There are but four or five of the
larger state banks in Kansas which
have come under the federal reserve
act" said T. Sweeney of Lawrence.
president of the state organization
For time we thought OF entering.
But if admittance is denied some OF
the smaller banks, we will all stay
out. 1 think the desire of the bankers
in this convention is to act with
degree of unanimity. We should all
enter the system or we should all
stay out If congress will remove
some of the present objectionable re-
strictions, permitting the small town
bank with $4,000 capital to come in,
I am sure everyone would be salts
fled"
The Kansas Reserves Position.
The Kansas Reserve State bank of
Topeka is one of the few state banks
in Kansas which has membership in
the United States Federal Reserve
system, and is the only one of all the
banks in the capital city which has
the prestige and influence of both the
connection with the Federal Reserve
banking system and the Kansas State
Guaranty fund by which the deposits
of this bank are guaranteed.
The officers of the Kansas Reserve
State bank of Topeka do not agree
exactly with a sentiment which pre-
vailed in accordance with expressions
at the Bankers meeting here.
r. c. Kaths, president of the Kan
eas Reserve State bank said this morn
ing: ou. ..r,,a+aa .,,4, A..
Federal Reserve system we regarded
# not only as giving US added financial
strength, but believed we should be-
long to the system thru patriotic mo-
tfves. We consider it the duty of ev
cry state bank to become a part of the
Federal Reserve system, and believing
this, we naturally could not refrain
from going in at the time we entered
II, when the government offered US
the opportunity to do SO, after thoro
and complete examination of our
bank. ITS resources, methods, deposits,
loans and the general conduct of our
ance with the Federal Reserve bank
ing system of the United States.
I'm my opinion it is the duty of
every bank and financial institution
in the United States to put it's fl
nanceS IN a position where they can
be most readily modified for govern
ment use. 1 believe the objections
filed against the system by some state
bankers of Kansas are minor ones and
will be quickly removed. 1t is likely
that congress may modify the law and
permit state banks of smaller capital
izaton, than the law now requires, to
enter the system. 1 know it is the de-
sire of the treasury department of the
government that state banks should
more generally connect themselves
with the Federal Reserve system"
Earl AkerS, cashier of the Kansas
Reserve State bank, said today:
I'VE are certainly proud of the dis
tinction we have of being a member of
both the Federal Reserve bank and at
the same time being under the Kansas 8
State Guaranty fund. by which our
deposits are guaranteed.
We ourselves feel and believe that
our depositors feel that we have reg
uiar Gibraltar sort of a bank.
We have a distinction that we are
proud of and this combined distinc-
ton of our bank, which is the only
one in Topeka having both the affilia-
tion of the Federal Reserve system
and the Kansas State Guaranty fund
oy which our deposits are guaranteed,
marks more conclusively another rea-
son why we have been able to grow
SO rapidly and at the same time so
substantially
Ihese things must demonstrate to
the pubic that we are leaving no stone
unturned to serve our patrons ond -
the same time help as best we Know
how to stabilize and mobilize the fl
nancia1 resources of our country in
time of war "
The officers and directors of our
bank believe they know their patriotic
duty and also believe that by our acl
ton we indicate to the patrons of
our bank that they will have the hest
of conservatism and stability"
In his speech before the bankers
Governor Capper urged that the mem
bership devote their energies in Sc
curing adequate help on farms dur-
ing the harvest season. He suggested
that business activities be suspended
in the smaller towns in as great an
extent as possible and that everyone
help to gather crops. The governor
praised the bankers fer their aid in