The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-11-29
Plan To Establish State Re-
serve Institution Here.
700 Kansas Banks Would Par
ticipate in Undertaking.
FINANCIAL CENTER OF STATE
Business Would Be Kept Away
From Kansas City.
Practically Certain Legislature
Will Approve 1t.

Topeka will take undiSputed front
rank as the banking center of the state
under proposed plans for the creation
of a state reserve bank. The plan Will
be definitely worked out next week at
meeting in the state house Tuesday
of members of the legislative commit
tee of the Kansas State Bankers asso-
citation. More than 200 state banks
now unable to participate under the
federal reserve system would be az
forded relief under the law.
1t is practically certain that the
bank will be esta ablished in Topeka by
legislative enactmen. The law will
provide for the creation of a monster
concentration of banking interests in
Topeka. Thru the new bank Topeka
will be brought in intimate touch with
business, industrial and financial activ-
tiles in every community in Kansas.
Creation of the bank will make Topeka
the financial center of the state, just
as it is now the political center.
Under the proposed new law, the
state reserve bank would be given
recognition under the federal act. BY
virtue of this provision more than 700
state banks would be able to secure
the benefits from the reserve bank
plan which are denied under federal
law.
Keep Business Here.
sions tho lawmakers have been con-
fronted by provisions for creation of a
big central bank of Kansas. The
benefits from the original plan are
contained in the new measure. with
many new features added. The big
item of rediscounts would be met il
the proposed new law and Kansas
state banks would each year handle
millions of dollars worth of paper and
financial business which now finds a
more natural course thru Kansas City.
Mo-, banks. In fact Kansas, which has
for many years been the backbone and
mainstay of Kansas City banking ac-
| tivities. would under the new law
handle the bulk of business which has
been directed thru other channels.
The proposed measure contains
many OF the provisions in the state
| bank bill of Senator J. D. Joseph, of.
fered in 1913-15. 1t also contains
general provisions Of the Senator Ber.
gen4bn1 of two years ago. Under terms
| established in Topeka and it's capital.
ization as well as financial support
would come from banks now denied
federal reserve bank privileges.
Would Help City.
! establishment of a state reserve
| bank in Topeka would mean a bis
boost to the city's showing in weekly
Ddnk CledTlnSS. ofSdnlZdIlOn OF tnt
| new centralized banking institution
would call for the employment of g
| number of expert bankers and finan.
cial men, as well as the organization
| of a large corps of inspectors and ex
| aminers who are thoroly familiar will
| conditions and securities in all section.
| of the state.
Provisions of the federal law admi
! but a small per cent of the state banks
| The Kansas Reserve State bank par
ticipates under the federal act. bu
admittance is denied except to tn,
larger state banking institutions.
| is to extend these privileges to tn,
smaller banks thru a central organi
, zation that the legislature is to b.
asked to pass the new bill. DETAILED
provisions of the bill will be writer
| tee of the State Bankers association
| meets in the state bank commission
er's office in the state house.