The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-01-18
Assert Bergen Measure VIII
Perform Real Service.
NEEDED BY SMALL BANKS
Would Eliminate Float Grab,
Many Senators Say.
Also Remedies Uneven Distri.
button of Bank Wealth.

esta blishment of the Kansas state re-
serve bank will probably be the most
important matters to come up before
the legislature, members of the senate
do not seem to be devoting a great
deal of thought or attention at the
present time to the constitutional con-
vention. They are discussing mad
analyzing and looking into the pro-
posed change in the financial system
of the state from every angle.
So far there does not seem to be any
organized opposition to the reserve
bank proposal among the members
of the senate. The upper house solons
appear to be divided into just two
| classes-those who are strongly in ia
vor of the Bergen bill and those who
are open-minded and are unwilling to
announce their stand until they have
heard all that is to be said about the
matter.
The sena tors who are behind the
Bergen bill are mostly bankers them
selves. and it is asserted that whatever
| opposition thel will be will also come
from Undergraduates who are con-
nected with national banks or with
! large state banks that are now enjoy
| ing the benefits of the federal reserve
| system.
Snyder Secs Bits Merit.
Charles E. Snyder, of Leavenworth.
chairman of TIE senate committee on
banks and banking, will undoubtedly
| play a prominent part in determining
| the fate of the Bergen bill. Senator
| Snyder and his father own a con-
| trolling interest in one of the large
! banks at Leavenworth and their in
stitution is a member of the federal
reserve. However, he admits that
| there may be a real demand for a
! MT
! committing himself Senator Snyder
| said: This bill will have the most
| careful consideration of the commit
tee on banks and banking and I'M
doubtedly will have the same con-
sideration of the whole senate
Some of those who are opposed to
| the bill assert that it will cause an un-
necessary disarrangement of the finan-
| cial system of the state if it is passed
They assert that it is only a matter of
| time until the federal reserve system
will be changed so that every banking
| institution. large and small, can enjoy
all of it's privileges and benefits. When
this is Gone they cannot see where a
state reserve bank will find real pur-
pose to perform.
/ The suggestion that the proposed
state reserve bank would keep Kan
sas money in Kansas does not seem to
be taken seriously by some of the OPP
ponents of the measure. The fact thai
eastern cities to buy all of her manu-
featured goods and merchandise
makes it imperative that money be
kept in the larger cities they assert.
Wilson Is for Bill
Among the supporters of the Ber-
gen bill is Senator Walter E. Wilson
of Washington county, who is also
state bank commissioner. Senator
Wilson has given great deal of study
to the matter and in a recent article
which he wrote for an eastern bank
ing journal he said:
Ever since the federal reserve bank was
in its formative state. the leading bankers
of Kansas have been endeavoring to figure
out method whereby the state banks of
Kansas, and especially the smaller ones
that are not eligible to the federal system
could receive the benefits of this great
ty. The result of this careful consideration
and after much discussion, bill was in
troduced INTO the Kansas legislature in
Water. Kansas. This bill provided for q
state Reserve bank. The stock of this
bank was first to be offered to the state
to invest part of their capital in this
bank and if they failed to take the stock
of the new banking system. then this stock
was to be offered to Individuals This
bill was considered by the banking com.
nittee of the state senate and reported
to the senate body without recommentia
ton; ordered printed and placed upon the
calendar There 1t remained the balance
or the session without further considera
ton.
Bill Was Rewritten.
1.-TWO years later this same bill was re
written by the legislative committee of the
4 Kansas State Bankers association and in
PRODUCED by Senator F. g. Bergen of Sum
| by the banking committee of the senate
| and reported without recommendation t.
| the senate body: placed upon the calendar
anu there 1t remained for the balance Of
| The last two years have been strenou.
years for the banks of this state and thi,
l is especially true of the smaller banks il
i, the rural districts They have noted tn;
, , development of the federal reserve system
| and its many benefits and they. desiring
[ to receive some of those benefits. having
Joined themselves together through thu
, legislative committee of the Kansas Stat,
! Bankers association. are going to ask tn,
coming session of the Kansas legislator,
to give them this state reserve bank tina
they may have a way into the federal re
serve system.
$ More than seven hundred state bank.
in Kansas are ineligible to the federal sys
! TEN because their capital stock is too small
and the demands of their locality will no
: permit them to increase their capital. They
I therefore, think that II they can have
/ state reserve bank and this bank is mem
Der of the federal reserve bank they will
have chain from the country bank il
: the most remote part of our state. straigh
through TO the great federal system.
Bank Wealth Not Even.
another reason for the organization o
this new bank is that some parts of gu
state each year are exceedingly prosperous
while other parts are not so wei. favored
Therefore. the prosperous part is nov
compelled to seek Investments outside TIL
state, when IL they had the state reserv
bank. they could go there for their invest
e meuts because it would be a bank of dis
g ! count The other part of the state that ha
not been So fortunate is now comrelle;
to go out of the state to borrow its money
If they had the benefits of this state re
y serve bank they could go to their hom
e institution and there receive the benefit
of the state reserve system. But someon
e has said this system cannot supply tn
q demand The last report of the bank com
| missioner Of Kansas shows that kansa
l. state banks had deposit in other bank
: over SS-.0O0.000 subject to check. Abou
So. 100000 of this is legal reserve. Sup
: posing they only deposited one half o
= their legal reserve In the state resery
reserve to be deposited in the reserv
haukl This Nnnld give the state resPrY