The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-01-27
BOTH SIDES BUSY
Bankers For and Against Ber-
gen Bill Are Active.
Kansas Bankers Association
Now Sending Out Letters.
FLOAT EVIL REMEDY SUGGESTED
"Club" Bill Is Being Drawn,
State Reserve Bank Men Say.
1t Would Require All Banks To
Have $4,000 Capital.

The opposing forces in the impend-
ing fight in the legislature over the
establishment of state reserve bank
ing system are continuing to mobilize
and to deploy as many lines of Skin
mishers as they can in preparation for
the final struggle that will probably
come out on the floor of the senate
The members of the Kansas State
Bankers association who are anxious
to have the new system inaugurated
began the fight when the Bergen bill
was introduced. Then this organiza-
ton put down a state wide barrage
when letters explaining it were sent
to every state banking institution. Now
the Kansas Bankers associa ton. a
separate organization that includes
both state and national banks, is get
ting busy.
To offset the effects of the letter
sent out by the Kansas State Bankers
association which told the state bank
ers the executive committee of the
organization was unanimously in favor
of the establishment of a state reserve
bank, the Kansas Bankers association,
it is said, is sending out letters an
nouncing that majority of the legis-
lative committee of this organization
is opposed to the Bergen bill. The
members of the legislative committee
of the Kansas Bankers association
are: E. E. Mullaney, Topeka; c. G.
Cochran, Hays City; C. H. Tucker,
Lawrence; l.. A. johnson, Topeka: w.
S. Benson, Wichita; L. P. King Win
field; w. ]. Bailey, Atchison.
Prepare "CIub" Bill?
This is one of the lines of attack
the opponents of the Bergen bill are
making. 1t also is asserted by sup
porters of the Bergen measure that a
bill is being prepared for introduction
which, if passed, would require every
of $3.50 or more, and which would
automatically remove a big feature of
the state reserve bank by making every
state bank eligible for membership in
the federal reserve organization.
One of the strong supporters of the
Bergen bill said today that he thought
the opposition had no intention of
pushing the bill providing for min
imum capital stock of $4,000 and
that it was being drawn merely to be
used as club in the fight.
"Such a law would work one of the
greatest hardships ever imposed upon
the people of Kansas" this senator
said. There are hundreds of COM
munities in the state that could not
support banks with capital stocks of
5000, yet smaller banks prove very
prosperous in these communities and
serve a real and necessary purpose.
I do not believe anyone has an idea
that such a bill can be passed, but L
do know it is being prepared, and 1 am
confident that it is to be used as a
club
Suggest ''Float'' Evil Remedy
Opponents of the proposed state re-
serve bank assert that the real purpose
of the bill is to get away from the
float" evil and they say that this
could be done just easily by the for
nation of state clearing house as
ISOLATION. They contend that a state
reserve bank is not necessa ry; that it
would of course become a member of
the federal reserve system, but it
could not have the power of issue, the
one big feature of the federal reserve
bank.
A number of bankers also are of
the opinion that if a state reserve bank
is established it may not be possible
for it to become a member of the fed
eral reserve, as the Bergen bill pro-
v1des it shall. Friends of the Bergen
bill admit that this will depend upon
a technical question but they assert
the federal reserve will become the
state reserve with the large deposits it
will bring. In answer to this the op-
with the large deposits the state re-
it also will bring the obligation of
posts.
Possibilities of Division.
The plan requiring the state bank
to pay at least per cent on all de-
posits while the federal reserve pays
nothing, is pointed out as an outlay
and also as making the state banks a