The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-06-05
DON'T ROCK BOAT
State Bank Commissioners in
Statement of Conditions.
Wilson Guards People Against
Talk of Alarmists.


Walter E. Wilson, state bank COM
missioner, today paid high compliment
to the personnel !, of Kansas bankers
and gave them praise for safe and con-
sentative management of the banking
business during critical months of
recent years. Wilson gave warning to
the public against manufactured poll
cies of unrest. General banking con-
dit.ons in Kansas at this time, he
stated, are soundly established.
In a period of six years deposits of
state banks have almost trebled, while
combined deposits of state and ma
tional banks have reached a total of
half billion dollars. Unusual condi-
tions which prevailed during the war
and the period of reconstruction have
created a situation in which the banks
at this time must have general public
confidence. This confidence, Wilson
said, is strongly manifest among the
large depositors and persons intimate
| with general business conditions in the
nation
Regardless of unusual and extreme
I conditions prevailing during the war
and reconstruction months banks of
this state have generally developed and
prospered. Losses to Kansas bank de-
! "
less than one-fifth of one per cent of
the aggregate. In each of the four
eases of bank failure, he pointed out.
loss was due to Illegal operations by
bank officers.
September Is. 1914. the first
statement after the outbreak of the
war showed $113 100000 on deposit
IN $50 state banks. June g. 1917 the
first report after the United States en-
s saoS 1T the war, showed deposits of
SzOz'Ooo,00O in 1908 state banks. The
last compiled state bank report issued
February 4, this year, showed depos-
its in excess of $3O3,00O. in | -O9s
state banks. The combined report for
state and national banks showed s497.-
600. 0O0--in round figures. a half hi
lion dollars.
| In those six years, state and ma
tlonal banks in Kansas have grown
ana developed new strength. This
| condition has prevailed in spite of the
Iact that almost unanimously the
bankers of this state urged their ma
irons to take the money on deposit and
invest it in liberty bonds and other
nigh class government securities.
rms was done to win the war and to
inspire national confidence among all
Kansans.
Era of High Prices.
This patriotic move took from the
| banks the money which in recent
months has been most sorely needed.
Following the signing of the armi-
stlce, came a new erA of high prices
demands for money have been alb
normally heavy as a result of the new
condition confronting this state Prices
OF all farm equipment multiplied.
Banks were called upon for two and
three times the sum usually required
TO finance a farm project. Farmers
in hundreds of instances could not
meet their paper due at the bank.
and extensions along safe and sane
banking lines became necessary. Had
not a practical viewpoint of service
been adopted by our bankers. scores
I of com munities would have suffered
and losses aggregating hundreds of
mtllions of dollars shouldered upon
the people of Kansas. Thru adoption
| of their policy the bankers have sta
bilized conditions, saved thousands of
borrowers and safeguarded banking
securities.
Kansas should not be alarmed. 1t
is dangerous time to display distrust
( and unrest. Wise business men real
| lie this Any tendency toward finan-
cial disturbance might easily shake
the foundation of the banking indus
! try. It is not the time to rock the
boat. In a general sense the hanks
/ of Kansas are on a sound basis and
1 are meeting community needs. The
| bankers are conservative, even eau
tious. But with the heavy seasonable
/
worth of last years grain in hands
| of farmers and elevators. any move
which tends to force Immediate col
lection on securities threatens trouble.
! Governor Allen has appointed a
committee to go carefully into the
policies and methods of examination
of state banks by this department.
This committee will be thoro in its
Investigations. Every record of the
state banking department will be at
| its disposal.
/ Welcome Investigation.
| Governor Aliens action in naming
this committee can tend only to re-
1 lieve any feeling of uncertainty on the
| part of the public. My department
| has only words of cornmenda ton for
! this course. When the report of this
/ committee is submitted to the COVER
nor. it will give to the public the en-
| tire facts.