The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-08
Bankers Refusing Loans on
NOnessentials Here.
Conservative Action Taken by
Financial Institutions.
NO MONEY FOR MOTOR CARS
Pleasure Vehicles Must Wait
Until Better Times.
Ii No One Rocks the Boat, ALPS
Well in State.

Kansas will not confront serious
financial or business depressions il no
one rocks the boat. That is the opin-
ion of Topeka bankers, who now see
relief from the stock market and in
vestment depressions which have had
nationwide effect on call money.
There are sorry days ahead. tho, for
the chaps with gilded stock certifi-
Gates in blue sky propositions or with
securities of non-essential stocks and
| commodities.
While there is showing of a marked
improvement of the situation which
has caused disturbance and unrest
down east, there is also a determina-
tion of wise bankers to keep their feet
on the ground. There will be no
scramble to take on new loans. But
the Kansas situation as viewed by
bankers promises no grave concern for
the conservative business man, farmer
| or manufacturer of essentials on the
/ other hand it will not be advisable to
ask the banker to loan money for oil
stock investment or for the purchase
of new pleasure car. music box or
promotion of an enterprise not listed
as essential by the federal reserve
board.
! Farm Products to Sell.
Conditions in Kansas will be sta
bilized, bankers declare, because of
large reserves of unmarketed farm
products. Car shortages have tied up
movement of last years crops. To-
peka bankers today estimated that not
less than $100.000.0o0 worth of the
1919 wheat, corn. oats and hay crop
has not found IT'S way to the market
centers.
Movement of these crops would i'm
mediately liQuidate much farm paper
Inow held by the banks of this state
land would add greatly to reserves. In
addition to the unmarketed crops OF
last year, Kansas farmers are now pre-
lparing for the cutting of a new wheat
lcrop. The wheat harvest starts in
this state in little more than four
weeks.
Il To "Sit on Lid"
1t took the New York stock market
disturbances three to four weeks to
show real reflection in Kansas. But
the trouble days on the market have
been largely overcome and call rates
have been reduced from nine to seven
per cent The disturbance as viewed
by conservative bankers here affects
few well established enterprises But
the furry has been a stop, look and
listen" warning to the investing public
and the bankers expect to sit on the
lid without discouraging advancements
in essential activities.
Among the larger banks of the coun-
try. the furry is expected to create a
general tendency to liquidate loans and
to increase reserves. Conditions may
work back to the standard of a few
months ago, local bankers believe. but
the day of wild and care-free specu-
lation is passing Bankers are not
. looking for customers who are intro
duced with requests for loans.
Carrying Reserves Here.
/, Topeka banks are carrying substan-
tial reserves. They are playing close
to the shore without denying ample
credit to persons with propositions
which stand inspection. The Local
bankers have taken the position thai
persons carrying deposits and with
Irecord5 for conservative operation
should be taken care of. And there is
nothing in the financial situation In
this state. it is declared, which indi-
Gates that such policy will not be
successfully worked out.
No Pleasure Car Loans.
Automobile credits have been the
hardest hit. apparently. Then come
oil and other securities listed as high
ly speculative or absolutely non-essen-
tial. While the pleasure car loans
find no market. the federal reserve
board has recognized truck and trac-
tors as acceptable securities and ir
the essential class. Pleasure car pa
per, tho, is fatty taboo by the fed.
securities are approved by the board
They include: Cd Farm and live
stock; .(2) manufacturer or whole
saler in essential class; (9) retailer ir
essential class.
"If Kansas could get cars for move
ment of her last years crop. there
would be no place in the nation iT
better immediate condition" one wei
known banker asserted today. Con
dHions in the east are now consider
ably improved and in Kansas are bet
ter than two weeks ago. The genera
effect will be to work along more
conservative lines without hamperinf
or in any manner cripPling essentia
activities or the meeting of Legitimate
money demands"