The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-27
BANKS DID WELL
Made Good Record During
Financial Depression.
More Than 1,1O0 Now in Opera
tiOn in Kansas.
SEVEN FAILURES THIS, YEAR
Mismanagement and DishOn-
esty Given as the Cause.
Heaviest Losses of Year Were
Hanover and Coffeyville.

The failure of two Kansas banks in
September brings the totals to seven
for the year to date and to twelve for
the period of deflation, since May Is,
1920.
kansas banks have weathered the
storm of financial depression re-
markably WELL" said ]. H. Sandell, as
sistant state bank commissioner
Where twelve state banks have
failed more than 1I1OO have continued
closed that the banks which have
failed have done SO in practically
every instance because of mismanage-
ment or dishonesty of officials. In
most instances bank cashiers and
other officials stole from bank funds
to speculate in oil or other enterprises.
When deflation came their holdings
diminished and they were unable to
make good their thefts as they un-
doubtedly had hoped.
Readjustments Are Made.
where bank officials were honest
and the great majority of them are
the banking department has work
ed successfully with them to make
the necessary readjustments to meet
new conditions"
Sample reasons shown for failures
in the past are: Cashier speculated
in oil and lost Negligence on the
part of bank directors and speculation
on part of acting officers" ''Defalca-
tion of cashier. He dealt extensively
on board of trade and covered up
losses with forged papers"
From 1900 to 1919 inclusive there
were twenty bank failures in this state
or an average of one a year From
1892, when the first failure was re-
corded after establishment of the
banking department, until 1899 there
were SO failures. Thirty-three of
these were in 1893, the panic year.
Numerous other banks closed tenn
porarily.
In Kansas bank failures of the last
two years, the heaviest losses to de-
positors probably will be in the Han
over State Bank of Hanover and the
Peoples State Bank of Coffeyville, the
banking department believes. There
is no way to estimate the exact loss
until numerous law suits are decided.
Seven Were Guaranteed.
Seven Of the twelve defunct banks
were guaranteed under the depositors'
guaranty law. Neither the Hanover
nor the Coffeyville bank were guar
anteed. In the other three non-guar-
anteed banks present indications are
there will be no losses to depositors.
OF the seven guaranteed banks it now
appears at least three and possibly
1--we Will require OIdllS On Tile SudI
anty fund.
List of Bank Failures.
The list of failed banks follows:
The Aulne State bank, Aan,ne. (guaran-
teed), May Is. 1920.
The Hanover State bank, Hanover, May
Il, 1920.
The Farmers State bank. Wamego, $25,-
600 capital, October II. 1921.
The Homewood State bank, Homewood,
$4,000 (guaranteed), December 6. 1920.
The Wellsford State bank, Wel.sford,
$4,000, December is, 1920
The Peoples State bank, Coffeyville, $685.
0e0. January 20. 1921.
The Farmers State bank, LIE Loup, $4,000
(guaranteed). February 4, 1921.
The Bankingc Trust Trust company. p , Kansas
The Peoples State bank. Salina $780,
0OO), guaranteed, July Is, 1921.
The Farmers State bank, Spring Hill,
$4,000 tguaranteed), August S, 1921.
The Citizens State bank, Manhattan, $780,
600 (guaranteed), September 10. 1921.
The Farmers State bank. McCune, $4,000
(guaranteed), September %. 1921.