The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-09

1OtaI. fT-Nsf
This statement shows a decrease
in the financial resources of the state.
from the previous statement, made at
the close of business November 10,
1920" Bowman said today. But
since the statement of April 2S was
issued, the aspect of the situation mas
changed, and the report on the last
call, sent out last week, will undoubt-
eddy show increases.
"rhere are four points which are
brought out in the banking condi-
tions Of the state today, which are
encouraging as regards the finances Oh
Kansas.
Customers Paying Their Debts.
The present tendency is for the
customers of banks to liquidate their
Indebtedness to the banks. The peo-
ple who have been borrowing money
from the banks are paying their
debts.
obligations to their correspondents
and to the federal reserve.
The federal reserve currency IS
being withdrawn from circulation.
This means that the pressure orougnt
to bear by the needs of the banks Is
Iiquidate, therefore the federal re
serve currency is not so much in de-
mand That is a healthy sign. A
boy with a rich father is lucky 10 pc
able to call upon his father for help-
But il isn't good thing to be always
calling on the rich father. The fed
eral reserve is a wonderful thing, but
the less it is called upon to help the
hanks. the healthier the financial
condition of the country is: That is
an index of financial conditions The
tendency now is toward the reduc-
+Ion of the amount of federal reserve
currency which has been issued our
ing the past few years.
"The fourth point is the fact that
the per capita deposits by customers
in banks, is on the increase
Not Out of Woods Yet.
..These things do not mean that the
financial situation and the lhoustrldl
situation are all straightened out and
everything is lovely. But it does mean
that the general trend of things Is TOT
tho better in Kansas.
Bowman pointed out that there Is
less money in the United States now
than there was few months ago. as
a result of the withdrawal OF the req
eral reserve currency, which is IN
reality a form of loaned money to the
national banks
ON 1914 there was about three and
n half billion dollars of money in the
United States, in gold, silver and cur
rency." Bowman said. ON the first
Of this wear there was more than
eight billion dollars. The extra four
and a half billion dollars was federal
reserve currency which had been Is
sued to meet the needs of the national
banks and their customers. 1t is a
good sign that they have commenced
to reduce this currency.
THE amount of gold and silver and
currency other than federal reserve,
has not varied a great deal in that
time, so that the immense increase in
money in circulation was practically
all federal reserve currency. The
less of this in circulation the better for
the national banks. because 1t
amounts to a loan to them"
Takes Optimistic View.
The four factors which he pointed
out offer to Bowman opportunity for
taking a fairly optimistic view of the
banking situation in Kansas.
Since the call was issued on Novem-
Der IS, 1920, there have been started
six new national banks in the state.
The former call was answered by eco
national banks. and the latter by 266.
1t will be at least two months before
the statements from the national
banks called for last week. will be
ready for announcement, Bowman