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BANKS SOSPEND CASH PAYMENTS war TIGHTENS REAL MONEY ALL OVER THE WORLD. Large Cities of United States Go On Bank Paper Basis Following Action by London. Wichita, Kan., Aug. 3.-Effect of the European war flashed to Wichita during the night. Despite the most beautiful crop prospect in the history of Kansas, and despite the fact that the last bank statements showed millions of dollars deposited in Kansas banks, Wichita bankers soon after midnight received news which has forced them to suspend cash payments. All business has been put upon a paper basis. Bank checks until further notice will be exchanged on a clearing house basis, with no cash paid over the counter to depositors. The action was caused in the United States by the announcement that the Bank of England has stopped cash payments. New York and Chicago immediately followed suit, followed by Kansas City, and then by Wichita. There is no need for alarm among bank depositors, since the system merely forces a practice whereby the largest volume of business is customarily transacted. Most of the business exchanges are conducted by an exchange of paper. The action today simply forces all exchanges to be made in that manner. This is the same method which was adopted by Wichita banks Oct. 28, 1907, and to which Wichita easily adjusted her financ New York, Aug. 3.-The New York clearing house committee called a meeting of the clearing association before banking hours today to arrange immediate issuance of clearing house certificates. The New York Savings Bank association will meet this morning and issue the sixty day clause empowering banks to refuse to pay depositors in that period would go into effect. Kansas City, Aug. 3.-The Kansas City Clearing House association is meeting now to decide whether it will go on a certificate basis. These moves have been considered ever since the war scare started account of the heavy movement of gold. Is not considered sensational.
