Article Text
SLOW, GRADUAL
H. W. KOENEKE, STATE BANK COMMISSIONER, BELIEVES "BOTTOM" IS REACHED.
DEPENDS ON FARMING
Banking Conditions Have Shown "Decided Improvement" Koencke Says, In Middle West And Kansas. inclined to believe the "bottom" had been reached in ecoonmic conditions. H. W. Koeneke, state bank commissioner, said today the recovery woud be "gradual and slow "I should like.' Bank Commissioner Koeneke said in addressing the Kansas Bankers association, "to be able to paint for the bankers of Kansas rosy picture as to the immediate future. but I am unable to do 'Conditions in Kansas are primaily dependent upon agriculture, and the return of prosperity and better times depends largely on betterment in world wide conditions, which at the present time are at a very low
"I am inclined to believe that we have reached the bottom and that better times are instore for everyone. However, we must not expect prosperity or better times to appear suddenly on the horizon as recovery will be gradual and slow. "It. therefore. behooves every banker in Kansas to continue to keep his house in order Commissioner Koeneke said his observations in the past two years convinced him banking and financial conditions in Kansas and the middle west have shown "decided improvement" and are better than they are in other sections. "Two years ago," he said, "it was only occasionally that we noticed a bank liquidation in the eastern section of the United States, while it was a common occurance in the middle west. At the present time the middle west has somewhat overcome these liquidations, and failures are few and far between.' Quoting figures showing a $56.639,000 decrease in deposits in Kansas state banks from December 27, 1926 to December 26, 1930, Commisioner Koeneke said that with the shrinkage "it was only natural fewer banks are necessary to take care of the needs of the communities." During 1930, he said, forty state banks went into liquidation, two were reopened by reorganization, three new banks were instituted, one went into voluntary liquidation, and 16 consolidations were effected. The number of state banks was reduced by 52 during the year. "There are still quite number of locations in Kansas where mergers or consolidations would be advisable. While the banking department does not adopt the attitude of eliminating competition in the banking field. we do realize its income be sufficient to care for its overhead and reasonable amount in excess to take care of losses and returns to the stockholders Commissioner Koeneke said the majority of the banks closed in 1930 for liquidation were located in the smaller communities and that they were chartered "in the years when a bank charter was easy to obtain and not much thought was given to the future possibilities. He attributed most of the failures to inability to realize on farm paper The commissioner said that from May 1, 1929 to April 30, 1931, 48 state banks with taling $4,618,034.35 and that dividends paid on these banks tetaled $1,414,720.69 During the same perlod, dividends totaling $2,249,718.78 were paid depositors of banks closed prior to May 1, 1929 Depositors in two of the 48 banks, the Exchange State of Gove and the Farmers and Miners of Crestline, were reported to have been paid in full. "I honstly believe." Commissioner Koeneke said, "that the middle west has taken its punishment and the losses created by various causes have been charged off. While WC might still have few scattered fallures, the reports made to our office would indicate that the banks in Kansas are in a much stronger position than they were two years ago.' Commissioner Koeneke said that while he had no solution to offer to prevent bank suspensions in the United States, he did not believe the unit system of banking has failed or that branch banking would solve the problem. He characterized as "entirely impractical" suggestion by Comptrol!er of the Currency Pole in report to the senate committee on branch banking that national banks in commercial centers be permitted to establish branches in the trade area of the city notwithstanding absence in some states of branch banking laws.
Canada June 29 and 30 and July 1 and 2. Lambda Chi Alpha will send "Buck' Jones, Manhattan, to Asheville, N. C., August 27. 28 and 29 L. E. Garrison, Manchester, and Hugh Jones. Horton, will De sent by Sigma Nu to Ontario, August 28 to 31. attend the Alpha Delta PI convention at Lake Louise Canada, June 21 to Beta Phi Alpha is sending Mila Pishney. Cleburne, to Cresco. Penn. June 28 to July Lucile Correll. Manhattan, will represent Delta Delta Delta at their national convention at the June 22 to 26 Pauline Patchin Carson, will go to San Antonio June 17, 18 and 19 for the Delta Zeta convention Kappa Delta convention is to be June 28 to July 4 at Washington, D. C., and Vera Bowersox is the delegate. Phi Omega PI will send Helen Johnson Greensburg. to Troup dale The Pines, Colo. June 2 to July 3 for their convention. Helen Hughes, Manhattan. and Marjory Stevenson. Oberlin will spend 10 dr%/s attending the Pi Beta Phi convention from June 21 to 31. at Asbury Park. N J.