Show CLEARING HOUSE CERTIFICATES I They Arc Not Legal Tender According to Kansas State Bank Examiner TOPEKA Kan Aug 25State Bank Commissioner Briedenthal has issued a circular w the state Danks declaring that in view of the fact that the New York City banks refuse to pay drafts excepting in clearing hous certificates which are not lawful money they appear to be insolvent in-solvent He points out that the state banking law requires a reserve of 20 percent per-cent of the deposits half of which may consist of balance due from solvent banks Not considering NewYork banks solvent he rules that the Kansas banks must not hereafter count as part of their legal reserve re-serve more than 2 per cent in money due from New York He allows this much only to enable the banks to supply the local demand for New York exchange Briedenthal says the circular is issued for the protection of Kansas Local banks are borrowers in New York and i they transfertheir accounts to either city the New York banks will call the loans I |