The Leon reporter. (Leon, Iowa) 1887-1930, 1902-12-04

Total .. .............. . 81 IS, 7O3. 73
WIN. WooDARD,
President.
E. w. TOWNSEND,
Cashier.
Invite comparison of this state.
ment with those made by the state and
savings banks of Decatur county which
are made in compliance with law. Now,
Just one word to the public in regard
to securities for depositors between
state and savings. or Incorporated
banks and personal banks. The law
reads that the stockholders in all in.
corporated banks are liable for double
their capital. See page $50, section
1882 of the Code of Iowa. For exam
pie: A bank that has a capital of $685..
600 has only $4,000 security. Deposits
in the bank over said amount are with
out security other than the honesty of
the cashier. In private banks ali the
property the stockholders own, except
homestead, are liable for the indebt.
edness of the bank and furnish security
for the depositors. Hence, nearly all
private banks have three or four times
as much security as they have deposits,
besides the same amount of security in
the honesty of the cashier. Statistics
show that only small per cent of pri-
vate banks become insolvent.
II people will jog their memories q
little they will recall the fact thst near.
ly all banks that become insolvent
are incorporated banks, state savings
or national banks and generally large
banks that are doing the most business.
Now, word in regard to the payment
of interest on deposits by banks in
Decatur county. Our banks have the
name of paying higher interest on de-
posits than any banks in Iowa or in any
other state. One prominent bank offers
six per cent for money and that com.
pels the smaller banks to offer still
higher rate. Depositors are naturally
inclined TO patronize the county seat
banks where they have larger bank
buildings and can make better an.
pearance than we can sfford to make in
small towns. Of course our expenses
are not so large as theirs. We only
have little money invested in our
buildings and our taxes are small com.
pared with taxes paid in large towns.
Our expenses in running our bank are
not very high. Hence, we can afford to
pay more for deposits than our neigh
boring banks and then make good
dividend.
We have therefore concluded to pay
|69 per cent for yearly deposits until
further notice. Now, of course it may
be said that we are hard up for money.
Well. the above statement shows how
much cash we have on hand. We gen.
orally have es large a per cent on
hand, according to our deposits, as any
of the banks. No, it is not because we
are hard up for money that we raise
our rate per cent but to give our de.
positors the benefit of the money we
save on expenses over the larger banks.
1t has been talked over the county to
our detriment that Frank Greenland
owes thel Citizens Bank a large sum of
money. | want to say to the public
that Frank Greenland does owe us con-
siderable money, but an examination
of the records in the recorders office
will show that every dollar is we'll Sc
cured. Mr.. Greenland has given us all
the security we have asked. We con-
slider that every dollar he owes us is
backed by gilt-edged security. Besides,
| am informed by Mr.. Greenland that
ne has 400 head of cattle and about 500
head of hogs on feed that are ready
cash providing a bank needed the
money. We have not sued man or
lost dollar in the last four years.
Neither have we note on hand that
we would discount cent 10 get the
money.