The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1909-08-26
FROM A FARMER
To A BANKER
Even in Villages of Only $50 In.
habitants They Gather Good
Deposits.
ALWAYS CONSERVATIVE

Kansas City, Mo-, Aug. 2O.--"An in
fluence that has been discussed lit
tie, yet is unquestionably felt in
western banking" said leading bank
cashier, lis the farmeT-banker who
is becoming an important factor in
the interior towns. In literally hun
dreds of little towns, some with not
more than $50 population, have been
started banks during the past three
or four years. Many of these have
farmers as stockholders and officers.
Some of them are practically owned
by farmers, only one or two stock
holders being from the town.
"These banks get large deposits
because they draw from farming sec.
tions that have been prosperous dur
ing the past decade, and the fact that
leading farmers are stockholders
gives prestige to the institution. In
deed, this is so well understood that
most new banks in the farming sec
tions try TO secure as many farmer
stockholders as possible. It is not
uncommon to find small banks with
nine or eleven directors nearly all of
whom are farmers, placed there be-
cause Oh I1e DGutnJ W DG uGllNSu
from the advertising.
Farmer Always Proceeds Safe.
"The influence of this is directly
toward conservatism. The farmer
believes in making the bank safe,
hence he looks with doubt on com
mercial paper and ties his faith to
farm mortgages and similar invest
ments. If nothing offers he keeps the
money in the vault, until at times
banks have G5 to 20 per cent of their
deposits in cash and sight exchange.
"He likewise has well-defined
doubtfulness of everything that sa-
vors of Wall Street, and cautions his
officers to use great care. This is
particularly true since the furry of
1907 and it results in tying UP a
great deal of money that should be
working. The faTmer-banker is be.
ing educated, but at present he is a
factor to be considered in the esti-
mate Of interior bank conditions"
The Kansas Bank Commissioner
has found q new scheme in bank
gromoting. He discovered that in
the small towns in the central and
western counties of the state, men
are organizing banks as speculations.
The promoter goes into towns that
have already more banks than need
ed and easily finds investors ready
to put in money because of the
banking craze and the advertising
they get from being bank officers
and stockholders.
Uses Names Without Authority.
To push the matter, the names of
leading men of the state, who are
said to be interested, are used with
out their knowledge. The promoter
puts in very little money and usual
ly manages to get that out as soon
as the bank starts. Incidentally, he
sells bank fixtures, safes and sta
tionery, from which he reaps a COM
mission of $500 or more He moves
on to a new town and works the plan
over again.
This has become so common that
the banking department has aired
the plan and has exposed some spe-
cifc instances hoping it will put a
stop to the practice The Bank Guar
antee Deposit law, effective July /.
has made it easier for these pro-
moters, and the bank commissioner
is determined to stop it, as he con.
siders it dangerous to the banking
interests of the state.