Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1912-01-24
THE FIRST STATE BANK
& TRUST COMPANY
History Of Its Organization, Its Growth
and the Men Who Are
Behind It.

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department at Austin its certificate of
authority for increasing its capital
from $4,000 to 100000. This insti-
tuition now has 100000 capital and
$4,000 surplus. Stockholders liability
100000.
The stockholders of the First State
Bank & Trust Company show their
faith in the institution by putting
$4,000 of their own money into 1T,
and also by doing this they assume
another liability of 100000 because
the law makes them liable for double
the amount of their stock. OF course,
this last liability is no security to the
patrons of any bank unless the stock
holders are responsible and can be
made to pay it. In the case of the
First State Bank & Trust Company
the patrons and depositors are thor
oughly protected, as each and every
one of it's stockholders can be made
to pay this liability.
The combined worth of the stock
holders in this bank will amount to
$780, COO. The combined worth of the
nine directors will amount to over
100000.
Then behind all of this you have the
depositors' guarantee fund Of the state
of Texas, which now amounts to about
$500 900, and the law provides for the
increasing of this fund until it reaches
the amount of 100000. This fund is
created for the sole purpose of protect
ing the non-interesting bearing and
unsecured deposits in state banks that
accept the guaranty fund plan, and
the First State Bank & Trust Com
pany of Bryan is a guaranty fund
bank"
This bank was organized and opened
for business October /, 1903, with a
capital of $4,000 and surplus of S1O,-
600. and in the short space of time of
two years and three months has taken
rank along by the side of older insti-
buttons. The business grew to such
proportions until the directors thought
it wise to increase its capital and
called a meeting of the stockholders
for that purpose and it was unani-
mously voted to increase to 100000,
with a surplus of 100000 The direc-
tors paid back to the stockholders 20
per cent, being the net earnings for
the first wo years and three months.
Not bad for a new institution.
This bank starts out on its third
year with bright prospects, there be-
ing over six hundred accounts on its
books. and each month finds additional
new ones. We invite each and every
person, old or young, male or female,
white or black, that has any occasion
to use a bank to call and talk over
their plans with us. We want your
business and may be able to help you,
and you can help us.
This bank is examined four times
a year by state bank examiners, while
national banks are examined only
twice a year. This bank is required
to publish sworn statement of its
financial condition. five times a year,
the same as national banks. This
bank is required to keep in cash in its
vaults 10 per cent of its deposits Ma
tional banks are required to keep only
6 per cent. This bank is required tc
keep % per cent of it's deposits on
hand and with it's correspondents. Ma
tional banks are required to keep only
Is per cent.
The officers of this bank are pro
hibited by law from borrowing one
cent of it's funds without first securing
the consent of it's board of directors
Not so with national banks.
The directors of this bank are pro
hibited by law from borrowing more
than 10 per cent of its capital without
first securing the consent of the other
members of the board Not so with
national banks. You can not fail to
see the wisdom of this law.
The directors of this bank are re-
quired by law to meet once month
and pass upon all loans, check expense
accounts and otherwise direct the
management of the bank.
The stockholders of this bank are
all home people, living in your midst,
spending their money with you and
helping to maintain your institutions,
paying their share of the taxes, and
otherwise filing their places as citi-
zens of the community, they are thor