Fergus County Democrat., 1915-01-14
TWO MORE BANKS
HOLD MEETINGS
FIRST NATIONAL REFLECTS OLD
BOARD AND DECLARES THE
USUAL DIVIDEND.
EMPIRE BANK AND TRUST COMPANY

At the annual meeting OF stockhold-
ers of the First National bank, held
Tuesday afternoon the old board of
directors was reelected without
change The board consists Of Her
man Often David Hilger George M.
Stone. b. f. Stack, Andrew Fergus,
William II. Fergus, William M. Black
ford and w. J. Johnson.
The directors Of the First National
bank are regarded throughout the
state as an especially strong and able
board. Each man on the list has made
money and is making money in his
own business. Each man is known
as successful in his own line and each
of these men individually and cOllec-
lively are known as men of the utmost
conservatism in their individual busi-
ness affairs which means that the
same care and conservatism is eXer-
cised by them in their capacity as di-
rectors. The same officers were re
elected W. j. Johnston being made
second vice president and cashier and
J. L. Steinbarger being advanced from
the position of auditor to assistant
cashier.
The bank declared the usual divi-
dend and followed it's established pol
icy of taking out of its current notes
as loss, all notes doubtful as to
ultimate collection and also all notes
showing over due. This policy, pur-
sued through a term OF years. adds
wonderfully to the strength of a bank;
makes easy the charging of losses
which may come through hard times
or business reverses and allows the
directors of bank to view with
equananimity the possibility of gen
eral business depression.
One of the subjects which is being
given careful consideration by the ma
tional bank in every community at
their stockholders meetings this year,
is the new federal reserve law. The
inclination to scan proposals for new
loans with unusual care which always
develops when general business slows
down, has caused many prospective
borrowers to inquire where the value
Of the new federal reserve law comes
in, if it does not allow banks to loan
money Just as freely in depressed
times as in flush times.
In speaking of the new law, Mr..
the Democrat that there is no method
provided in the new law for furnish
ing money indefinitely to provide for
new enterprises and new requirements.
No plan has ever been devised to bring
permanent money to community eS-
cept through the production by that
community of more products to sell
than it buys. No law can be made
IL
per unless the amount of property in
that community grows in greater pro.
portion than it's debt No law has ever
been able to prevent community
which speculates too freely from eX-
periencing seasons OF hard times The
federal reserve law was created pri-
marily to make it impossible for a
bank conducting a legitimate business
and keeping its money loaned to sol
vent borrowers from being obliged by
some sudden business upheavel
through the country, to either ruin its
customers by calling upon them sud
denly for payment of loans or close
its doors through inability to collect
its loans. National banks are now
able, through this law, to use the notes
Of solvent borrowers as collateral Sc
curity to borrow money during pc
riod of depression without demanding
that individuals who are using this
money sacrifice their property in or.
der 20 pay the money back.
This law does not create any new
wealth and it does not add any cash
to the available supply in Fergus
county or in any other county. 1t has
not changed the necessity for eacl
community to get along on the money
that is available in that community
and when the demand is greater thar
the supply to slow down it's activities
until the supply catches up. 1t does
provide, however, that when commu
nifty is experiencing a time of shor
money. when the demand is exceed
ing the supply, that national banl
in that community can always, an!
business day in the year, realize upOl
it's notes money with which to pa.
it's depositors if required.
In speaking of the future outlook
Mr.. Johnson stated that new develop
ment and new purchases on any larg'
scale would apparently need to be de
ferred until the crop for 1915 and it
probable value and quantity could b.
definitely foreseen. Every day it az
pears more clearly that the main rea
son for the general money shortage il
the county is the tremendous amour
which has been invested in the ney
crop The acreage of wheat now i
the ground is more than double that @
last year. The energies of almost e,
cry farmer in the county were devote
during August, September, October an