The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1919-10-16
General Remarks.

unsatisfactory, due entirely to the
character of the loans. The manner
IN which commercial credits are
handled is directly responsible for
this condition. Undue optimism, poor
credit Judgment, and total lack of
SYSTEM are main factors in producing
this result. There is no active dis
count committee. The officers hand
ing this department, appear to act
independently of one another, and
without any apparent system, and it
IS believed thai even when the largest
loans are made that they are made
individually without consultation.
And in an institution of this size
such practice is bound to produce
very undesirable results.
The bank has a good volume of
business and a II routine work is
handled and kept in a satisfactory
At the present and for some time
past, h bank is and has been over
loaned; and as a consequence carries
insufficient reserve. If their present
reserve and that for the last thirty
days. was figured on the basis as
provided by law same would be a
minus quantity. In other words they
would have considerable less than no
reserve. And while I am of the
opinion that the law relating to re-
serve, in case of banks that carry
other bank deposits or act as reserve
agents for other banks, is somewhat
~unreasonably strict, yet much more
reserve or larger percentage of re-
serve should be carried against such
deposits than ordinary commercial
deposits. In figuring up the percent
age of reserve for this bank else
fvhere IN this report, moneys due to
eanKs nave been treated as ordinary
uenand deposit. In my opinion this
oank with its present line of deposits
should have at least .%s15O.ooo more
reserve, and 100000 additional
would not be too much. 1 would
therefore recommend that they be
required to increase their reserve
from $50 toy 200 thousand without
much delay.
Overdrafts are entirely too large
far too freely permitted, and in
many cases these are of long stand
ing. Strong criticism on this point
IS merited. Policy is far too liberal
ana should be restricted. All over
~ oii tLe DooRS Tor over
~ days (and there are many of
them). should be ordered collected
or removed forthwith.
Cash Items.
Several returned checks are car
rled here ,''and have been for some
Tins. These aggregate $326.65. These
are admitted to be no good, hence,
should be charged out and removed.
Also, charge slip Carroll" is old and
should be retired.
Warrants, Etc.
Ten shares of capital stoch Of the
Equity Cooperative Packing Co. are
carried in this account at 5000. This
item should be ordered out as same
was acquired, and is carried contrary
to law.
Collections in Transit.
There are fiv items in this ac-
count, that were sent out at various
times during 1918 and on which no
collection or returns has been made.
These SHOULD be charged out of this
account and collected from parties
from whom taken or charged back to
them. These items, with date when
sent and place where sen are as
follows:
oSo-1o ~ otdiloH Trust d
Saw. Blk, Great Falls. 20
5-31-18 to First Nat. Bank,
e-s-1s to Rolette Co. State ''''
Bank, st. John. .......... 5000
s-12-1s to First Nat. Bank,
Nort1wood ........ ....... los. so
12-23-iS to Security State
Bank, Devon, Mont. ........ 225.15
lotal .$S00.S5
Loans.
Your attention is called to Real
Estate loan schedule elsewhere in
this report, regarding second mort
cages and loan margin on same.
At the meeting Of the board Of
directors held in March, this year, a
motion or resolution was adopted,
providing in substance, that the fol-
lowing loans be collected in full and
removed from the assets Of the banl.
within Il reasonable time. viz: The
Fl. d. Haggerty, Inc, Porter Kim
ball. Kimball & Hastings, O.,
{ ~, Peoples Coal Company, Unit
cd State Sisal Trust. Federal Devel-
opmcnt Company, and the st. John
Time Certificates.
Past Due Paper.
Past luz paper Is large, and de-
mands close and vigorous attention,