The Holbrook news., 1921-03-04

under date of Jan. 31, 1920 shows that the First National and the Sav- ings unit were carrying at that time approximately $150,OOO worth of pap. CT for the Holbrook bank, the liabil- ity for which re-discount did not appear in the records of the Hol- brook banl5 On January 31, 1920, bills receivable of record in the Hol- brook State Show s164,673.79; by ad- ding to this amount of approximate ly $15O,OOO re-discounts with the two above banks it appears that the Holbrook State had loaned at that time more than $Sl4.OOO. s5O,9 ,959 of which was. endorsed without re- course.
 A letter dated Jan. 2, 1920 to the home office shows the attitude of L. M. as to certain paper held by him at that time and which was causing worry for the home office He says:
 However, we are in commun-
 ication with new cattle loan
 company, which has just been
 organized in Los Angeles, with
 a two million capital, fully paid,
 and they have led us to believe
 that we will be able to deal
 with them. If this be the case
 we will unload all we can on
 them and certainly Tighten up
 with yOu."
 The report shows that the First National of Flagstaff on May g, 1918 would not take any paper from the Holbrook State without endorse ment without recourse"
 The report shows the acquisition of certain paper by the First Nat ional of Flagstaff with the plain en- dorsement of the Holbrook State thereon, and although the Holbrook State did not sfs<w this contingent liability on their books, it is clear that these notes were to be made good by the Holbrook State at their maturity. However, because of the excessive line the Flagstaff bank was carrying for the Holbrook State an understanding similar to the un- derstanding with the First National of Albuquerque was arranged, name Iy, that notes should bear the en- dorsement without recourse" but the notes were really an obligation of the Holbrook State Bank. The Hollywood National Bank, National Bank of Long Beach, American Trust and Savings bank of Fl Paso were all offered paper on this same arrangement.
 Process of Liquidation
 Notes held by the First National Bank of Albuquerque which they had taken over from the Holbrook State were reduced during the per- iod from August 2, 1920 to December Il, 1920 by approximately $47,Ooo.
 On August ?, 1920 the Holbrook Bank showed bills payable at the National Bank of Commerce and re- discounts with the Citizens of Los Angeles aggregating $S4,OoO.
 With the receipt of approx
 imateIy S4O,OOO, the net amount
 left with the HOlbrOOk State
 from the sale of the county
 bonds, the HOlbroOk State took
 up bills payable and re-discOunts
 aggregating S22, 2,635, leaving $1O,-
 900 in bills payable at the Nat
 fOnal Bank of Commerce in New
 York and obtaining an additional
 SIO,OOO on Oct. 14, which was
 Ifquidated by a payment on Oct.
 %, 1920. Thus on Nov. g all the
 liability fer bills payable and re-
 discounts were eliminated from
 the records of the bank. And
 page 1OI and it's reverse side
 throw an interesting light upon
 the information which the First
 National had relating to the
 application of this county money.
 As a further step in the process 1f liquidation of the available assets Liberty Bonds aggregating $9O50.00 were sold for S8,16s45, a loss of S375. .74-as these were carried on the books at valuation of $854419.
 The letters show not only the actual process of this sale but
 also an effort on the part of l..
 NJ. Reynolds to take down $3OOO
 of liberty bends held by the state
 treasurer as security for the