The evening herald. (Klamath Falls, Or.) 1906-1942, 1921-01-12
WEDNESDAY, JANUARY 12, 1921
THE FIRST STATE AND SAVINGS
BANK

The First State and Savings bani
has not failed, and we do not be
lieve II will fail. The fact that the
doors were closed today does not
mean that they will not reopen
Neither does II mean that the depos'
itors will lose a cent. This is the
opinion of the state bank examiner
and of every banker in the city. II
Ia the belief of every business man
who has given the situation the con-
sideration its importance deserves
The natural question is: II the bank
IL solvent; II the depositors will not
lose; IL the institution 10 to reopen,
then why did II close?
Back Of the closing lies a long,
long story. Its telling at this time
10 neither opportune nor necessary
But Il does not involve any men con-
nected with the First State and Saw
ings bank In any misconduct In the
management Of its affairs. The DOM
mating figure in the bank was Cap
tain Siemens. Rising from obscur-
fly to the very pinnacle OF success
solely by his own efforts, he made
the bank one OF the big financial In
stitutions OF the state. In his rise
he left no mangled remains at the
bottom of the ladder. Rather did
he shove ahead of him and pull up
with him scores of citizens of this
county who would otherwise have
disappeared from the affairs OF this
community. That is why you will
find scattered throughout the coun-
ty scores OF men and women whose
sentiments are summed up in the
statement OF one Of the biggest de-
positors: ''tt
"I would rather go down to fail
ure Standing side by side with Cap
tain Siemens,. than TO rise to fame
by contributing one iota to the hard
ships now confronting him."
It Is this confidence In the man
that is going to put the First State
and Savings bank back in fits old
place as one of the sound financial
institutions OF the state.
It's closing comes through nc
fault Of Captain Siemens nor any OF
the officials. It comes simply as a
result of an indefinable. untrace-
able rumor that all was not right
with the institution. Under norma.
conditions nothing would have hap
pened. But these are abnormal
times. and abnormal minds are
usually active during such periods.
These rumors reached the ears OF
the timid ones and quiet run start
ed. As anyone knows no bank can
stand a run. and the First State Sas
no exception. Zach day 1t was ex-
pected that the people would awak-
en- to the fact that everything was
all right. When they did not. Cap
tain Siemens went to Portland to ar
range for the financial assistance
needed to meet any demand. He was
successful. and returned home ready
to do battle. .-
TLen came the failure of the Nor
ris Brothers bonding house. This
failure changed conditions In Port
land to such an extent as to require
the return Of Captain siemens to
that city. where he was at the time
1t was decided to close the doors of
the bank. In the meantime the state
banking department sent Assistant
State Superintendent Of Banks Hoop
or and an assistant here to supervise
conditions. Under the state law
when a banks reserve reaches a GER
tain point 1t must increase 1t or close.
That is just what happened in this
instance. The constant drain upon
the funds on hand reduced the re-
serve TO point where there was
nothing left but to close. II is one
of the laws safeguards for the de-
positors and II is one of the things
that should convince a thinking per-
son that the institution is solvent.
reason for confidence Is the
statement Of Mr.. Hooper
that the bank is solvent. Its closing
will mean little inconvenience to
those having money on deposit, but
that is all.
What will happen?
Undoubtedly the usual custom will
be followed. The bank will reorgan-
lze. the reserve placed where 1t will
meet every demand and the institu-
ION resume operations. Captain
'iemens has the confidence of the
people OF the city, and when the
torn blows away he will be found
'tanding. solid as rock, in the
IL ha haa LAM ..oo..uIalI