The Red Cloud chief. [volume] (Red Cloud, Webster Co., Neb.) 1873-1923, 1921-01-06
STATE BANKS NUMBER 1909


the first of the year there were 800
being conducted. During the last
twelve months charters were granted
to sixteen new banks, of which
twelve have opened for business. Five
banks have failed, and were taken
over by the state department. These
are now being run thru the receiver
ship process.
The five failed banks were located
at Page, Aurora, Valparaiso, Verdon
and Ceresco. In the Aurora, Val
paraiso and Ceresco bank failures,
prosecutions have been instituted
against officers of the bank, whose
Illegal conduct is alleged to have
been responsible. Cashier Lower at
Valparaiso was convicted in district
court, and his appeal is to be heard
shortly in supreme court. Cashier
Maixner Of Ceresca pleaded guilty and
is now in the penitentiary. The other
case in pending in district court,
where is also leftover prosecution
against officers of bank at Halsey.
One bank was consolidated with an
other state bank in the same place,
and six others consolidated with 9TH
er banks in the same town. The bank
at Harrisburg was liquidated, being
purchased by the Scottsbluff National
Deposits of state banks decreased
$15,000,000 during the year from
S270,000,O00 to $255,00O,QOO, while
loans dropped $1,00O,OOO from $780,
100000 to $24S,0O0,O00. The drop in
deposits has been most marked in
the last five months. In August
they were 1921, 100000, but decreased
0 per cent between that and Novem-
Der 10, when the last call was made.
The decrease for the year was per
cent. This is Offset in part by the
fact that the banks increased their
rediscounts and bills payable S4,56S,-
! 600, indicating the efforts made to
meet local demands by use Of their
borrowing power from correspond
ents and the federal reserve. This
item was 80 per cent larger than the
last report showed and is the largest
in the history of the banking bust
ness. A year ago this item was 49,
$4,000. Now it is S14 900. Cash
on hand does not differ materially,
but the item of money due from COR
respondent banks has decreased from
$40,0O0,OOO to $29,OO0,OOO, Indicating
the heavy pull made on them to meet
local obligations.
The credit stringency and the froz.
en- credits in the country banks have
pulled the reserve down to almost the
legal point, Is per cent. The aver.
age reserve is 16 per cent. This
means that number of banks thai
were hardest put to take care of To-
cal people have gone below the re-
serve. The department has kept II
close tab on this situation, and is con.
stantly bringing pressure to bear tc
remedy the situation, altho it has haG
had to close its eyes temporarily now
and then to the actual condition.
Cash resources of the state banks a
year ago were 331 millions. This
figure has been pulled down to 81
millions, which is not large when fig.
ured on a percentage basis. The mum.
Der of depositors in state banks al
the present time is 590,635, of which
23,583 are in the savings banks. The
banks have combined capital stock
of the nineteen savings banks.. The
surplus fund is over eight millions, OF
which $l67,200 belongs to the saw
ings institutions. The individual de
posits in savings banks total q little
over five millions. Their loans reacl
\ close to four millions, and they hav,
million and quarter in securitie
and 763 thousand in correspondent
\ banks. One matter of note is tina
/ there is almost exactly as mucI
I money in the state banks on certifi
\ Gates OF deposits as a year ago, Is
q millions. The decrease is all in check
4 ing accounts. Undivided profits ar
> listed now at ,$ll, 793,OOO, while
!. year ago they were $40, $4,000.
S The country banks being close I
the guns and having the farmer I
finance primarily have been havin
a rather unhappy time Of it in toce.
months, but where good bankin
4 Judgment and policy have been en
/ ployed they have wea.hered I'll
trouble in good shape. Some
them are now buying outside pape
source Of revenue that was gene
/ ally resorted to in the days when d.
( posts were 80 large that they threa