The daily star-mirror. (Moscow, Idaho) 1911-1939, 1922-12-22

out or the army after the armistlcs
and also broke
T..~s SCI Of boz was the boy WIT
appealed to the boy embryo banker
and they Joined forces, wonderful but
not capitalists.
But capital, you know, really is 8
part of the routine in preparing for q
banking business. The American
youths advertised for partners with
capital. They got two.
The bank was opened in June, 1920,
when the senior partner was twenty
three years old and did not look his
age. Its site had been we'll chosen,
on the main route in Coblen1 from
everywhere. Everybody bound from
the American camp for the other
banks, the Salvation Army headquar-
American bank.
Before 1t had q dollar of deposits
it had all fittings and supplies which
would be a credit to any bank in
America, including bank check books
which cost about 20 cents each. II
paid for them and all its other con-
struction liabilities in no time.
Godsend to the Army.
lLuIlcuidlely Il IT~elIeLuOuS DuSlucSS
In small loans developed. The Ameri-
can d%oughboys were always sending
money somewhere and most of them
wanted to lorrow between %paydays.
An officers Endorsement was all the
enlisted man needed to borrow a rea-
sonably large portion of his a in
advance. A minimum liked charge
was made for discount of these notes
and time loans We're made to officers
at 8 per cent per annum. This bust
ness put the bank on its feet almost
before it needle feet.
The big field of local banking bust
ness with the Germans came more
slowly, but it rose and rose until 1t
reached important volume. The enor-
nous speculation in industrial stocks
and municipal bonds which followed
rapid depreciation of the mark in 1920
and 1921 brought the Rhineland bank
of the young Americans another
source OF large income in commissions
for executing sales and purchases.
This grew to such size that the BAN
was not able to handle all of it's
brokerage business n had to divide
1t with correspondent banks.
Success of this phenomenal sort
naturally attracted to the American
banke the keen interest of great
German banking houses. Offers were
made to buy or absorb the new in
stitution, but they were not enter
When the Rhineland bank was
opened the Germans of Coblenz never
thought of using checks except in
large transactions. If a business man
in payment of an account q
check for 1000 marks he tucked it
carefully in his pocket and went
around to his bank, which resembled
an old-fashioned law Office rather
bar a financial institution. The
banker sent the check to the bank IN
which 1t was drawn, or to his own,
paid out the cash, which was car
led off by its owner or deposited to +
lis account.
The American bank paid It's bills
With checks, of course, and thus ad-
yertfsed its modern methods locally.
began to be depositors in
numbers and they learned
o pay their bills in checks. Their ex-
,mple spread.
Then came n of the strangest
hings in financial history. AS the .
sold value of the German paper mark
'hrank German industry was In |
.reasing as never before. This ear .
n increasing need for currency and I
n increase at the same time in h
mount of currency needed. Two ]
marks were needed one month to pay !
THAT was a bill for one mark the pre- I
ious month. J
checks Better Than Money. }
Scarcity of currency grew. A CHI !
lax came last July and was repeated 4
18th growing threat of disaster there Z
fter week after week. The printers I
no printed the Reichsbank national
aper currency Of Germany yer IN i,
rfke in July following the murder
: Or. Walter Rathenau, minister of
nance. No currency was printed for
eeks, and issue never has caught
, with increasing demand for cur
.ncy.
Checks of the Rhineland bank Of
le young Americans became cher
he'd things. They were preferred to
lrrency. Those lucky enough to get
held on to them as If they were
I'D coin. The bank could not get
5 checks back.
Thus millions Of marks were loaned
the bank by these holders Of It's
because the cash held to pro-
ct them became available for loans
the bank with great profit from
use The necessary securities to
eet these checks were, of course,
in the depository banks of the
bank. Those securities bore
terest and the money representing
e withheld checks was bearing In,
rest in loans. so the bank profted
tn ways
Mr.. Medic cker married Miss SibyI
,sminski, whose father was famous
Amaricnn director of the Eronoh