The Redwood gazette., 1935-02-28
Both Applications for
Bank Charter Rejected
insufficient Demand Given
as Reason, Question
Need Of Bank
Rejection Of Appicatisag
Announced Wednesday
by Skahen

Giving lack Of public demAnd
as the principal reason, s. Psnl
Skahen, state commissioner e&
securities, announced Wednesday
afternoon that both applicatioAs
for charters for new banks in Red
wood Falls have been rejected by
the banking department.
Mr.. Skahen said there appearo6
to be insufficient demand here -
warrant new banking instit1-
ton and expressed doubt that two
banks could proftably operats
here at the present time.
The decision affects two groups
who have sought charters, tAe
first a group Of st. Paul men n
cluding Fred L. Christians and
Charles w. Sterling who planned
to make R. v. Ochs Of Redwood
Falls cashier of an institution
which would have been known -
the Peoples State bank. Their
hearing was held January 20.
A decision was withheld until
after February 10 when the Red
wood County State bank charter
application hearing was held. A.
p. Garnatz Of Vernon Center was
to have been in charge of this
bank with L. E. Backer, A. ].
White and Frank Weeks, all G
Redwood Falls, as officers.
EWART ANSWERS
BANK CRITICISM
In an open letter addressed 10
The Gazette for publication, L. r
Ewart, vice president Of the Citb-
ems State bank, made the follow
ing comment on the hearing BE-
fore the banking department last
week:
"This with reference to state,
ments made at the hearing before
the state securities commissions
regarding the application for
charter for the proposed Redwood
County bank.
"An entirely wrong conclusion
might be reached from these
statements.
"As a reason for a new bank
here the statement was made that
the Citizens State bank was losing
business to out of town banks. To
begin with most of the business
referred to is business this bank
rever had and is not business we
have lost. Banking business go
ing to other towns is nothing new.
We have bank accounts from
within the corporate limits Of
most of our neighboring towns
and from the Twin Cities. If we
had two banks there would yet be
those who would cry for a third
bank as was the case in our city
just few years back. That ar
gument is so futile the statement
is hardly worth while and should
not come from a well informed
mind.
Because some of our people
buy merchandise out Of town
should we have more merchants?
Because some Of our people choose
to get their printing done in out
side towns should we have more
newspapers
"The objection to this bank not
making real estate loans for ex-
tended periods was quashed by
one of the commissioners when he
countered with the query in sub
stance And do you expect the
Citizens State bank to go into the
real estate business?
"As to the statement it is dif-
ficult to borrow money at this
bank, we counter that any one
who can give the assurance the
loan will be paid can borrow the
money. The truth is we are am
xious to make loans that will meet
with the approval Of the banking
department, whose first concern
is the welfare Of depositors.
"In all towns there is a desire
for other banking service. Ex-
perience in the banking world has
proven that bank where it IL
easy to get money is . mighty
poor place TO leave it.
"Just 20 the people may know.
T>k -