Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1955-09-29

Caleb Stabler, R. T. Bentley, JOS
eph T. Moore, Alban Gilpin, Rob
ert r. Moore, II. c. HalloWeIl,
William H. Farquhar, B. Rush
Roberts, p. T. Stabler, Francis
Miller, William John Thomas.
Samuel Ellicott, Warwick p. Mil
Ter, Isaac HartShorne, Warwick
M. Stabler, Henry Stabler, vii.
liam M. Moore, Charles Stabler,
Charles G. Porter, Robert M.
Stabler, Edward Lee, Samuel p.
Thomas, James S. Hallowell, Asa
M. Stabler, Charles II. Brooke,
and B. II. Miller.
They had no capital assets; the
bank merely opened its doors to
depositors. At the end of 1868.
1873 depositorS had entrusted
$685. to the vault of the fledgling
bank. The accrued interest was
$240. Knowing that the new in
stitution could i'll afford to pay
salaries from such meager funds,
the first four officers took &c
each the first year. And they
really cut up penny!
The statement of the banks
condition issued early this year
graphically illustrates its
growth. Assets total So, 1873, i48.-
e %, of which two million dol
lars is in first mortgage loans,
two and half million in gov
eminent bonds, and 100000 in
cash at Sandy Spring and i'm
other banks.
+ Opposite the item corporate
stocks is the tiny figure $l45.92.
This token holding is a policy
formulated after the depression
of the '30s. President Thomas
explains, 1--WE held such diversi-
fled and such secure assets that
if we hadn't read it in the paper
we wouldn't have known there
was a depression. OF course we
held stock in corporations whose
value dropped tremendously. But
instead of selling out when they
were at the bottom we held them
through the depression and sold
in the early '40s, at a profit in
most cases. Since then, though,
we've bought government securi-
ties instead of corporation
stock"
The Savings Institution of
Sandy Spring was unaffected by
the depresslons Of 1897 and 1912
also.
The bank was forced to make
very few foreclosures due to I'M
paid loans. And contrary to the
runs" on other banks, only three
depositors withdrew their ac-
counts during the depression
Mr.. Thomas chuckles when he re-
members the night the telegraph
office called him at a. m. with
a message from the state banking
board not to open the next day.
II was the Maryland bank holt
day. Later the bank remained
closed during the national bank
holiday.
Though as a non-member of
the Federal Reserve System the
Savings Institution is not requir-
ed to keep a cash reserve against
total deposits, in reality bank
policy is to keep about TWICE
as much reserve as is required
Of member banks.
Presently 20 per cent cash re-
serves are maintained against the
81 406, 18428 time deposits. This
is but one of the banks conserva-
tive policies. Extremely large ac-
counts are frowned on. The
largest is about $4,000 while the
average is $4,000. Mortgage
loans are made to only 60 per
cent of conservative appraisals;
other banks loan 65 per cent. In
judging the worth of property
the Sandy Spring bank takes the
1910 value plus 33 1/3 per cent
other institutions base worth on
the higher 1947 value. Two per
cent interest plus extras" are
paid semi-annually.
Pass book No. l was issued to
Joseph T. Moore and is still an
open account owned by the Moore
family. The youngest depositor
Helen Thomas Nesbit, was only
eight minutes old when her faith
er opened an account by phone.
When the Savings Institution
Of Sandy Spring opened its doors
in 1868 it was renting a room in
the Mutual Fire Insurance Com
pany building. In 1896 the bank
built its first structure which has
been increased four times to form
the present building.
In 1900 the First National Bank
Of Sandy Spring was formed ano
has since used the same offices
as the Savings Institution
Though a separate corporation
and a member Of the Federal Re
serve System, the First National
is actually the checking account
division of the Savings Institu
ton.
l.