THE BEE : OMAHA", SUNDAY, 'JUNE 19, 1921.
Banks Indicate
Great Progress
Made by Omaha
Bank Deposits $12,000,000 in
1896 Increased Now to
' More Than $100,-000,000.
Financially speaking, it was only
20 years ago that Omaha hit its
stride. In this last stretch, Nebraska
traveled as fast as any stale in the
union, and Omaha made much
greater progress than many other
cities. From early days the bankers
and business men of neighboring
states regarded Omaha as the finan
cial metropolis of the section, but as
the Missouri valley developed, the
city took on greater than propor
tionate importance.
"The real history of the hanking
business in Omaha began after the
panic of 1893, and in fact, since
1900," Gurdon W. rattles, chairman
of the board of the United States
National bank, says. "During the
panic of '93 every savings bank but
one, all the state banks, and several
national banks failed. In 1898, the
year of the Trans-Mississippi expo
sition, only eight banks were left,
the Omaha National, the First Na
tional, the United States National,
the Merchants, the Nebraska, the
Commercial, the Union, and the Na
tional Bank of Commerce. Their to-
- tal deposits were only $12,000,000 in
1896, which looks pretty small when
you consider that we entered the
year of 1921 with deposits of mora
than $100,000,000, and with three
banks, each having larger deposits
than all had 25 years ago.
Financial Turn Comes.
"In the panic, which was followed
by three crop failures, the lowesi
ebb was reached and the exposition
marked the turn. This brought a lot
of money from outside and distrib
uted it among a great lot of people.
The financial success of the exposi
tion, which made the unique record
of giving back to its stockholders
92Vt per cent of their subscriptions,
did more to re-establish business
confidence than anything else.
"The great business boom which
started in 1900 lasted through 20
"years, with only a slight break in
1907,. During all this period busi
ness as a whole was on the upgrade
in the territory surrounding Omaha.
Meantime there has been an abso
lute change in banking methods. In
the old days every bank had to take
care of itself. When the pinch ca ne
each had to press its debtors and fall
or stand with its degree of success
in forcing payment, even by fore
closure. Now they can take their assets to
the Federal Reserve bank and get
money to tide them over. At pres
ent, on account of the ability of the
banks belonging to the federal re
serve system tj borrow from ths
source, the national banks of Oma
ha have been able to meet the call
from banks over the state and lend
them millions to tide them over the
time of depression. In the last year
Omaha banks have reloaned to their
country bank customers more than
Rapid Growth of Omaha
Federal Reserve Branch
Shown in Short History
Exercises With But Few Exceptions All Powers En
joyed by Parent Bank; Settles Direct With Other
Federal Reserve Institutions Instead of Through
Head Office; Transit Operations Increased
From 2,768 Items Daily to 31,000 Now.
The federal reserve act was passed
December 23, 1913, and in June of
1917 an amendment to the act was
passed permitting the establishment
of branch banks. In July of the
same year the federal reserve board
authorized the establishment of a
branch of the Federal Reserve bank
of Kansas City in Omaha.
The Omaha branch was the sec
ond Federal Reserve Branch bank to
be established in the , United States
and began business September 4,
1917, with reserve deposits of $13,
6S4.9S3.70. The territory assigned to the
Omaha branch from the beginning
comprised the states of Nebraska
and Wyoming, with areas in square
miles of 76,808 and 97,548 and popu
lations, according to the 1910 census,
of 1,192,214 and 145,965, respectively.
The 1920 census gives the popula
tion of Nebraska as 1,295,502 and
Wyoming 194,402.
v Has 251 Members.
The Omaha branch serves a terri
tory where agriculture and stock
raising predominate. In addition
Wyoming is the principal wool-
producing state in the union ana
ranks third among the states of the
Tenth federal reserve 'district as a
producer of crude oil.
In the territory of the Omaha
branch on the day of its opening
there were 1,224 banks, of which 227
were national, the remainder operat
ing under state laws. Of the state
twice their total deposits. In addi
tion we havebeen called on to take
-r L i r,
care oi our incrcuiiii, iiiaiiuin.iu -ers
and other home customers, and
have been able to avoid what might
have been a bad money panic.
A Depositary City.
"Omaha has always been a central
reserve city, that is to say, deposits
of other national banks outside
Omaha ire kept here and counted as
reserve. The vast territory west of
us has made this a depositary city,
carried accounts here and has trusted
Omaha to take care of it by financ
ing its business operations."
Mr. Wattles came to Omaha from
Carroll, la., where he had been
president and a large owner in the
First National bank, 30 years ago.
He soon became vice president of
the Union National bank, and after
the death of W. W. Marsh, was made
president. In 1905 this bank, with
the Commercial National, was
merged into the United States Na
tional and moved into the building
which stood on the corner of Six
teenth and Farnam streets before the
present structure was erected. Mr.
Wattles became first vice president,
later the head, and now is chairman
of the board.
banks qualified to become members
one, the bank of Lewellen, Neb., had
been admitted to membership wheu
the branch opened.
To date the membership of Ne
braska is 188 national and 22 state
banks, out of a total of 1,196, while
the membership for Wyoming is 47
national and four state banks, out of
a total of 158 banks.
Now Settles Direct
Since its opening the branch has
exercised with few exceptions all the
powers enjoyed by the parent bank.
These exceptions are that the branch
does not carry a capital stock sub
scription account for its members,
nor does it engage in open market
operations except for the account of
the parent bank. In June, 1919, the
branch took over the function of
settling direct with other Federal
Reserve banks and branches which
had hitherto been done only by the
head office.
The following figures reflect the
growth of the volume of business
handled by the Omaha branch:
Transit ope-ations at the opening
in 1917 ' jed 2,768 items daily.
The p.. ..l daily average is 31,000.
Currency transactions from insig
nificant proportions have reached
the total of $2,000,000 received and
delivered monthly.
Here Are Loans.
The maximum and minimum of
branch loans from the opening are
here shown:
Year. Minimum.
1917 2. 168,000
1918 '. 2,366,000
191 ?,7,00O
1920 28.243,000
121 (To Mar. 31) 23.000.000
These figures reflect
growing out of war financing and the
strain incident to the economic read
justment period thereafter.
Jn the department ot the Umaha
branch relating to fiscal agency func
tions the government's fiscal 'opera
tions have been responsible for a
large volume of Liberty loan cou
pons and dividend checks, certificates
of indebtedness, war savings stamps
and deposits for general account of
the United States treasurer, handled.
Audited Quarterly.
Member banks have more and more
availed themselves of the free service
afforded by the branch, which in
cludes transferring funds by tele
graph, absorbing transportation
costs, including cost of telegrams in
connection with currency transac
tions and the performance of the
functions of a clearing house for its
member banks.
The service last referred to em
braces the collection at par of cash
items on all banking institutions of
the branch zone. The Omaha branch
is an honorary member of the Omaha
Clearing House association and ef
fects daily clearings with nine na-
Maximum.
$12,838,000
28,187,000
41,1102,000
42,267,000
21,900,000
demands
tional banks located in Greater
Omaha.
An auditing department is main
tained by the branch winch makes an
audit of each others department at
least once a month and also keeps a
current or perpetual audit of all
transactions of the discount depart
ment and maintains daily control of
all cash and collateral held. The
branch is also audited four times a
year by the general auditing division
of the parent bank and at least otice
a year by the auditing division of the
Federal Reserve board at Washing
ton. Buys Permanent Home.
On May 24, 1920, the Federal Re
serve bank oi Kansas City purchased
as a permanent home for the Omaha
branch, the premises known as the
Farnam .building, containing 40,421
square feet of available floor space,
Some remodelling of the quarters
which the branch occupies has been
made and further important changes
are in contemplation, which when
complcte.d will result in the branch
utilizing 15,303 square feet of the
building purchased.
Several changes have occurred in
the personnel of the bank's director
ate and management. The original
directorate serying the Omaha
branch was composed of the follow
ing: Luther Drake, Omaha, presi
dent Merchants National bank; J. C.
McNish, Omaha, owner of the Mc
Nish Cattle Loan company; O. T.
Eastman, Omaha, designated man
ager and chairman of the board of
directors; Dr. P. L. Hall, Lincoln,
president Central National bank, and
R. O. Marnell, Nebraska City,
cashier Merchants National bank.
At the opening of the branch, E. D.
McAllister of Kansas City wis
designated cashier, the number of
employes at that time being 17. In
January, 1920, George A. Gregory
was designated assistant cashier. On
March 1, 1920, L. H. Earhart, former
ly assistant cashier of the parent
bank, succeeded O. T. Eastman as
manager and chairman of the board
of directors. On May 1, 1920, P. R.
Fredman, formerly cashier of the
Denver branch, succeeded E. D. Mc
Allister as cashier of the Omaha
branch. In July, 1920, W. D. Lower,
formerly chief clerk, was designated
assistant cashier and placed in of
ficial supervision of transit opera
tions, at which time WiHiam Phillips
was made chief clerk.
Present Directors.
The number of employes at pres
ent is 144 and the directors and of
ficers are as follows:
Directors: R. O. Marnell, Dr. P.
L. Hall, Geodge E. Abbott, W. y
Coad and L. H. Earhart. '
Officers L. H. Earhart, mana
ger; P. R. Freedman, cashier; G. A.
Gregory, assistnat cashier; W. D.
Lower, , assistant cashier, and T.
Gordon Sanders, assistant Federal
Reserve agent and branch auditor.
George E. Abbott, president of the
First National bank, Cheyenne, suc
ceeded to the vacancy caused by the
resignation of J. C. McNish and W.
J. Coad, . vice president of the
Packers National bank, Omaha, was
elected to fill the vacancy caused by
the death of Luther Drake.
This narrative history evidences a
marked growth in the branch itself as
well as a material development in the
territory which it serves and is be
lieved to be conclusive of the bene
fits of the Federal Reserve system to
the nation s industry and commerce
The Development and
Progress of Omaha
R
ELYING for the past 50 years on
the integrity of its citizens; its
great natural resources; its geo
graphical location, Omaha today
stands as the. seventh city, per
capita, in volume of business done,
and eighteenth in bank clearances,
though thirty-fourth in population--
of which augurs well for
a still Greater Omaha in the next
50 years.
A Complete
Personal
Financial Service
HERE in one big room we offer a complete
service in the . handling of your personal
financial affairs.
The. Peters National Bank was or
ganized to render a better service in
the handling of personal accounts,
and it is this business we invite.
In addition you can get here foreign
, exchange, letters of credit, steamship
tickets to all parts of the world and
the regular service a modern bank
offers its customers.
In the same banking room are the
, complete facilities of the Peters
Tru3t Co., including, in addition to
our Investment Department, our
Trust Department, Property Depart
ment and Safe Deposit Vaults.
The officers of the Peters Trust
Company and the Peters National
Bank join in cordially inviting you to
make the fullest possible use of our
complete facilities.
Peters Trust Company
and
Peters National Bank
Famam atjsventeenth
Peters Trust Building
kX
SAFETY FIRST
IN these precarious times it is more important
than ever for all who have money to look care
fully into the stability of the bank or other
institution in which it is deposited.
It has been truly said that it requires more
ability to keep money than to make it. This
applies especially to the working classes who
have had little or no business experience. It
is estimated that one hundred million dollars
has been lost by Nebraskans during the past
five years by unwise investments in stocks
and bonds sold by promoters.
Make investments in securities only after con
sulting a reliable banker and deposit money
only with the most reliable banks.
tj Examine the names of the officers and direc
tors of the United States Trust Company
when making investments.
GURDON W. WATTLES
4 0
Merchants National Bank
1220 Farnam Street
V