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CHAPTER XXV

BANKS AND BANKING

One of the greatest factors in the civilization and development of a new country is the bank. It increases the available ready money, stimulates business and establishes credit. Without the bank, business progress would be slow and cumbrous, but with a carefully managed bank in a community the circulating medium is not only largely increased, but is kept in active circulation.

Hamilton county has been fortunate in its acquisition of bankers. In all the history of the county there is recorded no bank failure. Every dollar deposited in a Hamilton county bank has been returned on demand to the depositor and every investor in bank stock has found his investment not only safe, but increasing premiums have added to the value of his stock. There have been times of business depression and financial panic but the banks almost without exception can point with pride to the fact that no matter how unsettled the financial condition their customers have been taken care of. The oldest bank in the county is the

HAMILTON COUNTY STATE BANK OF WEBSTER CITY

This bank was established in December, 1867, by B. F. Miller. It was conducted as a private bank and its place of business was in a frame building located at the northwest corner of Seneca and Division streets. In 1868 Jay Sternberg became a partner and the business was conducted under the name of Miller and Sternberg. After a while the bank and the building it occupied were moved from Seneca street to Second street and was located at No. 612, and the old bank building is now occupied by the Oleson jewelry store. In June, 1872, Miller took as partners W. C. and S. Willson, J. M. Funk and W. W. Funk and the bank was moved to the northeast corner of Second and Des Moines streets and was known as the Hamilton County Bank. On July 15, 1875, the bank was purchased by L. A. McMurray and Oliver K. Eastman. It was still a private concern and was still known as the Hamilton County Bank. For years the Hamilton county bank had a struggle for existence. There was not much money in the country and deposits were merely nominal. In those days, bankers were often politicians and the control of public funds was the chief source of profit. The Hamilton County Bank was unfortunate in its political connection and for years was unable to secure the deposit of any public funds. But in spite of this disadvantage the institution grew and on May 28, 1883 was organized as a national bank with a capital of $50,000. About seven years later (July 17, 1870), the national charter was surrendered and a state bank was organized with a capital of $100,000. In 1896

it erected for its home at a cost of $40,000 what was at that time the finest bank building in northern Iowa. This building is located on the northwest corner of Second and Des Moines streets. The growth of the institution has been steady and enduring. In 1875 the deposits were merely normal while in 1912 they reached over $918,000.

In 1875 L. A. McMurray became its president, has held the position continually for thirty-seven years and still gives active personal attention to the affairs of the bank. There have been but two vice presidents. Jacob M. Funk was elected May 28, 1883, and continued to occupy the position until the time of his death in 1905. After the death of Mr. Funk, John L. Kamrar was elected and the position is still occupied by him. There have been but six cashiers, O. K. Eastman, John W. Funk, Cyrus Smith, J. O. Lenning, F. H. Alexander and B. F. Paine. To sum up, this is the oldest bank in the county. It carries the heaviest deposits. It has been under the same management for thirty-seven years. It has been first in all movements in progressive banking.

FIRST NATIONAL BANK OF WEBSTER CITY.

The First National Bank of Webster City was incorporated in A. D. 1871, by Kendall Young, L. L. Estes, E. S. Wheeler, C. T. Fenton, A. D. Arthur, O. K. Eastman, W. W. Boak, and D. D. Chase, with a capital of $50,000. Its charter bears date September 8, 1871, and its number is 1874, indicating that it was among the earliest of the national banks organized. In 1891 its capital was increased to $100,000. Kendall Young was its first president and continued as such until his death in 1896. L. L. Estes was vice president from its organization until the death of Mr. Young when he was elected president and continued to hold this office until his death in 1909, when W. J. Covil was elected to succeed him. The brick building on the east side of Seneca street now occupied by H. H. Himebaugh was the first home of the bank. In 1891 the bank was moved to the corner of Seneca and Second street, its present location. The first report to the comptroller of the currency December 16, 1871, shows deposits of $37,161.16 and the last report September 4, 1912, shows deposits of $762,390.48, with a surplus and undivided profits of $77,868.14. The following are the directors and officers of the bank at this date, September, 1912: President, W. J. Covil; vice president, E. F. King; cashier, W. C. Pyle; assistant cashier, E. E. Mason; assistant cashier, H. O. Cutler. Directors-J. M. Richardson, W. J. Covil, W. C. Burleson, E. F. King, W. C. Pyle, Wesley Martin, E. E. Mason, M. L. McCollough, J. W. Young.

THE FARMERS' NATIONAL BANK

The Farmers' National Bank was organized as a national bank in 1885, succeeding the private bank of Miller & Mattice. The incorporators were J. M. Jones, B. F. Miller, George Shipp, Charles T. Fenton, J. W. Mattice and W. P. Miller, who composed its first board of directors. B. F. Miller who had started the first bank in Webster City became the first president of this institution, which office he held until 1890, when he resigned the presidency to engage in other business. J. M. Jones was at that time made president; George Shipp, vice president; and J. H. Shipp, cashier. They remained the managing officers until 1898, when on the

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