The Brady Herald (Brady, Tex.), Vol. 20, No. 24, Ed. 1 Tuesday, April 30, 1963 Page: 2 of 8
This newspaper is part of the collection entitled: Brady Area Newspaper Collection and was provided to The Portal to Texas History by the FM Buck Richards Library.
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Nation's Banks Celebrating 100 Years of Progress
Congress in 1863 i m
Cured Money Mess
An act of ( onirroH* in lhti.'t idly growing nation for amrft j
trot little attention at the uiWvumtc bunknv facilities
time but it provider the hi*- and more Itunks that could pro- ;
torieal haul* for thin year’* vide credit for their customer*
centennial celebration by the For while the hunk* of the
nation's commercial Hankins in- period, by and larire, did *v
dustry. Irrythmg possible to serve their
The event was pusKitgc of communities and government
the National Currency Act It | many were little more than
wt up a national currency. | “money factories" And there \
helped fman the Civil War. j wen some, too, whose physical
and laid the foundation for out manifestation* consisted of
present system of state and nothing but a drawer in a
national banks. : storekeeper'* shop, a country
It was a hectic, confused lawyer'* wallet, 01 a tin bov
and a ledger tended by a smart
chap from Hack Fast.
* • •
HOW AMERICA** HANKS LOOKED
BEFORE Tl'RN OF THE CENT I I5Y
j
t situation when Treasurer Ser-
J retary Salmon P. Chase pm
I posed the act
While there were a number
• nf states with very pood bank-
J ing laws and systems, a large
♦ number of th< state-char-
J tered banks were printing and
* lending out their own bank
J notes As a result, some 1ft,.
(MMi varieties of nutier money
J were in circulation, many of
t which were worthless because
I counterfeiting was easy and
some hail been issued by bunks
t that were no longer in business.
) ...
Special mention. too.
must be made of the larire
volume of notes issued hi
certain unscrupulous hanks
known as "wildcats" that
l had no intention of re-
_ deeming them Set up most-
li in the frontier states,
these furtive institutions
trot their name from the
fact tnat the* would locate
their "head office” in some
part of the state so remote
I it was inhabited only by
I wildcats.
And the reason for this
y choice of location, of course,
' was that the laws of the stutes
I they used for their headquur-
j ters provided thut the notes
I need be redeemd, in gold or
l silver, onlv at the hank's head
| office. This meant that the
| notes these “wildcats" put in-
t to circulation were exceedingly
, ifit f ii'ult to redeem and were, The new fedi ral act. which piece of legislation. the Na-
j in many instances, as worth- embodied some of the liest tional Currency Act soon re
less as countei feit money, features of the state bunking vealed some defects which had
ie<l in with the currency ucts then in force, also con- to lie taken care of liefore it
problem, moreover, was the turned safeguards to ensure could thmIIv begin doing the
cvci iticicasintr need of „ rap- that the new banking syatem jol Chase bad in mind It was
AA hat I.inroln's Secretary of
the Treasury hud in mind, there-
fore. was un unproved new
hanking system capable of in-
suring a stable currency for
the whole country, and of pro-
vuliny other basic financial
services for the people and its
government.
And since the government
at the time had a costly war
on its hands, he was also in-
terested in having the new sys-
tem help the government pay
its hills by investing in Treas-
ury bonds.
His proposals—which, after
some changes, were i run ted into
law—can la* described very
simply.
’ of.■ |
group of five men could oh wou|fJ op,.rull„, prud,nUy ,
tain ,, charter from the federal A„ nationnl h„nk*. for ex.impl'i .
government to organise „ na- wyri. 1,((Ulrad t„ nmjnUim
twin--,,:
tmnal hunk if they furnished
(|uate cash reserves and made
the necessary capital invested ,u,,ject t(, „ number of care
a specified purt of it in Tr«a»-
fully designed “quality con-
ury bonds, and met certain ov,., th„jr ,nper,
othei requirement*.
They were then ullowed
to issue the new uniform
mi'ions I current** created
by law up to HO percent
of the value of the bond*,
and the government assum-
ed the responsibility of
paving these “notes" tor
rertifratee of indebtedness)
if the hank failed.
Today’s Banks
Eager to Serve
Mrs. America’
You Con Get Loan at Bank
And Never See The Alone/
If you went to a commercial
hank for a loan a century or
ao aro. chance* are the mon
ey you would get would he in
the form of currency the hunk
itself had printed up.
Today—especially If you
happened to he a business bor- :
hanking transact ions, ac-
cording to the American
Hanker* Association, and it
pinpoint* two of the most
significant d<*« eiopnients in
American hanking over the
last tfttl vears.
One i* the phenomenal in
rower—you wouldn't think of crease in the us#' of checking
asking for your loan In paper accounts—as exemplified in
money, (he preference of most com
Well, one thing that atop,
them ia the fact that every]
checking account deposit rvpre
sent* a liability of the hank—I
In other words, a promise to]
pay cash on demand, So if I
un irnliv hIiisI hank Create I j
j large an amount of such dc I
posits, It would have a hard time|
keeping it* promises ami pi oh
ably end up hy having |> tlati|
Ita
Tn addition, aR
hank* must operate wiit.i. |
coupled with the amaring
growth ia demaad deposits
or checking account*, ha*
remitted ia makiag "cheek
hook atone*" by far the
large*! element ia the to-
tal v. a. money supply.
Thu*, the combined value of strict limit, imposed by gov
coin* Mini pM|M money in cii eminent regulation* i „ I
culation now average* only *• *'*ft,*lrwl •• fc—P •!
about one-fourth aa much a* certain amount of re«er*
All the hank doe* now i« to mernnl hank borrower today . ' V! relative to It* deposit liabilities
give you a check or add the 1“ a«'t their money in the form * „ Ruf #>ve|| moM> Mrnifi(.(int and no hank can increase the*,
amount of the loan I * • ',v payment* made hy coin ami M.billtte* unlea. N h*. enough
chocking account, after wh. a........... for only ' reuerve. on hand to M»p*rt
you d he free of course to draw The oth< i ...... i Mfwi,M ,, „f ,|| pav them.
on your account and spend your equally significant hut much m(.nU ,p thii rountry The most Important of the I
checkbook money as you saw less familial to th< avers, e • • e reserve requirements are th. «
***' jieraoa— namely, the ability of |f vou t,Mnk« art ahli Imposed hy our central "hank
I ending rnone* by cred 'he modern commercial hank to| ^ rrM)te this "checkbook mon era' hank"-the Federal Re
create a certain amount of so hy just writing a few fig (serve system whose eommer
called itiMtunt money by a urr, (|,eir hook*, what's to rial hank metnher* hold five-
simple bookkeeping o)>era stop them from creating unlim- alatha of the country's hank
ited amounts? deposit*.
iting the borrower'* account
U one nf the most com-
mon type* of commercial
tion.
revolutionary result* for both The bookkeeping, a* indirat
institutions. ed. consists of nothing more
In most modern families It’s than crediting the amount of
the lady of the houae who keeps money loaned to the checking
track of income and out-go and account of ihc borrower
she’s learned that hank *er- What makes it *o important,
vires, including checking ac- however, is the fart that com
counts, special purpose savings mercial hunks are thus able,
and low coat loans ran he in- by the mere act of lending, to j
valuable aida. Hanker* have add to the nation') money aup
found lb si women atg>roa<-h ply something no other type
budgeting the way they enter a of bank is able to do
tions.
And to make sure that these | nn(. thing about the ladies,
requirements were carried out, they can’t let well enough
a special f) leral agency—the alone
Office of the Comptroller of
the Currency—was set up with-
in th* Treasury IN-part men t
Take bank ire.
In the day* when purses had
string and grundad had hold
strunge town, hy asking direc-
tions while most men usually
plow right ahead, take direct
action, and end up. slightly re-
pentant and ready for the dir-
ections they should have re.
quested in the first place
Almost all of the increase
in our nation's mone* sup-
pi* in recent »ear* tut* in
fart stemmed from thi*
unique mone* creating art-
ivhj of our rommerrial
hank*. And this activity.
w* w*-w
'Wl*l
FAST TV SERVICE
Any Make or Model Kudin-Tele* Uion
WE SILVER AM A
USE
PICTURE TUBES
Radio-TV Sales & Service
Phone l,Y 7-SIM #| | Q Owner
lift ft. Tom merer UldS. J. D TO Wll Operator
Quality I* Remembered l ong After 1‘rtre ia Forgnttea
*w. ** we ■*». ~ ^
to charter and supervise them. I „f them, hanks, like barber
As often happen* with an
ambitious and complicated new
- * v. -lw • ._ ?■**-
•Jt '
A CB;NTl'ICl OB
COMMBltriAL HANK1NO
A DOLLAR IS
A DOLLAR IS
A DOLLAR
IS A DOLLAR
Since ls;T7 the American hard dollar contained 412.5
grams of silver. Since lKf>3. National Currencv has existed.
LITTLE BANK
"'™ * BIG HEART
>Serving Western and Southern McCulloch and Concho
Counties
shops, were off Imunda for
ladies.
In those days hank*' huai-
ness was business: not family
account keeping. What services
hank* did offer were designed
for log-money neople. meaning
men.
Hank* might. for in-
stance get together with
Air Carnegie to loan mone*
for a steel mill, or the*
might help finance a new
railway to the west, but
earli hankers w eren’t ron-
rerned with personal prob-
lems. and whether or not
the Jones** got thee new
surrey the* wanted, or the
Itrown- built a new sum-
mer kitchen in the bark
shed.
• * •
All that ha.v changed. To-
day, baiikcr« worry ahoilt it*
much about the Jones \ 8 and
the Hrowns' all-electric kitchen
ns they do alxiut steel mill*
and railways. They've learned
that there are a lot more
Joneses and Hrowns than there
are big business men, mid that
their business in aggregate is
big business.
Tin result is that mwlern
hanks not only look different
from the old jail-like struc-
tures; they are different. And
the people most responsible for
the change are the ladies who
invaded bank* and liar her shops
at about the same tinn- with
omc’BRg
r WA1.DREP. PmudMit
I SILKR, \’wft iVwouIpnY
t Hl'TTO. ( Mahtet
" * Hl’TTO, A**t. f’aalnrr
:s i: F SCHMITT Aast. ( uKiuor
IMREfTOKS
ALLAN LKDHETTRR
( HARTERED
IN 191B
A r
SILKR
KM/Y
Bl'TTON
W. r
Hl'TTO
A P
WAtrmrp
JOHN
MRoM’N
<\ H
wmilKooK
n
THE FIRST NATIONAL BANK
... of M«lvin, Texan
MKMRKK PRORRAL MPOBIT IKSl RANCR C* »KI'< >KaT|H\’
accordingly revamped in June
18ft4. and within six months
after these revisions nlniost lilMI
national hanks were In opera
tion.
AA hen Congress m IhU.'i
imitoxed a prohibitory tax
of Hi percent on all cor-
renci issued hi -Isle..bar-
tered banks, virtual)* all
*urh rurrenci war furred
out nf eirrulation and a
steadily increasing numlier
nf banks came into the na-
tional bunking si stem.
Hy lK7ti more than 1JN
Imnk*. representing three
fourths of the rountry*'* bank-
ing resource*, were function-
ing under national charter* and
the formative age of the new
system was completed
In subsequent year*. *ta te-
ch arte red hanks diwovered tha*
they could operate profitably
wlhnut issuing currevte* and
these hanks, toe < ontmue to
grow and to flouriah
The Currenry Act thu* In
•UgAiruted a dvnamii new era
of Amc'va*! banking piogrwa*
- -an era in which federally-
chartered lontmex ml hanks and
their atat* chartered i o intet
pacta worked and moved abend
together tn reaponar t* His #v
•* giowiog needs of the nation
fwr mone* and credit to finaw»
»t* growth
It was a mere 42 years after the sikrninK of the National Currency Act
in 1H62 that the Brady National Bank received its charter. Iieinjr charter-
ed in 1905. We have withstood many economic criaea and are proud «»f
our 58 year? of continuous sendee to Brady and McCulloch County. It
tends to prove that the Brady National Ilank is founded on sound and
stable principles. Good tanking practices help to make a nation. May we
help make the world of tomorrow sound and secure for your children?
HIRE* TiiRv
(JEORfir carkithers
D. A HARKRIHFR
REN I> CECKI.IV
K AA Hl'KFMAN
M L. HI cao.s
R I* HCOHES
I. O MARSHALL.
CLARENCE SNIDER
H H JONES
II ARCIN' H JONES
J. S KINO
L. ft M ARSHAI I.
J P ROOMIE
OFFICERS
BRADY
e
Chairmat' i»f the Hoard
f'rvatdwnt
A'lc* Prvwidrnf
Yhv Fruwtdanf and Trust «dfustr
!> A HAKKKIOER < ash hi and Asst Tiust
I.EAALS A. JOK0AN Asaistant C«*hm*
STANLEY WALLACE A.statant f aahmr
Kl ItltF.K STAMP**—2 «•>
S4«» wrruir ItrisR* NtMMl
ard Hr raid t.fltrg, CImhm
: jjm
BRADY NATIONAL BANK
MPMRER PrOERAL DMsiSIT INSI PANCK CORfftRATlON
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Wilson, Bob. The Brady Herald (Brady, Tex.), Vol. 20, No. 24, Ed. 1 Tuesday, April 30, 1963, newspaper, April 30, 1963; Brady, Texas. (https://texashistory.unt.edu/ark:/67531/metapth921408/m1/2/: accessed May 8, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting FM Buck Richards Library.