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NEW AMERICAN NATIONAL BANK OPENS FOR BUSINESS
The American National Bank of Forsyth opened its doors to the public on last Saturday morning. 'Mid a profusion of flowers, supplemented by the expressed good wishes of depositors, business men and a host of citizens who wished the institution bon voyage, the new American National succeeded the old, which closed its doors to the public on February 13, last.
The causes leading to the suspension of the former bank were the direct result of conditions affecting the entire banking and agricultural systems of the middlewest and northwest—the culmination of the period of deflation, concerning which much has been written and said.
With the closing of the Bank of Commerce and the First National Bank, both Forsyth institutions going into liquidation on December 13, last, with numerous others throughout the territory suspending operations, the very natural result was a gradual withdrawal of deposits, although at no time did the American National experience a run.
Public confidence was at a very low ebb, and that it might better conserve the interests of its clientele by anticipating a run on its funds, the board of directors decided that prudence was the better part of valor, and voluntarily suspended operations on February 13, two months after the closing of Forsyth's other two banks.
Since that time our people have experienced the sensation and the inconvenience of endeavoring to conduct business without banking facilities. The banking business has grown to be such an integral part of our daily life that the daily life was seriously involved.
But during the intervening time our business men were actively engaged in formulating plans for a reorganization and speedy reopening of the bank. Many such were presented but the plan finally adopted not only involved the opening of the bank at once, but also best conserved the resources of the old institution—the object for which the old bank voluntarily suspended.
The new American National has a new official board, new capital, new confidence and a brand new feature in that it saved from liquidation the resources of its predecessor. No forced sale of securities at the present time can result in other than practically a total loss, and to obviate the extinction of its patrons' assets, they, together with the liabilities, have been assumed by the new bank on a workable basis satisfactory to its former depositors.
The capital stock of the new institution is $25,000, paid-up, with the following officers: President, G. D. Whitney; vice president, W. E. Clarke; cashier, T. J. Wegener; assistant cashier, G. Flage.
The new American National will confine its activities exclusively to commercial banking, leaving the field of farm loans to the Federal Farm Loan System, which the government instituted for that explicit purpose.
Three-fifths of the new capital stock was subscribed by Forsyth
