Show Standard-Examine- r Electric cars stalled 2E 3E 3E Obituaries Classified Ogden Utah By CLIFF THOMPSON Standard-Examin- er Business Editor Banking has been one of the fastest growing economic activities in Weber County during the past quarter century — expanding at a pace few expect will be repeated in the foreseeable future When the fallout settled from the “banking holiday” of 1936 Weber County was left with two banks — Commercial Security and First Security And that’s how it remained until Dec 1 1952 when the late Frank M Browning opened his Bank of Utah on the southwest corner of 26th and Washington to give Ogden its third banking office It was to be another six years before the First Security opened its first branch and Ogden had its fourth banking office That apparently opened the of floodgates to two decades of one growth that made banking the counties fastest growth industries Today there are seven banks with a total of 30 offices in the county creating jobs for more than 600 people Total resources of those seven banks and their offices approach the half billion dollar mark compared with just over $70 million in the late 1950s pLjhe Vacation - 19? GEE - lb LOVE TO DINE AT THE "EL RITZO" TONIGHT BUT I DONT THINK THEYb ACCEPT A PERSONAL CHECK ON A UTAH BANK STOPPED BY ' fif mJil NO PROBLEM fit The history of banking in Ogden is a story filled with all the ele- ments of entertaining reading It has romance adventure success and failure There also are heroes and villains Today a depositor can put his 15 cents in one of Ogden’s banks without a thought that he might not get it back This hasn’t always been so although Ogden has had a minimum of failures in its banking history that began more than a century ago — and oddly enough some 40 miles to the north Ogden’s banking history actually had its origins in Corinne with the first bank opening up about the ! TO OUR LOCAL ACCOUNT DEAR - - - ( Ah ouauT fMltefic k l' LOS ANGELES ALBUQUERQUE w rnw Electronic banking to reshape scope type of financial services Shortly after midnight an elderly woman in Tremonton comes wide awake can’t go back to sleep and decides to pay her monthly bins Picking up the telephone she dials a number that connects her with the computer system at her bank She gives the computer her identification number and then instructs it to pay her gas bill light bill the balance on her account at a store — even her department month bill the for phone a Los In Angeles suburb on a Sunday evening an Ogden man on vacation discovers he needs some cash to take his family to dinner Driving to the nearest branch bank he inserts a card in a machine and receives $50 out of his account in Ogden improves and operating and cost of the equipment com- ac-quisit- on es down This involves paying of bills by telephone and the automatic transfer machines (ATM) involved in the first two examples of futuristic banking mentioned at the ning of this article begin- The ATMs which provide a cus- monthly bills of its customers The customer then by telephone or some other electronic means could authorize the bank computer to transfer the money from his account into that of the company No attempt has been made to ascertain the full potential savings its started with several small al 1900 A Japanese American banking enterprise also opened and closed during the early days of Ogden The most spectacular of Ogden’s bank failures was the Ogden State rmined would survive the onslaught Lobbies of the two banks were jampacked within seconds after opening and were still jammed when the 2 pm closing time ar- rived Officers of the two banks announced they would remain open past the normal closing time until every depositor who wanted his money had received it That turned the tide and the deposited convinced their money was safe went home and the banks closed at 2:30 pm When President Roosevelt declared the bank holiday there was available from this procedures but Utah Power & Light Company reports it spends $100000 a month to prepare and mail bills to its customers in Utah Hunt and Brown believes some electrionic banking services will be available fairly soon and are waiting only the “ironing out of a few tomer round the clock access to his checking account already is in fairly wide use by banks However there use now is restricted to the branches of the banks in which the customer has his account To permit a customer’s access through another bank — as the problems” One of the major problems other Ogden man vacationing in Los — will interbank than getting customer acceptance Angeles require most which is developing a secure procedure computer capability bankers agree would not be dif- for the customer to activate the ficult to set up process The recent name change of Wal“It’s possible the process could 19 Western banks be voice actuated” Hunt said and other the ker A Sunset couple traveling in the Western Bancorporation sys- ‘‘The computer would recognize through New Mexico stops to tem to the First Interstate Bank the customer’s voice and authorize browse through a department store was a in direction al- the transaction” that step with a sale on western artifacts though there were a number of Hunt pointed out however that The wife sees a painting she’d like other reasons the that prompted is still in an experimental home room this back recreation for the name change stage and has some bugs that must Her husband gives a clerk his benefits the be worked out greatest Possibly bank card which is inserted into a from conin the changes coming One of the drawbacks to this is small machine attached to the cash sumer finance come through that will a cold or other disorder can register The machine confirms the electronic banking — such as the sufficient money is in the Sunset Utah bank paying of bills by telephone The change a person’s voice to to cause the and tells the computer to transfer computer reject his economic dividends of instructions potential of to New amount bank the the that telephone bill paying are considerMexico store Brown says another possiblity is able — for the customer the bank Fantasies? assigning a personal identification and the entire number Today yes tomorrow no (PIN) to each customer world And that “tomorrow” may be The customer then would use this There are several factors PIN to actuate the computer only a few years down the road of the prompting the coming revolution in These are three examples Brown also reported some banks revolution that local banking ex- banking but one of the strongest is in the East are experimenting with ecutives report is coming not only the potential savings that can be closed circuit television but this in their profession but the entire realized by banks in elimination of probably would be too costly for paperwork and record keeping now use by individual customers world of consumer finance involved in maintaining individual “Last year saw the beginning of First Security Co vice president accounts the end of commercial banking as Richard Muir believes electronic we’ve known it for decades” Com“The paperwork is tremendous banking will involve use of video mercial Security Bancorporation — almost staggering” said Com- terminals in the home rather than Chairman Richard K Hemingway mercial Security Vice President telephone banking told his annual stockholders meet- Keith Hunt “Financial institutions “Telephone banking will be ofin have got to find improved more fered in some areas where there is ing Ogden recently “We’re in for some real change economical ways to handle their a large enough and diverse enough in financial institutions and ser- operations merchant based participation” vices” says Family Bank Presiwho is manager of de“The computer and electronics said Muir dent James Brown for the company services posit These changes Brown said not offers great potential to accomis not sufficient to “But interest plish this” Hunt said it at this only will involve the type of finantime” he said justify And the potential dividends that adding “we believe home banking cial services available but how those services are delivered to the electronic banking offers the finan- (video terminals) is the wave of the cial institutions also will be avail- future” public — The potential of the service outThe end result could give the able to their customers both comindividuals and lined in the example of the Sunset world of consumer finance an en- panies new of face by the end like large depart- couple shopping in New Mexico is this tirely Companies — not if sooner decade ment stores and the gas phone and even greater than the ATM or tele— phone bill paying but is further in light companies — for example This could include the amalgathe future spend a considerable amount mation of banks savings and now This involves use of a “point of of money preparing and mailing loans credit unions and stock out sale terminal” (POST) that would bills and statements to brokerage offices into a single in- theirmonthly be installed adjacent to the cash customers stitution offering their customers a in store go register all of these — and more — services to The customers ofin turn must These terminals would be hooked checks writing the virtual end of checks and the andthe expense mailing or taking them to the into a centrala computer networka end of writing bad checks or checks customer’s card By inserting company offices on accounts with insufficient funds could store clerk quickly ascertain Electronic banking offers the poif she had or he could arrive Electronic banking adequate funds in a tential of the utility company or to cover the cost somewhere bank of fairly soon within a couple years department store computer ina of or as soon as computer technology forming a bank computer of the proposed purchase industrial-commerci- Bank of Commerce in 1914 The Commercial Security absorbed the National Bank of Commerce in 1930 The First Security Bank also had the financial strength of the First Security and Commercial Security and the courage of their officers When the Ogden State Bank didn’t open for business that day depositors converged on the First Security and Commercial Security in droves But officers of those two banks had heard enough through the grapevine to prepare for the “run” they knew would come on their banks when the Ogden State Bank failed to open When the Commercial Security and First Security opened on Aug 31 1936 money was stacked counter high in the teller cages waiting for the continual stream of depositors demanding their money throughout the morning During the day armored trucks delivered additional cash to the two banks whose officers were dete- 10 Ayv‘S Business Editor sprouted in 1904 when J W Ping-reestablished the Pingree National Bank which became the National Bank which failed to open on Aug a fateful day that tested d r cial Security Bank family tree e 31 1936 — r Standard-Examine- Bank Another branch of the Commer- banks in the last century to name the Among its forerunners were the changing Security First National Bank and the Ogden State Bank In 1925 the Security State and Savings Bank which began operations in the same quarters sometime before 1900 In 1920 they merged with the National Bank to form the Utah YOU FORGOT TO PAY THE HOUSEHOLD First and Utah National Bank This later became the First Utah BILLS? DONT WORRY - JUST DIAL THIS National Bank the beginning of the First Security Corp COMPUTER NUMBER GIVE ALL THE The success stories more than INFORMATION - IT WILL TAKE CARE OF offset the three recorded bank failures in Ogden’s history everything: The first failure was the Utah Loan & Savings a small operation o i By CUFF THOMPSON Commercial National mergered to form the Commercial Security which failed before m fit- signifinance and didn’t last long The Commercial Security Bank traces its ancestory back to that original Guthrie operation Sometime around the turn of the century Guthrie bought several small banks and merged them into the Commercial National Bank and opened offices on 24th Street just west of the present Kiesel Building moving into the Eccles Building a few years later Somewhere around the turn of the century T D Ryan opened the Security Trust & Savings later A LOCAL BANK VOILACASH! r J W Guthrie was operating a bank at Corinne in the 1870s when he decided to come to Ogden It was at this time that Guthrie bought out Harkness Co It can’t be established whether Harkness was operating in Ogden or Corinne at the time If Harkness was in Ogden then it was the first bank here If Guthrie bought out Harkness in Corinne then he was Ogden’s first banker There undoubtedly were other small private banks organized in the years after Guthrie came here but none reached any degree of IF YOU HAVE A BANK CARD I CAN INSERT IT IN THIS "LITTLE MACHINE” AND FUNDS WILL BE TRANSFERRED FROM YOUR BANK PUT MY NEW CARD IN THE "LITTLE MACHINE" AND I same time the railroad arrived there Sunday July 12 1981 Customer demonstrates commercial bank checking accounts round-the-clo- This procedure would simplify things for both purchaser and the store A traveler for example would not need to buy and carry traveler’s checks nor would a store have to pass up a sale because of a worry about accepting a check Brown says a couple of factors will prevent widespread use of the POST in the immediate future One is the problems inherent in establishing an interstate computer network with enough parto make it ticipating banks economically feasible “And the point of sale terminals probably will be too costly for any but the extremely large stores to afford for some time yet” Brown said “But I’m sure these problems eventually will be worked out” A number of factors have prompted the coming revolution in the makeup and services of the nation’s banking and other financial institutions One of the major factors is the new regulations adopted by Congress last year governing banks and financial institutions Traditionally there have been distinct differences drawn between banks savings and loans credit unions thrif institutions and the services they could offer The S&Ls credit unions and thrifts couldn’t offer checking accounts while the banks were restricted to paying savings interest rates below those permitted the other institutions The banking act of 1980 allows the other institutions to offer checking type services It also removes all limits on savings interest by 1986 availability of cash in ck With checking services available more people will be tempted to do all their financial business with credit unions savings and loans and thrifts This prompted the banks to starr looking for ways to expand and improve their services and is accelerating what many bankers believe was an inevitable move toward greater use and emphasis of electronic banking Another factor has been the money market mutual funds that came into existence with the rising interest rates of the past couple of years Paying two and three times what the traditional institutions could offer these funds pulled millions of dollars out of the banks savings and loans and thrift institu- tions The traditional financial institutions are now beginning to move into the money market fund area pioneered by stock brokerage and similar firms Most bankers will agree all this adds up to great pressure for the merger of banks S&Ls and thrifts into one single financial conglomerate institution But not all share the belief of some that this will lead to large interstate banking systems resulting in the demise of the small independent bank Brown agrees that interstate banking — in some form — is coming but say it isn’t a necessary requirement for the coming revolution in financial services “People have been predicting the end of the small bank since the 1920s” Brown said “In the early 1950s there were predictions we’d have only a few large banks by the end of the ’60s There are more small banks now than we’ve ever had” i little doubt Ogden’s two banks would reopen after checking by federal examiners However it wasn’t until the late Frank M Browning opened the Bank of Utah in 1952 that Weber County was to have more than two banking offices again This sparked a quarter century of growth that has made banking one of the county’s fastest growing industries The First Security has nine offices in the county Commercial Security has four and the Bank of Utah 10 The Citizens Bank opened in 1965 and now has two offices in Weber County In 1970 the First Interstate Bank of Utah (formerly Walker Bank) came to Weber County and recently opened its second office in North Ogden Zions First National Bank opened in late 1972 moved into its new downtown quarters earlier this year and has plans for at least two branches in the county Weber Valley Bank came to Ogden in 1975 and subsequently opened a branch in Riverdale Last to join the local banking fraternity was the Family Bank at Five Points which also has a branch in Roy And that’s Ogden’s banking history — a history that isn’t without schemes its fast its deals But mostly it has been a history of a group of men — financial experts — who have helped guide and build the economy and prosperity of Northern Utah They took the smaller bank which could not have financed the growth of the area and merged them and built them into strong financial institutions that have played a major role in the industrial and economic growth of Northern Utah In passing this way they left named in many places on buildings blocks subdivisions Names like Barton Hemingway Perry Eccles Dooley Healy Pingree Patterson Heywood and others Some of these names are still active in banking joined by others who continue to play an important role in the area’s get-rich-qui- ck socio-econom- ic growth v |