Phillips County Museum News for Wednesday, September 25, 2024

The First State Bank is one of the oldest businesses in Malta, and we should remember all the awe-inspiring things that this bank has overcome in the first few years it was open.

One of the many interesting things about the old First State Bank is that it weathered through all the various panics, droughts, tough winters, and war periods without help from any outside sources and without having to make an assessment on its stockholders.

The First State Bank was organized in the year 1903, and R.M. Trafton became Malta’s first businessman; he became the one who instigated the organization to open the bank. The first members of the board came along, consisting of R.M. Trafton, Thomas Duncan, Alexander Elliot, George L. Ramsey, and Elijah Smith.

In 1907, the directors secured the services of Fredrick Hall, making him the cashier, and C.E. Secrets as the bookkeeper. They would both continue to work hard at this bank for many years ahead, and eventually, in 1914, Jay Brown, Iver Hood, and Sid Ballard’s names were included in the bank’s records. Pursuant to that, a younger boy with the name of Roy Monroe came to apply at the bank; seeing that he ascertained to work at the bank, he was hired as a bookkeeper and a roustabout. He almost immediately fit in with the staff, irregardless of the age difference.

In the pestiferous years of 1921–1926, the disasters for every bank began. Hundreds of banks in America were going broke; unfortunately, the First State Banks and the Farmers and Merchants Bank of Saco were included in this tragedy. During this, everyone was worried about what would happen to the banks and their money. However, in 1927, conditions improved substantially. Dividends were resumed the same year, continuing through 1931; all their prayers had been answered.

In December of 1928, the First State Banks deposit reached one million dollars for the first time ever in Malta; not quite a year after this, in October 1929, the majority of stock ownership was passed to the Northwest Bancorporation of Minneapolis. The bank then decided to continue to operate under their supervision and ownership.

On December 5th, 1930, The First State Bank took over their assets and deposit liabilities of the Malta National Bank Headquarters. The only employee of the National Bank that was retained was H.G. Mebust, who, in response, became the assistant cashier in the year 1934, and in 1940 he would become head cashier. That same year, C.E. Secrest would resign from his position and retire; just four years later, Fred Hall would retire, and he was elected to be chairman of the board.

In the year 1948, the First State Bank made a change; their stocks were no longer being operated under the Northwest Bancorporation of Minneapolis after 18 years, as the stock was purchased by someone who had a better interest for them.

The fun fact of the week is that Alexander Hamilton established the first bank in 1791, as it was a response to the country’s debt and for the commercial future after the Revolutionary War.