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EUGENE MEYER f c p ^ x / u . SUBJECT FILE J9 f e r / e p A T J - / % > * # / s o 4 k j > / Z t o B j / H r /f* 2 f T h e STORY o f a BANK SERVING THE PEOPLE A STORY FOR STOCKHOLDERS tockholders »** as the real owners of corporations, seldom have presented to them a complete story of their property. This booklet is designed to place before the stock holders of The Morris Plan Bank of Virginia as complete a picture as may be reduced to writing of just what has been the progress of their institution, its present condition, and its outlook. A bank lives, grows, and profits as its deposits in crease. It is hoped that a careful study of the facts here presented will stimulate the owners of the bank (its stock holders) to spread abroad the fundamental safety, the eager service, the helpful benefit obtainable in patronizing The Morris Plan Bank of Virginia. Perhaps it may appear unusual for a bank to publish some of the facts and figures contained in the following pages, but it would seemthat stockholders above all others should be acquainted with true circumstances. I#?' ] T H E S T O R Y o f a B A N K S E R V I N G T H E PEOPLE JUNE, 1922, there appeared announcements in the Richmond street car cards and newspapers that a bank would be opened on the northwest corner of Eighth and Main streets. This bank would be unique in that it would make loans based on “Char acter as the Prime Collateral.” Opening its doors on July 17th, it began quietly to makes its way. Solicitors soon obtained over 2,000 savings accounts, and the volume of loans to individuals began to develop. The great majority of loans were made to persons seeking to borrow $100 to $300, who offered their notes, in keeping with the bank’s regulations, to run for twelve months, endorsed by two friends, relatives, or fellow-workers. At the same time the borrower agreed to open a savings account at the end of a week or two weeks or a month, as determined at the time of the loan. He agreed to deposit in the account at regular intervals 1/50 or 1/24 or 1/12 of the amount of his loan, so that at the end of twelve months there would be on deposit an amount exactly equal to his note. He agreed in writing not to withdraw any funds from this savings account, but assigned it to the bank as additional collateral to his loan for the protection of his co-makers as well as the bank. That, then, was “The Morris Plan.” But at this point your bank made Morris Plan history and set a national precedent for industrial banking de velopment. *Please note that this is not the story of “The Morris Plan,” which has been often told, but the story of The M orris Plan B a n\ of Virginia. 3 % Interest A l l o w e d on A s s i g n e d Deposits I n Richmond a borrower from The Morris Plan Bank could have gone across the street, opened a savings account to accumulate funds to pay off his loan at The Morris Plan Bank, and received 3% on the deposits. So your bank determined that no penalty should attach to a Morris Plan borrower in agreeing to save at the bank where he borrowed, to pay off his note when due. It was, then, decided that 3% would be allowed on savings deposits required against loans, this interest to be computed on a quarterly basis. On a $100 loan, beginning with a deposit of but $2 at the end of a week from the day the loan was made, the borrower had built his balance to $100 when his loan came due. On this amount he received $1.12 interest. He paid $6.00 interest on the $100 note. So that in receiving $1.12 back in interest earned, the whole transaction of borrowing $100 and saving $2 a week to pay it off, for a whole year cost him actually $4.88 (4.88%). oA T h e N a t i o n a l d o p t e d Qity by H a n k of N e w Y o r k I t is of interest to note that the rate of 6% with 3% interest allowed on as signed deposits was adopted in May, 1928, by The National City Bank of New York— T h e M o r r is P la n B a n \ o f V i r g in i a being then the only institution in the United States making loans on such an economical basis for the small bor rower. reached on a $1,500 or larger loan. It costs considerably more than $1 to in vestigate three names with a total of nine references on a $50 loan; it costs less than $10 to investigate nine references on a $1,500 loan; but the average investigation charge of $5 approximates the cost, leaving neither a profit nor an appreciable loss to the bank. These facts should serve to show that the investigation charge is not an interest but a service cost. The proof of this fact is that any borrower offer ing marketable collateral in the form of bonds, listed stocks, first mortgages, or a savings deposit pass book, has no investigation charge to pay, but the money is loaned to him at a straight 6% interest cost. If an applicant seeking a loan of $250 borrowed three $100 bonds from his friends to put up as collateral, he would save the $5 investigation cost, as the value of the bonds is already established. If he must have the value of his credit and that of two friends checked up in nine places, he must be will ing to bear that additional cost to the bank. It has taken approximately $72,000 in advertising costs to carry the mes sage of T h e M o r r is P la n B a n \ o f V i r g in i a to the public, first as a savings institution of safety and excellent interest return, and second as a proper and economical place to borrow money for sound, constructive purposes, and to spread a clear understanding of what the interest rates are, in that the investi gation charge is not an interest cost and that the allowance of interest on as signed deposits makes the interest cost itself extremely reasonable. O u r T h e Investigation "Principles o f Operation Charge ^✓ oming into the bank as a total stranger to borrow $100, John Jones brought the names and records of two of his friends or relatives to guarantee that his character and earning power were good. He himself gave two references, his co-makers each two, and all three stated their occupation, employer’s name, and wage or salary received. Here then were nine calls to be made by tele phone, or letter, to ascertain if all the facts given were correct. The cost of this credit investigation is very heavy, and is in no way related to the “rent” of money; that is, interest on money loaned. To cover this actual cost, a charge of $1 is made for each $50 loaned up to $250 and then $1 for each additional $250, until a maximum of $10 is PAGE SIX H appily the public rapidly came to appreciate the three fundamental prin ciples on which your bank was established and operated: F i r s t : The safety of depositors’ funds as a public trust. S e c o n d : Service to the savings and borrowing customers. T h i r d : Profit to stockholders. At the outset, it was true that safety being first and service second, prof its were quite small; but these principles have established confidence in the minds of the public both as to the soundness and fairness of the bank. Patronage has come now to swell our operations to such volume that profits, while still a third consideration, are gratifying in their amount. PAGE SEVEN T h e The N a t i o n a l C i t y B a n k of N e w Y o r k the Largest B a n k in the United States Endorses Morris Plan T y p e of L o a n The National City Bajik of New York, with resources exceeding one billion dol lars, has established a department for mak ing personal small loans, payable in monthly, semi-monthly or weekly deposits. Mr. Charles E. Mitchell, President of The National City Bank of New York, stated in the May 3rd issue of The Wall Street Journal that "Our contact with the greater number of small depositors has brought us to an understanding of their problems, their periodic necessitous finan cial requirements and a realization that to give to them the opportunity of safe guarding their savings by deposit without furnishing on the other hand a means by which they can, under necessity, borrow on reasonable terms, constitutes an un balanced relationship and points to a lack of comprehensiveness in financial service.” The National City Bank has adopted the same policy used by The Morris Plan Bank of Richmond in allowing interest on the monthly or weekly deposits required against loans. Until the adoption of this policy by The National City Bank, The Morris Plan Bank of Richmond was the only bank in the United States allowing such interest. The National City Bank Is but one of many commercial banks throughout the country that have in the past few years recognized the need of the individual bor rower for bank credit by establishing small loan departments. Mr. Mitchell states that "W hile it is not our purpose to encourage anyone to borrow except under stress of circum stances, we have faith that loans so made can and will be paid.” He also states that loans made will be limited to amounts of $50 to $1,000 The Morris Plan Bank of Richmond has never limited its loans to remedial needs, but has always stressed the use of its facilities for constructive purposes. It has never sought merely to meet necessi tous Cases but has constantly offered its credit facilities to individuals, firms and corporations for developing and forward ing their proper interests. In so doing, its loans have not been limited, to small amounts, but have ranged in size from $50 to $50,000. As a result The Morris Plan Bank of Richmond, since its organization in July 1922, has loaned more than $18,000,000— over 66,000 individual transactions, all made for useful and, in the majority of cases, for constructive, upbuilding pur poses. This bank believes that the individual, like the firm and corporation, should re ceive the most careful attention for all his financial problems, whether they involve questions of necessity or of constructive planning, and it is prepared at all times to render a constructive banking service for the individual in keeping with his ability and requirements as well as to firms and corporations. T h e Morris Plan B a n k Petersburg Richmond Newport News Times-Dispatch, May 5, 192S. PAGE E I G H T First R e g i o n a l M o r r i s P l a n B a n k "Y our bank set out on its career as the first regional Morris Plan Bank in the country. This meant that the Richmond bank took over all the investments of The Morris Plan Corporation of America in Morris Plan institutions in the Fifth Federal Reserve District, representing control of four banks and a min ority interest in eleven others. In those banks where control was held, reor ganization took place from companies to banks, from insignificant quarters to banking atmosphere, with a consequent change in public patronage and confidence and with resulting increased profits. Where stock control could not be exercised, it proved futile for the bank to hold these stocks, and they were re-sold to The Morris Plan Corporation of America. One of the four banks was later merged with the Richmond bank, leaving three in North Carolina (Greensboro, Raleigh, and Winston-Salem) under our control. So successful has this program been that The Morris Plan Corporation in its most recent annual statement sets forth that it will undertake to repeat this idea all over the United States. T r a d e Acceptances Prove Profitable ( 3 NEof the interesting features which have entered the bank’s operation since its organization has been the handling of trade acceptances. Dealers selling goods on the installment plan found that they could, to great advantage, dis count their customers’ paper with The Morris Plan Bank. They found the public entirely willing to pay the bank directly instead of the dealer, thus re lieving the dealer of much accounting cost. This paper was taken from the purchaser in the form of a trade acceptance, signed by the purchaser, endorsed by the dealer and secured by the goods sold. A list of the articles sold, and the paper discounted by the bank, includes furniture, heating plants, electric re frigerators, automobiles, radios, typewriters, washing machines, electrical wir ing of houses, installation of bath rooms, screening and weather-stripping, in stallation of store equipment and factory machinery. This class of business has proved not only unusually safe and free from loss experience, but profita ble to the bank. PAGE N I N E M o r r i s I n the month of January this year, The Morris Plan Bank of Virginia loaned $823,902. This amount repre sented 2,803 individual loans, all made for useful and constructive purposes. A stenographer b o r r o w e d $250 for p a y m e n t o n real estate, A clerk borrowed $125 to consolidate bills, A J>ank b o r r o w e d $10J000 to m e e t local seasonal d e m a n d for loans. A n architect b o r r o w e d $800 for business expansion. A grocer b o r r o w e d $500 to increase stock a n d discount bills. A school teacher b o r r o w e d $$00 to p a y doctor's bills, taxes a n d insurance. A dentist b o r r o w e d $300 for office equip ment. P l a n Insurance .A lNother interesting feature of the bank’s operations is the Insurance Plan. Morris Plan borrowers found that the chief objection friends and relatives had to signing notes for them was the danger that during the twelve months’ pe riod of the loan the borrower might either die or become disabled. The Mor ris Plan Insurance Society in New York offered the family and co-makers of borrowers protection against these contingencies through a one-year term in surance policy for the amount of the loan payable to the beneficiary in case of the death of the borrower or in case of his total and permanent disability. The insurance costs less than five cents a week per hundred dollars. In case of death or disability, The Morris Plan Insurance Society pays the bank the face amount of the note and the bank returns to the borrower’s family all the funds he has deposited to pay off his loan. T h e M o r r is P la n B a n \ o f V i r g in ia has returned to deceased borrowers’ families many thousands of dollars, relieving distressing conditions, and has paid large amounts to borrowers who became totally disabled, thus enabling them to meet other obligations. This protection is entirely optional on the part of the borrower, but is used by borrowers in the case of approximately half the endorsed loans made. 66,118 In the above loans and in the case of every loan consid ered, the financial problems presented by our customers and prospective customers were carefully studied by our officers in an effort to find a helpful solution. Number of Accounts in Force Show Remarkable Increase W e cannot solve every problem offered, but the experience of our officers is available to all, regardless of whether they are customers of the bank or not. 37,103 SAVINGS ACCOUNTS I------- LOAN ACCOUNTS ■ ■ ■ ■ ■ In the belief that banking is a mutual business proposi tion, and that the bank profits equally with its customers, this bank welcomes borrowers seeking credit for useful purposes, regardless of whether they need $50 or $50,000. 23,427 The Morris Plan Bank of Virginia 241 M A I N S T R E E T N orfolk— Richmond— Petersburg— Newport N o rfo lk Ledger, February 28,1929. News— Roanoke ~I 6223 1922 PAGE E L E V E N 27,099 A $ 5 , 0 B a n k 0 0 for the Individual L o a n s Well-to-do business a n d professional m e n b o r r o w s u m s of $1,000, $5,000 a n d larger a m o u n t s f r o m T h e Morris Pla n B a n k because they h a v e be e n at tracted b y the 3 % interest allowed b y this b a n k o n the required m o n t h l y deposits against loans. E x a m p l e of $5,000 loan for o n e year— A m o u n t of loan ........................... Discount for o n e year at 6 % . . $300.00 Investigation fee .... ....— . 10.00 $5,000 Total Cost ........... .........$310.00 3% quarterly interest allowed on m o n t h l y deposits of $116.60 per month ........... ............ . 56.00 Net Cost of L o a n .................. $254.00 Y o u m a y secure a co p y of our booklet “A b o u t M o r ris Plan Loans,” by phone, mail or personal call. T he M o r r is A 408 E. Broad St. 1202 Hull Street 1724 E. Main St. STATE P la n B an k BANK M a i n Office Corn e r 8th a n d . M a i n Streets Richmond Petersburg Newport News ITH this general basis of operations established, the bank set out to widen its field of activity. As early as October, 1922, a branch was opened in Peters burg. In February, 1924, a branch was opened in South Richmond. In January, 1925, the Mechanics and Merchants Savings Association of Newport News was absorbed as a branch in that city. In July, 1924, a branch was opened on Fifth Street in On May 1, 1926, a branch was opened at Eighteenth and Main streets in Richmond. On June 30, 1926, the Petersburg Branch absorbed the Com munity Loan & Savings Corporation of that city, and in September, 1927, it absorbed the small loans department of the Petersburg Savings & American Trust Company. Roanoke had been contemplated as a branch location since the bank organized, but capital considerations delayed this opening until July, 1928. On December 1, 1928, The Morris Plan Bank of Norfolk merged with T h e M o r r is P la n B a n \ o f V i r g in i a and became the Norfolk office. The Eighteenth Street Branch was closed to permit the opening in Roa noke, and the South Richmond Branch was closed in connection with the Norfolk merger. The Fifth Street Branch was moved in 1926 to 408 East Broad Street. So that operations now are carried on at the Main Office and at Broad Street in Richmond, as well as in Petersburg, Newport News, Roanoke, and Norfolk. T h e Personnel G r o w s . B eginning with but the nucleus of a board of directors in 1922, able and T im es -D is p a tc h , M a rch 2 5 , 1 9 2 7 . outstanding business leaders in Richmond and the other four cities have been attracted to the bank by its high standards of operations, by its broad program Pdblic Valui< pUBLIO value is measured in terms of useful constructive public ser vice. The extent of that usefulness is determined by the demand for such service by the public. fy H m Organised 5| years ago, this bank has on savings deposit two and threequarter millions of dollars, an average of $100 for every man, woman and child of the cities of Richmond, Peters burg and Newport News. It has made over 60,000 loans, amounting to $16, 600,000,all for useful and constructive purposes. It has on its books today an account for every tenth person of these three communities and has served since its organization an average of every third person. Eliminating minors and dependents, this bank has served an average of every family in the three communities. Banking, once available to only 20% of the people, leaving 80% unserved, is now available and has been used by 80% of the people, leaving perhaps 20% unserved. Public value may be determined by the use and extent of public service. This bank is dedicated to public ser vice and pledges to the public that its first consideration is safety of funds entrusted to it. Second comes service in meeting the publio’s need and de mand. Third and last comes profit from operations. The growth of this bank has been built around this pro gram and ideal. Sharing generously its profit with its saving depositors, it has attracted thousands of savings customers and millions of dollars of deposits. Returning to its borrowers interest on funds accumulated to pay off loans, it has built up a large clien tele. 29,000 active customers attest the public belief of its safety, evidence the genuineness of its service and prove the liberalness of its terms to savers and borrowers alike. The benefits arising from the use of the facilities of this bank have been reflected in every industry, trade, profession and commercial and finan cial activity of the communities it serves. But chiefly is the public value of this bank measured by the extent to which it has touched with its con structive influence the lives and homes of our people themselves. The Morris Plan Bank of Virginia 4 % O N SAVINGS fro m d a y o f d e p o sit to d a y o f w ith d ra w a l N e w s L ea d er, January 2 8 ,1 9 2 8 . PAGE FOURTEEN of service, and by the public usefulness of this type of banking institution in Virginia. With the central board and the local boards of managers, the direc tors now number thirty-nine. Beginning with a personnel of seven, the bank’s officers and employees now number over ninety, with an esprit de corps rarely found in banking or any other commercial or financial organization. Stockholders numbered but six when the bank opened for business. The number of stockholders now exceeds 525. This has been brought about largely by the sale of additional capital stock. Beginning business with a capi tal of $250,000 and a surplus paid in of $125,000, the capital soon was rear ranged to $300,000 capital and $75,000 surplus. T h e Capital G r o w s S mall infrequent sales of capital stock were made beginning in 1924, until in 1927 the capital was carried to $400,000. On October 1, 1928, it was in creased to $500,000, and on the occasion of the Norfolk merger it was fur ther increased to $600,00. Beginning with a capital account of $375,000, it has grown until on March 30, 1929, it stood capital $600,000, surplus $300, 000, and undivided profits $151,861, or a total of $1,051,861. With this origin and these principles of operation, and with the board of directors, personnel, branches, the capital account outlined, and the tre mendously increased number of stockholder-owners of your bank, what has been its public reception in the past? What is its status today? What outlook has it? Reproduced on opposite pages are some of the advertisements appear ing from time to time outlining the services of the bank. Every effort has been made from the outset never to set forth on paper to the public services or facts that they did not realize upon in entering the doors of the bank. In all dealings with the public the standards set for the management have ever been that they shall be “as advertised.” Young men mosdy have been in charge of your bank, with a zeal for public service and with a sympathetic attitude toward human problems; yet in this idealization of bank service they have never lost sight of the requisite safety of public funds, one vital element of which is that the bank be run at a reasonable profit. PAGE F IF TE E N Public Acceptance W h y I n response to the advertising and solicitation of business, both deposits and H a v e N e w 1 0 , 0 2 1 A c c o u n ts Chosen T h is 'B ank^ Since J a n u a ry is t ? loans, the public has continued an ever-increasing patronage of T h e M o r r is P la n B a n \ o f V i r g in i a to an extent never equalled in this section. The charts of savings growth, of loan volume, of increased total resources, tell graphi cally year by year how the number of customers has grown from zero on July 17, 1922— just six years and nine months ago— until on April 30, 1929, the accounts being served numbered over 66,000. The savings deposits have grown to more than $3,750,000, the outstanding loans to $7,555,000, and the resources to more than $8,296,000. IncreaseinSavingsAccounts Jan. 1sttoApril 15th 5,689 IncreaseinLoanAccountsJan. 1sttoApril 15th__ 4,332 TOTAL Net Increase inAccounts__________10,021 N aperiodofunusuallytightmoney and extremelyhigh interestratesa surprisingly large number of new customers, particularlysavingsdeposi tors,have chosen theMorrisPlan Bank fortheiraccounts. That this bank actually serves as it seekstoservoisthesimplestway toac count for such continued and increas ingly large use of the services of this bank. The presentuseofour servicesby over 66,000 savingsand loan accountswar rants your investigation of these ser vices,totheend thatyou alsocanbene fit by them. Your investigation is cordiallysolicited. I l^OW r r r 37,000 S A V I N G S A C C O U N T S 0^0 B y T h e M o r r i s of P l a n B a n k V I R G I N I A Richmond : Petersburg : Newport News : Roanoke : Norfolk Capital, Surplus, UndividedProfits, tl,000,000. Resources, it,000,000 121 T im es-D isp a tc h , A p r il 2 1 ,1 9 2 9 . N e w s L ea d er, A p r il 2 3 ,1 9 2 9 . W a y o f C o m p a r i s o n Y o u must be aware, to appreciate this rapidity of growth, that there are but three banks in the city of Richmond with a larger amount of savings de posits, and with but one exception these greater sums are the result of many mergers of large institutions whose history runs for more than sixty years. There are but five out of twenty-one banks in Richmond with greater resources; there are but two banks in Norfolk larger, and but one in Roa noke; while our resources exceed those of any bank in Newport News or Petersburg. W i d e l y Interest Plan Interest From Day of Deposit To Day of Withdrawal N ow Available at The Morris Plan Bank at 4 % Interest Compounded Semi-Annually Upon Jbe passage by (he last General Assembly o f the bank ing law lim iting the rate o f interest on savings deposits to 18th, 1928, The Morris Plan Bank began a study «» f methods o f interest calculation used by leading banks throughout the country fo r the purpose of adopting the fairest possible method o f calculating interest. 4fo, effective June T h e result o f this study has been the adqption o f the some plan used by ‘Am erica’s largest savings bank. The Emigrant Industrial Savings Bank o f N ew Y ork City. A t the right is reproduced by permission o f The Emigrant Industrial Savings Bank a copy o f one o f their recent adver tisements explaining their plan, which we believe the pnblie w ill agree in calling "A m e r ic a ’s Fairest Interest Plan.” 4% On Savings «1NT»MT From Day at Deposit to of Withdrawal” Day America's Fairest Interest Plan at a Glance D i s t r i b u t e d Liability B ut of greater significance to you as a stockholder of T h e M o r r is P la n B a n \ o f V i r g in i a is that 66,118 accounts are represented in a total balance sheet of $8,296,000. 37,103 savings accounts, totaling $3,691,613 of deposits, make an average liability of the bank to its customers of slightly less than $100. 29,015 loan accounts owe the bank $7,407,478 or an average liability to the bank of $255. This tremendous, unusual, and almost unique distribution of public lia bility for savings and risk in loans assures an unapproached safety. Were this alone not sufficiently convincing as to safety, your bank had reserves on April 30th of $225,140, in addition to $1,051,861 of capital funds, making a total of $1,277,001 behind $3,755,000 of savings. In short, $1,277,001 must be lost be fore a dollar of the $3,755,000 of savings is in jeopardy. Every Day a Deposit Day— Noru<Hfoethe ofth« hkwkH. No battlingwfihh*dweather.IntrmtKsro •nydayiniheyearyoumake•dcpowtl Every Day aa Interest Day— Youcan’tloseSainfleday** la thedayofwithdrawal—theenlySaving* BankinNewYorkwherethisholditrue. theEm igrantbecameithpaidrightupo JustthePlanYouWouldExpertFrom America’sLargestSavingsBank E M I G R A N T INDUSTRIAL SAVINGS BANK From Day o f Deposit T o Day o f W ithdrawal! TwC*u*n*ntOften SI ChitnbrTt V. 4V St. & Leeinpon Are. TSi® Morris Plan R ich m ond Petersburg Roanoke Newport News NUMBER OF SAVINGS ACCOUNTS AVERAGE BALANCE PER ACCOUNT NUMBER OF LOANS AVERAGE LOAN 3 7 .1 0 3 $ 9 9 .5 0 2 9 ,0 1 5 $255-30 32,000Savings and Loan Accounts -$3,000,000on Savings— $5,600,000Resources Highest N e w s L ea d er, June 2 1 ,1 9 2 8 . L e g a l Interest K a t e A d o p t e d growth of a bank and its consequent larger service is entirely depend ent upon the increase in its savings deposits. This bank set out on its career paying 5% per annum on savings, and rapidly became the largest bank in Virginia paying so high a rate of interest. At the January-February session of the 1928 Virginia Legislature a new banking code, sponsored by the Virginia Bankers’ Association, was passed, in which there was a provision that no bank could in the future accept deposits at a greater interest rate than 4%. The law was not retroactive, but would affect only deposits made on and after June 17, 1928. This legislation appar- ; T PAGE EI GHTEEN he ently would put an end to the rapid increase in The Morris Plan Bank of Virginia savings. But quite the contrary has been the case. Prohibited from paying more than 4% on savings, T h e M o r r is P la n B a n \ o f V i r g in i a unhesitatingly decided to allow the legal limit after an investigation showing that ninety per cent of all banks in the United States conducting a savings department allow 4% or more on savings. In New York the large savings banks at present pay 4%%. In New England, the home of the great mutual savings banks, the interest allowed is usually 5%. No unsoundness could attach then to the payment of 4% based on the almost universal ex perience of savings institutions throughout the country over a great period of years. Sav i n g Deposits Increase A l bank ’s savings increase represents the difference between new deposits and withdrawals of previously deposited funds. In a useful savings bank there are large deposits and large withdrawals, the progress of the bank being deter mined by the excess of deposits. An accompanying chart shows that as of June 16, 1928, the bank had on deposit at 5 % a total of $3,153,455, and no funds at 4%. As of March 30, 1929, 5% funds had been withdrawn to the extent of $963,013, leaving $2,190,442 at 5%. It further shows that beginning June 17, 1928, the 4% deposits have grown from zero to $1,327,101, replacing the 5% withdrawals and $364,088 besides. This is particularly significant in a period when the large majority of banks have experienced diminishing rather than increasing savings deposits. An analysis of all banks of deposit in Richmond from June 30, 1928, to March 27, 1929 (dates of comptroller’sbanking calls) shows that sixteen banks had a total net decrease in savings and time deposits of $2,986,000, while five banks showed a total net increase of $1,267,000. T h e M o r r is P la n B a n \ o f V i r g in i a ’s gain alone was $519,000 of the total gain of $1,267,000 for six banks, or 40.9% of the gain in all savings out of twenty-one banks, and this in spite of the limitation to a payment of 4% interest in a period when the public has been withdrawing funds largely on account of stock market op erations. PAGE PAGE TWEN TY HBMHN T W E N T Y - O N E >1 Absolute Safety Aff o r d e d A s TO losses, the bank since organization in July, 1922, has loaned over twenty-seven million dollars, and out of that huge sum has lost but $70,846, or 37/100 of 1%. You may get a clear picture of the safety of the bank by noting that out of twenty-seven millions loaned, only $70,846 was lost. Now, with $7,555,000 outstanding on the books out of which can come losses, the bank has $1,277,000 to meet these losses; or based on experience running over six years and nine months, th e b a n d ’ s c a p ita l a n d re s e rv e f u n d s a re s ix t y - tw o tim e s g r e a te r t h a n n e ce ssa ry to g u a ra n te e th e s a fe ty o f d e p o s ito r s ’ fu n d s . The specific reserves for losses and contingencies alone, irrespective of capital ac count, are five and a quarter times greater than our loss experience requires. So that not only are your depositors’ funds safe beyond all reasonable con tingencies, but your own capital funds seem more than protected against all normal experiences. This is not a theory of future management, for over a time covering nine teen years’ operations, through periods of extreme depression and expansion, the 130 Morris Plan independent units have loaned over a billion dollars to more than five million borrowers w it h o u t th e lo ss o f a d o lla r o f in te r e s t o r p r i n c ip a l o f a n y d e p o s ito r s m o n e y . A STOCKHOLDER, what relation do all these figures and facts bear upon the value of your invest ment in shares of stock in T h e M o r r is P la n B a n \ o f V i r g i n i a ? The stock of the bank at organization in 1922 was sold at $125 on a par of $100, or $31.25 on a par (as as present) of $25. Gradually this price has risen as the chart of stock price shows. This chart on page 25 shows at the same time the rise in savings deposits. The two parallel each other. Increased Deposits M e a n Increased Earnings T he explanation is simple. The more savings deposits the bank has, the larger volume of business it can handle. The larger volume done, the greater profit earned. When the savings stand still, the only increase in earnings that can be achieved is through economies of operation, shown by chart on opposite page and which are but nominal year by year. There results a simple and easily comprehended formula: In c re a s e y o u r b a n d ’s s a v in g s d e p o s its a n d y o u in c re a s e th e e a r n in g s o n y o u r s t o c \ . Herein have been given you the intimate facts of your bank. Charts, tables, and advertisements complete the story. Unlimited safety warrants your encouraging all your friends and business associates to carry their savings in your bank. Your effort in this direction will not alone enhance your earnings, your dividends, and the market value of your stock, but will further the de velopment of a public service institution, for, as you will note by the adver tisements reproduced, such has this bank become by virtue of its constructive, economical and stimulating service. PAGE T W E N T Y - T H R E E ■H Your support and your vigorous and continuous solicitation of savings is not only putting added earnings in your pocket, but is widening the field of potential service to the communities served by T h e M o r r is P la n B a n \ o f V i r g in ia . Twenty-seven million dollars loaned to 100,000 accounts, with 67,000 customer accounts on the books today, growing in numbers and amount, more largely and more rapidly than any other bank of any kind in this section, must stimulate you to recognize your opportunity to serve not only your own in terests, but also the interests to those whom you bring into the bank to ex perience its constructive influence.* Growth of Resources, Deposits, Loans and Discounts Increase in Savings and Market Value of Stock y $60 $55 $50< ! $45: 7 $40; , / / y— / $35: MARCETV\LUEDFSTCCIC'> , 1922 1923 1924 1923 1926 1927 1928 1929 *The bank has no stock for sale. There are 24,000 outstanding shares of a par value of $25, a few of which shares are from time to time traded in on the over-the-counter market in Richmond. I PAGE T W E N T Y - F I V E ^ -•- . a#**#** „* I Geographical Location o f Stockholders o f T h e M o r r is P la n B a n \ o f V i r g in i a M a rc h 30, 1929 Five Good Reasons W h y Y o u Should Savings O p e n Account This LO C ATIO N STOCKHOLDERS 307 44 30 12 41 59 Y o u r at B a n k 2 1 • 2 • 3 • A **• 5 • 4 % is paid on savings from day of deposit to day of withdrawal ( “America’s Fairest Interest Plan”). Unsurpassed safety. (No. Morris Plan Bank has ever lost a dollar of any de positor’s funds.) Deposits and withdrawals may be made conveniently without disturbing interest on your account. Approval of more than 31,000 satisfied accounts. Your problems are as welcome as your deposits. 2 Indiana . Maryland . Missouri . N ew Jersey 1 1 1 14 1 Pennsylvania Tennessee . 1 529 ✓'-'N IT^pen Yonr Accoimt ^hh ns / j A « hott serving more than 31,000 savings accounts. Mor r i s P l a n B a n k o f Virginia OFFICERS T H E M O R R IS E L A N B A N K u r m r i M «■ BOANOKi gO ANO K RICHMOND NORFOLK N EW PO RT NEW S T h om as C . B oushall P resident PETERSBU RG .................................... V ice-P resid en t ....................................... V ice-P resid en t A n t o n C . A d a m s .................... V ice-P resid en t and Cashier E. N. P l a c k .......................................... V ice-P resid en t L. H. F a i r b a n k ................................... A ssista n t Cashier D . P . T y l e r .......................................... A ssista n t Cashier E. P. M a n g u m ....................................... A ssista n t Cashier H. M a y o S h u g a r t ................................ A ssista n t Cashier C l a r e n c e F ord , Jr ................................... A ssista n t Cashier Joseph E. B i r n i e ................................... A ssista n t Cashier O v e r t o n S. W o o d w a r d ....................................... A u d ito r P h i l ip W o o l l c o t t G a iu s W . D i g g s ^ J p m o Y N e w s L ea d er, January 2 4 ,1 9 2 9 . T im es-D isp a tc h , January 2 6 ,1 9 2 9 . PAGE TWENTY- SI X - j 2 11 T h e . PAGE TWENTY- SEVEN * | BOARDS o f MANAGERS BRANCH OFFICES BROAD STREET OFFICE L . H . F a ir b a n k M a n a g er PETERSBURG OFFICE PETERSBURG ROANOKE A r c h ib a l d R obertson F r ank M . K ulp Cashier Cashier J. W . Y. P o o le W a l k e r L . M ar ks NEWPORT NEWS R . B o l l in g W il l c o x , Chairm an A tto r n e y -a t-L a w A ssista n t Cashier A ssista n t Cashier OFFICE NORFOLK E. N. I s l in W . M . R ucker Jew eler R ucker D ry G oods C om pa n y K in s e y L e w is M . W a l k e r Cashier, V irginia N a tiona l B a n k J. F r a n k V ice-P resid en t and Cashier Cashier M a r k H o lt B. T. OFFICE E. N. P l a c k L . H . Z ehmer OFFICE OFFICE E x p o r t L e a f T o b a c co C o . P ond T. O. W S u p erin ten d en t, P etersb u rg D iv isio n V irginia E lectric & C . L . B ussells il l ia m s Sou th ern C h em ica l C o m p a n y P ow er C om pa n y A ssista n t Cashier A ssista n t Cashier NEWPORT NEWS OFFICE A l l a n D . Jo n e s , Chairm an DIRECTORS A ttorn ey-a t-L a w N. E. A . R o senbaum D rexler C . C . B a r ksd ale L. A. M a h l e r G en era l M a n a g er, Eastern D iv isio n P resid en t, U n io n B a n k and P residen t, T h e M o rr is Plan Industrial B a n k, V irginia P u blic Service C o . F ed eral T r u st C o . R a leig h , N . C . T hom as C . B o ushall A rthur J. M orris P residen t F o u n d e r o f th e M o rr is Plan S ystem Jo h n H . C e c il Ju n e M . P e n ic k P residen t, C ecil, W a r w ic k O 3 C ecil C . F r an c is C o c k e C h a r le s E. R etired M erc h a n t F r a n k R oth C ontra ctor M ason Insurance and R ea l E state J. B. W oodw ard, Jr. Joseph M o r t im e r N e w p o r t N e w s S h ip b u ild in g R e tire d Shipbuild er O 3 D ry D ock Co. G en eral M a n a g er o f R a ilw a ys V irginia E lectric O 3 P o w e r C o m p a n y ROANOKE A tto r n e y -a t-L a w , R o a n o k e OFFICE W i l l i a m S. R oyster R . G r a yso n D a s h ie l l A tto r n e y -a t-L a w H ugh W. D avis D irec tor, N o r fo lk N a tio n a l B a n k o f C o m m e r c e and T ru sts G a iu s W. D iggs D ig g s O 3 C a ry R o bert M . Jeffress V ice-P resid en t, F . S. R o y s te r G u a n o C o . C . F r a n c is C o c k e , C hairm an N o rfo lk A tto r n e y -a t-L a w J. A llen H a m m o n d P rin tin g & P resid en t, A llen J. Saville, In c. E. S. R. W K i n g C o tto n M ills C orporation o f A m e ric a C har les L . K a u f m a n A tto r n e y -a t-L a w , N o r fo lk R. B o l l in g S n yd er, M erch a n d ise B rok ers V ice-P resid en t, Jamison Stores C o ., In c. L um ber Com pany alker P residen t, T h e M o rr is Plan C orporation A tto r n e y -a t-L a w , N e w p o r t N e w s H o r to n & R oger M . W in b o r n e P resid en t and T rea surer, E x ch a n g e V ice-P resid en t and G en era l M a n a g er A l l a n D . Jo nes L ith o g ra p h in g W o r k s P. T. Ja m is o n S im p s o n P resid en t, W e s t V irginia C oa l C o m p a n y Jo h n C la ir S. S n y d e r L . R. H am m ond S a v il l e NORFOLK W il l c o x OFFICE W. S. R o y st e r , Chairm an A tto r n e y -a t-L a w , P etersb u rg V ice-P resid en t, F . S. R o y s te r G u a n o C o . C a r r in g t o n W il l ia m s C h a s . L . K a u f m a n , C o u n sel E. N. P l a c k A tto r n e y -a t-L a w V ice-P resid en t and Cashier Su rgeon B . T . K in s e y Cashier, V irgin ia N a tio n a l B a n k P h i l ip W o o l l c o t t H . W . W h ic h a r d P etersbu rg V ice-P resid en t P resid en t, W h ic h a rd B ros. C o ., In c. 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