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The building is finished, the dropes ore up the fur­ niture is in place and the facility is working beautifully. Its time for the Grand Opening and Congratulations are in order. We, The Rebars Steel Company, wish to congratulate the McHenry State Dank and it's employees on this important achievement. We thank you for allowing us to be involved in your ex­ pansion program and hope for your continued suc­ cess. Rebars Steel Company i 605 South Route 31 McHenry Illinois . HISTORY OF BANKING IN M c H E N R Y The first bank in McHenry was a private bank known as the Perry and Owen Bank. This bank was started in 1888 in the rear of the general store in the E ast side of Green Street. The store and bank were operated by Joseph B. Perry and Oliver Owen. During the early 1900's, the banking business was moved to the West side of Green Street and became known as the Hoy Banking Company. In 1919a law was passed providing that all private banks must be chartered either as a state bank or national bank. Prior to this time, there were many private banks operating in the state. In fact, in the year 1914, there were more banks in .the State of Illinois tkofluihere are - The Hoy Banking Compariy^ was >. converted to a state bank on October ' 13, 1920 and was known as the Fox River Valley Bank. On July 10, 1928,' the bank's name was changed to the Citizens State Bank. The bank was closed on May 21, 1929 and a receiver appointed. The original bank in McHenry was dissolved on June 25, 1934. TheWest McHenry State Bank was chartered in 1906doing business in the Brefold Building on the South side of Main Street in West McHenry. In 1915 the bank moved to the North side of Main Street to a new building which now serves as the .Township Assessor's office. In 1946, the name was changed to the McHenry State Bank. In 1956, the McHenry State Bank moved to its' present location at the intersection of Green qnd E Im Streets, in the center of McHenry. After the closing of the Citizens State Bank, a new state bank was chartered and was known as the Peoples State Bank of McHenry and was located on Green Street. The Bank opened for business on Aug. 30, 1929. This bank was liquidated on April 7, 1933 and consolidated with the JOHN L. COWL IN Is a nat ive of Crystal L ake and Is a partner In the law f i rm of Cowl ln. Cowl ln & Ungvarsky. He was elected to the Board of Directors In 1974. PAGF. 3 - WEDNESDAY. OCTOBER 10.1979 McHenry State Bank Board Of Directors West McHenry State Bank. The McHenry State Bank then known as the West McHenry State Bank, remained the only financial institution in McHenry until McHenry Savings & Loan Association opened for B usiness on the South side of Main Street in 1956. The First National Bank of McHenry was chartered and opened for business at their present location in 1969. Marengo Federal Savings & Loan Association and First Federal Savings & L oan Association of Crystal Lake opened branch offices in McHenry in the Market P lace in 1976. Other early banks in the McHe area were the Spring Grove B which was closed on July 9, 1931 and a receiver appointed. The Spring Grove Bank was dissolved on Nov. 12, 1938. The R ingwood State Bank was closed on June 10, 1933 with a deposit l iabi l i ty assumed by the Wes t McHenry State Bank. WIL L I AM J. COWL IN Is a nat ive of Crystal L ake and Is a partner In the law f i rm of Cowl ln, Cowl ln & Ungvarsky. Hewas f i rst e lected to the Board of Directors In 1963. He Is a former State 's Attorney of McHenry County. L E NOR A E . F R I SB Y is a nat ive of McHenry and was elected to the Board of Directors In 1974. Miss F rlsby has worked In most areas of the bank and now serves as Vice President &™T'rust Off icer. O R M E L J . P R U S T i s a n a t i v e o f P a lat ine and was elected to the B oard of Directors in 1974. He serves as E xecut lve Vice President of the bank. F R A N S I C M . S C H M I T T n o w o w n s and operates the fami ly farm near Johnsburg. He was elected to the Board of Directors in 1974. McHenry Bank Reopens (Continued from page 2) p without m oney. B ut he m ust a courtesy booth after an verification by the clerk and to pay for his purchase. «na so some form of electronic banking it being offered to bank and •avings and loan customers at numerous places. Even Itfrge well known banks in major cities are -advancing the systems with cash dispensing automated teller Machines installed in walls of branch offices and point of sales (store check ofet counters). In California in another application of thenew technology a large group of savings and loan associations have formed a central corporation that plans to permit affiliate customers to make withdrawals, deposits or pay bills with his identification card.__ T he 26 member National Commission Electronic Funds Transfers made a preliminary report Feb. 23 on the pluses and minuses of electronic banking. But regardless of official opinions, informed observes &ncludethat no one expects financial Institutions to discontinue their investments in EFT. Experts claim that banks and savings and loan associations cannot afford to scrap electronic systems as a promotional gadget useful in their competition because it is an important element in the struggle for business between banks and thrift organizations. *• Banks now hold a near monoply on the checking account, considered the most essential consumer financial service. This gives them an edge on attracting the coveted savings business-. Observers claim bankers fire concerned about losing their predominant position due to NOW (negotiated order of withdrawal or interest checking accounts) accounts that will be avoilable from savings and loans, savings banks and perhaps from credit unions. Advocates of EFT emphasize the convenience of the system to customers, but skeptics note that the convenience costs someone. Presently, as the systems develop, the banks and savings associations are picking up the tab. However, an eastern banker has computed that an automatic teller machine must be used 2,500 to 3,000 times a month before the cost per transactions drops to 75 cents. ( >> An eastern professor of finance ^questions the benefits of the spreading use of EFT. Feeling that the systems are being imposed on people, he is concerned that they won't hav» a choice whether to shop at stores not so equipped because such units give retailers an opportunity to absorb savings. This savings envisioned is the elimination of nearly $500 million in bad checks that stores must absorb. Electronic check verification would eliminate this. A supermarket spokesman charges that financial institutions are working through the stores to get closer to customers but ignoring consumer concerns. But he didn't foresee EFT replacing paper money or checks,"/although he conceded a possible reduction in the cash one needed to carry. He conceived of E F T as another way to pay a bill. This supermarket representative warned that after customers would be accustomed to EFT banks could decide to shift the cost of the service to the store and eventually by an addition to the price of the merchandise to the customer. These so called free transactions at this time are costing 90 cents each. Concerns were also raised on E FT privacy where unauthorized persons could get access to computer records, but insist advocates, accounts can be safeguarded by separate identification numbers even if cards are lost. A staff man at the Federal Reserve Board expressed no fears of EFT endangering people's privacy. Some credit card companies are promoting use of debit cards, and others are working for check guarantee cards. But knowledgeable businessmen don't anticipate that, debit cards will become big until an EFT network is established nationwide. But regardless of the unresolved doubts, loan associations, and credit card companies are making plans for entering this area of banking. A recent poll of the nation's largest banks revealed that 80 percent of them who answered said they planned to participate in point of sale E F T in the comming year. And ninety expected to have automated teller machines installed and operating. Perry-Owen Started First Private Bank E S T H E R M . C A R E Y s u c c e e d e d h e r husband, Gerald J. Carey, In 1973. Mrs. Carey's father, Simon Stof fe l , was one of the founders of McHenry State B an k. L O R R A I N E N Y E s u c c e e d e d h e r husband, Wi l l iam A. Nye, M.D., on t h e B o a r d o f D i r e c t o r s I n 1 9 7 9 . M r s . Nye is a nat ive of L ake Geneva and has been a McHenry resident for several years. The Holiday Nobody Wanted TH OM AS F . B OL GE R Is a nat ive of McHenry and was elected to the Board of Directors In 1959. He serves as President and Chief Execut ive Off icer of the McHenry State Bank. banking facilities after being without sam e since the bank moratorium was declared by President Franklin Roosevelt on Tuesday, March 4 The two McHenry banks, the West McH enry State and the P eople's State will be merged and all banking business will be transacted from the west side institution. Depositors during the past two weeks have signed waivers which permitted the banks to retain 40 per cent of the deposits until such time as liquidation of the frozen assets and the earnings of the bank could be used to pay off that percentage. Certificates of interest for the amounts will be issued to signers of the waivers. T his action perm its the bank to open on a basis practically the same as a new bank and provides this city with one of the strongest banks possible. The West McHenry bank is now -- cper. for business cr>. en unrestricted basis. Deposits which were in the People's State will be available Saturday morning. This slight delay being caused by the necessary details to be worked out on account of, the consolidation of the two banks. Although 60 percent of the deposits which were held at the time of.the moratorium will be subject to withdrawal, it is believed that confidence has again been restored and depositors will be glad to leave their money in the bank when they realize that it is perfectly sound. The government has, however, forbidden the withdrawal of money ta be hoarded, and if necessary, a sworn affidavit will be demanded showing for what purposes the money is desired. 4 The banking situation has Been handled in a very satisfactory manner, both by the officials,^ the board of directors and also the depositors. A wonderful spirit has prevailed all the way throughout the crisis and now we are emergingl victorious with one yltra-soundT (Continued on page 4) *\ & ' / E L M E R P . A D A M S I s a n a t i v e o f t h e Fox L ake- lngleslde area. He Is a Cert i f ied Publ ic Accountant and was elected to the Board of Directors in 1974. The Bank Holiday or Moratorium, lead to the exciting headlines and story taken from the files of the McHenry P laindealer of April 6, 1933. The Depression of 1929 caused many bank failures and put extreme pressure on the survival of all banks. The government attempted many measures that, at best, served as only temporary relief. Taken form the files of April 6, 1933 W E S T M C H E N R Y B A N K O P E N E D TODAY NOON One of the best and most welcome messages ever received in McHenry came over the wires today about noon, when word was sent from the o f f i c e o f S t a t e A u d i t o r B a r r e t t , advising the West McHenry State Bank that its officers could reopen that financial institution for business immediately. Thus the people of McHenry and vicinity can again enjoy McHenry St ate B ank at the corners of Green St. and ETm St. w™"1 iw--.