The Cedar Rapids Clearing House Association was organized largely through the efforts of R. T. Forbes, at that time cashier of the Citizens National Bank, and J. M. Dinwiddie, cashier of the Cedar Rapids Savings Bank. During the summer of 1902, Mr. Forbes and Mr. Dinwiddie agitated the matter and in October of that year, as the result of their efforts, a committee of Cedar Rapids bankers, consisting of John T. Hamilton, J. M. Dinwiddie, Ralph Van Vechten, James E. Hamilton, J. W. Bowdish, Lawson Daniels, E. W. Virden, E. M. Scott, Ed. H. Smith, E. E. Pinney, and R. T. Forbes, visited Davenport and investigated the workings of the clearing house association of that city.
Following that visit to Davenport, a meeting of the representatives of the banks of the city was held on November 3, 1902, at which meeting it was formally resolved to form a local association. A constitution and by-laws were adopted on November 6, 1902, and the clearing house was regularly organized, with the following banks as members: Merchants National, Cedar Rapids National, Citizens National, Cedar Rapids Savings, Security Savings, American Trust and Savings, People's Savings. The first officers, elected December 3, 1902, were: President, J. M. Dinwiddie; first vice-president, E. M. Scott; second vice-president, Ed. H. Smith; treasurer, E. W. Virden; secretary and manager, R. T. Forbes.
After formal organization the clearing house lay dormant for several months and it was not until January 4, 1904, that the association actually began the work of daily clearings. The clearings for the first day amounted to a total of $127,000. The average per week for the first year was about $400,000. That the banking business of Cedar Rapids has grown with giant strides the past five years is evidenced by the fact that the clearings are now running well over one million dollars per week and are showing an average gain of 40 per cent over the corresponding weeks of last year. The week ending June 5, 1909, showed the remarkable increase of 130 per cent over the same week of 1908.
At the time of organization the banks of Cedar Rapids had a combined capital of $630,000, surplus and undivided profits of $400,000, and deposits of $7,800,000. At the present time they have a combined capital of $900,000, surplus and undivided profits of over $800,000, and deposits of $16,000,000. Since the organization of the clearing house the deposits of country banks has increased from $2,000,000 to more than $6,000,000, savings and time deposits from $4,200,000 to $7,200,000, and individual demand deposits from $1,200,000 to $2,200,000. Such a showing of growth and prosperity is an absolute index of local conditions and speaks more eloquently than words of the substantial manner in which this city is forging ahead in things financial.
J. M. Dinwiddie served as president until December, 1906, being succeeded by E. M. Scott, who served until December, 1908. Mr. Scott was succeeded by J. W. Bowdish, who resigned in March of this year, being succeeded by Kent C. Ferman. R. T. Forbes served as secretary and manager until December, 1906. He was succeeded by Charles Fletcher, Jr., who held the office until July, 1908, when he was succeeded by W. J. Elliott. E. W. Virden, the first treasurer, was succeeded by John Burianek, Jr., who served until December, 1907, when he was followed by Louis Wokoun. The present officers are: President, Kent C. Ferman; first vice-president, James E. Hamilton; second vice-president, John Burianek, Jr.; treasurer, Louis Wokoun; secretary and manager, W. J. Elliott.
The present membership comprises all the banks of the city, as follows: Merchants National, Cedar Rapids National, Commercial National, Cedar Rapids Savings, Security Savings, American Trust and Savings, People's Savings, Iowa State Savings, Commercial Savings. The clearing house association rooms are under the Merchants National Bank, and here representatives from each bank in the city meet at eleven o'clock each day to exchange checks, or "clear" the day's business.
The Commercial Savings Bank was organized December 13, 1905, with a capital stock of $50,000. Its officers were C. H. Chandler, president; W. C. LaTourette, vice-president; James L. Bever, Jr., cashier; with C. H. Chandler, James L. Bever, Sr., W. C. LaTourette, H. Cushman, John B. Bever, C. B. Robbins, E. J. Carey, A. Jeffrey, and C. Denecke, directors. The bank has enjoyed due prosperity. There have been some changes in its officers, C. H. Chandler continuing as its president to this date. C. B. Robbins and E. J. Carey are the present vice-presidents, and Ed. B. Zbanek, its cashier.
The Iowa State Savings Bank opened for business January 6, 1906, at the corner of Tenth avenue and Third street. The capital stock was $50,000. It is known as the "South End Bank," and was organized for the especial accommodation of business men and individuals in the southern portion of the city. The first officers were: A. Tomec, president; V. O. Hasek, vice-president; and Joseph Lesinger, cashier. The present officers are: V. O. Hasek, president; J. J. Cerveny, vice-president, and Joseph Lesinger, cashier. Present capital stock $50,000; surplus, $5,000; total resources, $525,000; deposits, $700,000.
The People's Savings Bank was organized March 10, 1900, with T. McCarthy, president; H. E. Witwer and J. J. Powell, vice-presidents; E. W. Virden, cashier; and T. McCarthy, H. E. Witwer, J. J. Powell, John M. Redmond, Wm. King, George H. Boyson, A. H. Wolf, Theodore Stark, and Fred H. Shaver, directors.