First State Bank History

Larned Background up to July 5, 1896 ● Founders of the Bank - 1900 ● Larned Business - 1904 ● H. H. Reed - World War I ● John Wagner - 1933 ● 1933-1949 ● 1949-1959 ● 1959-1967 ● Reed Peters - 1975 ● New Building - 1989 ● 1986-1996 ● 100 years ● Begin the Next 100 Years ● 2000's

1933-1949

THE DUST BOWL HITS WESTERN KANSAS

By 1933 subsoil moisture in Kansas was exhausted, crops did not grow, and feed for livestock was scarce. In some areas, farmers were forced to use Russian thistles (tumbleweeds) to feed their livestock, and some gave up livestock production altogether. The dust began to blow, and for four years western Kansas was part of the Great Plains "dust bowl". Housewives used rugs and towels to seal door and window openings, but nothing kept the dirt from sifting in. It covered furniture in homes, desks in schools and offices, and merchandise in stores. In some cases it drifted around buildings and farm machinery like snow. This dust also aggravated respiratory illness and hampered all kinds of activities including travel.

1935 was the worst year for the "black blizzards". On March 15, "black Friday," a tremendous dust storm hit western Kansas. But even worse on April 10, at Hutchinson the dirt was mixed with a rain shower and it rained mud balls. At Goodland and Norton there was snow blowing with the dust which made conditions even worse. Trains were derailed between Scott City and Garden City because of so much dust drifted on the tracks. Near Deerfield, Kansas, crews had to work ahead of the trains to make sure the tracks were clear.

By 1940 heavy snows put moisture back into the soil and agriculture production once again rose.

The Financial Statement of First State Bank on
September 24, 1941:

Board of Directors

WORLD WAR II BEGINS

Franklin D. Roosevelt was inaugurated for his second term as President in 1937.

On June 18, 1937, a crowd estimated at 2,500 attended the Moffet stadium dedication with Governor Walter Huxman giving the dedication address.

Work began December 13, 1937, on a new $350,000 criminal insane ward at the Larned State Hospital.

In 1938, a crowd estimated at 5,000 persons attended the birthday party at the city auditorium honoring the town's most interesting personality, Comrade Smith (Rinaldo R.), on his 86th birthday. Mr. Smith was a world traveler and photographer. His large collection of glass magic lantern slides is now at the Santa Fe Trail Center west of Larned.

By 1939, World War II had begun in Europe.

In 1940, President Roosevelt was elected for a third term. At that same time France surrendered to Germany's Nazis who were being lead by Hitler. On December 23, 1940, the 35th Division was called into active duty and it included 4,800 members of the Kansas National Guard.

The manufacturing of aircraft became an important part of World War II for Kansans. In 1940, there were approximately 1,200 aircraft workers in Wichita, and by the end of the war some 52,000 Kansans were building planes, including the B-17 bombers. Plants turned out 24,000 planes and aircraft factories employed a great number of women later known as "Rosie the Riveter."

On December 7, 1941, the Japanese bombed Pearl Harbor and the United States entered into World War II by declaring war on the Japanese. At the end of 1941, the federal government announced plans to build several army bases, and the state of Kansas became a major training ground for air corps personnel. GI's from all over the nation became a part of communities like Garden City, Winfield, Pratt, Independence, and Liberal. Defense industries boomed and state officials worked to bring even more industry to Kansas.

The war boasted Kansas cheese production into the realm of big business. The Larned Kraft-Phenix cheese factory was producing 7,000 pounds of cheese per day in April, 1942.

In 1942 the Allies invaded North Africa.

First State Bank became a member of The Federal Reserve System on June 24, 1942. By becoming a member of the Federal Reserve System First State Bank would be allowed to borrow money against their existing loans in case of an emergency situation and convert them into cash. This allowed the bank to give their depositors an added feeling of security.

Kansans were growing "Victory Gardens" in 1943. Victory gardens meant there would be a garden on every farm, and a home garden for every family in town. Community gardens were grown for school lunches. Rationing of food and sugar, clothing, tires, and gasoline were begun along with paper and scrap metal drives.

The Allies invaded in Italy, and the Germans surrendered at Stalingrad.

FRED B. REED

Fred B. Reed became a director of First State Bank in 1943, and served until 1973. He was born on August 31, 1888, and died on September 13, 1973. He was the brother of H. Mont Reed and H.L. Reed. Fred farmed and lived just southwest of town on the northeast quarter of 6-22-16 where the Dale Otte family now lives.

First State Bank amended their charter "that the number of directors be not less than five nor more than twenty-five in number" on January 1, 1943.

The Larned banks were selling the new $200 Victory Bonds which were used to help pay for hospital ships, planes, and supplies involved in the war.

On August 6, 1945, the United States dropped the atomic bomb on Hiroshima at 8:16 a.m. local time. 140,000 people were killed instantly and the city was destroyed. Japan surrendered to the United States.

The Kansas Association of Wheat Growers was organized in 1948.

BANK REMODELS

Remodeling on the interior of the First State Bank building at 5th and Broadway began on March 14, 1949. Hugh Shuss was the building contractor. The estimated cost of the remodeling and new enlarged quarters of the bank was $30,000. New vaults were installed by Diebold, Inc. of Canton, Ohio. The latest in banking equipment and design included the night depository for after banking hours, a new vault with row on row safety deposit boxes, and a big mirror that reflects the image of a customers as he walks in the front door. Mont Reed, President, had a private office, and there was a new directors room and work room. The Victorian exterior of the Bank was left unchanged.

"Recordak", an Eastman Kodak product, was installed which enabled the bank to keep a photographic record of every check paid against an account in the bank. The photographic record is made on film that looks like a miniature motion picture roll. A hundred feet of film contains photographs of 8,000 checks. Each roll is indexed for ready reference, and each days' photographs dated. When reproduced by the projector, the checks were enlarged to normal size. The formal opening of the new banking quarters was held on December 15, 1949. In 1900, when H.M. "Mont" Reed went to work for the bank its capital was $11,200.00. In forty-nine years the Capital had grown to $283,200.00.

The formal opening and dedication of the State Theatre's new building at 617 Broadway was held on April 6, 1949. Owners were Don E. Burnett and H. Leon Reed.

On October 3, 1949, the first Larnedite to pick up a telecast on his television set was Jim Adams.

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