The accessibility of money is and always has been an important element in the development of any country. The first record we have about a bank in Logan County is of one financed by Gandy (supposedly Jim Gandy) and Willie Graham in 1886. This must have been what is called a "wild-cat" or private bank as there is nothing about it in the records in the state banking department. In an early newspaper account about the banks we noticed it said that Burnham, Burnham and Smith bought out Gandy and Graham. The first chartered bank in Logan county was the State Bank of Gandy chartered on April 2, 1888. It had the charter number 169 (which would indicate there were many unchartered banks in Nebraska at this time.) It had $5,000 capital stock, of which 10% was paid by the incorporators. The indebtedness could not be more than two-thirds of the capital stock, The officers were S.H. Burnham, President, E.L. Burnham Vice-President, and E.R. Smith cashier. In December 1891. the stock in the bank was purchased by E.F., M.0., and E.R. Smith, but the name of the bank remained the same, In February 1899 the bank was voluntarily liquidated. In 1899 J.C. Honaker was granted a banking charter of $7,500 capital stock for the "Gandy Bank" and ran it until August 1905. when he closed it with voluntary liquidation. On May 29 , 1905 another banking charter was granted to Gandy. "The Bank of Gandy" was incorporated by W.H. McDonald, C.F. Searle, and Lew Williams. It had authorized capital stock of $5,000. In 1907 when Mr. Searle resigned E.R. Smith became cashier. In 1911 when Mr. Smith died, F.E. Peterson became the cashier. On May 9, 1912 the articles of corporation were changed to read, "The Bank of Stapleton," as the bank was moved to Stapleton. Another change occurred in 1945 when Mr. Peterson became president and John Link cashier. On Jan, 1, 1946 Edwin Burnham came to Stapleton and took over the cashier ship. In 1957 the controlling interest was purchased by Edwin and Estelle Burnham. It is interesting to note when first organized the bank was authorized for $5,000 capital stock, now it has increased to a capital stock of $50,OOO and is authorized to $75,000. On September 17, l9O6, Farmer State Bank of Gandy was incorporated by Daniel Fowles, Martha Fowles and Leslie Hoagland. They had a capital stock of $6,000 but were authorized to $25,000. They moved to Stapleton on August 20, 1912, and operated until 1932 when they were liquidated. The Bank of Logan County was chartered on February 17, 1913, and started business on April 17, 1913, The officers were John Newburn, president and Ben Johnson cashier. Stockholders were Geo. Hughes , Geo Higbiee, John Newburn, Nicholas Karn, William Fablinger, James Philpot, H.A. Tunnell, John Philpot, Chas. Philpot, Benjamin Johnson. The life of the banker has not been all a bed of roses. Clipping from the State Journal of July 12, l894, reads; Want Lower Interest Rate. Gandy Nebr. July 11, (Special). Logan County has a small band of cranks calling themselves industrials. They met last Saturday afternoon and appointed two of their number to call upon the State Bank and Two Loan Brokers and demand that they bring down the interest to 7 percent. E.R. Smith the cashier of the State Bank gave them to understand that it would take more than two or three men to run his business.
