December Mr ye Joseph |}KE. 4762 Dear 194d. Olsen, LaCanada Blvd., La Canada, Calif. doe? Warriner and I have been considering your letter On November 20th, and we ag clusion but that it would be extremely control of independent country banks » have witt 7, in the first and talking over | Seta 78 at no other conhazardous to purchase 9 place, 1t would seem that already you an adequate pach lig paneled your funds invested in banks, the First Secur ity Corporation, which is an institution | to= made up of a series of banks, some of them very good and some of then not so good, but the average is very satisfactory. This institution has a staff large enough so that someone is always develop} ing the and building to take the place of those going out. Besides, principal owners of which there are many, know enough about. the business to be able to tell whether or not any of its staff is functioning properly and to make the necessary changes and Shifts. To put a larger proportion of your funds into banks would in itself seem unwice,. To give you a little of the perience in small banks, L will quote subject written by Marriner? benefit of our Company exe from a memorandum on the "We received our experience with small banks years ago One of them went broke and caused us after the last war. About that time any amount of expense, worry ami trouble. we analyzed the situation ané sold out all of our hold« The 1921-22 depression broke most ings in such banks. of them and also some of their principal stockholders. We also have the experience of the last depression, which should worried be enough for for years most about tee his es Bide Ly Halverson was gi a vA by institution for the reason that he could not see how it could be handled after he got too old. I know of some of our good nds went broke together with their in California who tions during the last depression, ae _Valifornia : i remember are very severe on bank owners, the Liability they usually being without limit and never ending. “this may have been changed in recent years, but nevertheless my opinion about getting in small banks has not changed. One iets not have to rely on an experienced turn out to be so other business. not staff, since experience ad. either It is always at banks up to the owners". Or any