97 increase the authorized capital stock to $100,000 and declare a stock dividend of $50,000 out of the increase of stock. Par value decreased from $25 per share to $10 per share, and each share, having a par value of $25, was changed into 5 shares having a par value of $10 per share. The proposed Capital stock increase and stock dividend was approved at the January 21, 1954 stockholders’ meeting. Mr. McWilliams reported that gross earnings of the bank were greater than in any previous years and announced that 30% of bank’s assets were invested in U. S. Government securities. 31% was represented by cash in the vaults or funds on deposit with city banks. 35% was invested in loans to bank customers while the investment in the bank buildings, fixtures and furniture represented less than 3%. The Warden orchard property, a bank asset valued at approximately $30,000, was being carried on the books at $1. The orchard was finally sold in October of 1955 to the Clarke Corporation. On April 8, 1954, the Federal Reserve System Board of Governors granted permission to Bank of Clarke County to invest in stock in the Federal Reserve Bank of Richmond and offered membership in the Federal Reserve System under 2 conditions: 1 – Bank of Clarke County at all times shall conduct its business and exercise its powers with due regard to the safety of its depositors, and, except with the permission of the Board of Governors of the Federal Reserve System, such bank shall not cause or permit any change to be made in the general character of its business or in the scope of the corporate powers exercised by it at the time admission to membership. 2 – The net capital and surplus funds of Bank of Clarke County shall be adequate in relation to the character and condition of its assets and to its deposit liabilities and other corporate responsibilities. The Board of Governors of the Federal Reserve Bank of Richmond also approved the retention of the branch located at Boyce, Virginia, for years the major roadblock to membership. The 1954 April Chamber of Commerce meeting was held in the home economics department at Clarke County High School and featured Mr. McWilliams as speaker. He described the bank as a service institution and said there are 14,610 banks in the U.S. with deposits totaling $205 billion. He said that banks were salesmen for U.S. Savings Bonds and acted as a station for bond redemptions. He also mentioned that the two Berryville banks were the largest taxpayersinBerryville. Advertisingwasdonelocally,insurancewasboughtlocally and supplies were purchased locally, as well as making local contributions. He explained that the money to pay for all of that came from interest on loans. He also announced that the bank had installed a night depository in the past year and that FDIC insurance coverage was currently at $10,000. Total outstanding currency in this country amounted to $29 billion. The needs of the country were half that amount. During the months between August 1950 and January 1952, a scandal materialized when former Clarke County Treasurer William D. Burtner presented the Bank of Clarke County with ten checks drawn by the Treasurer of Virginia (Mr. Burtner was also a former employee of Boyce State Bank). All of the checks except the third were deposited into Mr. Burtner’s personal account. A suit was