Homestead mailing list

[Gene GeRue <genegerue AT ruralize.com>]

On Sep 21, 2008, at 7:25 PM, Clansgian AT wmconnect.com wrote:

> To the extent that the local bank has to borrow from the fed, it is  
> at risk.
> But many very small banks don't do this on a regular basis and for  
> many it is
> not essential to their existence.

I'm not sure about that. I happened to be sitting in the office of the  
recently retired president of our local bank, Century Bank of the  
Ozarks, chatting with John Harlin about this and that. A secretary  
came in while we were talking--it was late in the day--and said, we  
can't reach Chris (John's son, the new president) and we have to  
decide how much overnight $$$ we should order. I forget the term she  
used.

Now I have known and dealt with this bank for over thirty years. They  
have a high rating. They are conservative. Chris is about the fifth  
consecutive Harlin to run the bank. They do not do silly things. At  
this moment, John asked a question and when answered, gave a number to  
the secretary. It was obvious to me that it is common practice to draw  
on federal funds for next-day anticipated cash withdrawals.

Feel free to research Century Bank of the Ozarks. From all that I  
know, they are solid.