PORTRAIT OF OUR VALLEY

Half of the population of Arizona, when they speak of "Our Valley," refer to the Salt River Valley, within whose confines nestle such communities as Phoenix, Mesa, Scottsdale, Sunnyslope, Tolleson, Glendale, Buckeye, Gilbert, Chandler, Peoria, Litchfield Park, Alhambra, Tempe, Higley, Laveen, Avondale, and others large and small. Farming is the principal business of this valley, although an economic study would list hundreds of others, including, of course, travel, for the Salt River Valley is one of the nation's great winter resorts, blessed, as it is, with a superb winter climate.

Before the advent of irrigation, the Salt River Valley was a desert, with the exception of a few acres along the river banks. Because of irrigation this desert valley has become one of the richest agricultural areas in the nation. In truth, Maricopa County, which takes in most of the Valley, is the second richest agricultural county in the United States.

National population studies show that Phoenix, in the heart of this Valley, is one of the fastest growing communities in the U.S.A. The past decade, measured in terms of percentage of population, second only to Los Angeles. Considering the fact that there have been no large "war" industries to attract such growth, the growth of the community is all the more admirable. Phoenix and the Salt River Valley, to use the realtor's stock phrase, is a "place with a future."

Part of Phoenix and environs are shown in the striking aerial photograph by Don Keller, Phoenix photographer. Here is shown the community, like a magic carpet on what was once desert floor; then there are the desert foothills, brown and stolid; then as the ground rises, the watershed of the Verde; the Mogollon and Tonto Rims; and, then, in the distance, the snowcapped San Francisco Peaks and the Bill Williams Mountains. From the center of Phoenix to San Francisco Peaks (white peaks on the right horizon) is approximately 170 air miles. The photograph was taken March 27, 1952, from a plane 7,500 feet in altitude. It was recorded on Panchro Press film, exposure one 1/1000th at F.16, minus blue filter. The photograph covers a lot of country, a lot of scenery, and a lot of climate.

THE BEGINNING OF BANKING IN ARIZONA (Continued from page seven)

Expert in that field and his operational acumen has contributed markedly to the bank's growth.

In 1948, M. B. Hazeltine resigned as president and became Chairman of the Board. He was succeeded by his son, Sherman Hazeltine, who had been connected with the bank since 1929. The new president ably continues the policy so firmly established by his uncle and father.It is interesting to observe that in like manner, Alpheus L. Favour, practicing attorney and former State Senator, has succeeded to the vice presidency once held by his father, A. H. Favour, and actively engages in the management of the bank.

Many events of local, state and national significance have touched the life of the Bank of Arizona and linger in its memories. From the steps of the bank building, Prescott citizens watched Troop A of the 1st U.S. Volunteer Cavalry under the command of Captain William O. (Buckey) O'Neill march by to entrain for the Spanish-American War. To the officers of the bank, Buckey O'Neill was not only a customer but a friend, and the news of his death while leading the charge of San Juan Hill was received with deep regret. From these same bank steps in 1948, some of the same people saw some of the same Rough Riders gather for their 50th and last reunion on the Plaza where now stands Solon Borglum's renowned bronze statue in memory of Teddy Roosevelt's historic Rough Riders.

Prescott, like many other Western communities, had its disastrous fire which demolished most of the downtown business establishments. As is often the case, what was disaster at the time gave rise to a more modern city.

The fire occurred on the night of July 1, 1900. At that time, the Bank of Arizona was temporarily located in a building on the north side of Gurley Street directly opposite the Plaza. Excavation was then in progress for the structure that houses the bank today. Although this temporary office of the bank was completely razed by the fire, some of the furniture and fixtures were saved. The safes, too heavy to move, remained in the midst of the inferno. When the metal had cooled sufficiently for the combinations to be worked, the safes did open and business was carried on as usual from rude tables under the open sky on the courthouse Plaza.

This same morning, Senator W. A. Clark of Montana, owner of the United Verde Mine, phoned M. B. Hazeltine from the mine in Jerome and stated, "... in the event you have need, you may draw on me without limit." Since Senator Clark's personal resources were many times those of the Bank of Arizona, this was heartening indeed. Though it did not prove necessary to take advantage of this generous offer, Hazeltine never forgot the confidence expressed.

At the instance of Senator Clark, the Bank of Arizona had opened branches at Jerome in 1899 and later at Clarkdale in 1913 to afford banking service to the mining and smelter communities which had grown up around the opera-tions of the United Verde Mine. Branches were opened in Flagstaff in 1932 and Williams in 1934 at the behest of the local citizens in those communities after bank closings had created a financial vacuum. Later a facility was established in Cottonwood in 1947. The policy of the Bank of Arizona regarding branch banks has always been to make them community institutions, closely identified with the area served.

The economy of the frontier days was extremely volatile, ideal for enormous profits or equally enormous losses. Reference to the bank's records showed one year in which its directors charged off bad loans in an amount equal to the entire capital of the bank, yet at the same time declaring from profits a dividend of 100 per cent!

Time and again during the past 75 years, conditions have been such as to try the souls of men in all lines of business. Remote as Prescott was from the centers of commerce, still the impact of depression or panic could not be escaped. Credit is due the management of the Bank of Arizona for having weathered the various financial storms for three quarters of a century when many another good bank was forced to suspend operations.

The hard times of the '90s (with the resultant demon-etization of silver) seriously affected the mining industry in Yavapai County. The "money panic" of 1907, when by shipping in nail kegs full of gold coin the bank never suspended specie payment; and the depression subsequent to World War I were character-toughening events. Following the First World War, in addition to the general depression, the entire Southwest was plagued by a drouth of disaster proportions. The livestock industry faced rockbottom prices and range conditions of almost unparalleled adversity. Thousands of ranchers were wiped out and hundreds of banking institutions were forced out of business. The years of the Great Depression from 1929-33 are still a nightmare to bankers throughout the country. When the Banking Holiday of 1933 was declared, M. B. Hazeltine was most reluctant to accede to the mandatory closing regulation. He had been brought up in a school that said you do not close your doors so long as there is a penny in the till. Though his bank was skinning along on a lean diet, it was still solvent and the edict for closing under those conditions was repugnant indeed.

Prior to the Bank Holiday, a group of men from outside the state came to Arizona and embarked upon a wholesale bank merger-consolidation program. The new group purchased the substantial Arizona Central Bank with its principal office in Kingman, dropped from the title the word "Central" and called its new system the Arizona Bank. Since the Bank of Arizona was known almost interchangeably as the Arizona Bank, the similarity of names could have been most hurtful. Despite litigation carried to the Supreme Court of the State, the name "Arizona Bank" was permitted to be used, but when this bank went to the wall after a very brief and unheroic career, the Bank of Arizona was not affected.

In the 75 years since 1877, Arizona has grown to become a national force. On August 21, 1877, the total bank resources in Arizona amounted to $27,625.65, represented by the balance sheet of the only banking institution in the Territory. At the end of 1951, total assets for all banks in the state came to $574,911,081.96. Arizona has been particularly fortunate in the character of its banking institutions. The unparalleled growth of the state is due in no small part to the integrity, vision, and ability of its bankers. Over the years, the Bank of Arizona's contribution to the development of the state has been significant.