This was no ordinary bank, but then the Red River Lumber Company was not an ordinary operation either. Red River wanted to capture as much of its employee payroll at Westwood, as possible. This was no small sum, with an average monthly payroll of $350,000. Red River was able to retain a majority of the payroll being returned in the form of rent payments, the costs of necessities of life such groceries and other amenities purchased from its company stores.
The Big Store, noted for have everything under one roof, served as a de-facto bank. It was one of few places were employees could cash their payroll checks. In one instance this seemed like a good business maneuver, with an employee having plenty of cash in his pocket might splurge on something in the Big Store after cashing his check. With 2,000 employees cashing their checks, the Big Store was insufficient to handle the volume. A number of employees found that method disagreeable and began doing their banking by mail. It was the latter that concerned Red River watching their money going into someone else hands.
Fletcher Walker, the resident manager, came up with a solution. Why not go into the banking business, after all except for the mortuary, they controlled every aspect of Westwood. Of course, this met with opposition from T.B. and Gilbert Walker, as it was nothing related to the lumber business.
In the spring of 1920, Red River moved forward with its announcement that it was going into the banking business. This was foreign territory with a lot to learn. Much to their chagrin was the amount of compliance of government regulations they had to contend with. While Red River had to deal government inspections, mainly for health and safety issues, for the most part they could do as they saw fit, but operating a financial institution was on entirely different level, since the government placed a series of requirements on the latter.
On October 1, 1920, with little fanfare the Westwood National Bank opened its doors for business. The bank was located in the Red River’s office building across the street from the Big Store and the mill entrance. To greet the new customers, the first manager and cashier was A.G. Graham. The Board of Directors consisted of Willis Walker, president; Fletcher Walker, vice-president, R.F. Pray, C.E. Hunter and Fred L. Cleaves.[
After a year in operation the bank reported having $265,905 in deposits on hand. In comparison, Lassen County’s oldest financial institution the Bank of Lassen County reported $1,208,810.59 in deposits. In time the Westwood National Bank began to flourish and in 1925 saw its deposits soar to $914,384.
The Westwood National Bank was a unique institution. Banks in this era, were very progressive to provide loans for building businesses and homes in an effort the communities they serve would prosper. However, this was not the case with Westwood, as Red River owned all the businesses, and all the houses. The bank did provide loans of a personal nature for its customers to purchase big ticket items such as automobiles. However, in one instant, the bank did assist in financing the ill-conceived Red Rock Irrigation District in northeastern Lassen County.
Tomorrow the demise of the bank.