In 1913, Fairview was growing steadily – as was the nation. Fairview had been incorporated, and the volume of business had increased steadily, not by leaps and bounds but by showing a healthy increase.

Many different financial banks were founded during the growth of Fairview. There were three distinct classes of institutions that made up the banking system of Montana: the national banks, the state banks and the private banks. Banking was far from easy or dependable. The First Bank (1791-1811) and the Second Bank (1816-1836) of the United States were the only official representatives of the U.S. Treasury – the only sources that issued and backed official U.S. money. All other banks were operated under state charter or by private parties. Each bank issued its own individual “banknotes.”

All the state and private banks competed with each other and the two U.S. banks to make sure their notes were redeemable for full-face value. As one traveled around the country, one never knew what kind of money they would get from local banks. With America’s population growing in size, mobility, and economic activity, these banks and kinds of money soon grew chaotic. By 1910, Montana had one bank for each 1,554 inhabitants, a much greater banking density than the nation. In 1910, Montana was also ahead of the the United States in per capita bank assets. A state bank is organized under the state, rather than a federal charter. The Security State Bank in Fairview was founded May 24, 1913, by C.E. Glasspoole, with a capitalization of $20,000. By 1915, the bank was in financial trouble, and the controlling interests were purchased in June 1915 by P.E. Ludtke. When the institution was turned over to Ludtke by its founder, the deposits were only $12,500, and instead of a surplus and undivided profits, the capital stock itself was down. Ludtke paid up the bank’s obligations and breathed new life into the bank. During the first year of Ludtke’s financial and executive management ability as president of the bank, instead of making an assessment of 20 percent to pay losses, he earned 25 percent profits, and $5,000 was placed in the surplus fund.

The officers of the bank were: President P.E. Ludtke; Vice President R.W. Putnam; Second Vice President A.D. Morrill; cashier H. F. Dundas; and assistant cashier Cora Simons. Directors were P.E. Ludtke, R.W. Putnam, A.D. Morrill, H.f. Dundas and W.E. Robb, men of high standing in the business world.

P.E. Ludtke was the son of August Ludtke. He was born March 14, 1882, in Fairmont, Minn., and acquired his early education at Fairmont. August Ludtke was born and reared in Germany. He immigrated with his wife to the United States in 1880 and located in Minnesota. He raised cattle, sheep and with little land, turned his interests to agricultural. He bought a farm and cleared and improved the land. He married Miss Stone in Germany, and they had five sons and three daughters, with P.E. being the youngest child.

Obtaining a practical knowledge of agriculture on his father’s farm, P.E. Ludtke foresaw the wonderful opportunity to move West. He took up a homestead claim in Douglas County, Wash., erected a shack, broke the necessary land and sold his crop for $1,000, a fortune to him at that time. Receiving his patent in 1904, he sold his ranch and migrated to Alberta, Canada, locating at Pincher Creek, where he opened a clothing store, purchasing his stock with the money he obtained from his Washington endeveaors. Although P.E. Ludtke’s only mercantile experience was as a clerk in a hardware establishment in Washington, his clothing venture was a winner, and he added general merchandise to his store. In 1909, he chartered the Bow Island Trading Company Bank and did his mercantile business under that name as well as banking. Ludtke sold his banking interest to the Bank of British North America and went back to the states. Locating in November 1914 in Lambert, he organized the Farmers State Bank of Lambert which was chartered Nov. 25, 1914, being capitalized at $20,000 and was chosen president. During his brief stay with that bank its deposits during the first 15 days of its existence reached $35,000. In 1915, Ludtke moved to Fairview.

Ludtke married in Pincher Creek, Alberta, March 3, 1908, to Mary Gabert, who was born in Walkerton, Ontario, Dec. 31, 1888. They had three children: Charles, Billie and Dorothy.

EDITOR’S NOTE: Information compiled from “History of Montana.”