350 - HISTORY OF CINCINNATI, OHIO. Orleans until July 14, 1814. At that date the vessel was lying at Baton Rouge over night, and the river was falling somewhat rapidly, causing it to settle upon a sharp stump and to sink in consequence. Its engine, with a new boiler, was put into another boat, called the New Orleans, in 1818. OTHER STEAMERS. The Comet was the next boat on the Ohio moved by steam. She was built at Pittsburgh before the summer of 1813, one hundred and forty-five tons, with a new plan of machinery known as French's stern-wheel and vibrating cylinder patent. Then came the Vesuvius, three hundred and ninety tons, built at Pittsburgh, November, 1813, by Robert Fulton himself. It was the first steamer to attempt a return trip past the falls of the Ohio at Louisville—which it never reached, however, grounding instead on a bar about seven hundred miles north of New Orleans, and remaining there nearly five months, when a rise floated it off, and it returned to New Orleans, spending the rest of its short life on the Lowe1 Mississippi, although a vessel made upon its hull made several trips to Louisville. Subsequent early vessels of the kind were the Enterprise, a little affair of forty-five tons, built at Brownsville, in 1814; the Etna, three hundred and forty tons; the Despatch, Buffalo, James Monroe, Washington, and others. The last-named was the first one whose boilers were put on the deck. Before that they were down in the hold. CINCINNATI'S FIRST STEAMER was the Eagle, a small vessel of but seventy tons, built in 1818 for Messrs. James Berthoud & Son, of Shipping-port, Kentucky, to run in the Louisville (afterwards the Natchez) trade. Following this the same year were the Hecla, likewise of seventy tons, built for Honorie & Barbarox, of Louisville; the Henderson, eighty-five tons, owned by the Messrs. Bowers, of Henderson, to ply between that place and Louisville; and the Cincinnati, the first owned in this city, though only in part. She was a vessel 0f one hundred and twenty tons, built for Messrs. Pennywitt & Burns, of Cincinnati, and Messrs. Paxson & Company, of New Albany, to run in the Louisville trade. The first steamer owned entirely in the city was also constructed in 1818—the Experiment, a forty-ton craft. Thus, says Mr. Cist, "it seems that thirty-two boats had to be built before we could furnish capital and enterprise to own one." So modestly and cautiously began a branch of industry and invention which has given employment first and last to many thousands of the citizens of Cincinnati, and added countless millions to her wealth. THE FIRST TRIP UP THE OHIO, and past the falls at Louisville, was made by the Enterprise before mentioned. The following notice of the event appeared in one of the local papers: THE STEAM BOAT ENTERPRISE.—This is the first steam boat that has ascended the Ohio. She arrived at Louisville on the first inst., sailed thence on the loth, and came to this port on the evening of the 13th, having made her passage from New Orleans, a distance of one thousand eight hundred miles, in twenty-eight running days (by the aid of her machinery alone, which acts on a single wheel placed in the stern), against the rapid currents of the Mississippi and the Ohio. This is one of the most important facts in the history of this country, and will serve as data of its future commercial greatness. A range of steamboats from Pittsburgh to. New Orleans— connecting Pittsburgh and Cincinnati, Cincinnati and Louisville, Louisville and Smithland, at the mouth of the Cumberland, or some eligible place on the Mississippi, below the mouth of the Ohio, thence to Natchez, and from Natchez to New Orleans—will render the transportation of men and merchandise as easy, as cheap and expeditious on these waters as it is by means of sea vessels on the ocean, and certainly far safer! (the exclamation point is Mr. Palmer's, not ours.) And we are happy to congratulate our readers on the prospect that is presented of such an establishment. Two steamboats, considerably larger than the Enterprise and yet not too large for the purpose, are already built at Pittsburgh, and will no doubt commence running in the fall. Others will follow. The success of the Enterprise must give a spring to this business that will in a very few years carry it into complete and successful operation. IN EIGHTEEN HUNDRED AND FIFTEEN. As Dr. Drake records in his Picture of Cincinnati, navigation was still conducted by flat and keelboats and barges only, though two kinds of steamers were beginning to ply upon the Ohio. One hundred days were still necessary for the New Orleans round-trip, which it was expected steam would reduce to thirty. Cincinnati had been made a port of entry in 1808, but no vessel was cleared here until this year, on account of the cessation of shipbuilding on the Ohio. Flour was now the chief article of export from the Miami country, several thousand barrels being sent thence annually to New Orleans. Indian meal, kiln-dried, was exported to the West Indies. A very promising business had also begun in the exportation of pork, bacon, lard, whiskey, peach brandy, beer and porter, pot and pearl ashes, cheese, soaps and candles, hemp and spun yarns, cabinet furniture and chairs, walnut, cherry and blue-ash boards. More than seventy shops in the village were now keeping imported goods for sale, about sixty of which were selling dry goods, hardware, glass and queensware, liquors and groceries; the others were dealing in drugs, shoes and iron. Castings were already made in Ohio, at Zanesville and Brush Creek, and were brought thence to Cincinnati. Pennsylvania and Virginia furnished bar, r0lled and cast-iron, and various manufactures in iron, besides millstones, coal, salt, glassware, pine timber and plank. Lead, peltry and skins came in from the Missouri territory, with abundance of furs from sources of supply nearer at hand—the Great Miami, Wabash and Maumee rivers. Cotton, tobacco, saltpetre and marble came mostly from Tennessee and Kentucky; sugar and molasses, cotton, rice, salted hides and other articles, from Louisiana. New Orleans was then, and Dr. Drake thought must continue to be, the great emporium of the western c0untry, and even in 1815 many articles of import from the east could be obtained more cheaply from that city, as coffee, salt fish, claret and some other wines, copperas, queensware, paints, mahogany and logwood. East India, European and New England goods were brought in to a considerable extent, and the several manufactures of the Middle States were received from Philadelphia and Baltimore, chiefly from the former city. The "ingress of foreign merchandise through other HISTORY OF CINCINNATI, OHIO - 351 channels" was already anticipated. The general government was expected to complete a National road from the navigable waters of the Potomac to the Ohio, which would greatly reduce the expense of transportation. Said Dr. Drake also: "Should New York execute the canal which it has projected, the metropolis of that flourishing State will probably become one of our inlets for foreign goods." Very likely: it so happened in a not very long-run. The main hope of commerce was yet in the other direction, however; and the good doctor still looked toward New Orleans. He wisely thought three things were necessary to improvement of trade thitherward-more extensive and wealthy mercantile houses in Cincinnati, an increased number of steamboats, and improvement in navigation at the Falls of the Ohio. Writing of certain Indiana counties, he said: "The inhabitants of these counties receive their supply of foreign goods almost exclusively from Cincinnati, but little mercantile capital being employed at Lawrence-burgh, and there being on the Great Miami no depot of merchandise for that region." The imports this year from places east and south of Cincinnati amounted to $534,680. In 1816 they reached $691,075; in 181 7, $1,442,266, and in 1818, $1,619,030. During the tw0 years following the last war with Great Britain, there was a great increase in the importation of foreign goods, with a consequent depression of prices in the home markets. The following little notice, in the first number of the Cincinnati Gazette, published July 15, 1815, falls fitly into place here: Arrived on Thursday, the sixth instant, at this port, the elegant barge Cincinnati, Captain Jonathan Horton, from New Orleans; passage eighty-seven days. Cargo-sugars, molasses, rum, lignum vitae, Spanish hides, etc., to Jacob Baymiller. IN 1817 certain of the commercial aspects of Cincinnati were noted in an interesting way by the traveller Burnet. He says in his book: Numbers of arks, with emigrants and their families, bound to various parts of the western country, are generally near the landing. Whilst we were here, I counted the different craft which then lay in the river; and as it may convey some information, I shall state their number: Seven Kentucky boats, similar to ours, with coal, iron, and dry goods, from Pittsburgh. Four barges or keel-boats-one was at least one hundred and fifty tons, and had two masts. These boats trade up and down the rivers, exchanging and freighting goods from and to New Orleans, Pittsburgh, etc. Four large flats or scows, with stones for building, salt from the Kenhawa works, etc. Six arks, laden with emigrants and their furniture. Emigrants descending the Ohio mostly call at Cincinnati to purchase provisions and collect information. These arks are similar to the Kentucky boats, only smaller; they can only descend the river. In the season of 1818-19, the amount of flour inspected at Cincinnati for export reached one hundred and thirty thousand barrels. It was estimated that at least fifty thousand tons of produce went abroad that year, out of Cincinnati and the two Miami rivers. The imports of the year were only about half a million. The balance of trade had been against Cincinnati, and the local merchants were uncommonly prudent and cautious about their imports. The exports, however, from October, 1818, to March, 1819, amounted to $1,334,080-of flour alone, in amount as above noted, to value of $650,000; pork, ten thousand barrels, worth $150,000; bacon and hams, $22,080; lard, $46,000; tobacco, $66,000; whiskey, $40,000; cotton cloths sold to the Government, $15,000; live stock to New Orleans, $15,000; butter and cheese, $10,000; cornmeal, beans, etc., $20,000. To the Indiana, Illinois, and Missouri territories alone was exported the large value, for that time, of $300,000. STEAMER TRAFFIC soon began to look up briskly. Henceforth navigation changed rapidly from the broadhorn to the steamboat. The first vessel of the latter class built at Cincinnati, as before noted, was the Eagle, in 1818. During the next year steamer-building began to be actively and most successfully prosecuted. Vessels were built here and elsewhere on the Ohio more cheaply than in any eastern city; and, of all places on the river where steamers were constructed, the preference seemed to be given to Cincinnati. Of all that were built on the entire western waters in the two seasons between 1817 and 1819, nearly one-fourth were launched here. A large number were also built here in the years 1824-6; it is considered doubtful whether more were constructed during that time in any city in the world. The woodwork especially was superior. Black locust, which was not found even at Pittsburgh, was considerably used for it, and vessels thus made were more desirable than those constructed at the east from Jersey oak. Upon these waters there had been two hundred and thirty-three steamboats by 1826. Ninety had been lost or destroyed, and there were one hundred and forty-three remaining, of about twenty-four thousand aggregate tonnage. One was built in 1811, and another in 1814; two in 1815; three in 1816; and in the years following, successively, seven, twenty-five, thirty-four, ten, five, thirteen, fifteen, sixteen, twenty-seven, and fifty-six. Of these forty-eight were built at Cincinnati, which' had half a million dollars invested in the river business. By this time the old-fashioned, primitive craft had been almost wholly superseded by the steamers, some of which were so adapted to the river as to run through the very dryest season. Thenceforth steamer-building was to be exceedingly prominent among the industries of the Queen City. The number built, however, has varied greatly from year to year. In 1833, for example, only eight steamers were launched from the Cincinnati shipyards, with a total tonnage of but one thousand seven hundred and thirty. The number of vessels, barges, and steam ferry-boats built in Cincinnati during the years 1856-79, also strikingly exhibits this variation. They were severally as follows: 1856, thirty-three; 1857, thirty-four; 1858, fourteen ; 1859, eleven; 1860, twenty-eight; 1861, eleven ; 1862, four; 1863, forty-three; 1864, sixty-two; 1865, forty-four; 1866, thirty-three; 1867, eighteen; 1868, eleven; 1869, eleven; 1870, fifty-two; 1871, forty-four; 1872, fifty-two; 1873, forty-eight ; 1874, twenty-nine; 1875, sixteen; 1876, nineteen; 1877, twenty-one; 1878, thirty; 1879, twenty-four. The aggregate tonnage ranged from one thousand seven hundred and forty-five in 1862, to twenty thousand eight hundred and thirty-eight in 352 - HISTORY OF CINCINNATI, OHIO. 1870. The arrivals of these years varied from two thousand two hundred and six in 1863 to three thousand four hundred and fifty-nine in 1866, with departures pretty nearly corresponding. The range of boats plying to and from the city was two hundred and twenty-five in 1862, to four hundred and forty-six in 1865. The second year of the late war, it will be observed, was particularly disastrous to river interests in this quarter. The eleventh annual report, to the Cincinnati board of trade and transportation, of the committee on river navigation, made March , 1880, says of the local boat building of 1880-81: A good number of boats have been built here the past year—the number of all crafts being twenty, with tonnage six thousand six hundred and eighty-three, against twenty-four last year, and tonnage ten thousand six hundred and forty-one. In the future we must not look for a greater number of boats, but expect a heavy increase in tonnage ; this is more applicable to stern wheel boats, which in former years were of small size and used mostly in making short trips. There are those that have attained the carrying capacity of three thousand tons. Now, however, boats, whether of side or stern wheel, for short packet trade or for more distant ports, are of large size ; indeed it seems a question to what point the size of boats may be reached. This change in building larger boats for the Upper Ohio, with more speed, is only following the prediction of those who advocated the lengthening and widening of the Louisville and Portland canal and lessening the rates of its tolls. And the last annual report of the chamber of commerce for the commercial year ending August 31, 1880, makes the following encouraging statement of the river business of that year: The arrivals for the year aggregated three thousand one hundred and sixty-three boats, compared with two thousand seven hundred and twenty-five id the year immediately preceding, and the departures three thousand one hundred and sixty-seven, in comparison- with two thousand seven hundred and thirty. The Whole number of steamboats and barges which plied between Cincinnati and other ports in the past year was three hundred and twenty-two, with an aggregate tonnage of eighty-three thousand five hundred and sixty-nine. In this connection it must be kept in mind that in the past year vessels have run with great regularity and frequency, and that, in consequence, an equal number of vessels represents a larger business, because each vessel in the latter category is counted but once, no difference how frequent may have been the visitations. Again, it is true that the same number of arrivals and departures also represented an increased business, inasmuch as it comprised, generally, vessels which, from the regularity of arrival and departure, and the general exemption of transient boats, had uniformly good cargoes. It is worthy of note that the number of arrivals and departures for each leading point has increased over the preceding year. Thus, the arrivals from New Orleans aggregated, in the past year, one hundred and three vessels, compared with eighty-five in the preceding year, and the departures one hundred and sixteen, in comparison with ninety-seven. From Pittsburgh the arrivals were one hundred and eighty-two, compared with one hundred and sixty-three, and the departures' one hundred and seventy-seven, in comparison with one hundred and sixty-two. From St. Louis the arrivals aggregated ninety-three, compared with sixty-four, and the departures ninety-four, in comparison with seventy-five. From all other points the arrivals aggregated two thousand seven hundred and eighty-five, compared with two thousand four hundred and thirteen, and the departures two thousand seven hundred and eighty, in comparison with two thousand three hundred and ninety-six. A study of the figures th10ugh a series of years reveals the fact that the increase, the past year, was not solely over 1878-79, which was a year that was seriously interfered with by cold weather, that diminished the number of arrivals and departures for the year, but exhibits a general increase, extending through a series of years. Thus, the entire number of arrivals and departures exceeds any preceding year in a period of fourteen years, and has but three times been exceeded in the history of the city, which was in 1857-58, when the excess was very small, and in 1864-65 and in 1865-66, the years that closed and immediately succeeded the war, which was a time that, for a period of normal conditions, would not be a fair measure. SEA-GOING VESSELS. Very early in the century, as we have incidentally noticed in previous chapters, the construction of sailing-vessels, for river and possibly ocean navigation, began upon the upper Ohio. Mr. Devoll, who made the boats which brought the first colonists of the Ohio company to the site of Marietta, was a prominent builder in this line. The voyage of one of his vessels, the Nonpareil, is pleasantly narrated in our chapter on Cincinnati's second decade, in connection with the arrival here of General Mansfield and family. The local papers frequently, for many years, chronicled the arrival and departure of schooners, brigs, and "ships." So late as thirty to forty years ago, the construction of ocean-going vessels on the river promised to become an important industry. In 1844, a bark was built at Marietta and appropriately named the Muskingum, of three 'hundred and fifty tons burthen, which was loaded at Cincinnati the next fall or winter, and started on her long voyage to Liverpool. Her safe arrival was thus chronicled in the Times, of that city, of date January 30, 1845: Arrival direct from Cincinnati.—We have received a file of Cincinnati papers brought by the first vessel that ever cleared out at that city foi Europe. The building of a vessel of 35o tons, on a river seventeen hundred miles from the sea, is itself a very remarkable circumstance, both as a ,proof of the magnificence of the American rivers and the spirit of the American' people. "The navigating of such a vessel down the Ohio and the Mississippi, and then across the Atlantic, would, a few years ago, have been thought impossible. She brings a cargo of provisions; and we trust that the success of this first adventure will be Such as to encourage its frequent repetition. The name of the vessel is the Muskingum: The passage of this vessel by Cincinnati, bound as it was for what then seemed the ends of the earth, naturally awakened the liveliest interest. The Gazette of that day thus poetically and dramatically begins an editorial notice of the event: If one had stood Upon the eastern hill-top which overhangs our city, in the early gray of the morning on Saturday, and looked out upon the river, he might have thought a phantom ship was floating upon it. The quick puffing of a steamer was heard, and out beyond it seemingly a full-rigged ship, its masts towering up and all spars set, was evidently looming on and making direct for the landing of the city. Early risers were startled. Even those who knew that certain enterprising men of Marietta were building a sea-vessel were astonished when itexpectedly hove in sight. But when it approached nearer and r rarer, and bodied itself forth plainly to the naked vision, the cry went up, "a ship! a ship!" with a thrill akin, at least, to that which men and women feel on the ocean shore, when welcoming back the long-absent "sea-homes" of relative and friend. It was an exciting scene. Several other sea-going vessels were fitted out at various points on the Ohio. Messrs. John Swasey & Company, of Cincinnati, built three vessels before 1850, of two hundred to three hundred and fifty tons—one full-rigged brig, the Louisa, and two barks, named respectively the John Swasey and tile Salem. They were taken in tow of steamers to New Orleans, and there bending sails and shipping a crew, they put independently to sea. One of them made a six months' trading trip to the west coast of Africa, and her sailing and weather qualities were reported to be of the highest order. The Minnesota, a ship of eight hundred and fifty tons, was built here about the same time by another firm, for a New Orleans owner. HISTORY OF CINCINNATI, OHIO - 353 IMPORTS AND EXPORTS. In 1826 the principal imports to the city of Cincinnati were as follows: Bar, steel, and spike iron, one thousand four hundred and fifty tons, valued at one hundred and eighty-one thousand two hundred and fifty dollars; castings, three hundred and fifty tons, value twenty-one thousand dollars; pig-iron, seven hundred and sixty-eight tons, worth twenty-three thousand and forty dollars; nails, seven thousand kegs, value sixty-three thousand dollars; lead and shot, five hundred and sixty thousand pounds, thirty-seven thousand five hundred dollars; copper, tin plate, and glassware, eighty thousand dollars; coal, two hundred thousand bushels, twenty thousand dollars; lumber, boards, five million feet; shingles, three million five hundred thousand; joists and scantling, four hundred thousand feet; timber, one hundred and twenty-two thousand feet; total value, sixty-four thousand dollars; indigo, twenty-five thousand dollars; coffee, one million one hundred thousand pounds, one hundred and ninety-eight thousand dollars; tea, two hundred and twenty thousand pounds, two hundred and eight thousand dollars; sugar, eighty thousand dollars; fish, three thousand barrels, twenty thousand dollars; liquors, spices, etc., two hundred thousand dollars; dry goods, one million one hundred and ten thousand dollars- Total value of imports, two million, five hundred and twenty-eight thousand five hundred and ninety dollars. The exports for the same period were: Flour, fifty-five thousand barrels, worth one hundred and sixty-five thousand dollars; whiskey, fourteen thousand five hundred barrels, one hundred and one thousand five hundred dollars; pork, seventeen thousand barrels, one hundred and two thousand dollars; lard, one million two hundred and eighty thousand pounds, sixty-four thousand dollars; hams and bacon, one million four hundred and twenty-five thousand pounds, fifty-seven thousand dollars; feathers, three hundred and two thousand pounds, seventy-eight thousand five hundred and twenty dollars; beeswax seventy-eight thousand eight hundred and twenty-five pounds; cheese: seventy-five thousand pounds, five thousand three hundred and twenty-nine dollars; butter, five thousand" kegs, seventeen thousand five hundred dollars; ginseng, ninety-five thousand five hundred pounds, sixteen thousand two hundred and thirty-five dollars; beans, one thousand barrels, three thousand dollars; tobacco, one thousand five hundred kegs, eighteen thousand two hundred and twenty-five dollars; linseed oil, one thousand two hundred barrels, twenty thousand four hundred dollars; bristles, two thousand pounds, seven hundred and sixty dollars; hats, seventy-five thousand dollars; cabinet furniture, forty-seven thousand dollars; candles and soap, thirty thousand dollars; type and printing materials, nineteen thousand dollars; beer and porter, seven thousand dollars; clocks, etc., fifteen thousand dollars; clothing, fifty thousand dollars; hay, oats, corn, cornmeal, apples, dried fruit, castings, coopers' ware, window glass, tinware, plows, wagons, stills, horses, poultry, cigars, etc., one hundred and fifty thousand dollars. Total value of exports, one million and sixty-three thousand five hundred and sixty dollars, showing a nominal "balance of trade" against Cincinnati, for the present, of one million four hundred and sixty-five thousand and thirty dollars. The volume of commercial business, however, for the period, and twenty years before a single railway was in full operation into the city, must have been regarded as eminently satisfactory. The exports might also have properly included the steamboats built at Cincinnati, but owned abroad. About one hundred flatboats were brought every year down the Great Miami, and about thirty down the Little Miami, with an aggregate burden of thirty-three thousand five hundred barrels of flour, valued at about one hundred thousand dollars, which was less than three dollars a barrel. It was estimated at this time that probably one-third of the imports into Cincinnati were re-exported—a business which had greatly increased within three or four years; and it was remarked that it would be conducted on a much larger scale if the local merchants had capital equal to their enterprise. The figures formerly given, therefore, do not represent the true balance of trade against them. If proper allowances were made, it was thought that the exports would equal imports, and there would be no balance of trade. The trip from New Orleans to Cincinnati was now made in twelve to fourteen days, by steamer. The Mississippi and Ohio rivers were still, of course, the great highways by which all passengers and freight along their borders obtained access to the north. And at that time Cincinnati enjoyed peculiar advantages of situation, as to roads and water-courses, so that persons travelling from the south and southwest to the north could scarcely avoid it. But most dry goods and lighter articles of trade were still brought from New York, Philadelphia, and Baltimore, over the mountains to Wheeling and' Pittsburgh, and thence transported down the river. The heavy articles, groceries, queensware, and the like, were brought up from New Orleans. Iron, in the larger quantities, came in principally from Pittsburgh, and from the Sandy and Licking rivers, upon which there were extensive iron works. The Paint creek and Brush creek regions, in this State, especially the latter, furnished most of the castings imported. Nails were brought from Pittsburgh and elsewhere—"a striking commentary," say Drake and Mansfield, very truly, "upon the deficiency of our manufactures.' Lead came from Missouri; salt from the Conemaugh works, Pennsylvania, and the Kanawha works, Virginia; most of the timber and boards imported was floated in rafts from near the sources of the Alleghany, chiefly from the great forests then still existing about Olean Point, New York. The exports from Cincinnati went mainly to the West Indies and South America; but the pork and whiskey t0 Atlantic cities. Lard was shipped to Cuba and parts of South America, where it was used as a substitute for butter. The lower Mississippi region consumed much of the produce of the Miami country. And there was already a considerable bulk of supplies furnished annually from this quarter to the United States army. THE LAST HALF CENTURY. In round numbers, the commerce of Cincinnati for the year 1832 was estimated at $4,000,000; for 1835 at something more than $6,000,000. The steamer arrivals of this year numbered two thousand two hundred and thirty-seven. Among the imports were ninety thousand barrels of flour and fifty-five thousand of whiskey. By 1840 the capital invested in foreign trade and general commercial business had increased to $5,200,000. There were invested in the retail dry goods trade, in hardware, groceries, and the related lines of trade, $22,877,000. The lumber business alone occupied twenty-three yards, with seventy-three hands, and an investment of $133,000. Their sales for this year reached $342,500. In January, 1842, eighty-eight steamers were owned in the district of Cincinnati, whose aggregate tonnage was eleven thousand seven hundred and thirteen. There were then upon the Western waters four hundred and thirty-seven vessels of this class—seventy of thirty to one hundred tons' burthen; two hundred and twelve of one hundred to two hundred; one hundred and five of two hundred to three hundred; twenty-four of three hundred 45 354 - HISTORY OF CINCINNATI, OHIO. to four hundred ; eight of four hundred to five hundred; five of five hundred to six hundred; four of six hundred to seven hundred; one of seven hundred and eighty-five tons. With the immense growth of population between 1840 and 1850, came a corresponding increase in trade and commerce. One Cincinnati house was transacting commercial business at the rate of $1,200,000 a year, and making more than half its shipments to Great Britain. The next year the commerce of the city was roundly put at thirty-six millions annually, one-fourth of which was a business for home consumption. By this time the importation of coal to the city had greatly developed. The number of bushels locally consumed in 1851 was seven millions seven hundred and eighty-five thousand bushels, against one million nine hundred and fifty thousand and fifty in 1841. In 1859 the consumption had increased to fifteen millions of bushels, and there were sixty-eight coal yards in the city. The last annual report of the Chamber of Commerce furnishes the following valuable statistics: "The aggregate, annual, approximate value of the imports and exports, respectively, at Cincinnati, from 185455 to 1879-80, inclusive, appears in the following table:" |
Years |
Imports |
Exports |
1854-55 1855-56 1856-57 1857-58 1858-59 1859-60 1860-61 1861-62 1862-63 1863-64 1864-65 1865-66 1866-67 1867-68 1868-69 1869-70 1870-71 1871-72 1872-73 1873-74 1874-75 1875-76 1876-77 1877-78 1878-79 1879-80 |
$ 67,501,341 75,295,901 77,950,146 83,644,747 94,213,247 103,347,216 90,198,136 103,292,893 144,189,213 389,790,537 307,552,397 362,032,766 335,961,233 280,063,948 283,927,903 312,978,665 283,796,219 317,646,608 326,023,054 331,777,055 311,072,639 294,214,245 260,892,540 223,237,157 208,153,301 256,137,902 |
$38,777,394 50,809,246 55,642,172 52,906,506 66,007,707 77,037,188 67,023,126 76,449,862 102,397,171 239,079,825 293,790,311 201,850,055 192,929,317 144,262,133 263,084,358 193,517,690 179,848,427 200,607,040 213,320,768 221.536,852 201,404,023 190,186,929 191,486,831 186,209,646 192,338,337 253,827,267 |
In the year 1858, the year following the crisis of 1857, the prosperity and progress of Cincinnati was well marked. The growth of the city was manifested, not only by the territorial extension of its population and business, but the erection of some of the finest buildings, public and private, then in the country. Commerce grew rapidly. Imports in coffee increased during the year eleven per cent; of sugar, thirty per cent ; of molasses, sixty per cent. About one-sixth of all the sugar and one-seventh of all the molasses made in Louisiana that year came to Cincinnati, with one-eighth of all the Brazilian coffee product. Nor was importation of these stapimp0rtationss of the demand. Imports of wool increased one hundred and fifty-five per cent; of potatoes two hundred and sixty-nine per cent; of manufactured tobacco, ninety-six per cent; and so on. Exports increased in quite surprising ratio—horses, one hundred and forty-one per cent; dried fruits, one hundred and sixty per cent; furniture, eighty-nine per cent; molasses sixty-one per cent. Decrease of exports was only observable in minor articles, as green apples, alcohol, butter, eggs, and the like. In flour, however, there was a decrease, but only a slight one—seven per cent. In 1869, the river trade of this city, as compared with other cities on the river, made a very excellent showing. It was one hundred and sixty-nine million five hundred thousand dollars, against one hundred and fifty million dollars of imports and exports for Pittsburgh, one hundred and fifteen million dollars for Louisville, thirty million dollars for Wheeling, and forty million dollars for Paducah. This year crackers were exported to China, and candies to Greece. An immense volume of exports of provisions and breadstuffs was made to the Atlantic coast, but the largest export trade was still maintained with the South. Manufactured articles went mainly to the West and Southwest. Even houses were made here and exported in wholesale quantities to the Far West. The facilities for commercial intercommunication directly tributary to Cincinnati were calculated at one hundred miles of canal, five hundred miles of railroad, one thousand six hundred of turnpike roads, and one thousand six hundred of common roads. The local commerce for 1873, about five hundred and forty million dollars, was nearly half of the commerce of the United States. The completion of the new Louisville and Portland canal, around the Falls of the Ohio, two or three years after, as also the removal of obstructions from the river and the introduction of a light-house system, helped the commerce of Cincinnati. There was also a large reduction in the cost of wharfage at this city, and of tolls on the canal at Louisville. The law of Congress passed July 14, 1870, allowing direct importation of goods from abroad to Cincinnati, has greatly facilitated foreign transactions. A merchant here may now give his order for merchandise to be imported, and if his directions are followed with care, he will next hear of the order by the report of his goods through the Cincinnati custom-house. Under this arrangement the amount of imports and of duties -paid has steadily increased from year to year. The total of direct importations entered at the port of Cincinnati in the fiscal year 1877-8 was six hundred and thirty-two thousand five hundred and twenty-eight dollars; in 1878-9 it was eight hundred and ninety-six thousand five hundred and forty-nine dollars; for 1879-80, nine hundred and ninety-eight thousand three hundred and seventy-two dollars, showing an increase of one hundred and one thousand eight hundred and thirty-one dollars, or nearly twelve per cent in favor of the last. The duties paid on direct importations in the three years successively, were two hundred and seventy-one thousand five hundred and ninety dollars and forty-three cents, three hundred and seventy-four thousand eight hundred and sixteen dollars and seventy-eight cents, four hundred and twenty-one thousand six hundred and seven dollars and seventeen cents. Besides the direct imports, there were also appraised at other ports, for HISTORY OF CINCINNATI, OHIO - 355 transportation to Cincinnati, goods to the value of eighty-three thousand two hundred and sixty dollars, sixty-eight thousand and seventy-three dollars, and ninety-three thousand nine hundred and ninety-four dollars, for the three years, respectively, with duties severally thirty-three thousand four hundred and fifty-one dollars and twenty-nine cents, thirty-eight thousand one hundred and sixty dollars and thirty-two cents, and fifty-three thousand three hundred and seventy-five dollars and eighty-five cents. The following table, for which we are also indebted to Superintendent Maxwell's last report, exhibits the receipts of flour and grain at Cincinnati, each year for the last quarter of a century : |
Years |
Flour Barrels |
Wheat Bushels |
Oats Bushels |
Barley Bushels |
Rye Bushels |
Corn Bushels |
1856
1857
1858
1859
1860
1861
1862
1863
1864
1865
1866
1867
1868
1869
1870
1871
1872
1873
1874
1875
1876
1877
1878
1879
1880 |
546,727
485,089
633,318 558,173
517,229 490,619 588,245 619,710
546,983
671,970
659,046
577,296
522,297
571,280
774,916
705,579 582,930
765,469
774,916
697,578
636,504
540,128
606,667
613,914
771,900 |
1,069,468
737,723
1,211,543
1,274,685
1,057,118
1,129,007
2,174,924
1,741,491
1,650,759
1,678,395
1,545,892
1,474,987
780,933
1,075,348
1,195,341
866,459
762,144 860,454
1,221,176
1,135,388
1,052,952
1,436,851
3,405,113
3,834,722
4,289,555 |
403,920
534,312
598,950
557,701
894,5x5
838,451
1,338,950
1,312,000
1,423,813
2,358,053
1,331,803
1,246,375
912,013
1,125,900
1,470,075
1,215,794
1,160,053
1,520,979
1,372,464
1,323,380
1,441,158
1,096,916
1,467,010 1,398,572
1,534,401 |
244,792
381,060
400,967
455,731
352,829
493,214
323,884
336,176
379,432
542,712
891,833
673,806
602,813
853,182
836,331
809,088
1,177,306
1,228,245
1,084,501
1,109,693
1,551,949
1,258,163
1,597,481
1,180,652
1,555,107 |
158,220
113,818
64,285
82,572
131,487
257,509
247,187
138,935
137,852
190,567
406,188
409,171
218,385
385,672
237,885
289,775
357,309
420,660
385,934
336,410
500,515
427,145
374,637
489,78
573,925 |
978,511
1,673,363
1,090,236
1,139,922
1,346,208
2,340,690
1,708,292
5,504,43&
1,817,046
1,262,198
1,427,766
1,820,955
1,405,366
1,508,509
1,979,645
2,068,900
1,829,866
2,259,544
3,457,164
3,695,561
4,115,564
4,559,506
4,321,456
4,359,549
5,744,246 |
Total |
15,468,911 |
38,662,428 |
29,987,558 |
20,322,80 |
7,242,023 |
58,311,493 |
THE CHAMBER OF COMMERCE. This body, one of the most important and influential of its kind in the world, was organized October 22, 1839, to promote the amicable settlement of differences among the business men of the city. It then met but monthly, in the rooms of the Young Men's Mercantile library. The first board of officers was elected January 14, 1840, and was follows: Griffin Taylor, president; R. G. Mitchell, Thomas J. Adams, John Reeves, S. B. Findley, Peter Neff, Samuel Trevor, vice-presidents; B. W. Hewson, treasurer; Henry Rockey, secretary. The presidents of the chamber since have been Lewis Whiteman, R. G. Mitchell, Thomas J. Adams, James C. Hall, N. W. Thomas, R. M. W. Taylor, James F. Torrence, Joseph Torrence, J. W. Sibley, Joseph C. Butler, George F. Davis, Theodore Cook, S. C. Newton, John A. Gano, Charles W. Rowland, S. F. Covington, C. M. Holloway, Benjamin Eggleston, John W. Hartwell, William N. Hobart, H. Wilson Brown, and Henry C. Urner. Its present objects are defined- as to offer an occasion and place for the discussion of all leading questions of mercantile usage, of matters of finance, and of topics affecting commerce; also to collect information in relation to commercial, financial, and industrial affairs that might be of general interest and value; to secure uniformity in commercial laws and customs; to facilitate business interests and promote equitable principles, as well as the adjustment of differences and disputes in trade. In 1846, a superintendent was appointed for the Merchants' Exchange, which was formed that year, and with which the chamber of commerce was consolidated; and his labors, especially in the preparation of annual reports, have been of great value to the united bodies. Mr. A. Peabody was- the first superintendent, 1846-9 ; then came Richard Smith, 1849-54; William Smith, 1854-71 ; and Colonel Sidney D. Maxwell, 1871 to date. This office is filled most capably and acceptably by Colonel Maxwell, whose reports are replete with statistics, and are accounted among the most valuable issued anywhere. The chamber was chartered in 1850. It has for a long time occupied rooms at No. 22 West Fourth street, near the room of the board of trade and transportation. The Government building at the corner of Fourth and Vine streets has been purchased by the chamber and exchange for one hundred thousand dollars, and will be occupied as soon as vacated by the post-office, custom-house, and other Federal institutions now in it. The association has a reserve fund of forty thousand dollars in United States bonds. When Mr. James A. Frazer, a prominent member, died, he bequeathed five thousand dollars to the building fund of the chamber. The chamber co-operates with the board of trade and the Mechanics' Institute in sustaining the annual Industrial Exposition, and is represented on the board of Exposition commissioners. It subscribes liberally to the guarantee fund, and in 1875 offered a special premium of three hundred dollars in gold for the best display of leaf tobacco at the Exposition of that year. Its charities have also been liberal. It gave a large sum to the Chicago sufferers ; June 8, 1877, subscribed one thousand dollars for the relief of the inhabitants of Mount Carmel, Illinois, which was destroyed by a tornado ; and, September 2 2, 1876, gave five thousand dollars for the yellow fever sufferers at Savannah, besides individual subscriptions. It is justly considered a very high honor to be elected an honorary member of the chamber. So far only ten honorary members have been chosen: Robert Buchanan (died April 20, 1879), Henry Probasco, Miles Greenwood, John H. Gerard, David Sinton, Reuben R. Springer, James F. Torrence, George Graham (died March , 1881), Charles W. West, and William Procter. OTHER EXCHANGES. In 1835, long before a railroad era came for Cin-' cinnati, a Canal Produce exchange was established, mainly through the exertions of Reuss W. Lee. Josiah Lawrence was president; Henry Rockey, secretary. Its original meetings were held in the brick store owned by Major Daniel Gano, 'on the corner of Mound and Court streets, in which their quarters were rent-free after John Thompson bought the store. The Exchange was maintained two years, and then declined, as its location was considered too far up town. It was closed for a year, and then revived and re-established, this time in the College building, on Walnut street, near Fourth. The Cotton Exchange occupies one of the rooms of 356 - HISTORY OF CINCINNATI, OHIO. the Chamber of Commerce, to which all its members belong. It was founded in 1871. The Grocers' Exchange holds its meetings monthly in the room of the board of trade and transportation. The Furniture Exchange is not far distant, meeting in Room No. 48, Pike's Opera house. A Coal Exchange has also been organized by the Cincinnati dealers in "black diamonds." CHAPTER XXXVI. BANKING-FINANCE-INSURANCE. THE opportunity to write another book, and a pretty large one, is presented to any one who will treat in detail the history of these things, so important and weighty in the affairs of Cincinnati for nearly eighty years. We can in this chapter but put together some memoranda and extracts gathered in the course of our general investigations. THE MIAMI EXPORTING COMPANY. The first banking institution in Cincinnati bore this unique title. It was chartered for the term of forty years at the very first meeting of the general assembly of Ohio, only five months after the admission of this division of the Northwest Territory into the Union as a sovereign State. The plan of the company was first mooted by that well known old settler, some years afterwards the donor of the ground upon which the court house and county jail stand—Mr. Jesse Hunt, who was himself an exporting merchant. The agriculture and commerce of the infant west were then at their lowest point of depression, in which Cincinnati fully sympathized; and the direct object of the new institution was to reduce the difficulty and expense of transportation to New Orleans. Banking was at first a secondary matter, though its charter permitted the issue of a circulating medium, and its financial operations subsequently became much more prominent than its commercial transactions. In 1807, indeed, on the first of March, it gave over all commercial schemes, and launched out into a financial career pure and simple. Its capital stock was one hundred and fifty thousand dollars —an immense sum for that day in Cincinnati—which was taken in one hundred dollar shares by one hundred and ninety holders. The official organization was quite similar to that of the banks of to-day. Eleven directors were chosen by the shareholders, who in their turn elected the president and the cashier. In 1815 the Rev. Oliver M. Spencer, the boy hero of the Indian captivity of 1792, was president, and Samuel C. Vance was cashier. Dr. Drake, in his book of that year, said: "The reputation and notoriety of this institution are equal to that of any bank in the western country, and its dividends correspond, having for several years fluctuated between ten and fifteen per cent." Some of the later troubles of this institution are chronicled in our chapters on the annals of Cincinnati, and need not be recapitulated here. IN THE FATEFUL YEAR of 1812 the finances and all kinds of business were again depressed, and the clouds of war hung darkly over the country. In the midst of general gloom the second bank in Cincinnati was started—the Farmers' and Mechanics'. It was founded in 1812, and chartered the next year, but only for five years, or until the time when the charters of all banks in the State were to expire, except that of the Miami Exporting company. Its capital was the then handsome sum of two hundred thousand dollars, held in fifty dollar shares. The president, by the charter, must be one of the directors, and of these one-third were to be practical farmers, and another third practical mechanics. The taking name of the bank was thus better answered and justified than sometimes happens in the history of such institutions. William Irwin was President in 1815, and Samuel W. Davies, afterwards the proprietor of the water works, cashier. By this time its paper was extensively in circulation, and dividends had been declared of from eight to fourteen per cent. a year. In 1819 this bank was made the depository of the public moneys received at Cincinnati. Two years afterwards, and before the war had ended—in June, 1814—the Bank of Cincinnati was opened and began its issues. Money was now easily obtained, and was much more freely and abundantly in circulation. The proportion of capital to population is said, but probably with exaggeration, to have been ten times greater than now. The capital stock of this bank was taken in fifty dollar shares, of which eight thousand eight hundred had been subscribed by the middle of 1815, and by three hundred and forty-five subscribers, who had actually paid in one hundred and forty thousand dollars. At first it had no charter, and was governed by twelve directors, with the usual executive officers. Mr. Ethan Stone was first president, and Lot Pugh cashier. Its notes were issued without stint, and went far and wide. AFTER THE WAR. During the struggle of 1812-15 there was comparatively little foreign merchandise imported into this country, and American money staid at home. But upon the restoration of peace the sails of commerce again speedily whitened the high seas, and the unwonted abundance of money naturally led to unwonted extravagance, especially in the purchase of foreign wares and luxuries. Thus the country was speedily denuded of coin, commerce and domestic trade were contracted, credits were destroyed, debts had to be collected by force, and presently set in the financial disasters and the monetary crisis which lasted from 1817 to 1823. Cincinnati had her full share of its ills. The Miami Exporting company, the woollen factory, the sugar refinery, the iron foundry in which Generals Harrison and Findlay and Judge Burnet had invested large blocks of their means—all the chief props of industry and trade in the embryo city—went down before the terrible rush of this panic. It was during this tristful period that Judge Burnet, heavily indebted to the branch bank of the United States, sacrificed to that all-grasping institution, in payment of his obligations, the HISTORY OF CINCINNATI, OHIO - 357 splendid property comprising the entire square upon which the Burnet house and the post office stand, now worth millions of dollars, for twenty-five thousand dollars. He had offered it td the corporation at a great bargain; but the over-cautious authorities in charge of the affairs of a new-fledged city refused to buy; so the grand opportunity was lost. The successful founders and operators of John H. Piatt & Company's Bank, however, had means, responsibility, and the confidence of the community sufficient to start their institution not far from the fall of the general calamities upon the world of finance, in the year 1817. THE BRANCH BANK OF THE UNITED STATES. The second bank established by the Federal Government received its charter from Congress in April, 1816. The next year, on the twenty-eighth of January, a branch was opened in Cincinnati, and some months afterwards another was established in Chillicothe. This was in pursuance of the visit of deputations from the principal towns of Ohio to secure the establishment of branches at their several places. The Cincinnati branch was at first the only bank in the place. It was opened as an office of discount and deposit in April, 1817, withdrew from the field in October, 1820, and was re-established in May, 1825. In the years 1826-7 J. Reynolds was president, and P. Benson cashier. Gorham A. Worth, from New York city, but long a resident here, was the original cashier, and had a good board of directors at his back. The State of Ohio asserted the right to tax these branches. A law was passed by the legislature fixing a levy of fifty thousand dollars upon each, if they should still be in business after September 15,1819. The auditor of State was authorized and directed to issue his warrants for the collection of the said amounts. When the time arrived, the branches still being in operation, the authorities prepared for the collection of the tax, but were temporarily prevented by an injunction procured by a bill of chancery in the United States circuit court, in the absence of the State auditor, Hon. Ralph Osborn, who, under advice of counsel, declined to appear as cited, upon the fourth of September, the day fixed for the hearing. He was enjoined from proceeding with the acts of collection, although the bank was at the same time required to give bonds to the amount of one hundred thousand dollars. A copy of the petition for an injunction was served by an agent of the Cincinnati branch upon the auditor, with a subpoena to appear before the court on the first Monday of the next January. He had, however, no copy of the writ of injunction allowed; and the auditor enclosed the other papers to the secretary of State, with his warrant for the tax levy, desiring that if, upon legal opinions, they did not amount to an injunction, he should have the warrant carried into effect—otherwise to take no further steps in the matter. The counsel of the State giving advice that no injunction had been served—as was doubtless the case, technically—the writ for collection was passed to Mr. John L. Harper, with instructions to demand payment at the bank, and, if refused, to take the requisite amount from its vaults, if he could do so without using force. If violently opposed, he was simply to depose to, the facts before a magistrate. Mr. Harper, in company with Messrs. J. McCollister and. T. Orr, entered the banking-house on the seventeenth of September, and made the demand, after making sure their means of access to the vault. He was refused, of course, but not met with force and arms, and quietly carried off ninety-eight thousand dollars in gold, silver, and bank notes, which were turned over to the State treasury three days later. The gentlemen making this seizure had now to confront the majesty of Federal law, in answering to a charge of contempt of court, by violating the terms of the injunction. They were arrested and imprisoned, and the money procured and returned to Cincinnati. After long delay, the case, upon an appeal to the United States supreme court, received its final hearing in February, 1824, when a decision was rendered affirming the decree of the court below by which payment of the tax was refused. The State made no further effort at collection, though the bank was deprived for some years of the advantage of the State laws in the transaction of its business, particularly in making its collections ; and the legislature made a fruitless attempt to secure a change in the Constitution of the United States, removing such matters from the jurisdiction of the Federal courts. During the pendency of the case, in December, 1820, and the ensuing month, the following remarkable resolutions were also debated and passed by the Ohio Legislature: That, in respect to the powers of the governments of theseveral States that compose the American Union and the powers of the Federal Government, the general assembly do recognize and approve the doctrines asserted by the legislatures of Kentucky and Virginia, in their resolutions of November and December, 1798, and January, 1800, and do consider that their principles have been recognized and adopted by a majority of the American people. That this general assembly do assert, and will maintain, by all legal and constitutional means, the right of the State to tax the business and property of any private corporation of trade, incorporated by the Congress of the United States, and located to transact its corporate business within any State. That the Bank of the United States is a private corporation of trade, the capital and business of which may be legally taxed in any State where they may be found. That this general assembly do protest against the doctrine that the political rights of the separate States that compose the American Union, and their powers as sovereign States, may be settled and determined in the supreme court of the United States, so as to conclude and bind them in cases contrived between individuals, and where they are, no one of them, parties direct. Thus is outlined one of the most interesting chapters in the history of banking and finance in Ohio. Within a few years after the foundation of this bank, and during the financial crisis above mentioned, its officers received orders to put at once in suit every debt that was due and over-due. The execution of this order added immeasurably to the distress which the business men of Cincinnati were already suffering. Many of the best of them were ruined; the troubles were complicated and in many cases irreparable; and the community did not recover from the shock for many years. It was at this time that Judge Burnet was compelled to make the sacrifice of his home property mentioned in a former paragraph. 358 - HISTORY OF CINCINNATI, OHIO. Some interesting reminiscences of this period were contributed to Cincinnati Past and Present by the late Timothy A. Kirby: Cincinnati was one of the points selected in 1816 for a branch of the bank. The advent of that institution, just after the close of the war, was at a critical time in financial affairs Imports had been suspended for several years by the war, and home manufactures stimulated into a premature existence; but were then in process of being crushed out by an overwhelming avalanche of British goods poured into the country. The war debt was large, and that portion of it held at home supplied remittance bonds to pay balances abroad in lieu of specie; thus saving the bank from immediate pressure, while the country was being demoralized by improvident trade of a one-sided character. Gorham A. Worth took charge of the Cincinnati branch, supported by a local board of directors, one of the leading spirits of which was the late Hugh Glenn. The leading men of Cincinnati were largely indebted to the local banks; their resources were mostly in lands, estimated at high values. The notes and bills discounted by the branch bank became to a large extent mere transfers of previous debts from the local banks. Such a business was unsound, and of course resulted in disaster in about four years. By the year 182o matters came to a crisis. The credit of many leading men was shaken, but still they were mostly sound in real estate assets, in case their lands maintained their values. At that day the merchants and business men of Philadelphia held Cincinnati in leading strings. It was of the utmost importance to the people of the small city to keep good faith and preserve the good opinion of the large city with which they traded. Unfortunately a little sharp practice on the part of a very small number of the people of Cincinnati had the effect to create an unjust prejudice at Philadelphia. In the course of business all the local banks became heavily indebted to the branch bank, and among these one under the management of wealthy Cincinnati and Newport men shut down, indebted one-third of a million or so to the branch. That was a large sum at that day; and to save it the head cashier was sent out, and was drawn into the acceptance of lands at an enormous valuation from the local banks. The home directors and stockholders of the United States bank were in the belief that they had been imposed upon, and that Cincinnati and her lands were a bubble, maintained by the State valuation law and by the united action of a people indebted to insolvency. It may be safely said that this one settlement, made notorious by exaggeration, in its subsequent effects cost the people of Cincinnati millions of dollars in the unjust disparagement or depreciation of its lands, and consequent losses in after settlements and also to pay the heavy indebtedness to the merchants and banks of Philadelphia and elsewhere. The Cincinnati branch was promptly withdrawn, and the business closed up by an agency. Some of the heaviest claims were lost, being discounts of a wild character, while the good claims were collected for the most part in real estate. The titles of the property held by the bank were perfected as far as practicable, and after about two years the property was put on the market and sold in small parcels in installments favorable to the growth of the city, and in a careful manner, to protect the interests of the bank. . . . In the year 1825, the United States bank sent out to Cincinnati Peter Benson, to open another branch of their bank at Cincinnati, supported by a good local board of directors. They enforced specie payment, compelled the local banks to keep their circulation within safe limits, and supplied exchange at fair rates. Their discount for notes and bills was for the most part done on a safe footing. There is no doubt that the general management of the Cincinnati bank, from 1824 to 1836, was highly advantageous to the business in the west. Mr. Biddle and his board of directors at Philadelphia succeeded admirably during the congress charter in sustaining the interests of the stockholders and in promoting the business of the country, Under the Pennsylvania charter they broke down and sunk the capital of the bank in their futile efforts to maintain specie payments in the face of an excessive foreign trade, stimulated to a disastrous extent by the government, policy of the time. The bank should have suspended payment two years sooner, while their assets were sound and not have gone into the folly of remitting State bonds and other trash, to Europe, to meet the huge trade balances of that day. Colonel James Taylor, of Newport, a young man at the time, has vivid recollections of the career of this Branch bank, some of which he has courteously communicated to the writer of these pages. He says: This bank was a large-sized shark, as it ate up all the small banks in the city—to-wit: The Maine Exporting company, the Farmers' and Mechanics' bank, and the Bank of Cincinnati, together with other banks in Ohio. Many citizens of Cincinnati were injured by the bank —among them General William Lytle (it broke him up), Judge Burnet, Mr. Carr, St. Clair, Morris, William Barr, and others. Lytle had to give up his homestead, now owned by Dr. Foster and others, and some tracts of land in Hamilton and Clermont counties. Burnet gave up his homestead, where the Burnet house stands. I know the bank made large sums of money out of its debtors. I, as well as my father, bought considerable property of the agent, taken for debts. The money was mostly made from vacant ground, taken and subdivided, and the rise of property. The bank wound up and established an agency, which existed over fifty years. George Jones was the first agent, in 1823 ; Herman Cope, the second; and Timothy Kirby, deceased, the third. Property was low in 1823-4, and their debtors were forced to give up property to a large amount. The bank, by rise and subdivision of property, made millions of dollars, and only wound up by Kirby a few years ago. This United States bank, instead of being a benefit to Cincinnati, was an injury, as it forced into bankruptcy the other banks in the city, and involved many of its most influential citizens. FINANCIAL NOTES. The local bank rule in 1819 was that "all notes for discount must be dated and deposited in the banks the day previous, before one o'clock P. M., except those for the Branch bank, which must be dated on Tuesday." The banking hours then were only from 10 A. M. to 1 P. M. Mrs. Charlotte Chambers Riske, formerly. Mrs. Israel Ludlow, makes this entry in her journal for August 2, 1820: The depressed state of money matters creates much uneasiness among business men. The gentlemen have formed an association for the reduction of family expenses, superfluities of dress, amusements, etc. Mr. S. insisted upon the entire disuse of tea and coffee. Dr. D. [Drake, probably] argued against the tea measure. By 1829 the United States Branch bank, having now a capital of one million two hundred thousand dollars, was the only banking institution left in the city. A charter for another had been obtained at the previous session of the legislature, but the stock had not yet been subscribed. The Commercial bank was shortly started, at No. 45 Main street; Robert Buchanan, president. At the legislative session of 1830-1 the Savings bank was incorporated, and it was organized the following March, with George W. Jones president and H. H. Goodman secretary. Its habitation was at Goodman's Exchange office, on West Third street, near Main. The well-known Franklin bank of Cincinnati, for many years occupying the classic structure on Third street, near Main, bearing its name on the front, was incorporated February 19, 1833, with a capital of one million of dollars. The Exchange bank was founded October 1, 1834, at No. 154 Main street. The celebrated Ohio Life and Trust company was incorporated in February of the same year. This institution had very extensive powers—to make insurance on lives, grant and purchase annuities, make other contracts involving the interest or use of money and the duration of lives, to receive moneys in trust and accumulate the same, accept and execute trusts of every description, receive and hold lands for the transaction of business or such as may be taken in payment of debts, buy and sell bills of exchange and drafts, and issue bills or notes to an amount not exceeding thrice the amount of the funds deposited with the company for HISTORY OF CINCINNATI, OHIO - 359 not less than a year, other than the capital stock. Twenty trustees managed the affairs of the company, each of whom, was a stockholder to the amount of at least five thousand dollars. The charter was not to be repealed or amended before the year 1870. By 1835 it had two millions of capital and had become a powerful institution. In January, 1835, according to the tabular statement by the auditor of State, the banks of Cincinnati were the Ohio Life and Trust company, the Commercial, Franklin, and Lafayette. The capital of the first was put as we have stated in the preceding paragraph; that 0f each 0f the others was one million, which was all paid in for the Commercial and Franklin, but only one-fourth for the Lafayette. Judge Hall, the distinguished writer, was at this time cashier of the Commercial bank, and became its president in 1853. A VIEW OF 1831. The compilers of the city directory of 1831, just half a century ago, were moved by the state of the money market to say: Money for several years has been in great demand in Cincinnati. The banks discount notes at six per cent., and do a heavy business, but the market-price of money is much greater than that. As there are no usury laws in Ohio, money sells at its real value. Ten per cent. is now considered the market-price of money secured by mortgage, unless the sum loaned be very large. Upon personal security the rate of interest varies from one per cent. a month to three, the rate varying, of course, according to circumstances. The high rates at which money may be safely invested at interest, are gradually attracting the notice of eastern capitalists, to the great profit of our citizens and all concerned. It may startle eastern men to say that money can be borrowed to carry on any business at such high rates of interest, with profit; but there is no doubt of the fact. THE GREAT BANK BUILDING OF 1840. The time-honored edifice on Third street, to which we have just referred in connection with a brief notice of the Franklin bank, was thus paragraphed in 1840, when it was new, in a contemporaneous number of the Cincinnati Chronicle: The new edifice for the accommodation of the Franklin and Lafayette banks of Cincinnati, has been completed. It stands on the north side of Third, between Main and Walnut streets—a very suitable location for the business of the city, but not the most eligible for the display of its magnificent portico, except when the observer is directly in front, on the opposite side of the street. The architect is Mr. Henry Walter, to whose skill and cultured taste many public and private edifices of this city bear testimony. Its portico was described as occupying the entire front of the building, with eight Greek-Doric columns, each four feet six inches in diameter. It was of the same style as the building for the Bank of the United States at Philadelphia, which was modeled from the Parthenon. It was built of freest0ne from the banks of the Ohio river, near the mouth of the Scioto. The roof was covered with copper. It is a notable building in the financial history of Cincinnati. THE BANKS OF 1841 were the Life and Trust company, keeping good its capital of two millions, with Micajah T. Williams for president; and James H. Perkins, cashier, the Franklin, with one million, John H. Groesbeck, president; William Hooper, cashier; the Lafayette, with one million, Josiah Lawrence, president, W. G. W. Gano, cashier; the Commercial, one million, James Armstrong, president, James Hall, cashier; the Bank of Cincinnati, G. R. Gilmore, president, George Hatch, cashier; the Miami Exporting Company (redivivus), with sixty thousand dollars capital, N. W. Thomas, president, J. M. Douglass, cashier ; Mechanics' and Traders' Bank, E. D. John, president, Stanhope Skinner, cashier; Exchange Bank, two hundred thousand dollars capital, owned chiefly by Mr. John Bates, A. Barnes, cashier; the Branch Bank of the United States, Timothy Kirby, agent; Cincinnati Savings Institution, George W. Jones, president, P. Outcalt, cashier. The last-named received the smallest sums 0n deposit, and paid interest on all sums bey0nd five dollars. Cincinnati was now well provided with banks, at least in number and financial strength, and the respectability of the men connected with them. Their aggregate capital was over six million dollars. The Life and Trust Company was at the corner of Main and Third; the Commercial on the east side of Main; the Merchants' and Traders' on the east side of Main, between Third and Fourth, and the Franklin and Lafayette, of course, were in their own building on Third street. THIRTY YEARS AGO. In 1851 there were but six incorporated banks in the city : The Ohio Life Insurance and Trust company, still at the southwest corner of Main and Third streets, of which Charles Stetson was president and George S. Coe cashier. The Commercial bank, 132 Main street; Jacob Strader, president; James Hall, cashier. The Franklin Branch bank, north side of Third, between Walnut and Main street; J. H. Groesbeck, president; T. M. Jackson, cashier. Lafayette bank, near the Franklin Branch; George Carlisle, president; W. G. W. Gano, cashier. Mechanics' & Traders' Branch bank, z00 Main street; T. W. Bakewell, president; Stanhope S. Rowe, cashier. City bank, south side of Third, between Walnut and Vine; E. M. Gregory, president; J. P. Reznor, cashier. The aggregate of capital allowed fo1 banking in the city 0f Cincinnati was so limited by the general assembly that the business of private banking had been greatly stimulated. A large number of banking-houses and brokers' offices had been opened, among the more prominent of which were the following: Ellis & Morton's, corner of Third and Walnut; Burnet, Shoup & Company, northwest corner Third and Walnut; Phoenix Bank of Cincinnati, and George Milne & Company, on Third, between Main and Walnut; Merchants' Bank of Cincinnati, first door from Third, on Walnut; S. 0. Almy, on Third, near Walnut; T. S. Goodman & Company, Main, just above Third; Citizens' bank (W. Smead & Company), Main, between Third and Fourth; Gilmore & Brotherton, Main street, below Columbia; Langdon & Hatch, corner of Main and Court; B. F. Sanford & Company, corner of Fourth and Walnut; and the Western bank of Scott & M'Kenzie, at the northwest corner of Western Row and Fifth street. This last seems to have been a long way 0ut of the general centre of the banking business, which, it is worth while to notice, was concentrated 360 - HISTORY OF CINCINNATI, OHIO. almost exclusively within two or three squares on Third, Walnut, and Main streets. One of the bankers of 1855, still in active business in the city, contributed the following to the historical number of the Daily Gazette, April 26, 1879: Referring to your note of this morning, regarding the bankers of 1855, I called to my aid Mr. James Espy, to have my memory refreshed, and find the following list to comprise those now in the business who were here at that date: H. W. Hughes, then Smead, Collord & Hughes, now H. W. Hughes & Co. James Espy, then Kinney, Espy & Co., now Espy, Heidelbach & Co. J. D. Fallis, then Fallis, Brown & Co., now president of the Merchants' National bank. W. A. Goodman, then T. S. Goodman & Co., now president of the National Bank of Commerce. Henry Peachey, then teller Ohio Life & Trust Company, now president Lafayette bank. W. J. Dunlap, then Wood, Dunlap & Co., now cashier Lafayette bank. S. S. Rowe, then casher of the Mechanics' and Traders' bank, now cashier Second National bank. S. S. Davis, now S. S. Dayis & Co. Mr. James Gilmore is another of the old bankers, of a standing of forty years or more, who retired from business so lately as the latter part of the year 1880. By 1857 the City bank had been added, with its location at No. 8 West Third street. Cincinnati is recorded as having suffered less by the monetary crisis which shortly set in than any other city of importance in the country. Only one wh0lesale establishment and a few retail houses succumbed to the pressure. The sales to country merchants in 1857 aggregated twenty-five millions, which betokened a fairly healthy state of things in Cincinnati and its tributary region. THE NATIONAL BANKS. The capitalists of Cincinnati availed themselves with 'reasonable promptness of the advantages of the National Bank act. By the first of December, 1863, there were fully organized and in operation, the First National, with a capital of $1,000,000; the Second, with $00,000; the Third, with $300,000; and the Fourth, with $125,000 capital. The private banks the same year numbered twenty-seven, with a total capital of $723,599. The next year there were twenty-five private banks, with an aggregate capital of $1,566,510. In 1866, only three national banks were reported, with a capital of $900,000. In 1867, there were eight nati0nal banks, with $4,628,353 capital, and seventeen private banks, with capital to the aggregate amount of $807,554. In 1868, report was made of only six national institutions, but with $3,910,000 capital; nineteen private institutions, capital $2,841,400. The United States bonds and other securities exempted from taxation in Hamilton county this year, amounted to $4,875,000, being nearly one-fourth of the total amount exempted in the State of Ohio. In 1869, the national banks were still six, whose capital had grown to $4,015,000. Twenty-one private banks were reported, with $3,089,410 capital. In 1870, one national bank had dropped out of the re. ports, and the five remaining had a capital of $3,500,000. There were nineteen private banks, with $2,798,750 capital. This status was maintained in 1871. In 1872, the five national banks had $4,00,000 capital; in 1873, $4,000,000; in 1874, $4,185,014; and in 1875, $4,265,560.19. The number of private banking institutions reported for these years, respectively, was seventeen, with $2,235,50 capital; nineteen, with $2,150,380; nineteen, with $2,295,747; and nineteen again, with $2,341,000. In the report of 1873 was included one savings bank, organized under the act of February 26, 1873, with $50,000 capital; and in the report of the next year one organized under the act of February 24, 1845, with a capital of $182,518. In the year 1876-7, nine national banks were reported to the State authorities, with a capital of four million, seven hundred and twenty-five thousand dollars, or an average of more than half a million apiece; seventeen private banks, capital two million and seven thousand dollars; two savings institutions, fifteen thousand four hundred dollars; total, twenty-eight, with an aggregate capital of six million, seven hundred and forty-seven thousand and four hundred dollars. 1877-8.-Nine national banks, four million five hundred thousand dollars; one savings, thirty thousand dollars; sixteen private, one million, six hundred and eighteen thousand one hundred dollars. Total, twenty-six ; capital, six million, three hundred and ninety-eight thousand, one hundred dollars. 1878-9-Nine national, four million four hundred and fifty thousand dollars; four savings, under act of February 24, 1845; nine private, six hundred and twenty-five thousand and sixty-seven dollars. Total, twenty-two banks, with capital five million eight hundred and twenty-two thousand six hundred and fifty-six dollars. The figures given in the report of the board of trade and transportation, for the banking capital of Cincinnati at the close of the years 1877, 1878 and 1879, vary somewhat from those given above. They are: |
Total national banks Total private banks and bankers Grand Totals |
1877 $4,400,000 2,428,000 $6,828,000 |
1878 $4,300,000 2, 168, 000 $6,468,000 |
1879 $4,100,000 1,465,000 $5,565,000 |