HISTORY OF MUSKINGUM COUNTY, OHIO - 217

CHAPTER XVI.

BANKS AND MONEY 1NSTITUTIONS.

THE TOWN OF ZANESVILLE—SHIN-PLASTERS - THE FARMERS & MECHANICS' BANK OF ZANESVILLE—THE ROUND RING SOCIETY—MUSKINGUM BANK—THE FRANKLIN BANK—THE FRANK. JAN BANKING COMPANY—THE SECOND NATIONAL BANK—THE MUSKINGUM VALLEY BANK—C. W. POTWIN & CO.'S BANK—CITIZENS' NATIONAL BANK—MUSKINGUM BRANCH OF STATE BANK OF OHIO--THE MUSKINGUM NATIONAL—FIRST NATIONAL—THE UNION BANK—THE DEPOSIT BANK OF C. C. RUSSELL & CO—THE DEPOSIT BANK—SAVINGS BANK—HOME BUILDING COMPANY'S BANK.

From the beginning of the reign of Henry I., (Beauclerc) in the eleventh century, and on down to the establishment of the Bank of England, which was incorporated by William III., in 1694, the legal tender money, or representative of money in England, was made of wood. The holder was entitled to receive from the Crown the value inscribed thereon. A four sided rod was carved in transverse notches, varying in width for thousands, hundreds, scores., pounds, shillings and pence, for those who could not read ; and for those who could read,. the sum was written in ink on two opposite sides of the staff, and, finally, the staff was split in two, longitudinally ; one half was called the tally, or check, and one was laid up for safe keeping, until its corresponding tally should be brought by the person who had last given value for it. From this primitive tally was derived the Exchequer bill, first introduced by Mr. Montague, the Councellor of the exchequer, in 696. The exchequer derived the word bill from the Norman French word, bilk, which means staff.

The town of Zanesville issued "shin-plasters," of which the following is a copy :

"6 1/4 cents—Treasurer of the town of Zanesville, pay the bearer, in current bank notes, six and one-fourth cents, on the presentation of orders amounting to five dollars. Zanesville, May

27, 1837."

ISAAC SPANGLER, President.

JAMES CROSBY, Recorder.

In 1815-16-17, the county was full of shinplasters, issued by banks and individuals, representing sums of from six and one-fourth cents to seventy-five cents.

August 17, 1817, the Farmers and Mechanics' Bank, of Zanesville, was in operation ; and February 10,1819, "the-Zanesville Canal and Manufacturing Company's Bank" published the following statement (as required by law) :

Paid up capital, $79,125 ; notes in circulation, $40,250 ; deposits, $5,258 ; bills discounted, $30,481 ; specie, $10,582 ; Ohio, United States Bank and other notes, $12,501 ; real estate,$31,-

857.

THE ROUND RING SOCIETY—“Shin-plasters" were issued in denominations ranging from six and one-fourth cents to seventy-five cents, inclu-

218 - HISTORY OF MUSKINGUM COUNTY, OHIO

sive, by order of the "Round Ring Society." This organization is said to have been composed of members of the Jefferson School of Politics, and to have held secret meetings, at which refreshments of all kinds were served. The Order adopted an emblem, which was a ring, with a spade within the circle. Samuel Goff was President, and signed his name with the suffix, R. R. B. S.

MUSKINGUM BANK was inaugurated about the first of September, 1812, with the following Board of Directors : A. M. Laughlin, President ; E. Buckingham, John Mathews, J. Van Horne, W. Silliman, R. Fulton, J. Price, J. F. Munroe, J. McIntire, A. H. Wood, J. Hazlett, M. Dillon and Arius Nye. Mr. E. Granger was chosen cashier.

"The Directors (of Muskingum Bank) have called for an installment to be paid on the 27th of October, $1.50 on a share."

The following paper, having the official signatures of the officers and directors of Muskingum Bank, shows the determination of those gentlemen to secure fair dealing ; also the true spelling of the names, one in particular having been spelled in different ways, and as this is Mr. Silliman's own signature, this dispute is settled :

"Ordered that the Board of Directors of the Bank of Muskingum, now in session, do hereby, for value received, release Horace Nye from all and every demand against said Horace Nye, as either drawer or endorser, or in any manner whatever, said Horace Nye having this day paid to said bank his only note in the name of Horace Nye & Company, for the sum of three hundred and seventy-five dollars.

Witness our hands and seals, this 29th of July, 1819.

E. BUCKINGHAM, JR., [Seal.]

President.

[Seal.]

HORACE REED, - [Seal.]

JAMES TAYLOR, - [Seal.]

WYLLYS SILLIMAN, - [Seal.]

ALVAH BUCKINGHAM, - [Seal.]

SAMUEL THOMPSON, - [Seal.]

DAVID CHAMBERS, - [Seal.]

Witness : ALEX. HARPER.

The following paper exhibits a disaster that happened to the bank :

"BANK OF MUSKINGUM, January 9, 1819.

"To Whom it may concern :—This will make known, that the bearer hereof, Horace Nye, Esq., is a Director of the Bank of Muskingum ; that he has been duly appointed by the Board of Directors of said bank, to go in pursuit of David J. Marple, late cashier of said bank, who absconded on Tuesday morning last, as is supposed, with a large amount of the funds of_said bank ; and the said Horace Nye is hereby authOrized, in behalf of, and at the expense of said bank, to take all lawful measures to arrest and secure said David J. Marple, that he may be dealt with according to law and justice.

By order of the Board of Directors.

E. BUCKINGHAM, JR.,

President.

The original copy of this and the preceding paper, are in the possession of Dr. Horace Nye, No. 105 Muskingum avenue.

THE FRANKLIN BANK—This Bank was opened in 1838, by gentlemen of Putnam. Among the stockholders were Solomon Sturges, A. Buckingham, H. Sturges, Daniel Brush, John Peters, J. V. Cushing and E. Buckingham. This Bank was succeeded by the Franklin Banking Company, in 1858. The members of the firm were Daniel Brush, C. W. Potwin and C. E. Robins. Mr. Robins retired from the firm in the fall of 1859. A. V. Smith purchased the interest of Daniel Brush in the spring of 1862.

THE SECOND NATIONAL BANK—This Bank was organized in the fall of 1863 ; C. W. Potwin. President, and A. V. Smith, Cashier, who served the nine years of its operations. Among the stockholders were J. V. Cushing, H. Sturges. Daniel Brush, J. Taylor, Jr., and S. R. Hosmer. This Bank was closed, and the assets divided. in the fall of 1872.

THE MUSKINGUM VALLEY BANK—This Bank, very soon after, succeeded the Second National Bank, with A. H. Brown and A. V. Smith, stockholders, and continued to do business until the fall of 1873, when C. W. Potwin and A. V. Smith succeeded to the business, under the name of C. W. Potwin & Co's. Bank, and continued to do business until July 1st, 1881, when the, business was closed, and the Citizens' National Bank became the successor to C. W. Potwin & Co's. Bank, with the following officers :

President—J. T. Gorsuch.

Vice President—W. M. Shinnick.

Cashier—A. V. Smith.

Directors—J. T. Gorsuch, W. M. Shinnick, Francis Wedge, Perry Wiles, F. B. Abbott, C. H. Jones and G. H. Fauley. Capital, S200,000.

THE MUSKINGUM BRANCH OF THE STATE BANK OF Onto—This Bank was organized about 1848. H. M. Kearny was President, and D. C. Convers, Cashier. The capital was $100,000. The bank was chartered, and continued to do business until 1865, when the charter expired. This Bank was succeeded by the Muskingum National, about the year 1864, with Daniel Applegate as President, and D. C. Convers as Cashier. The capital of this Bank was $100,000, and it continued to do business until January 14, 1871. The stockholders being largely interested, also in the First National, the two

HISTORY OF MUSKINGTUM COUNTY, OHIO - 219

were consolidated under the name of the First National Bank.

FIRST NATIONAL BANK—NO. 134 Main street. The Article of Association was dated October 14, 1863, and, formed in accordance with the provisions of the Act of Congress, appeared February 25th, 1863. On the 6th of November following, a Board of Directors was chosen, consisting of Peter Black, Joseph Black, John A. Adams, E. E. Fillmore, Dr. C. C. Hildreth, W. A. Graham and Chas. C. Russell. Peter Black was elected President, and Charles C. Russell, Cashier.

The Bank organized October 6th, 1863, with a Capital of one hundred thousand dollars.

On the 18th of February, 1869, Charles C. Russell resigned his office as Cashier, and was succeeded by Mr. E. Martin.

January 4th, 1871, the Muskingum National Bank was consolidated with the First National Bank, and the act approved by the Comptroller of the Currency, at Washington, D. C. By this act, the capital of the former Bank was added to the latter, and thereby increased to two hundred thousand dollars. Under this management, Peter Black was continued. as President, and E. Martin as Cashier. On the 4th of January, 1874, Mr. Martin resigned, and George H. Stewart became Cashier. Peter Black died July 7th, 1878, and on the 11th of that month,

A. Graham became his successor as President.

The panic of 1873, that proved disastrous to many banks, did not affect the First National. All demands were paid promptly, thus imposing the fullest confidence, which it still enjoys.

The present capital is $200,000 ; the surplus fund, $50,000.

The Directors are—W. A. Graham, R. D. Shultz, Joseph Black, Alexander Grant, C. C. Hildreth, M. D., Wm. Fox and C. Stolzenbach.

The present officers are W. A. Graham, President ; George H. Stewart, Cashier ; and T. W. Gattrell; Assistant Cashier.

THE UNION BANK, 128 Main street, was organized December 6, 1872, and is a partnership, with large individual liability. The parties being among the most wealthy and responsible manufacturers, merchants and farmers in the county.

The officers are : President, F. J. L. Blandy ; Vice President, L. Wiles ; Cashier, John J. Ingalls.

Its provision against burglars is perfect, having an extra strong iron-lined vault, with burglar box safe, all secured by five of the very best combination and time locks.

THE DEPOSIT B4NK.—This institution commenced business June 15, 1869, under the name of

"The Deposit Bank of C. C. Russell & Co." The company was composed of C. C. Russell, Thomas L. Jewett and Hugh J. Jewett. Thomas L. Jewett died in 1876, and his interest was purchased by Hugh J. Jewett. March 3, 1880, Hugh J. Jewett retired from the firm, his interest being purchased by Charles C. Russell. Thomas Griffith, William Price and Charles M. Gattrell were then admitted, as members of the firm.

Charles C. Russell died June 4th, 1880, and the business has been continued by the Russell estate and Thomas Griffith, William Price and Charles M. Gattrell, under the old firm name, and at the same place occupied by C. C. Russell & Co., southeast corner of Fifth and Main streets.

SAVINGS BANKS.—These institutions are now so well known that but little explanation is needed at this time. The first in the United States was in Philadelphia, Pennsylvania, in 186 ; the second was opened in Boston, in 1817, the object being to afford any one, old, young, rich or poor, an opportunity to save money "for a rainy day," by depositing, in a safe place, sums for accumulation, ranging from ten cents upward.

The first savings bank in Zanesville, Ohio, was organized in 1875, under the control of the Mutual Building and Savings Association, and rapidly grew into favor, and continued to do business until the Manager, Mr. Henry Jones, failed in health, and advised the Directors to either elect some one in his place, or close the concern. They elected to do the latter, and notified the depositors to withdraw their deposits, which they did, and the institution closed in the fall of 1879. The demand for such an institution was such that it was deemed expedient to reopen, provided a competent Manager could be found. Mr. Jones, having partially recovered, was prevailed upon to accept the situation, and the business was resumed, under the name and style of " The Home Building Company," in March, 1880. The institution does not seek commercial deposits, makes no short loans, nor on personal security ; it loans from six months to one or more years, on first mortgages on real estate collateral, on city or country property.

The business is managed by Mr. Henry Jones, the President, and Mr. Jefferson Van Horne, as Secretary, with a Board of Directors, now composed of Henry Jones, J. B. Allen, J. M. Lane, G. M. Jewett, Harvey Darlinton, James T. Irvine, J. P. Ford, J. M. Bonnet, and William C. Townsend, and located at No. 155 Main street, Zane House Building.

BANK DIRECTORY, 1881.

First National Bank—Organized, 1863 ; located at 34 Main street.

Deposit Bank—Organized, 1869 ; located at southeast corner Fifth and Main streets.

Union Bank—Organized, 1872 ; located at 128 Main street.

Home Building Company (Savings)—Organized, 1880 ; located at 155 Main street, Zane Building.

Citizens' National—Organized, 1881 ; located at 30 Main street.