|
AND REPRESENTATIVE CITIZENS - 221 CHAPTER XI BANKS AND BANKING Origin of Banking—Uses of Modern Banks—Banks and Bankers of Shelby County The word "bank" is from the Greek and in that language means a bench or table for changing money. The word "bankrupt" is of Italian origin and the term Banca Rotta meant "broken bench," hence a bankrupt had his bench broken. The first bankers sat behind a little bench on the open street with their money piled upon the bench in front of them and when their money was lost, their bench was said to be broken from whence comes our word "bankrupt." The bank of today performs three great functions, namely : the receipt of deposits, the making of discounts and the issue of notes. For the last named, a charter is generally granted at the present time, though in earlier days private banks and banking firms could issue notes. It is possible, however, to group all the duties of the bank under two heads—lenders and borrowers. Their loanable funds consist of their own capital and that of their depositors; their profits arise from the payment to them of interest 0n loans. The modern banker is generally a dealer in credit, while in ancient times he was a mere custodian of other people's money and a buyer of and dealer in foreign moneys. Bills of exchange, which were the first credit instruments handled, appear to have been in use thousands of years before the birth of Christ. The rise of modern banking, however, dates from the establishment in Venice of the Banco di Rialto in 1587, which was absorbed by the Banco del Gino in 1619 and became the support of the government. In the eighteenth century the two characteristics of modern banking—the issue of notes not covered by coin, and the granting of deposit accounts upon the mere credit of borrowers—were evolved, and this forms a part of the banking system of today. In America the words "Wall Street" carry with them a financial significance recognized in every part of the world. The money interests of the United States are on a par with the greatest nations of the world. No civilized country can make advancement without a bank and in Shelby county it may safely be said that the financial interests are well managed and of liberal patriotic usefulness when needed for the welfare of the county. All the banking institutions are conducted on a sound monetary basis, have conservative and intelligent management, and are secure of the confidence of - 221 - 222 - HISTORY OF SHELBY COUNTY the community. One disastrous failure has marked the progress of banking in Shelby county, that of the German-American in 1904, but the blessings of prosperity were checked but a short time by that piece of bad financial management. The oldest inhabitants are not very clear as to when the first bank was established in Shelby county and the written history of the county does not disclose it but the writer wishes to thank Mr. W. A. Graham of the Citizens Bank for many of the facts concerning the history of banking in this community. Quite early in the fifties of the last century a gentleman by the name of Clark came to Sidney from Urbana and opened a bank but there is no evidence as to how long he continued. Later John W. Carey, a prominent citizen and a man of great energy and considerable enterprise, embarked in the business. Whether he succeeded to the business of Mr. Clark or launched a new enterprise the oldest residents do not recall nor the date of his beginning but it is in evidence that he was engaged in the business as far back as 1854 and continued banking for a number of years affording the community with facilities of a bank and securing profit for himself. He was located in the room now occupied by the gas company. Some years later Hugh McElroy opened a bank in the room now occupied by the First National Exchange Bank and used the rear of the room with his banking outfit while 0. J. Taylor conducted a hardware business in the front part of the room. Later McElroy moved into the room now used by F. Herman & Son. On February 14, 1864, the First National Bank of Sidney was chartered and authorized to begin business, which it did soon after. Among the incorporators were J. F. Frazer, Judge Hugh Thompson, L. C. Barkdull, Wm. P. Reed and William Lec. These men were peculiarly fitted to serve as bank directors. They were old residents and had been doing business in the community most of their lives. Mr. Frazer had been a financier of note. A very successful man, he was a druggist by profession, in the room now occupied by Harry Taylor's hardware store, a man of genial disposition, of unquestioned integrity, and enjoyed the confidence of the community to an unusual degree. Mr. Barkdull was a jeweler by occupation, somewhat stern and severe in manner, but of sound judgment and paid strict attention to business. Judge Thompson was a lawyer, a man of keen foresight, tactful and diplomatic, with splendid business sagacity. Mr. Reed was a cabinet maker by trade but early in life became a note buyer or "shaver," as he was styled. He was not a man of education, but of considerable natural ability and sound judgment, of extensive acquaintance in the county and familiar with the property and financial condition of nearly every one in Shelby county. He was a valuable counselor and in constant demand by his business associates. Mr. Lee was a contractor, a railroad builder, a successful business man. He subsequently moved away from Sid- AND REPRESENTATIVE CITIZENS - 223 ney and was succeeded by John H. Mathers, who continued a director until his death. The first cashier was a Mr. William Gibbs, who served the bank for perhaps a year when he was succeeded by William Murphy. Mr. Murphy had been many years auditor of the county and was a man of incorruptible character. He lost an arm early in life by paralysis and it was difficult for him to work rapidly so that he labored late into the night to get his books balanced and ready for the next day's business. He was succeeded three years later by Charles C. Weaver of Butler county, Ohio, about 1868. In 1869 John H. Wagner entered the bank as a bookkeeper and general assistant. He was a neat bookkeeper, a, rapid accountant and an expert handler of money and detector of counterfeit, and popular with patrons of the bank. On June 9, 1874, William A. Graham entered the bank as collector and clerk. He had been teaching school and added to his slender salary by shearing sheep during vacations. He was an energetic young man of strict morals, aspiring and destined to become a man whose sagacity is recognized in business circles. Early in 1875 Mr. Weaver and Mr. Wagner left the bank and W. R. Moore, agent for the Big Four railway, was made cashier. In December of the same year, Mr. Graham resigned and J. C. Cummins and D. R. Orbison were employed until the bank closed out its business in 1877. The bank went into liquidation and paid its stockholders one hundred and eighty per cent. THE GERMAN AMERICAN BANK The German American Bank opened for business May 1, 1875. Associated in the organization as stockholders with Messrs. Wagner and Weaver were B. W. Maxwell, Mathias Wagner, Peter Wagner, Christian Kingseed, Judge H. Thompson, E. E. Nutt, H. W. Thompson, D. W. Pampel, John E. Bush and others. The bank was popular and prosperous and grew from the start. Its first president was B. W. Maxwell, cashier, John. H. Wagner. Mr. Maxwell resigned two years later and was succeeded by H. Thompson, who continued president until his death. John H. Wagner was then made president and D. R. Orbison became cashier. Mr. Orbison finally resigned and F. D. Reed succeeded him. The bank failed in 1904 for $850,000 and in about two years the receiver, J. D. Barnes, had paid its creditors twenty-seven and a half cents on the dollar. This institution, being a private one, held its stockholders individually liable for the full amount of indebtedness. THE CITIZENS NATIONAL BANK The Citizens National Bank was organized in 1870 and began business July first of that year. James A. Lamb and. Louis E. Mathers were the promoters of the enterprise and associated with them were John H. Mathers, 224 - HISTORY OF SHELBY COUNTY Edmund Smith, William Johnston, Jacob Piper, Sr., Samuel Rice, John Barkalow, C. T. Pomeroy, James Murray, George Hemm, W. L. Alfele, Kendal and Conroy and Nathan Moore. Mr. Lamb was its first president until his death in 1808 and was succeeded by H. W. Thompson, who died in 1908. W. P. Metcalf followed Mr. Thompson and in 1910 was succeeded by Dr. H. E. Beebe. Louis E. Mathers was its first cashier. He died in 1872 and the next cashier was his brother, O. 0. Mathers. In 1875 W. E. Kilborn succeeded Mathers and remained with the bank until January 13, 1881, when he was followed by W. A. Graham, who still occupies the place. The institution has a capital stock of $100,000 with a surplus and undivided profits of $65,000. The present official force of the bank is Dr. H. E. Beebe, president ; C. W. Frazer, vice president ; W. A. Graham, cashier. Board of directors—W. A. Graham, W. P. Metcalf, H. E. Beebe, Jacob Piper, J. N. Vandemark, C. W. Frazer, and W. B. McCabe. The bank enjoyed a natural and prosperous growth and in view of the urgent necessity for a home better suited to the increasing requirements of its business erected a modern brick building equipped for security and convenience on the site of the old one at the corner of Poplar and Main streets in 1888 at a cost of $25,000. THE FIRST NATIONAL EXCHANGE BANK The First National Exchange Bank was organized by L. M. Studevant and his associates in 1899 and began business September 18th of that year, with a capital of $50,000. Mr. W. H. Wagner was its first president and is still its president. Mr. Studevant was its first cashier. The bank was at first located in the room with the Peoples Savings and Loan Association, but in 1906 moved into its present quarters formerly occupied by the German American. In 1906 Mr. Studevant resigned as cashier and was succeeded by J. C. Cummins, the present incumbent. The growth of the bank has been rapid and substantial. It has an authorized capital of $100,000; surplus and undivided profits, $45,000. The officers are W. H. Wagner, president; L. M. Studevant, vice president; J. C. Cummins, cashier ; C. W. Nessler, assistant cashier. Board of directors, C. R. Benjamin, Charles Timeus, L. M. Studevant, Peter Goffena, W. T. Amos, J. E. Russell, R. H. Trego, W. H. Wagner, A. J. Hess, I. H. Thedieck, and J. C. Cummings. THE PEOPLES SAVINGS AND LOAN ASSOCIATION Saturday, October 23, 1886, The Peoples Savings and Loan Association opened for business in the office of Studevant and Way in the building known as the old Hickok corner. A charter had been secured and a plan adopted known as the "perpetual plan" on which to operate the association, which organized by electing D. W. Pampel, president ; Frank Hunter, vice-president; AND REPRESENTATIVE CITIZENS - 225 L. M. Studevant, secretary; Wm. M. Kingseed, treasurer ; James E. Way, attorney. Nine months later the association moved into the room now occupied by the Miami Gas and Fuel Company and six years later, in 1893, it took up permanent quarters in the Robertson building on the corner of Court and Ohio. Its offices are commodious and well-arranged, its furnishings are elegant and its office equipment includes every machine and device that is useful or can add to the efficiency of the service; it is provided With a chrome steel-lined burglar and fire-proof vault, inside of which is a burglar proof safe equipped with an automatic door, which is secured by a triple- movement time lock. Safety deposit boxes are also provided for the use of customers. The officers and directors at the present time are W. H. Wagner, president; R. H. Trego, vice-president; Wm. M. Kingseed, treasurer ; Andrew J. Hess, attorney; L. M. Studevant, secretary; Miss Leal Robertson, assistant secretary; W. O. Anderson, bookkeeper; J. E. Russell and C. R. Benjamin. The 26th annual statement of the association, January 1, 1913, shows resources : Loans, $1,311,207.83 ; cash, $150,160.67; interest clue from borrowers, $1,720.47. Total, $1,463,088.97. Liabilities : Capital stock, $56,581.17; surplus, $110,471.18; deposits, $1,296,036.62. Total, $1,463,- 088,97. During the twenty-six years of its existence it has distributed to its patrons in profits $773,584.85 as interest and dividends on deposits. It has been a leading factor in the prosperity and wealth building of Sidney and Shelby county and well may its founder, L. M. Studevant, be proud of his work. With its one and one half million dollars of assets this institution is the largest corporation, either financial or otherwise, in this county. It has on deposit a sum equal .to a per capita of $52.00 for every man, woman and child in Shelby comity and of $106.00 for every inhabitant of the city of Sidney, which ranks it first of its kind in the state, figuring either the population of the county or of the city as the unit. It als0 ranks second in the state in its percentage of earned surplus to assets. These are but three distinguishing features of a really great savings institution right here in our midst at the service of the thrifty borrowers and depositors of Sidney and Shelby county. THE SHELBY COUNTY BUILDING AND LOAN ASSOCIATION The history of the Shelby County Building and Loan Association dates back to December 14, 1895, when it was incorporated with a capital stock of $2,000,000, divided into 20,000 shares of $100 each. Its first board of directors consisted of John H. Taft, W. A. Perry, Louis Kah, William Piper, John Loughlin, M. L. Heffelman and Louis Pfaadt. William Piper was chosen president ; J. H. Taft, vice-president; D. R. Orbison, secretary; W. P. Metcalf, treasurer ; D. Oldham, attorney. The association began business on the south side of the square in the Timeus block, but its constantly increasing business brought the officers of 226 - HISTORY OF SHELBY COUNTY the bank face to face with the necessity of seeking enlarged and more commodious quarters, and the Amann property on the north side of the square was purchased of the Ferdinand Amann heirs and fitted for banking purposes in 1902. The past year a new building, save the side walls, has been erected on the site, which is in the center of Lancaster's commercial district. The new bank is three stories high with a cut stone front, a lobby, well-equipped office and directors' room on the first floor, handsomely furnished in quartered oak with tile floors and a burglar and fire-proof safe. The following figures show the remarkable growth of the association : 1897, $84,128.56; 1900, $235,725.89; 1904, $389,150.15; 1908, $433,320.06; 1910, $490,486.84; 1911, $697,881.84; 1913, $902,238.02. The official force of the association for 1913 is William Piper, president; E. J. Griffis, vice-president; Louis Kah, Jr., 2d vice-president; Ben Amann, secretary; R. C. Kah, assistant secretary ; Finley Mills, attorney. Financial statement of the Shelby County Building and Loan Association, February 1, 1913. STATEMENT For the year ending Jan. 31, 1913. Assets Cash - $ 27,309.94 Loans - 853,221.34 Furniture and fixtures - 500.00 Real Estate - 19,236.22 Interest, insurance and taxes - 7,970.52 Total: $902,238.02 Liabilities Stocks and deposits - $846,261.41 Contingent Fund - 22,000:00 Dividends - 276.00 Undivided profits - 16,877.39 Borrowed money - 15,000.00 Interest due from borrowers - 1,823.22 Total: $902,238.02 THE FIRST NATIONAL BANK OF JACKSON CENTER, O. The First National Bank of Jackson Center, 0., was organized June 19, 1895, under the style of The Farmers & Merchants Bank of Jackson Center, with Shelby Baughman as president, and P. R. Clinhents as cashier. The first account was opened by the Jackson Center Elevator Company, and the second name on the books of the institution was John Johns. After a service of two years, P. R. Clinhents died and Frank Baughman succeeded him as cashier and F. M. Wildermuth became assistant cashier in 1905. Mr. Baughman resigned on October 19, 1909, and he was succeeded by F. M. Wildermuth. In the meanwhile, on February I, 1907, the business was reorganized, the bank becoming The First National Bank of Jackson Center, when it entered upon a new and still more prosperous career. The initial capitalization was $10,000, while its present capital is $33,000, and according to its statement of September 4, 1912, it has assets of AND REPRESENTATIVE CITIZENS - 227 $392,830.92, surplus $66,000, and $45,000 undivided profits. The bank owns its own substantial building and it is equipped with a screw-door safe, the wall being twenty inches in thickness. The officers of the bank are : Shelby Baughman, president ; G. A. Swickard, vice-president; F. M. Wildermuth, cashier, and Walter C. Meranda, assistant cashier, with a board of seven directors. THE FARMERS AND MERCHANTS BANK COMPANY, ANNA, O. The Farmers and Merchants Bank Company was established at Anna, 0., in 1907 by parties from Columbus, 0. On May 29, 1910, it was incorporated by Daniel Runkle, R. D. Curtner, William C. Henrich Geo. D. Fridley and E. M. Martin, with a capital stock of $25,000. The bank is- doing a good business and has undivided profits of $1,600. The present officers are : Daniel Runkle, president ; R. D. Mede, vice president, and A. W. Fridley, cashier. THE SHELBY COUNTY BANK, BOTKINS The Shelby County Bank was established at Botkins about 1897 by Philip Sheets, who conducted it as sole proprietor until his death in 1905. The business then passed into the hands of his sons, E. S. and H. E. Sheets, who continued it as a private bank until 1912. It was then incorporated with a capital stock of $25,000, with H. E. Sheets, president ; Philip Sheets Jr., vice president, and E. S. Sheets, cashier, which is the official board at the present time, January 1, 1913. The bank is a prosperous concern and an important factor in the commercial life of Botkins and the surrounding district. THE LORAMIE BANKING COMPANY The Loramie Banking Company, of Ft. Loramie, 0., is a thriving financial concern, of which B. J. Wuebker is president, the official board and directors being men of acknowledged business ability. The bank has been established for a number of years, and is an important factor in the business and financial affairs of the western part of the county. |