Allen County, Ohio - Chapter 11: Banks and Banking, 1906

Chapter 11: Banks and Banking

The Bank in History - United States Land Office - Leighton, Hurd & Jacobs - National Deposit Bank - Exchange Bank - Davis Bank - The City Bank - The Citizens' Bank - The Well-Known First National Bank - Goldsmith & Kalb's Bank - The Metropolitan Bank - The Ohio National Bank - The Commercial Bank, Founded by Dr. S. A. Baxter - The Allen County Building & Loan Association - The Citizens' Loan & Building Company, The Lima Home & Savings Association - The South Side Building & Loan Association - The Lima Trust Company - The Bank of Lima.

The Bank In History

The word "bank" is of Greek origin. In that language it means a bench or table for changing money. The word "bankrupt" is of Italian origin, as in Florence 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. This was their "bank," and when their money was lost, then their bench was said to be broken from which comes our term

There are three great functions which the bank of to-day performs, viz., the receipt of deposits, the making of discounts, and the issue of notes. For the last named, a charter is geneally granted at the present time, though in earlier days, and especially in England, 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 on loans. The origin of banking goes back to the most remote antiquity. 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 and dealer of foreign moneys. The first credit instrument handled by the early bankers appears to have been a bill of exchange. The historians find, by aid of the explorers, the bill of exchange in use in Assyria, thousands of years before the birth of Christ. The same was true in Athens and Rome, though not quite so early as in Assyria. The profits in those early days seem to have come almost entirely from commissions upon deposits. Livy first mentions (B. C. 350) this system in banking and it is frequently referred to in Latin literature of a later time. The great insecurity of all kinds of property during the Middle Ages almost destroyed the system of banking. In fact it was reduced to that of mere money changing.

The rise of modern banking, however, dates from the establishment in Venice of the Banco di Rialto in 1587. In 1619 this great bank was absorbed by the Banco del Giro. So strong did this latter bank become that it was relied upon as the main support of the government, and we have a record that it loaned the government of Venice 500,000 ducats at one time. So well were its affairs managed that for 100 years or more this Bank of Venice, as it was called, was enabled to hold all its credits at a premium, until 1805, when its affairs were liquidated under a decree of Napoleon.

In Amsterdam and Hamburg there were great banks established in the same century as the Banco del Giro in Venice, and they were of great importance in the up-building of these great cities among the commercial affairs of the world. By excessive loans to the Dutch East India Company, the Bank of Amsterdam was obliged to dose its doors in 1819 by a royal decree.

In the 1 8th 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 to-day. In China, bank notes, such as are known to the modern banking system in America, were more or less familiar for 12 centuries, but in Europe the use of bank notes dates only from 1661, when the Bank of Sweden issued notes to avoid the transfer of copper coin. The world is more or less familiar with the Bank of England, established at the dose of the 17th century. This great banking institution, perhaps the greatest in the world, was established by a Scotchman, and more than once has it saved not only the credit, but the real life of England. It is familiarly known as "the old lady of Thread Needle Street." The Bank of Scotland was not established until shortly after the Bank of England, but it received privileges from the English government, similar to those possessed by the Bank of England.

In America, the words "Wall Street" carry with them a financial significance, recognized in every corner of the world. It was formerly said that "when the old lady of Thread Needle Street took snuff, Wall Street sneezed." This is not true at the present time. Wall Street stands alone, and the money interest of the United States is on a par with the greatest nations of the world.

managed, it is a blessing not only to its immediate community, but to the world of advancement at large, and in Allen County it may safely be said that the financial interests are well managed, and of liberal, patriotic usefulness, when needed for the advancement of the county. No disastrous failures have marked the progress of banking in Allen County. True, there have been ripples upon the surface, but the great tide of increasing wealth and the blessings of prosperity have in no way been checked or turned aside by bad financial management.

In 1834 the United States Land Office was removed from Wapakoneta to Lima, and this served as the first banking institution of the place. Later the store of King & Company kept large amounts of money on hand and would cash the checks issued by King & Day in payment for the wheat and other products sold at their warehouse on North Main street.

The Leighton, Hurd & Jacobs bank wasestablished in the early '50's. It was a modest concern conducted in a one-story building south of the old Court House. Later it was in the hands of Hurd & Jacobs and went out of business about 1859.

The National Deposit Bank was established in the corner room of the Lima House under the direction of Shelby Taylor, Benjamin C. Faurot and George H. Hackedorn. This in 1867 became the Allen County Bank and in the early '70's the location was changed to the corner room in the Langan Block. This bank was again changed to the Lima National Bank and for many years was one of the leading financial institutions of the State.

The Exchange Bank was started after the war by N. Tucker. This was succeeded by the Farmers' Savings Bank with J. B. Roberts as president and N. Tucker as cashier. The directors were Fred Rost. R. Metheany, T. B. Roberts, N. Tucker, G. Day, J. Collett, Theo. Mayo, M. Lones, George Ward and J. Hughes.

The Davis bank was an individual bank started after the war and conducted until the death of Mr. Davis, when it was bought and conducted by Baxter Brothers & Company, under the name of The City Bank of Lima, which name it has since retained. It was purchased by Thornton T. Mitchell, who has been its president for some 30 years. E. B. Mitchell is cashier and E. T. Mitchell the assistant cashier.

The Citizens Bank of Lima was opened for business in the corner room of the Lima House with Shelby Taylor as cashier. In 1872 it was changed to the First National Bank, which is to-day the oldest financial institution in the city. The leading spirit in its organization was the late United States Senator Calvin S. Brice, who remained an officer and director until his death. The stockholders are representative men of the city and vicinity. The capital stock is $100,000, and the shares are $100 each. The equipment of the bank is of the highest order. It has a "Corliss" cannon-ball safe weighing eight tons and has never been burglarized. Safety deposit boxes are carried free of charge to patrons. All told, the bank is one of the most handsomely appointed in Northern Ohio. It is located on the northwest corner of Main street and the Square. It is a prosperous and flourishing bank, enjoying the entire good will of a thrifty and wealthy business community. The present efficient management of the institution is as follows : Directors - W. B.

Goldsmith & Kalb's bank was established in July, 1894. This in 1898 was converted into the American National Bank, which liquidated and was succeeded by the Bank of Lima. This again liquidated and was succeeded by

The Metropolitan Bank while not the oldest banking concern in the city is one of the most progressive and has become fully established in the good graces of the people of Lima. Its business methods are such as to commend it entirely to the public and the growing business is an ample evidence that the people appreciate courteous treatment. This bank was chartered in January, 1890, with $50,000 capital stock, and began businessin June of that year. The bank does a general commercial and savings business. It has always occupied its present location in the Metropolitan Block, third door from North street fronting on Main. The officers are Robert Mehaffey, president ; Thomas Duffield, vice-president; William H. Duffield, cashier; and G. E. Mehaffey, assistant cashier. The directors are: Robert Mehaffey, Thomas Duffield, C.

The Ohio National Bank, one of the thorough-going and substantial concerns of the city, began business about 1888 in the building located on the northwest corner of the Public Square and Market street. In 1900 it moved to its present quarters in the Opera House Block. Its capital and surplus is $180,000. The officers are: J. C. Thompson, president; Dr. Frank Ewing, vice-president; L. H. Kibby, cashier; and A. C. Feltz, assistant cashier. The directors are: B. F. Thomas, J. R. Sinclair, J. C. Thompson, H. M. Colvin, Dr. F. Ewing, F. E. Harman, H. A. Holdridge, L. H. Kibby and F. W. Holmes.

The Commercial Bank first opened for business on April 1, 1895, *n tlie west room of the Lima Club building. A few years aga it was moved to its present quarters at No. 14 1 North Main street. The founder and first president was Dr. S. A. Baxter, who was for many years president of the First National Bank of Lima and for more than 30 years has been in the banking business. The Commercial is a private bank and does a general banking business, giving special attention to invest- ment securities. On November 19, 1904, the bank was sold to the present management. The officers are : I. T. Moore, president ; Henry Moore, cashier, and Clem S. Baxter, assistant cashier.

The Allen County Building & Loan Association was organized November 24, 1897, and has an authorized capital of $1,500,000. It is incorporated under the laws of the State of Ohio. The business methods followed by this company, which is located on the northcast corner of High and Elizabeth streets, make possible many real estate deals and much building and repairing work that go a long way toward giving Lima an air of prosperity and an appearance of beauty. This association was organized for the purpose of raising money (on which dividends or interest is paid), to be loaned among the members and depositors for use in buying lots, building and repairing houses and for such other purposes as come in the avenues of legitimate business. The business is not confined to Lima alone, but as the name indicates is operated throughout Allen County. The officers are as follows : Gharles F. Stolzenbach, president; John W. Shanahan, vice-president ; John W. Roby, attorney ; Charles E. Lynch, secretary ; Stephen M. Churchill, treasurer. The directors are : John Crumrine, F. A. Holland, John W. Roby, J. W. Shanahan, Dr. D. H. Sullivan, H. G. Wemmer and C. F. Stolzenbach.

The Citizens' Loan & Building Company was organized in March, 1882, by George Feltz. Its assets for the year ending 1905 were $800,000 and a dividend of 6 per cent was declared for the year. The officers are as follow: Owen Francis, president; Louis

Koch, vice-president ; L. A. Feltz, secretary ; George Klein, treasurer ; Prophet & Eastman, solicitors. The directors are: Owen Francis, George Feltz, Louis Koch, John Herbst, James Donahue, Philip Walther, George Klein, W. T. Agerter and Robert Edmunds.

The Lima Home & Savings Association was incorporated under the laws of the State of Ohio on the 26th of September, 1887. Borrowers and depositors in this association each receive a semi-annual dividend. The borrowers receive a dividend on the amount they have paid on the principal and the depositors on the total amount they have deposited with the association. Its office is located in the Masonic Building, the second door west of the main entrance. The officers are as follows : Directors - W. K. Boone, C. H. Cory, William Melville, Joseph Potter, Ira P. Carnes and T. C. Calvert; treasurer, L. H. Kibby; secretary, C. F. Sprague.

The South Side Building & Loan Association is one of the leading institutions of the kind in Lima and Allen County. It makes loans oh real estate only, assists in the purchase of property and furnishes part of the money required for building purposes. It makes 6 per cent dividends on savings accounts. Money due members can be withdrawn generally on call and in large amounts on notice properly given. The capital stock is $2,500,000. The organization of this company was effected on August 2, 1888, with Charles M. Hughes, F. W. Holmes, C. M. Hughes, Jr., W. L. Porter and W. H. Lamberton as subscribers to the articles of incorporation. The articles were approved by Secretary of State J. S. Robinson on August 21, 1888, and a month later the organization was perfected with C. M. Hughes, president ; F. Thompson, vice-president ; J. Moser, secretary; C. M. Hughes, Jr., treasurer, and W. L. Mackenzie, solicitor. The officers at the present time are : Theodore D. Robb, president ; F. Thompson, vice-president ; J. Moser, secretary ; F. C. Cunningham, treasurer ; W. L. Mackenzie, solicitor ; Mabel Mackenzie, assistant secretary; A. W. Dennan, assistant secretary; Frank Scott, assistant at Bluffton, Ohio; and W. L. Mackenzie, R. C. Beck and H. H. Heman, appraisers.

The Lima Trust Company, a banking institution in the fullest sense of the word, embracing as it does commercial, savings and trust features, opened its doors for business May n. 1903. In the two years of its existence it has stepped to the very front rank of banks in Lima and commands the fullest confidence of the public. The officers are: John D. S. Neely, president ; E. R. Curtin and j. O.

Hover, vice presidents; C. H. East, secretary and treasurer. The directorate, in addition to the above named, includes: Davis J. Cable, R. W. Argue, Jacob Piper, E. J. Maire, M. P. Colt, J. B. Kerr, D. B. Morris, H. G. Wemmer, R. O. Bigley, J. R. Sinclair and G. E. Bluem. All are men of standing and influence in the community and the very best guarantee that the business entrusted to The Lima Trust Company will be carefully and judiciously handled.

On January 2, 1905, a branch was opened at No. 716 South Main street. This branch is meeting with unqualified success and has, as it deserves, the absolute confidence of all, being under the direct supervision of the above-named officers and directors.

Perhaps nothirig will more fully demonstrate the standing of The Lima Trust Company than the fact that it has recently been made the depository of the county funds.

The Bank of Lima, under the' management of W. L. Russell, was formally opened to the public on January 1, 1906, and added another valuable banking institution to our city. It transacts a general banking business, buys and sells exchange, issues letters of credit available in all parts of the world, loans money on real estate and mortgages, as well as on approved collaterals, buys and sells government, railroad and municipal bonds and makes collections on all points. It acts as trustee, register and transfer agents for corporations, manages and cares for estates, oil properties and business interests of any kind. The high financial standing and business ability of its manager is a sufficient guarantee that the new institution will be conducted on the best lines of commercial integrity. The bank is located at No. 107 West High street, opposite the Postoffice.

The banks of Lima are strong, safe and conducted upon the most approved plans of modern financial science. They are steadily increasing in strength and are among the most eloquent witnesses of the stability and prosperity of the city's growth.

The county has a number of other banks of solid financial worth, doing an important business, an account of which will be found in the history of the towns in which they are located.