Bristol County, Massachusetts - Chapter 10: Banks and Banking, 1924

Just who the early bankers, so called, in old Dartmouth were, we cannot state. Such currency as was needed evidently came from without. At first the currency used in England was utilized here, later the 'Continental Money," and still later the paper currency of Boston and other New England private concerns, authorized by the State but not guaranteed by the legislature. Indeed, it was not the need of the banks of issue that caused the banks of old Dartmouth to be established. It was for banks of discount rather than issue that the demand arose. The industry of the community was based purely on its maritime transactions. It soon became known that the people must be protected in their banking operations. Marine insurance companies were formed. All the banks of Dartmouth were to some extent the outgrowth of the needs of insurance companies of the marine type. Groups of men especially interested as the managers of the several marine insurance companies, organized the banks to aid the insurance companies in handling their risks.

Bedford Bank. - It was in this way that the first bank of Old Dartmouth, the Bedford, came into existence in 1803, and affiliated with the Bedford Marine Insurance Company, legalized a year or two later. Sixty thousand dollars seemed an ambitious capital, yet it was subscribed, and the bank was enlarged in capital, performing its functions until 1812, when the war with England injured all business and this bank had to close its doors.

In 1816 the Bedford Bank was resurrected under the name of the Bedford Commercial Bank, and as such existed as a State Bank until 1864, when it was forced, as well as all the State banks, to reorganize under the National banking system, taking as its name the National Bank of Commerce, and as such continued until 1918, when it was liquidated after an honorable existence of ninety-five years, discharging its obligations and returning to its stockholders the capital they had invested.

The charter of this bank, extended in the record, was adopted by the Massachusetts Legislature, and approved by Governor Caleb Strong on March 7, 1803. It is a most elaborate act of incorporation, containing provisions afterward embodied in different forms in the general banking laws. William Rotch, Jr., Samuel Rodman and Edward Pope are named as the incorporators. The charter ended 1812, and the $60,000 capital was to be paid in silver or gold. The circulation was limited to twice the amount of the capital, and the loaning capacity was likewise limited to twice the amount of the capital. The Commonwealth could if it so elected take an additional $30,000 in the stock of the enterprise. No stockholder could have more than ten votes, no matter how much stock he might own in the enterprise. One section of the charter was unique and read as follows: "And be it further enacted that one-eighth part of the whole stock or fund of said Bank shall always be appropriated to loans to be made to citizens of this commonwealth, and wherein the Directors shall exclusively regard the Agricultural interests, which loans shall be made in sums not less than one hundred dollars nor more than five hundred dollars, and upon the personal bond of the borrower, and collateral security by sufficient mortgage of real estate for a term of not less than one year." In 1803-4 the bank was authorized by the Legislature to increase its capital to $150,000.

The records make constant reference to the printing, signing and burning of the bills of the bank. John Maybin, of Philadelphia, on July 11, 1803, "shipt per sloop Eliza C. Norton, Mast', for New Bedford Bank 1 box containing 5,670 sheets of paper; 1 box containing a bank mold; 58 water mark letters, $152.13." This paper was kept by the bank and sent from time to time to Samuel Hill, engraver, of Boston, who probably held the "mold." For instance, in 1803 there is an entry: "This day delivered to Andrew Swain two hundred sheets of our NEW paper to be struck off in Boston by _ S. Hill engraver." Later "Received the above mentioned paper from Boston, one hundred and ninety-nine and a half of which sheets were impressed with $27,735, the remaining half sheet was returned torn from Boston and burned by the directors." 'The above sheets were struck in denominations as follows: $5, $10, $20, $30, $7, $8, $9, $50. That fine descriptive writer, Mr. Ricketson, says of this institution: "Behind the front counter and opposite the entrance door was the fireplace of wood, which in earlier days and up to 1826 was the only method of warming the room, and on cold days of winter a cheerful fire was seen within it, sputtering and singing away to the chime of the jingling gold and silver."

In 1883 the National Bank of Commerce Heclded to build a new banking structure on the old site. On the north side of the entrance to the new building, where the whaling trophies have since been kept, the traditional business of insurance was carried on, no longer marine for the most part, but fire. Here Samuel H. Cook, on the very spot where he had worked for the Ocean Mutual, had his insurance offices so long as the bank continued to use the building. For nearly a century until about 1890, Water street between Union street and William street was the Wall street of New Bedford. Practically, all the banks, insurance offices, brokers, lawyers and telegraph offices were concentrated within these limits.

The Merchants National Bank, affiliated with and inspired by the Merchants' Insurance Company, came into existence in 1825, and had its charter renewed in 1831, and with the everchanging conditions of bank existence, the varying laws of regulation, the State and National requirements, the complete change in the nature of the business of the community, it attained and has maintained its position as the most influential bank in the community: The first president and guiding star in the Merchants' Bank was John Avery Parker, born in 1769, who moved to New Bedford in 1803. Associated with him was James B. Congdon. These two men made a team which always pulled together, though of much different temperament. The present building was opened in 1916. The officers in 1923: President, Henry C. W. Mosher; vice-president, Otis N. Pierce; cashier, Henry W. Taber; assistant cashier, James H. Coffin; directors: Henry C. W. Mosher, William W. Wood, Otis N. Pierce, Henry S$. Knowles, Henry L. Tiffany, John W. Knowles, James E. Stanton, jr., William F. Read, John Duff, J. Henry Herring, William Ritchie, James Thomson. At the close of business September 14, 1923, loans and discounts amounted to $7,651,659.89; capital stock paid in, $1,000,000; the surplus fund, $1,500,000.

The Fairhaven Bank and the Fairhaven Insurance Company were chartered the same day, the enterprise being established by a group of Fairhaven whaling merchants. Both the bank and the insurance company had capitals of $100,000; in 1836 the bank's capital was increased to $200,000. Its present capital is $120,000. At the time when the whaling industry ceased to be profitable any longer, the merchants of Fairhaven were sorely smitten and the bank of course sustained heavy losses, yet it was able to adjust itself to the new condition and has since gradually attained a position of prosperous stability. Its resources are now about a half million dollars. Its first president was Ezekiel Swain, who served thirty-one years. He was also a heavy whaling ship merchant.

The Mechanics' Bank and the Mechanics' Insurance Company were incorporated under separate legislative acts in June, 1831. A majority of the incorporators of both corporations were one and the same. It was Isaac Howland who signed the notice to the subscribers for the meeting of organization. Thomas A. Greene was chairman, and James Thornton secretary. William R. Rodman was elected president, and James B. Congdon was made cashier, but soon withdrew in favor of his brother, Joseph Congdon, whose salary was fixed at $1,000 per year, which was not increased for twenty-six years. The bank's first capital was $200,000; in 1854 it was raised to $400,000, and in 1857 to $600,000, its present capital. In 1864 the stockholders voted to surrender their charter and organize a national bank. For about two years there were two separate banks in operation. The bank paid in dividends six per cent. a year for about a half century. Among the interesting records of this institution is the following: "This bank together with all the other banks in the vicinity, suspended specie payments (May 12, 1837), or in other words, ceased to redeem their bills on demand." This entry is not to be construed literally. The bills were redeemed in perfectly good money, but not in coin. Occasionally the diff- . culty in obtaining specie was so great that almost all the banks of the country were forced now and then to suspend specie payments. At the time of the Civil War the suspension was practically universal. The resumption of specie payments after the war was looked forward to with much apprehension, which was not justified by the event. The trouble in obtaining speciee in 1837 and 1838 is evidence by the entries in the records urging the cashier to purchase it on the "best terms available." November 25, 1837, at a special meeting of the directors, Mr. Congdon was authorized to represent the bank at "The Convention of Banks in New York," held, doubtless, to consider the general situation. An entry in the bank record reads, January, 1836:

On the 13th instant the cashier committed to the care of John Sargent (of this town) $2,000 in bank bills to be delivered to the Suffolk Bank in Boston. They were not delivered in Boston as requested but lost on the road. On the 19th instant, said bundle containing two thousand dollars was found and returned to this bank in safety by Godfrey, wagon-driver on the line between N. Bedford and Boston. Whereupon, voted: that the cashier be authorized to pay to the said Godfrey the sum of Fifty dollars it being a reward for finding and returning to this bank said package containing $2,000. Voted: That the cashier is authorized to pay to said John Sargent the sum of ten dollars and ninety-one cents, it being the amount expended by him in searching for said money.

The Mechanics' Bank received its Federal charter in June, 1864, retaining its State charter, however, till March, 1865. At that time it had outstanding a considerable amount of circulation which under the terms of the National banking law was redeemable within two years. After two years the old bills were outlawed, but so far as known no New Bedford bank ever took advantage of this statute of limitation. Even within this century the bank has redeemed bills issued by it prior to 1864.

The new National Bank picked up 5-20 U. S. bonds amounting to $600,000, an amount which represented the entire capital stock, by the deposit of which in the U. S. Treasury it could obtain the right to issue $540,000 of National Bank bills. The troublesome question was how to get these bonds from the old vault on Water street to the Treasury building in Washington. 'There were two or three so-called "express" companies in New Bedford, brought into existence about 1850 by the building of a railroad between New Bedford and Taunton. Hatch, Gray & Company are perhaps the best recalled. The directors of the Mechanics' Bank, however, did not consider it safe to trust so much value to agents who would be quite unable to make good any miscarriage. It was decided that two officers of the bank should take the bonds to Washington. The cashier, Eliphalet W. Hervey, being a salaried officer, was naturally selected as one; the other, it was determined should be a member of the board of directors. Thomas Mandell, the president, said he was much too old for the job. John R. Thornton simply said he would not. Thomas Wilcox was too modest, wherefore by natural process of elimination the job was wished on William W. Crapo, the youngest member of the Board, then about thirtyfive years of age. No extra compensation was suggested. The Bank did, however, pay the bare traveling expenses of its messengers. Mr. Crapo and Mr. Hervey obtained an old well-worn carpet-bag in which the

$600,000 of government bonds was stored, and going to Fall River by team took the boat to New York. Mr. Crapo could not recall a few years since whether it was Mr. Hervey or himself that slept with the precious carpetbag, but together they had it in the state room, and together they carried it up to the Astor House in the morning and took a room and deposited it on the floor. Mr. Hervey went down stairs and had some breakfast, Mr. Crapo guarding the bag in the chamber, and then, in turn, Mr. Hervey guarded the bag while Mr. Crapo went down stairs to his breakfast; and then together they guarded the bag until the next train was ready to leave Jersey City for Washington, which was not until noontime. In those days of the war, traveling was neither luxurious nor safe. The train, called a "mixed train," was crowded with soldiers and camp-followers, and assault and robbery were incidents to be expected. The carpet-bag was placed on the floor of the car, closely between them, and they tried to appear unconcerned. The train reached Washington long after the Treasury Department had closed, and the guarding of the bag was continued in the old Willard Hotel, with watches turn and turn about. As soon as the Treasury was opened the next morning, two tired, travel-worn men deposited their old carpet-bag with the Treasurer of the United States. A considerable time was taken in checking up the bonds and listing the numbers and fulfilling necessary formalities. In the end, a receipt was issued to the Mechanics' Bank, and Mr. Hervey and Mr. Crapo, with a feeling of intense relief, walked down Pennsylvania avenue and had a bite for breakfast. Mr. Crapo subsequently became, through various employments, extremely familiar with the Treasury Department, its methods and varying personnel, and twenty years later he drafted and, as chairman of the finance committee of the Congress, was instrumental in the legislation which renewed the National Bank charters, yet nothing connected with the Treasury or the National Bank system has ever made so deep an impression on him as that perilous journey from New Bedford to Washington with the old carpet-bag bulging with more than a half million dollars precious bonds. °

In 1833 this bank moved to a new building, which still stands. In 1914 the present bank building was commenced, and is a handsome structure of modern architecture. The first president of this bank was William Rotch Rodman, who served twenty years and was counted an aristocrat by some, but a truer, kinder man never lived in New Bedford. The first cashier was Joseph Congdon, who wore a swallow-tailed coat. He carried parched corn in his vest pocket, and was continually nibbling at it in banking hours.

The First National, formerly the Marine Bank, was an old concern when the Civil War came on, and when it became a National bank, it was the first in New Bedford to make the change. Its first president was Joseph Grinnell, who served fifty years. John Williams, Jr., the original cashier of the old Marine Bank that preceded this National bank, was an able man. Later he went into banking in New York City. The statement at close of business, September 14, 1923: Loans and discounts, $7,536,045.28 ; capital stock, $500,000; cash and due from banks, $1,597,687.06; deposits, $10,802,569.23. The officers: President, Irving W. Cook; vice-president, Harry C. Robinson; cashier, Frank B. Chase; assistant cashiers, William C. Phillips and Louis W. Tucker; directors: Walter H. Bassett, Charles F. Broughton, Edward S. Brown, Irving W. Cook, Henry H. Crapo, Herbert

In 1872 Joseph Arthur Beauvais formed a partnership with Thomas B. Fuller, of Fairhaven, and they engaged in private banking in New Bedford, taking deposits, making loans, dealing in securities and acting as financial advisers. They located at the corner of Water and Center streets, opposite the Commercial Bank. In 1875 the Citizens' National Bank was organized and the business of Beauvais & Company was taken over by it. Mr. Beauvais was president, and Mr. Fuller cashier. The original capital was $250,- 000, later increased to $500,000. In 1891 the bank moved into new modern banking quarters at Second and William streets; in 1899 the bank liquidated for the purpose of uniting with the Mechanics' National Bank.

The first savings banks in this country were established at Newburyport and Boston early in the nineteenth century about 1807, and next came the one at New Bedford, the New Bedford Institution for Savings, established in 1825. Its founders had no motives of self-interest, and expected no profit to themselves. They were men of broad minds who wanted the poorer classes to get the weekly habit of laying up for that inevitable "rainy day," and in that they succeeded in building up what has come to be a nationwide savings bank system. 'The prime movers in the establishing of this bank included the Rotch, Russell, Grinnell, Robeson, Haskell, Howland, Shearman, Greene, Nye, Warren and Morgan families. The first meeting was held July 19, 1825, at the counting room of Samuel Rodman, Jr. The first deposit of fifty dollars was made August 15, 1825. In the first two weeks $950 had been deposited by eleven persons. The first report in December, 1825, shows a total of $13,050. The report for the same day in 1916 showed the deposits to be $19,841,265.15. There were at the last date named 40,155 depositors, and resources of $21,766,193.59. The institution has never passed a semi-annual dividend. Abraham Shearman, Jr., was the first treasurer. At first the bank was only open from twelve to one o'clock each Monday, but soon had regular daily office hours. They rented a building until 1833, when one was built by the bank, costing $8,000. In 1853 another location was sought out and a bank building constructed of brown freestone blocks. The lots and bank edifice cost $18,000. It still stands, having been used after its abandonment for a bank, as the courthouse of the Third District Court of Bristol. Here the savings bank had its home forty-three years until 1897, when it moved to its present stately home. There have been erected many other fine banks within this county, but is is doubtful whether any banking house hereafter built can vie with the Old Savings Bank of New Bedford in the quality of its Sienna marble and San Domingo mahogany. It has hanging on its walls the portrait of William Rotch, Jr., the first president, who served twenty-six years and lived until he was ninety-one years of age. On September 29, 1923, this bank had deposits amounting to $25,913,215.80. Its officers were: President, Thomas S. Hathaway; vice-presidents: Oliver Prescott and Joseph T. Kenney; treasurer, Elmer A. MacGowan, who succeeded George H. Batchelor in that office October 15, 1923; assistant treasurer, Philip E. Macy; secre-

The Fairhaven Institution for Savings is known as "The National Bank of Fairhaven." It was established as a savings bank, April 19, 1831. Its early records show, "Voted, that the directors be a committee to erect a bank building with suitable provisions for an office for the Fairhaven Insurance Company." The record-book shows the first depositors and amounts deposited as follows: No. 1, James Neil, $25, Fairhaven; No. 2, Thomas Pray, $30, mariner; No. 3, Francis Silvara, $50, mariner; No. 4, James H. Tilton, $100, mariner; No. 5, Jacob T. Davis, $200, mariner; No. 6, Sarah E. I. Hitch, $7, Fairhaven. Received from six depositors $412 (March 19, 1832). The first dividend declared called for five and one-half per cent. on deposits, agreeable to law. The first president was Ezekiel Swain, who served fourteen years. 'This institution was successful both as a strict savings institution and later in its history as a National Bank.

The New Bedford Savings Bank having proved so useful to the com: munity, it was deemed wise to establish another savings bank, which would care for the savings of another class of citizens - the New Bedford Five Cents Savings Bank. The motive of the men who started this later savings bank is shown by the fact that five cents might be deposited instead of "not less than one dollar," as was the position taken by the older savyings bank of the place. 'Thomas B. White was one of the incorporators and sent out the first call for an organizing meeting, which was held in the Marine Bank. The date was May 5, 1855. The State charter was granted in April, 1855; George Howland, Jr., was elected president, and Henry H. Crapo and Alexander H. Seabury, vice-presidents. The institution leased various rooms for many years, rather than build a bank building. Finally, in March, 1891, the bank purchased the old "Tannery Lot" over which much litigation has been had with the passing years, and there erected the bank. At the close of business September 29, 1923, the amount due 41,218 depositors was $16,940,821.36. To meet the depositors the bank had bonds amounting to $7,160,002.15, and loans and other stock amounting in total to $19,075,795.48. The total surplus was $17,302,- | 752.02. 'The officers of the bank: President, Jireh Swift, Jr., who succeeded Loum Snow in 1916; vice-presidents, Otis N. Pierce and John H. Clifford; treasurer, William F. Turner; assistant treasurer, Arthur W. Austin. The bank to date has had three presidents: George Howland, Jr., May 5, 1855, to February 18, 1892; Loum Snow, Jr., April 18, 1892, to January 6, 1916; Jireh Swift, Jr., January 1, 1916 - . William H. Pitman was elected assistant to the president January 15, 1923, The vice-presidents: Henry H. Crapo, 1855-57; Alexander H. Seabury, 1855-73; Dennis Wood, 1858-78: Frederick S. Allen, 1874-76; Lemuel M. Kollock, 1879-88; Walter Clifford,

The New Bedford Co-operative Bank was organized July 8, 1881, chartered July 11, that year, and commenced business August 19. Its location is at 41 William street. The officers are: President, Lot B. Bates; vice-president, Edward FE. F. Potter; treasurer, William F. Desmond; directors, Frederic Taber, Henry. W. Tripp, Edward E. F .Potter, Benjamin A. Tripp, Lot B. Bates, John Gibson, Edward F. Nicholson, Seth J. Besse, Samuel F. Winsper, Charles R. Price, William B. Gardner, Frederick H. Taber, James O. Thompson, Jr., Elliot H. Wefer, William F. Desmond. The dues capital in 1923 amounted to $1,170,870; the profits capital, $215,- 414.26; real estate loans were $1,552,525; number of shares in force were 28,319.

The statement of condition of the Safe Deposit National Bank to September 14, 1923, was as follows: Loans and discounts, $6,355,573.62; capital stock, $350,000. The officers: President, William S. Cook, who succeeded Edwin S. Bourne, July 1, 1922; vice-presidents: Benjamin Wilcox, Frederic H. Taber, Charles S. Ashley; cashier, A. P. Cunningham; assistant cashiers, Harry I. Gifford, Marcus M. Gray; directors: Chairman Frederic Taber, William S. Cook, Benjamin Wilcox, Frederic H. Taber, Charles S. Ashley, Lot B. Bates, Charles F. Cushing, William B. Gardner, Rufus A. Soule, Jr., George R. Cherry, Elliot H. Wefer, Charles O. Dexter, John Sullivan, Otis S. Cook, Walter H. Underdown, William §$. Bourne, Charles F. Wing, Alphonso H. Smith, William A. Robinson, Jr., John Neild, E. Eugene Ashley, Frank Croacher, Joseph M. Read. The former Textile Trust Company was taken over by this bank, April 15, 1922.

The Acushnet Co-operative Bank, 41 William street, was organized November 12, 1889, chartered November 18, that year, and commenced business November 16. The officers in 1923: President, Frederic Taber: vice-president, Elliot H. Wefer; treasurer, William F. Desmond; directors: Lot B. Bates, Frederic Taber, Henry W. Tripp, Edward E. F. Potter, Charles R. Price, Samuel F. Winsper, Edward F. Nicholson, William B. Gardner, Elliot H. Wefer, Frederic H. Taber, John Gibson, Benjamin A. Tripp, Seth J. Besse, James O. Thompson, Jr., William F. Desmond. The dues capital amount to $889,568; the profitfis capital, $150,482.71; real estate loans, $1,125,100; number of shares in force, 23,210.

In March, 1916, a Morris Plan Bank was incorporated under the laws of Massachusetts, and organized in New Bedford. Its capital is $100,000. The object of this bank is to make small loans to persons of small means who repay the same in weekly payments. It was an innovation in banking systems and has proven a success. During its first year's history it loaned $140,000 to borrowers; one thousand persons borrowed this money.