Fairfield County, Ohio - Chapter 10: Banks and Banking, 1912

Chapter 10: Banks and Banking

The Bank in History - The Fairfield National Bank of Lancaster - The Lancaster National Bank - The Farmers and Citizens Bank of Lancaster - The Hocking Valley National Bank of Lancaster - The Far>ncrs and Merchants Bank Co. of Amanda - The First National Bank of Baltimore - The Bank of Basil - The Millersport Bank Co. - The First National Bank of Bremen - The Bremen Bank Co. - The Farmers and Merchants Bank of Carroll - The Pickerington Bank - The Pleasantville Bank - The Riishville Banking Co. - The Bank of Sugar Grove - Bank Notes.

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 conies our term "bankrupt."

There are tiiree great functions which the bank of today performs, viz., 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, 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 antiquity. The modem 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 fir.st 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 destro\'ed the system of banking. In fact it was reduced to that of mere money changing.

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 close 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 today. 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 close 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 interests of the United States are on a par with the greatest nations of the world.

No civilized covmtry can make advancement without a bank. \\'hen conservatively managed, it is a blessing not only to its immediate community, but to the world at large, and in Fairfield County it may safely be said that tlie 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 Fairfield 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.

The following accounts of the banks of Lancaster and of the building and loan associations will be of interest to every citizen of the county.

The Fairfield National Bank of Lancaster. - The history of The Fairfield National Bank of Lancaster dates back to 1873. In this year a private bank was organized and operated as The Commercial Bank; this institution had its location on West Main Street in the property then owned by Rev. Williard. In the year 1874 The Commercial Bank was sold to The Fairfield County Bank, and under this firm name a successful banking business was conducted for eighteen years in the Whiley Block, at 114 West Main Street. During this period the business of The Fairfield County Bank enjoyed a prosperous and natural growth, and it became evident that larger and more commodious quarters were necessary. In view of the urgent necessity of a home better suited to the increasing requirements of its business, The Fairfield County Bank purchased a lot directly across from its oFd quarters on Main Street and erected thereon a modern brick building which was fitted up for new quarters for the bank.

In December of the year 1892 The Fairfield County Bank moved across the street to its new quarters and continued business as a private institution through 1904. On tlie first day of January. 1905, the private bank, which had been operated for the past thirty years under the name of The Fairfield County Bank, received a charter from the U. S. go\ernment to do business as a National Bank ; and on that day, January i, 1905, The Fairfield National Bank of Lancaster (No. 7,517) took over the business of The Fairfield County Bank.

The Fairfield National Bank of Lancaster began business with a paid up capital of $100,- 000.00. The officers of the institution were (in 1905) Philip Rising, president; H. B. Peters, ist vice president, Geo. W. Beck, 2nd vice president, and Geo. P. Rising, cashier. By conservative and progressive business methods, the sphere of The Fairfield National Bank of Lancaster has broadened, until the deposits have reached three quarters of a million dollars, and total assets almost one million dollars. The constantly increasing business of this institution has again brought the officers of the bank face to face with the necessity of seeking enlarged and more commodious quarters. It is the present expectation (1912) to erect a modern fire proof banking house on a location recently acquired in the center of Lancaster's commercial district. The proposed building will be for the exclusive use of the bank, modern in every detail, and so arranged as to allow ample room for the increasing growth of the bank.

The officers of The Fairfield National Bank of Lancaster are (in 1912) : H. B. Peters, president; Geo. P. Rising, vice president; P. R. Peters, cashier; H. K. Beck, assistant cashier. The board of directors consists of the above officers and Edward DeLancy and John Thimmes.

The Lancaster National Bank operates under a Federal charter of date September 30, 19 10, has a paid up capital of $100,000 and a surplus earned of $12,000 and aggregate resources of over half million dollars all of which have been acquired in the short time of two years. The officers are ; Fred L. Mauger, president ; O. L. Ballinger, active vice president ; and J. L. Graham, cashier.

The shareholders are all Fairfield County citizens of the most substantial business men and farmers. The growth has been phenomenal, the earnings sufficient to pay the shareholders a cash dividend at the end of second year.

The Hocking Valley National Bank, of Lancaster, O.. whose place of business is located at No. 148 W. Main street, Lancaster, has a capital of $60,000.00; surplus, $60,000.00. This bank was organized in 1847 as the Hocking Valley Bank. It was nationalized in 1865.

Ed. Mithoff is president, George Mithoff, cashier, and T. E. Mithoff, assistant cashier. The directors are: Ed. Mithoff, T. E. Mithoff, George Mithoff, W. K. Martin, C. W. Mc- Cleery, A. J. Kesinger and W. E. Thimmes.

The Farmers and Merchants Bank Company of Amanda was organized in 1904 with a capital stock of $25,000.00. The promoters of this bank were J. J. Stevenson of the firm of Stevenson & Vercoe of Columbus, P. L. Schneider, cashier of the National Bank of Commerce, Columbus, Ohio, and S. H. Simon and others of Amanda, Ohio. The present officers and directors are as follows: T. H. Griffith, president; S. H. Simon, vice president; P. L. Schneider, treasurer; Clyde A. Barr, secretary and cashier ; Charles R. Lewis, assistant cashier; Isaac Riegle, Geo. W. Blue, C. W. Griffith, A. H. Shaeffer. Since the organization of this bank there has been a steady growth in deposits. At the present time they are $160,000.00. On January ist of this year the bank moved into new quarters, and it has a well-equipped, and modern banking room, second to none in the county.

The First National Bank of Baltimore, Ohio. - A. Hansbarger, president; I. N. Carnes, vice president; C. M. Wagner, cashier; J. W. Fenstermaker, assistant cashier. This bank was organized under the National Banking laws in the year 1905 with paid up capital of $25,000. Its doors were open to the public for business April i, 1905, with the following officers and directors: A. Hansbarger, president; L N. Carnes, vice president; C. M. Wagner, cashier; John Bright, T. D. Ketner. E. B. Wagner. Due to the growing business in the year 1908, the directorate was increased to seven in number, electing W. C. Hansbarger and J. R. Johnson, and employing J. W. Fenstermaker, son of James Fenstermaker as assistant cashier. The bank is a strong financial factor in the community, the capital stock being owned by some of the most influential people in the community. The following compose the present board of directors and officers: A. Hansbarger, president; I. N. Carnes, vice president; E. B. Wagner, J. R. Johnson, T. D. Ketner, W. C. Hansbarger, John Bright, C. M. Wagner, cashier; J. W. Fenstermaker, assistant cashier.

The Bank of Basil was established July 15, 1895, as a partnership or private bank, by Samuel Rickly, Ralph R. Rickly, John E. Martin, George W. Bright and J. S. Morton, all of Columbus, O., with the following officers : Ralph R. Rickly, president ; George W. Bright, vice president; and William H. Leitnaker of Basil, O., cashier. This enterprise was launched as an experiment and at that time was the only bank in Fairfield County outside of Lancaster. Notwithstanding the frequent comments and prophecies that no bank outside of the cities, could get enough business to remain open long. The Bank of Basil proved the fallacy of that argument by making a steady growth until when a few years later, the deposits of this bank reached more than one quarter of a million dollars.

About this time the adjoining towns seeing the success of this venture, organized banks also, which absorbed some of the territory formerly enjoyed by The Bank of Basil. However this senior institution still holds a good share of the public confidence, as well as that of business transactions reaching well into the territory now claimed by adjoining banks, as is shown by their recent statement.

The following are the present board of officers: Ralph R. Rickly, president; George W. Bright, vice president; William H. Leitnaker, cashier; Clyde C. Leitnaker, assistant cashier.

The First National Bank of Bremen, Ohio, was organized July 14, 1910, with a capital stock of $25,000.00; surplus, $7,000.00. There are 80 stockholders and the total resources are $185,000.00. The directors are H. E. Young, L. H. Kennedy, David Garrison, Lincoln Olive, Joseph E. Johnston, F. B. Stemen, E. B. McCullough. Officers : H. E. Young, president ; L. H. Kennedy, vice president ; A. D. Hufford, cashier; E. A. Hufford, assistant cashier. This bank, although the youngest in the county, is making a rapid and permanent growth. Its officers are competent and energetic, and its patrons loyal.

It has the distinction of having one of the best, if not the best banking room in the county. The things contributing to make it so are a large, beautiful lighted room, with entrance from business streets at each end, bank fixtures all in cherry and mahogany, cozy waiting-rooms for both ladies and gentlemen, with toilet-rooms attached ; a closed cage for paying and receiving teller, and just such conveniences as one would find in a city bank. The vault is perfectly fire-proof and houses the customers' safety deposit boxes, and "the strongest safe in the world" - the famous Ely-Norris Manganese Steel Safe.

The Bremen Bank Company was organized in 1897 was incorporated March i, 1906, with a capital stock of $25,000. The officers are Howard M. Shelhamer, president; James J. Welch, vice president; George E. Turner, cashier ; George J. Frash and George W. Baldwin, assistant cashiers. The directors are Jacob B. Turner, Isaac Klingler, John Schmeltzer, William C. McCandlish, Howard M. Shelhamer, J. Frank Thompson, x-Mbert F. Turner and D. F. Householder.

The Farmers and Merchants Bank, of Carroll, O., does a general banking business. The officers of this institution are L. T. Martin, president and C. E. Kistler, cashier.

The Pickerington Bank was organized in 1909 and commenced business January 3, 1910, with a capital stock of $25,000.00. The officers are : A. M. Whims, president ; B. S. Hempy, vice president; H. S. Taylor, treasurer; W. B. Taylor, secretary; James G. Kraner, cashier. The directors are A. M. Whims, B. S. Hempy, H. S. Taylor, W. B. Taylor, S. R. Milnor, John Huntwork, John Derr, Clark Ashton and James G. Kraner.

The Pleasantville Bank, of Pleasantville, O., is capitalized at $25,000.00. It is a state bank, having the following officers : Arthur Kinsel, president; Dr. A. V. Lerch, vice president; E. C. Sawyer, cashier; Stanley M. Patterson, assistant cashier.

The Rushville Banking Company, of Rushville, O., commenced business September 8, 190S. It has a capital stock of $25,000.00. The officers are Silas B. Neeley, president ; John Jay Shaw, vice president ; J. W. Lewis, secretary; W. M. Phillips, treasurer; Fred B. Lewis, cashier. The directors are Silas B. Neeley, John Jay Shaw, J. W. Lewis, W. M. Phillips, Fred Rufif, L. C. Wagner and W. M. Kerr.

The Bank of Sugar Grove, a substantial institution with a strong board of directors, is doing an excellent business. John R. Bowen is the efficient cashier. The bank has a capital of $10,000.00; deposits, $54,000.00; surplus, $800.00. The board of directors is as follows : H. M. Anderson, Lancaster, O., superintendent Logan Natural Gas & Fuel Company; James L. Martin, Logan, O., ex-auditor of Hocking County; H. Holland, of Sugar Grove, 0., superintendent Northwestern Ohio Natural Gas Company, vice president; James N. Grimm, Sugar Grove, O. ; R. O. Wagstaff, Sugar Grove, O. ; Dr. T. R. Mason, Columbus, O., physician; John R. Bowen, Columbus, O. cashier.

The Exchange Bank did a profitable business until 1864, when it was merged into the First National Bank, with Mr. Martin, president. In 1886 Mr. Martin sold his interest to S. J. \\-right.

In 1873 Spencer J. Wright became a partner in the Commercial Bank with J. H. Cochrane, from Cambridge, Ohio. Mr. Cochrane previously conducted the bank on his own account. Cochrane returned to Cambridge and Wright continued until September, 1874, when the institution was merged into the Fairfield County Bank, with Wesley Peters, president, S. J. Wright, cashier. The latter subsequently resigned and organized the Lancaster Bank and was president two years.