Norfolk County, Massachusetts - Chapter 40: Financial History, 1918

Chapter 40: Financial History

In the chapters relating to the various towns mention is made of the propertyvaluation and other financial matters, and in this chapter is treated the financial condition of the county. Norfolk County has been fortunate during the two and a quarter centuries of her corporate existence in having men of integrity to manage her financial affairs. Debts have been incurred from time to time, but in every instance it was for some necessary public improvement, and the bonds issued have been promptly taken care of at maturity, except in rare cases where they have been refunded by a new issue.

According to the report of the county treasurer for the year ending on December 31, 1916, the total annual receipts of the county amounted to $700,663.15. The principal sources of revenue were from the county tax levied upon the several towns and the City of Ouincy and from temporary loans in anticipation of the year's taxes. Of the county tax, the largest sum was paid by the Town of Brookline and the smallest by the Town of Plainville. The former paid $115,290.85 and the latter $875.14. The temporary loans aggregated $225,000 and the county tax $295,000. On the other side of the account, the expenditures for the year were as follows :

In this table temporary loans are not included, though they were repaid during the year. As to the actual financial standing of the county at the close of the year 1916, the following statements of assets and liabilities are taken from the report of the county commissioners. In the case of public buildings, the site and fixtures are included in the figures given :

Assets

By a comparison of these two tables it will readily be seen that the county, in its corporate capacity, holds more than five and a half dollars in assets for every dollar of liabilities. Provisions have been made for the payment of the county debt annually, the amount of the annual payment decreasing from $39,680 in I9T7 to $550 in 1933.

Banking Institutions

One of the earliest banking concerns - if not the first - in Massachusetts was the Land Bank, which was proposed in 17 14 but seems not to have been placed in operation until 1739. For eight or ten years before the latter date the General Court had been issuing bills of credit for current expenses, the issue of 1741 amounting to about forty thousand pounds. It was then proposed to borrow in Fngland a sum in specie equal to the outstanding bills of credit and pay the debt. Then the Land Bank came forward with the proposition to give credit for £150,000. The bank was composed of over seven hundred stockholders, each one of which was to mortgage land equal to the amount of his stock, and no personal security for more than £100 was accepted.

The scheme looked plausible enough, but it failed to work in practice. Men of standing in business circles refused to receive the bills issued by the bank and it was not long until the institution was in deep water. At a town meeting in Dedham in 1740 the question came up as to whether the constables should be instructed to receive Land Bank bills. A majority voted in the affirmative, but eight men entered a protest and insisted upon having their objections made a matter of record. The refusal of merchants and manufacturers to receive the bills soon sounded the knell of the Land Bank. Hutchinson, in his History of Massachusetts, says it "produced such great and lasting mischiefs that a particular relation of the rise, progress and overthrow of it may be of use to discourage and prevent any attempts of the like nature in future ages."

In July, 19 1 7, there were thirty-eight banking institutions in Norfolk County. To attempt to give a detailed history of each of these banks, their changes of location, lists of officers and directors, etc., is deemed inadvisable in a historical work of this nature, but the following brief sketches give the principal points in the career of each, and will give the reader a fair idea of the county's banking business for the last century.

The oldest bank in the county is the Dedham National, which was organized on March 21, 1814, at a meeting held at Martin Marsh's Tavern, on Court street. It was organized as a state bank and on the 25th Willard Gay was elected president and Jabez Chickering, cashier. The bank began business in two rooms in the north end of the house of Capt. Nathaniel Guild, where a stone vault six by eight feet and seven feet in height was built for the bank's use. The first issue of bills was made on April 28, 181 5, in denominations of five, six, seven and eight dollars, "all to be printed with stereotype plates." The bank started with a capital stock of $50,000 and on October 20, 181 5. declared its first dividend of 4 per cent. The stock was gradually increased to $300,000.

On February 1, 1865, the institution was reorganized as a national bank, with Dr. Jeremy Stimson as president and Lewis H. Kingsbury as cashier. In August, 1892, it removed to its present quarters in the building of the Dedham Institution for Savings, and on July 11, 1912, opened its safe deposit vaults. On July 6, 191 1, the capital stock was reduced from $300,000 to $150,000, where it has since remained. At the beginning of the year 1917 the Dedham National reported a fund of $150,000 in surplus and undivided profits, and deposits of $540,000. Allan Forbes was then president and E. A. Brooks cashier.

In 1 83 1 the Dedham Institution for Savings was incorporated, with Rev. Ebenezer Burgess as president and Jonathan H. Cobb as treasurer. The institution began business on May 4, 1831, and Mr. Burgess remained at its head until December 7, 1870. At the beginning of the year 191 7 Clifton P. Baker was president and Joseph H. Solliday was treasurer. The institution then reported an undivided profits fund of $180,000 and deposits of $4,300,000. It erected the building opposite Memorial Hall in 1892.

The Union Bank of Weymouth and Braintree was incorporated on March 17, 1832, and began business at Weymouth Landing on the nth of April, with Josiah Vinton, Jr., as president. Its original capital stock was $100,000. On Septem- ber 6, 1864, it was reorganized as the Union National Bank of Weymouth and the capital stock was afterward increased to $400,000. After a fairly successful career as a national bank for more than a quarter of a century it wound up its affairs and went out of business.

In 1832 the Blue Hill National Bank of Milton was incorporated under the state laws as the '"Dorchester and Milton Bank," with a capital stock of $100,000. It was at first located in the Town of Dorchester. In 1850 the bank was burglarized by the notorious Jack Wade gang and robbed of about thirty thousand dollars. The next year the name was changed to "Blue Hill Bank." In December, 1864, it was reorganized as the Blue Hill National B'ank and in 1882, under a special act of Congress, it removed from Dorchester to Milton. The first president of the bank was Moses Whitney, who served from 1832 to 1848. At the beginning of the year 1917 the officers were: Robert F. Herrick, president; Jesse B. Baxter, vice president ; S. J. Willis, cashier. At that time the bank reported a capital stock of $100,000; surplus and undivided profits, $90,000, deposits, $525,000.

Another bank organized in 1832 was the Bank of Wrentham, which was incorporated under the state laws with a capital stock of $100,000. Philo Sanford was the first president and Calvin Fisher, Jr., its first cashier. Some years ago it was reorganized as the "National Bank of Wrentham." H. A. Crowell was president of the bank at the beginning of 191 7, and J. E. Carpenter was cashier. The capital stock at that time was $52,500; surplus and undivided profits, $28,000; deposits, $75,000.

The Weymouth and Braintree Institution for Savings was incorporated on February 16, 1833, by Asa Webb, Whitcomb Porter and Warren Weston. It did not begin business until about a year after its incorporation, when it opened with Dr. Noah Fifield as the first president. This bank is now known as the Weymouth Savings Bank, and at the close of the year 1916 reported surplus and undivided profits amounting to $140,000 and deposits of $700,000. C. A. Hayward was then president ; F. W. Hunt and J. H. Flint, vice presidents ; Charles F. Crane, treasurer.

On March 4, 1835, an act of the Legislature incorporated the Canton Institution for Savings, with Thomas French, president; Friend Crane and Jonathan Stone, vice presidents ; James Dunbar, secretary and treasurer. This concern has done a successful business for more than eighty years. Its officers at the beginning of the year 1917 were: F. D. Dunbar, president; A. E. French and E. H. R. Revere, vice presidents ; Walter Ames, treasurer. At that time the surplus and undivided profits amounted to $100,000 and the deposits to $940,000.

The Neponset Bank of Canton was incorporated on the last day of March, 1836, with Frederic W. Lincoln as president and James Dunbar as cashier. On March 1, 1865, it was reorganized as the Neponset National Bank, with Charles H. French as president and Francis W. Deane as cashier. Subsequently the capital stock was increased to $250,000.

The Neponset National Bank has been succeeded by the Canton Trust Company, which was organized in 1896, with a capital stock of $100,000. On March 10, 1 917, it removed into its new building near the railroad station. Guy A. Ham was then president and J. H. Landick, cashier. The deposits then amounted to $225,000.

In 1836 Quincy's first bank - the Stone Bank - was organized under the laws of the state. In 1864 it was reorganized as the National Granite Bank of Quincy, and still later as the Granite Trust Company, under which name it is still doing business. The officers of this company at the beginning of the year 1917 were: Theophilus King, president; Delcevare King, vice president; R. F. Claflin, secretary and treasurer. The capital stock of the company was then reported as $150,000; surplus and undivided profits, $260,000; deposits, $800,000. A branch was opened at Mount Wollaston in 1916.

The Randolph Bank was organized as a state institution in 1836 with a capital stock of $150,000. After Congress passed the national banking act, this bank was reorganized as a national bank and the capital stock was increased to $200,000. It is no longer in existence, having gone into voluntary liquidation some years ago.

On February 28, 1845, tne Cohasset Savings Bank was incorporated with Paul Pratt as president; Thomas M. Smith, secretary; Levi N. Bates, treasurer. At the beginning of the year 1917 the officers were as follows: Charles W. Gammons, president; George W. Collier, vice president; Russell B. Tower, secretary; Caleb Lothrop, treasurer. The deposits then amounted to $1,230,000 and the surplus and undivided profits to $86,000.

The Quincy Savings Bank also began business in 1845 and for almost three quarters of a century it has been one of the substantial banking houses of Norfolk County. At the close of the year 1916 it carried deposits of $4,800,000 and reported surplus and undivided profits of $237,000. Herbert T. Whitman was then president ; Richard D. Chase, vice president ; and Clarence Burgin, treasurer.

The Randolph Savings Bank was incorporated and began business in April, 1851. Its officers at the close of the year 1916 were: Herbert F. French, president; Rufus A. Thayer and John H. Field, vice presidents; N. I. Tolman, treasurer. At that time the bank carried deposits of $1,700,000 and reported a surplus and undivided profits fund of $108,000.

In 1853 the National Mount Wollaston Bank was organized as a state bank and continued as such until after the passage of the national banking act by Congress, when it was reorganized. This bank reported at the beginning of the year 1917 a capital stock of $150,000; surplus and undivided profits, $90,000; deposits, $800,000. H. M. Faxon was then president; Arthur H. Alden, vice president; H. F. Spear, cashier.

The Foxboro Savings Bank was organized in 1855 and has done a successful business from its beginning. In the spring of 191 5 it moved into a fine new building erected for its accommodation. On the second floor of this building are the Foxboro town offices and the third floor is used as a club room. Lewis E. Gray was president of this bank at the beginning of the year 1917 ; Horace G. Smith and Jarvis Williams, vice presidents ; George R. Ellis, clerk of the corporation ; Harrie F. Gray, treasurer. The bank then carried $848,000 in deposits and reported undivided profits of $33,000. Three times within the last ten years this bank has declared extra dividends from its earnings.

On October 31, 1864, the First National Bank of South Weymouth received its charter and commenced business soon afterward, with a capital stock of $150,000 and B. F. White as president. Two years later it purchased a building and moved into it, and from that time to the present has done a successful banking business. At the close of- the year 1916 E. R. Hastings was president; George L. Barnes, vice president; J. H. Stetson, cashier. In the meantime the capital stock had been reduced to $ico,ooo; the surplus and undivided profits amounted to $50,000, and the deposits to $220,000.

The Franklin National Bank was organized in 1865 by James P. Ray, Moses Farnum and others, with a capital stock of $200,000. James P. Ray was the first president. At the beginning of the year 191 7 this bank reported a capital stock of $100,000; surplus and undivided profits, $131,000; deposits, 350,000. E. H. Rathbun was then president ; Albert D. Thayer and Bradley M. Rockwood, vice presidents; J. E. Barber, cashier; Laura E. Blake, assistant cashier.

The South Weymouth Savings Bank was incorported on March 6, 1868, by Benjamin F. White and others and began business about a month later. At the beginning of 1917 it reported deposits of $1,600,000, and surplus and undivided profits of $140,000. R. W. Hunt was then president ; E. J. Pitcher and A. B. Raymond, vice presidents; F. T. Barnes, treasurer; L. L. Whitman, assistant treasurer.

The Braintree Savings Bank, located at South Braintree, began business in 1870. Its condition at the close of the year 1916 was one that indicated prosperity, the bank reporting surplus and undivided profits of $566,000 and deposits of $665,000. The officers at that time were: B. F. Dyer, president; L. B. Hollis and G. V. Pennock, vice presidents ; F. E. Dyer, treasurer.

On February 21, 1871, the Benjamin Franklin Savings Bank of Franklin was incorporated with Davis Thayer, Jr., as president, and Charles W. Stewart as treasurer. At the annual meeting on July 9, 191 7, the following officers were elected: Elisha P. Chapman, president; Walter M. Fisher, Horace W. Hosie, Adelbert D. Thayer and Orestes T. Doe, vice presidents ; Albert C. Mason, clerk ; Charles L. ^tewart, treasurer. The surplus and undivided profits then amounted to $56,000 and the bank carried deposits of $890,000.

The Medway Savings Bank was also organized in 1871 and is the only bank ever established in that town. The following officers were elected in March, 1917: A. E. Bullard, president; S. G. Clark, W. L. Palmer and E. F. Richardson, vice presidents ; W. N. Hitchcock, clerk ; William H. Upton, treasurer. The deposits then amounted to $450,000 and the surplus and undivided profits to $50,000.

Another bank that began business in 1871 was the Brookline Savings Bank. It is still in existence and is one of the largest banks in the county, measured by the volume of business transacted. At the close of the year 1916 it reported deposits of $6,600,000; a guaranty fund of $200,000; surplus and undivided profits, $200,000. Charles H. Stearns was then president ; A. H. Latham and A. E. Kenrick, vice presidents ; E. M. Farnsworth, vice president and treasurer.

The East Weymouth Savings Bank commenced business in 1872. A few years ago it erected a building for a home, on the second floor of which are the Weymouth town offices. In July, 1917, this bank reported assets of $1,907,296, a surplus of $170,000, and deposits of $1,730,000. W. H. Pratt was then president ; F. H. Emerson and E. M. Carter, vice presidents ; J. A. Raymond, treasurer.

In 1886 the Brookline Trust Company was incorporated with an authorized capital stock of $100,000. At the beginning of the year 191 7 it reported deposits of $2,300,000 and a surplus of $75,000. The officers at that time were as fol-

In 1898 Roger W. Babson began business as private banker at Wellesley Hills. Mr. Babson also does a considerable business in buying and selling securities, but no data concerning his business are obtainable.

The Wellesley National Bank was organized in 1904, with a capital stock of $50,000 and opened its doors for business soon after receiving its charter. Charles N. Taylor was president of this bank at the beginning of 1917 ; Benjamin H. Sanborn, vice president ; B. W. Guernsey, cashier. At that time the bank reported surplus and undivided profits of $59,000 and deposits of $1,000,000.

In 1905 the Milton Savings Bank was incorporated. H. C. Gallagher was president of this bank at the close of the year 1916; John Talbot was vice president ; F. A. Gaskins, treasurer, but no statement of its financial condition is given in the Bankers' Directory.

The Norwood National Bank was organized in 1907, with a capital stock of $100,000. On July 2, 191 7, it was reorganized as the Norwood Trust Company and the capital stock was increased to $200,000. On August 1, 1917, it moved into its new building. George F. Willett is president ; Walter F. Tilton, vice president ; Edson D. Smith, secretary ; Clarence A. Rathbone, treasurer. At the time the reorganization was made the institution reported deposits of $1,750,000 and a surplus of $65,000.

The Foxboro National Bank was established in 1909, with a capital stock of $50,000. It occupies quarters in the new building of the Foxboro Savings Bank. A statement issued in June, 1917, shows a surplus fund of $16,100 and deposits of $228,740. B. B. Bristol was then president; W. S. Kimball, vice president; Fred H. Richards, cashier.

In 1910 the Needham Trust Company was organized with a capital stock ot $50,000 and began business soon after it was incorporated. Of this company William Carter is president; William G. Moseley, vice president; James H. Whelton, secretary; H. P. Newell, treasurer. At the beginning of the year 1917 it reported a surplus and undivided profits fund of $33,000 and deposits of $375,000.

The Boulevard Trust Company of Brookline was organized in 191 1 with a capital stock of $100,000 and at the close of the year 1916 it reported deposits of $970,000 and surplus and undivided profits amounting to $35,000. William A. McKenney was then president ; Frank A. Russell, vice president ; George M. J. Bates, vice president and treasurer.

About the time the above company began business, the Stoughton Trust Company was incorporated. Its authorized capital stock is $100,000 and during the first five years of its existence placed $14,000 of its earnings in the fund of surplus and undivided profits. At the close of the year 1916 it reported deposits °f $635,000. Guy A. Ham was then president; Ira F. Burnham and James D. Henderson, vice presidents ; Fred D. Leonard, treasurer.

On July 9, 191 5. the Randolph Trust Company opened its doors for business, and on January 3, 19 16, it removed into its new building. A statement issued by this company on June 20, 1917, shows a capital stock of $60,000; a surplus and profits fund of $12,415; and deposits of $358,000. The officers at that

The Quincy Trust Company was also organized in 191 5 with a capital stock of $100,000. Since it began business it has accumulated a fund of surplus and undivided profits amounting to $30,000, and carries deposits of $200,000. Chester I. Campbell was president at the beginning of the year 1917 ; John Curtis, Robert E. Foy and P. E. Barbour, vice presidents; Herbert E. Curtis, treasurer. Herbert E. Curtis is also treasurer of the Norfolk Trust Company, which was organized in 1916.

The Walpole Trust Company, the youngest banking concern in the county, began business in July, 1917, with Henry P. Kendall as president; Philip R. Allen, vice president; Stephen P. Cushman, secretary; Charles E. Barrett, treasurer. It is located in the Plimpton Building and sixty days after it began business reported assets of $215,000.

In addition to the above regular banking institutions, several of the towns in the county have what are known as "'cooperative banks," the purpose of which is to loan money on first mortgage security on real estate for a longer period of time than ordinary banks. They are much the same as the building and loan associations of other states. Through the medium of the cooperative banks many people have obtained loans of considerable sums and these loans have been repaid in easy installments, so that the borrower is not subjected to providing for payment all at one time.

Norwood has what is called a "Morris Plan Bank,'' with a capital stock of $25,000. It occupies the building formerly used by the Norwood National Bank. W. H. Brown is president ; James M. Folan and Frank A. Morrill, vice presidents; Alfred L. Atwood, clerk and treasurer. The Morris Plan banks in America originated with Arthur J. Morris of Norfolk, Virginia, who worked out a plan of applying the system of the industrial banks of France, Germany and Italy to similar institutions in this country. Loans are repaid in weekly installments running through a period of one year.