Cass County, Illinois - Chapter 20: Banks and Other Financial Institutions, 1915

Chapter 20: Banks and Other Financial Institutions

IMPROVED BANKING LAWS - MORE SECURITY - FEDERAL RESERVE LAW - NO MORE WILDCAT BANKING - PRESENT STATE RESTRICTIONS - EARLY OPERATIONS IN CASS COUNTY - BANKING AT BEARDSTOWN - BEARDSTOWN BANKING COMPANY - CASS COUNTY BANK - FIRST STATE BANK - THE BEARDSTOWN STATE BANK - THE PEOPLES BANK - BANKING AT ARENZVILLE - THE PEOPLES BANK - THE FARMERS AND MERCHANTS STATE BANK - BANKING AT CHANDLERVILLE - STATE BANK - PEOPLES STATE BANK - BANKING AT VIRGINIA - CENTENNIAL NATIONAL BANK - PETEFISH, SKILES & CO. - FARMERS NATIONAL BANK - BANKING AT ASHLAND - SKILES, REARICK & CO. - FARMERS STATE BANK - OTHER FINANCIAL INSTITUTIONS.

Improved Banking Laws

The financial standing of any community depends largely upon the stability and integrity of its banking institutions. The banking laws of the state of Illinois were not, until rather late in its existence as a state, of such a character that the mere fact of the institution being a banking firm or corporation was any evidence of the financial stability of the concern. But later legislation under the stringent provisions of the constitution of 1870, and the present federal banking laws, though not as perfect as might be desired, have placed safeguards around the banking business, so that persons who become depositors, or have dealings with well founded banks now may feel comparatively secure. The days of "wildeat' banking are passed forever in this state. The people will no longer submit to anything of the character in that line we had prior to the constitution of 1870, The salient features of our present organic state law upon that subject are: that no state bank shall hereafter be created, and the state shall not own or he liable for any stock for any banking company or corporation; that no law creating or authorizing any corporation with banking powers, or any amendment to such law shall go into effect until the same has been submitted to and approved by vote of the people; that every stockholder in such institutions shall be individually responsible and liable to its creditors over and above the amount of stock held by him or her, to an amount equal to his or her respective shares so held, for all its liabilities accruing, while he or she remains such stockholder; that the suspension of specie payments by banking institutions on their circulation created by the laws of this state, shall never be permitted or sanctioned.

A period of fanatical internal improvement and the wild financiering and speculative craze that began in 1887, culminated in a financial crash in 1842 that precipitated many a bankruptcy and brought dire distress and ruin to thousands of honest men who found themselves without means to meet their obligations. In the rural districts money became so scarce that all business transactions were reduced to barter and exchange of commodities. To aid in local transactions, the merchants issued due bills to their customers, which passed current, at certain discount, where the parties issuing them were well known, and as has been casually mentioned heretofore in these pages, the county commissioners of Cass County attempted to come to the assistance of the people by providing for the issuance of county warrants that might be used as a medium of exchange. On March 10, 1842, at the March term of the county commissioners' court of Cass County, it was ordered by the court that Henry H. Hall, who founded Virginia, be appointed to procure a suitable plate of steel, copper or some other suitable metal, for engraving notes to be issued as county warrants for the county of Cass, and state of Illinois, and that he procure a supply of blanks for the present use. The county commissioners at that time were: John C. Scott, Marcus Chandler and William H. DeHaven. Nothing further seems to have been done about the matter, and no person living seems to remember that any such notes were ever in circulation. Recently, however, some of the old blank warrants were found. They bear no date, but are printed from an excellent steel engraving in very artistic design, in the similitude of one dollar bills. A renewed search of the ancient records, page by page, they not being indexed, revealed the following fact concerning the plate and notes. In

"It is ordered that Henry H. Hall be notified to deliver, or cause to be delivered, to the county commissioners' court, at their July called term, to be held on the third Friday in July, 1544, the steel plate for striking Cass County orders, and all blank orders in his possession." The records of the proceedings of the July called meeting of the commissioners makes no mention of the subject. The legislature had invalidated all such warrants or orders, and forbidden any municipality to issue any such. It is presumed the commissioners got back their plate and blank warrants, and thought it was unnecessary to say so in the record, as the people of Cass County did not receive the benefits intended by the accommodating county commissioners.

Banking At Beardstown

No regular banking institution appears to have been organized in Cass County prior to 1855 or 1856. There was, however, some banking or bankers' property subject to listing in 1857. The state auditor's report for 1857 shows in the list of bankers' property that Cass County had $3,000 worth of property. James C. Leonard was a private banker in 1860, at Beardstown, but failed in 1866.

THE BEARDSTOWN BANKING COMPANY Was incorporated in 1869, by act of legislature approved March 30 of that year, with a capital stock of $100,000. The incorporators were: James C. Leonard, John A. Ames, Edward B. Leonard, George H. Nolte, Herman Engelbach, Martin L. Read, Franklin A. Hammer, Frederick Ehrhardt, Henry T. Foster and Chauncey Rice. The name, John A. Ames, is probably an error in print, and most probably is intended for John A. Arenz. This institution was organized and conducted as a bank until about 1875, when the Cass County Bank was organized. It opened for business in 1876 with Abner Foster as president. In 1878 Frank A. Hammer was elected president. The Cass County Bank continued in business until 1888, when it was succeeded by the First State Bank.

THE First Stare Bank of Beardstown was organized December 24, 1888, and a charter from the state of Illinois was granted February 26, 1889, to conduct a banking business under the laws of the state of Illinois, according to an act passed shortly before that time, permitting banks to be incorporated by the state. The first board of directors elected to serve this bank consisted of the following well known men: Adolph F. Sielschott, William Huppers, Philip Kuhl, Anton Rink, John W. Newburne, Henry Ehrhardt and Henry Garm. On January 12, 1889, Adolph F. Sielschott was elected president of the corporation ; Henry Garm, vice president ; and T. L. Mathews, cashier. The bank was then located at No. 114 Main street, in Beardstown, which place was occupied as a bank office until June 2, 1896, when the bank, in connection with Cass Lodge No. 238, A. F. & A. M., purchased the building of William Huppers on the corner of Main and State streets, which they occupied until 1914, when they moved to their present quarters on the corner of State and Second streets. This building was erected by the bank during 1918 and 1914, and was opened on June 2 of the latter year. The present location is a prominent corner in the business district of Beardstown. The bank building is of dark, hollow, Bedford stone on the exterior. The interior is finished in Sienna marble, with Heautville marble trimmings. The vault is particularly well protected and constructed in every way looking to the safety of the bank, and the entire interior decorations and equipment are of the most modern pattern, as well as the building itself, and Beardstown feels that it has one of the most modern banking buildings in central Illinois. The stockholders are certainly to be congratulated upon such a fine building and location and the increased volume of business it is bringing them justifies the expenditure. On March 1, 1892, T. L. Mathews resigned as cashier of the bank and Malcolm H. Wallace was elected but resigned on May 25, 1892, when R. H. Garm was elected and filled the position continuously until January 1, 1915, when he was elected president of the bank. H. M. Schmoldt had _ succeeded A. IF. Sielschott as president, on April 2, 1895, and continued to act as such until his death in June, 1908, when Werner Steuernagel was elected and he served until he was succeeded by Mr. Garm, in 1915. Henry Garm served as vice president of the bank from the time of its organization until his death in 1899, when he was succeeted by William Huppers, and when he died, in 1909, was succeeded by Phil Kuhl, who continued as yice president until January 1, 1915, when Thomas Y. Brannan was elected vice president. The present board of directors consists of the following members: R. H. Garm, president; T. V. Brannan, vice president; A. H. Krohe, Philip Kuhl, Werner Steuernagel, E. L. Oetgen and William P. Beatty. The bank when originally organized commenced business with a capital stock of $25,000. On July 1, 1896, this was increased to $50,000, and on April 11, 1904, it was further increased to $100,- 000. The capital and surplus is now §200.000, the surplus being equal to the capital, and was attained in 1911.

THE BEARDSTOWN STATE BANK was organized April 2, 1910, under the state laws of Illinois, with a capital stock of $50,000, and surplus of $10,000 fully paid up. The incorporators were: H. W. Hackman, E. H. Ninney and E. T. Hunter. The bank opened for business December 19, 1910, with the following officers and directors: Charles I. Johnson, president; H. W. Hackman, vice president: E. H. Kinney, cashier; E. T. Hunter, assistant cashier; and Charles F. Johnson. H. W. Hackman, EK. H. JXinney, J. W.. Albright. C. E. Williamson, Thomas R. Williams and William Huppe, directors. The bank building was erected in 1910 at a cost of $40,000, and is owned by the vice president, H. W. Hackman. It is a handsome building of vitrified brick, artistically finished on the interior, and is located on the corner of Washington and Second streets, across from the Park Hotel, one of the central locations. The present officers are: Charles F. Johnson, president; H. W. Hackman, vice president; E. T. Hunter, cashier; William H. Huppe, Charles F. Johnson, H. W. Hackman, Thomas R. Williams, B. E. Peck, J. L. Long and E. T. Hunter, directors. remarkable growth since its organization, its total resources now being over $145,000. and with the co-operation of its 100 stockholders scattered throughout the entire community, substantial increase is predicted in the next few years.

Tur PEopLEsS BANK of Beardstown was organized as a private bank in 1877, with John H. Harris as president, and Thomas KX. Condit as cashier, and with the following board of directors: John H. Harris, John H. Hagener, William Jockisch, J. A. Arenz, and S. L. Calif. The capital stock was $10,000. The bank prospered and in 1882 increased its stock to $15,000. In 1888S the bank changed from a private bank to the First National Bank of Beardstown, and has steadily increased in business until it is now considered the strongest bank in the county.

It has a capital stock of $100,000, and a surplus of $125,000. <A report of the business of the bank at the close of business, March 4, 1915, shows resources of $1,182,335.08. This bank became a member of the Federal Reserve in 1914. The location of this institution is on the corner of Main and State streets, which is lot 1 of block 10 of the original town of Beardstown. This lot is owned by the bank, and in 1910 a new and modern building of handsome style of architecture was erected on this lot to replace the original one then standing. It is exceptionally well furnished with every modern convenience and device for absolute safety of deposits and yaluables intrusted to its 'keeping. The building, fixtures and furniture are valued at $40,000. Thomas Ix. Condit has been cashier of the bank since its organization, and John H. Harris was its president from the organization of the bank until his death, March 4, 1911. He was succeeded by John Schultz, who still maintains that position. Upon the death of Henry C. Meyer, A. E. Schmoldt succeeded as vice president. Floyd M. Condit is the present assistant cashier. The board of directors is composed of the following: John Shultz, T. K. Condit, A. E. Schnoldt, Martin McDonough, George H. Kuhlman, William H. Deppe and J. T. Schweer.

Banking At Arenzville

THE PeoPLES BANK of Arenzville was established about February 1, 1882, with A. J. Saylor as president, and Charles H. Condit as cashier. This bank continued as a private bank and a branch of the Peoples Bank of Beardstown, until about the time the parent bank was changed to the First National Bank of Beardstown, when it became the First National Bank of Arenzville. Charles H. Condit resigned as cashier after the change, and went to Winchester, Ill., where he is in a banking business. Then George FEngelbach became cashier and is still serving. Herman Engelbach is the president and J. M. Swope is the vice president of this bank, which has a capital stock and surplus of $120,000, owns a substantial bank building, and enjoys a large patronage.

In 1910 the Farwers & MERCHANTS STATE BaNK was organized to be opened for business at Arenzville, and a charter granted August 31 of that year. A new bank building had heen erected, and the bank began business with a capital stock of $25,000. William H. Witte is the president, A. E. Crum is the vice president, and John Theivagt is the cashier. The new bank has a large number of stockholders and there is every indication of its having a long and prosperous existence.

Banking At Chandlerville

THE State Bank was chartered in 1903. The banking business of Chandlerville was started by Barr, Chandler & Company in October, 1571. H. T. Chandler was an active trader and needed a bank convenient to take care of his private business. Mr. Barr had been a practical banker, in business at one time at Jacksonville, and was induced to come to Chandleryille and take charge of the bank. The other, the third member of the firm, was Mrs. Emily (Chandler) Lippincott, wife of Gen. Charles IE. Lippincott and a daughter of Dr. Chandler. As Mr. Barr did not appreciate the necessity of coming from Jacksonville every week to look after the business, and as his wife did not care to move to Chandlervyille, in the spring he severed his connection with the bank, and Linus C. Chandler, a younger brother of H. T. Chandler, who had just been graduated from a Chicago college, was taken into the bank as assistant cashier. He soon decided, however, to engage in a law practice, and was elected state's attorney of Cass County in the fall of 1872, and his place was then filled by William Kk. Mertz. Mr. Mertz had been employed by George Plahn, a well remembered pioneer merchant of Beardstown, but had later gone to Bath in Mason County, to take charge of a branch store for Mr. Plahn. Mr. Chandler was recommended to secure the services of Mr. Mertz, and did so in 1872. The bank had, in the meanwhile, taken Gen. Lippincott in as a partner, the firm being Lippincott, Chandler & Co., and it was conducted under that name for three or four years, when, Gen. Lippincott retiring, the firm became H. T. Chandler & Co. In 1880 the bank was bought by Samuel H. Petefish, George Conover, W. K. Mertz and Oswell Skiles, and was given the name of Petefish, Skiles & Mertz. Business was continued under that name for several years, when Mr. Petefish sold his interest, and the firm name was changed to Conover, Skiles & Mertz. It continued under that caption until December 8, 1903, when the bank was chartered under the state banking law, and opened for business January 1, 1904, as the Stare BANK oF

CHANDLERVILLE. George Conover was elected president; J. G. Franken, vice president; and W. Kk. Mertz, cashier, with a capital stock of $50,000, and so continues to the present time. From the above record it appears that Mr. Mertz has been connected with the Chandlerville banking business and with the one institution, for forty-three years. In that time he has been the trusted financial agent for more of the people than any one man in the entire community ; a trust and confidence that has not always remunerated him personally, but, notwithstanding the valuable time spent gratuitously for others, his business life has been an exceptional success. The bank has prospered from the time he took the management of it, and it is one of the most substantial financial institutions of Cass County. A new bank was opened at Chandlerville, incorporated as the PropLes STaTE BANK of Chandlerville. Its certificate of incorporation bears the date of January 7, 1904, and the bank immediately began business with John C. Morse as president, William T. Pratt as cashier and Henry Leeper as assistant cashier. It has a eapital stock of $25,000, and has been doing an excellent business, having among its stockholders and patrons some of the best business men of Chandlerville and the Surrounding country.

Banking At Virginia

THE CENTENNIAL NATIONAL BANK of Virginia was organized in 1876. When the one hundredth anniversary of the independence of the United States of America came around, and many and varied celebrations of the event were being held, some of the gentlemen of Virginia, Cass County, conceived the idea of making 4 permanent monument there to that great event, and caused the incorporation of a national bank, calling it the Centennial National Bank of Virginia. It was organized under the federal national banking law, and the organization was completed February 24, 1876, at which time the following directors were elected: A. G. Angier, John A. Petefish, Daniel Biddlecome, T. J. Crum, J. H. Bates, A. Struble, Robert Hall, W. L. Black and Thomas Dunaway. These directors met on February 28, 1876, and elected John A. Petefish, president; T. J. Crum, vice president; and John H. Wood, cashier. Its capital stock was $50,000. John H. Wood remained its cashier until June, 1878, when he resigned and on June 14 of that year, James B. Black, who had been county clerk of Cass County for a number of years and was still in office, was elected to fill the vacancy in the bank. He remained with the bank as cashier until his death, September 2, 1895. On September 10, 1895, Miss Kate Wilson was elected assistant cashier, a position she still fills, being one of the few women of the country so employed, and has been proved eminently trustworthy. From the time of the death of Mr. Black, the duties of cashier were performed by Miss Wilson and William Epler, the latter being president at that time, until May 1, 1896, when John J. Bergen was elected cashier, and began service immediately, and continued in that position until January 13, 1914, when he resigned, but remained with the bank for a few months more, assisting the new cashier, Henry McDonald, in becoming familiar with the business. 'The present officers are: W. L. Black, president; Daniel Biddlecome, vice president; Henry McDonald, cashier; and Kate Wilson and A. J. Coons, assistant cashiers. The bank owns its building, which is of brick construction, with red stone front and of handsome design. It occupies the east part of lot 103 of the original town, on the south side of the courthouse square. The bank has been very prosperous and joined the Federal Reserve bank under the federal banking law of 1913, on February 14, 1914.

Banking At Ashland

In September, 1881, a private bank was established at Ashland, under the firm name of Skiles, Rearick & Co. The firm consisted of members of the firm of Petefish, Skiles & Co., of Virginia, with the addition of Walter S. Rearick, of Beardstown, who had been connected for some time with the Cass County Bank of Beardstown. The private bank opened for business in a room in the rear of a drug store at Ashland, and remained there until its own building was completed, and in December of that same year, took possession of the new quarters, on lots ales and 13 of block 51 of the original town. This building served the bank adequately until 1909, when a new building was erected on the same grounds. It is handsomely fitted up, in modern style, and with every bank convenience. In 1905 this bank organized under the state banking law as a state bank, retaining the old name of Skiles, Rearick & Co. Mr. Rearick, who had been the cashier, and had had the general man- agement of the business from the time of the original establishment of the bank, was elected president of the new state bank, and James J. Wyatt was elected cashier. These gentlemen still occupy these positions, and Eugene Clemmons is the assistant cashier. 'The volume of business done in and about Ashland made it imperative in a business way to have a banking establishment in its midst, and from the success of this concern, and the confidence reposed in the managers, the venture proves to have been a wise and opportune investment, and has been of special benefit to those engaged in extensive shipments of stock and grain from that point, as well as to the many and varied other business interests of the community.

The municipality of Ashland had grown to such an extent, and the business interests had so rapidly developed, that in 1905 it was deemed advisable to establish another bank. In August of that year the Farmers State Bank of Ashland was organized. Its certificate of incorporation bears date of August 25, 1905, and it immediately opened its doors to the public for business, with Fred C. Walbaum as president, and T. C. Richardson as cashier. The original capital stock of $30,000 was increased in June, 1906, to $50,000. The bank has a substantial building on lot 7 of block 62 on the corner of Hardin and Editor streets. Its ten years of business life is evidence that it is one of the permanent institutions of Ashland.

THE FARMERS AND MECHANICS BANK of Virginia, by an act of the legislature of Illinois, was chartered by John McHenry, J. M. Epler, George Conover, Philip Buraker, George Virgin, John H. Tureman and Samuel Petefish. They were authorized to open bdoks for subscription of stock. but nothing appears to have been done, at least no such bank was ever opened at Virginia. In the next year, 1870, a private bank was established under the firm name of Petefish, Skiles & Co., the firm consisting of Samuel H. Petefish, Ignatius Skiles and Jacob Epler. Business was begun at Virginia with Richard Elliott in charge as cashier. After the first yéar Mr. Epler retired, and George Virgin was admitted to the firm. In September, 1872, Mr. E1lliott resigned as cashier and the bank was placed in charge of Edward T. Oliver. In April, 1873, Ignatius Skiles died. but his interests in the bank were looked after by his administrator until September, 1875. when Oswell Skiles, his brother, was admitted as a member of the firm.

In 1876 Mr. Virgin retired and the firm became S. H. Petefish, Oswell Skiles, Edward T. Oliver, William Campbell and George Crum. This association continued for a number of years, when Mr. Oliver withdrew, moving to Springfield, I11., and George Conover was made cashier. In 1886 Matt Yaple went from the Centenial National Bank, where he had been bookkeeper, to the Petefish, Skiles & Co. Bank and later became its assistant cashier. On September 24, 1902, a charter was granted from the state of Illinois, under the state banking laws, to S. H. Petefish, L. A. Petefish, Matt Yaple and Oswell Skiles, incorporating the bank as PETEFISH, SKILES & Co. The stockholders elected George Conover, president; and Matt Yaple, cashier. My. Conover served as president until 1904, when Oswell Skiles was elected to that office and continued until his death in 1908. L. A. Petefish was elected to succeed Mr. Skiles, and served until 1912, when M. L. Crum was made president, and so continues. L. A. Petefish is vice president, Matt. Yaple is cashier, and George H. Widmayer and Ignatius Yaple are assistant cashiers. The bank has a capital stock of $60,000, and has been one of the most successful and substantial banking institutions of the county. During all the years of its existence, until removal to the new building, the bank occupied the building on lot 72, original town of Virginia, on the corner of Front and Beardstown streets. On January 1, 1910, the bank opened the doors of its new building on the opposite corner of the street, on lot 107 of the original town, which was erected by the bank expressly for the purpose of a banking house. It is a splendid structure of stone and brick, handsomely finished and decorated on the interior, and is fitted with modern improvements and safety deposit vaults.

THE FARMERS NATIONAL BANK of Virginia was organized in 1865, with S. S. Vance as its first president, Henry H. Hall as its first vice president, and John H. Wood its first cashier. The first board of directors was composed of the following men: S. S. Vance, Henry H. Hall, L. M. Strihling, William Stevenson, John A. Petefish, N. M. Thompson, and A. G. Angier. At first the bank had a capital stock of $50,000, with a circulation of $45,000, but later increased the stock to $150,000 and the circulation to $145,000. Subsequently the capital stock was reduced to $50,000. In 1876 Mr. Wood resigned as cashier, and J. T. Robertson was elected to fill that position and retained it until 1912. Henry H. Hall was elected president of the bank in 1867, and the other presidents in succession have been: A. G. Angier, John A. Petefish, John Robertson, George Virgin, Z. W. Gatton and Henry S. Savage, the last named, elected in 1912, still being in office. The other officials are: James Maslin, vice president; R. C. Taylor, cashier ; and VY. E. Robertson and Frank Robertson, assistant cashiers. The directors are: H. 8. Sayage, R. C. Taylor, James Maslin, Deterick Brockhouse, V. E. Robertson. In 1874 the bank built a brick structure on the southwest corner of the public square, on lot 106. It was a twostory building with banking house below, on the ground floor, and office rooms above. On August 27, 1897, at the time of the disastrous fire at Virginia, this building was totally destroyed. The bank immediately contracted for a new building, and within a year was again within its own property, which is a handsome structure of brick with a red stone front, containing banking rooms of modern design and equipment below, and office rooms above. This bank was the first national bank to organize and do business in Cass County, and has been exceedingly prosperous. It joined the Federal Reserve banks in 1914, under the new federal reserve bank law.

On June 23, 1874, a certificate of incorporation was issued for the Cass County Bank, to do a banking business at Virginia, to J. N. Reece, L. E. Johnston and J. W. Johnston, but no such bank was eyer opened in the county, although there was a Cass County Bank at Beardstown for a number of years. There is nothing to indicate that the two had any connection. The capital stock was to be $100,000, and the bank was to open for business June 25, 1874.

Other financial institutions of the county are principally building and loan _ associations. There are three of these at Beardstown, namely : the Beardstown Building and Loan Association. the Homestead Building and Loan Association, and the Mutual Loan and Savings Association.

These associations were organized soon after the law was enacted permitting such organization, and have been very prosperous and successful. They have been instrumental, more than any other institutions, in helping the wage earners to secure for themselves and families comfortable homes on the most liberal and generous terms.