Boone County, Indiana - Chapter 15: Banking Interest, 1914

Chapter 15: Banking Interest

There was no need' of banking institutions in the early days of Boone county, because the people did not have any money. In those days the people lived happily without money. Like the Red man, the White man bartered such things as he had to his neighbor for his goods in exchange. It was a long time before the people had money to worry them enough, to desire some one to take care of it for them. About the first banking institution of which any one has any recollection, was rather a private institution owned by individuals. They were not even incorporated, and as a usual thing there was but one stockholder in the institution. The safety vault consisted of a blue yarn sock into which the coin was placed and carefully secreted in some outaway place in the cabin. If the deposit became too large for the receptacle, vessels were used, and some were buried in an outaway place, where no one would think of looking for such treasures. There were not very many of these banks necessary to accommodate the depositors of that age, for the wealth of this county for two or three decades did not consist of filthy lucre. The wealth of the county consisted of farms of woods, principally woods interspersed with little cleared spots, with bogs here and there, a few cattle and hogs and lots of wild game. The first wealth that began to accumulate was rosy-cheeked boys and girls ; for all this class of wealth that we term banks in this age was not in demand. The banking business, for a long time after it was felt necessary to have any person to look after the surplus wealth of a few persons, was conducted like schools, churches, and other social interests, by private individuals as mere care takers. If a merchant progressed far enough in business to require an iron safe to secure his valuables from plunder or fire, some of his customers would be sure to request the privilege of depositing some valuable treasure for safe keeping. Business run in this way for a few years, and the merchant would have to get a larger safe and other merchants would put in safes. In this way a real demand grew up for the banking business, and when the Wild-Cat money flooded our state, its value changing three or more times a day, and not of the same value in any two cities, everybody wanted a banker. In those days it was more difficult to take care of money than it was to earn it. By the use of the sock, the private bank and the state bank, the people of Boone county worried along as best they could until after the Civil war. After the war was over and the Nation got on its feet again ready for business, the banking business became more stable and taking care of money became a real business. The National bank was instituted and we had private, state and national banks.

The first bank in the county, of which we have record, is one organized in Lebanon, just before the outbreak of the Civil war and titled "The Boone County Bank." This institution was established under the old banking law, and proved by its conduct that the law was insufficient to protect the public safety. This first bank in the county was a bank of issue and authorized to put out sixty thousand dollars in bills of its own issue. A. W. Spooner, of New York, was its president. In the state auditor's report of the early sixties, found in the public library at Indianapolis, is found a report of this "First Bank of Boone'' which is not very flattering. It states that there was an attempt to fraud. The printers had printed three or four times as many bills as the bank was authorized to put into circulation. This act was detected in time, and on investigation the bank was suspended, and the Fletcher Bank at Indianapolis was appointed to close up its business. It is stated that some of the promises of this bank to pay found their way to the soldiers of Boone in the army during the Civil war and that they were about as valuable as the Confederates' promise to pay at the close of the war. This, in brief, is a dark picture of the first effort at banking in Boone county. It had much to do with correcting the imperfections of the law, which made business more stable and more secure to the people.

The next effort at banking was at Thorntown, just after the Civil war, when "The First National Bank" was established, with a capital of $25,000 and Dr. John Boyd as president. This bank lived out its charter of twenty years of honorable life, serving the people faithfully and closing its business.

The second bank in Lebanon was "The Lebanon Bank," organized soon after the close of the Civil war, with a capital of $60,000. It continued in business under the above title until 1882, when it was reorganized into the (25)

"The Lebanon National Bank" and increased its capital to $80,000. It continued successfully until 191 1, when it went into liquidation in the hands of "The First National of Lebanon," after squaring up all obligations, leaving a surplus to be divided among its stockholders.

The Union Trust Company, Lebanon First National Bank, Lebanon

This institution was organized soon after the Civil war, with a capital stock of $100,000. This is the oldest bank in the county and has had a steady growth from the start. Late in 19 14, a new home was erected which is a credit to the institution, city and county.

The officers are as follows: W. J. DeVol, president; J. W. Pinnell, first vice-president; A. Wysong, second vice-president: J. A. Coons, cashier.

The Farmers State Bank, Lebanon

Original of first board as follows, to wit : J. M. Martin, R. E. Niven, Ben. C. Booher, J. P. Staley, W. C. Jaques, Frank C. Phillips, W. T. Hooton, J. M. Brendel, Anthony Kincaid.

Present Officers - J. M. Martin, president, elected December 31, 1900; J. P. Staley, cashier, elected March 11, 1902; J. E. Morrison, vice-president, elected January 2, 1908; John L. Wade, assistant cashier, elected September 20, 1907; Homer Dale, assistant cashier, elected October 4, 1909; Alva L. Martin, teller; Ray Potts, Chester Johnson, bookkeepers.

Citizens Loan And Trust Company

The present officers are as follows : A. Wysong, president ; W. J. DeVol, vice-president ; W. T. Hooton, secretary-treasurer ; J. A. Coons, assistant secretary-treasurer.

The Citizens State Bank, Jamestown

This bank was organized July 1, 1903, with a capital stock of $25,000 and succeeded the Piersol & Roberts Bank, a private institution. The capital stock was increased from $25,000 to $30,000 on July 1, 1910. The first officers were, Charles F. Martin, president; Marion Bailey, vice-president; George W. Piersol, cashier; Marion H. Roberts, assistant cashier. The first directors were, Americus C. Daily, Mat Martin, Daniel Feely, Charles F.

The capital, surplus and undivided profits at this time are $40,000.00. This bank carries average deposits of $175,000 and average loans of a like amount.

Farmers Bank Of Zionsville

This is a private institution on a firm basis of a capital of $25,000 and was organized in 1882. It is abundantly qualified to accommodate the banking interest of Eagle township and community. The individual deposits amount to about $100,000 and the total business of the bank will average about $125,000. The present officers are J. W. Brendel, president, M. D. Harvey, cashier, E. Harvey, assistant cashier.

Citizens Bank Of Whitestown

This small banking house in this village, the capital of Worth township, is amply able to accommodate all banking demands. It was organized in 1 90 1, and at present has a capitalization of $10,000 and an average deposit of $100,000. This bank and the Farmers Bank of Zionsville compose a monetary for the southeast part of Boone county, including Union, Eagle, Perry and Worth townships. The officers of the Citizens Bank are, P. Smith, president ; Benjamin F. Hawkins, vice-president; Roy C. Smith, cashier.

The First National Bank Of Thorntown

This bank was the first regular banking institution and was organized soon after the Civil war and continued in business during the time of its charter when it closed its business and was succeeded by the State Bank of Thorntown in 1890, with a capital stock of $30,000, afterwards increased to $40,000.