Clark County, Indiana - Chapter 30: Banks and Banking in Clark County, 1909

Chapter 30: Banks and Banking in Clark County

The first bank in Clark county was a private bank in Jeffersonville in 1817, called the Exchange Bank of Indiana. It was owned by Beach & Bigelow, but the location has been lost. The currency which they issued was a great convenience to the people and the institution was considered a substantial one. It continued in business for several years, but was discontinued shortly after the canal project of the early 'twenties fell through, and strange as it may appear, redeemed all bills that were presented, and some came in many years later. It is said that r passenger on one of the ferries incjuired of a boatman if a ten dollar note he held on that bank was good. He was informed that he would do well to inquire of one of the original members of the firm, and on presenting it it was cashed without hesitation.

Jeffersonville suffered through the unlimited cnxulation of "wild cat" money for many years. But the history of these institutions is too well known to need repetition here. Their day is long past, and it is devoutly to be hoped that the time may never again come when such a system will be allowed to exist.

A few years after this bank ceased to exist a private bank was established by James Keigwin, Sr.. Peter Myres and Judge Davis. James Keigwin was the president, and the banking room was the present ferry office on Front street. This bank ran with varying degrees of success until early in the forties, when it collapsed.

The next banking venture was the Bank of Jeffersonville, promoted by Samuel Judah, of Vincennes. George Savitz was the secretary of this bank, and the business was carried on in the room on Front street which had been used by the Keigwin bank. Felix Lewis, Levi Sparks, John Fry, Jacob and George Swartz were strick holders, and the institution was considered a sound one. After this bank went out of business their room was rented by the city of Jeffersonville for a treasurer's office on account of the vault which the management of the old Keigwin bank had built there. At this time it was the only vault in the city.

A branch of the Bank of State of Indiana was organized in Jeffersonville in 1855. This was one of many branches of the Bank of the State of Indiana which were being established throughout the state about that time.

were ^Messrs. Charles Howard, president : George F. Savitz. secretary and treasurer; \\'. F. CoIIum, Simon Bottorff and Thomas L. Smith. After the office of cashier was created, \\'ilham H. Fogg became the first incumbent. The capital stock was $100,000.00 and it was subscribed by Alaybury, Pile & Company. James G. Read, James Mitchell Simon BottorfY, William F. Collum. George F. Savitz. A. S. Crothers, Levi Sparks, W. L. McCampbell and others.

The bank began business in a brick building on Spring street at what is now 316, and continued here until the institution was nationalized and became the Citizens' National Bank of Jefifersonville. The Citizens' National Bank of Jefifersonville was chartered March 14, 1865, with a capital stock of $150,000.00. It remained in the same location until 1868, when it moved to 219 Spring street. The first Board of Directors was James L. Bradley, president; John Adams, cashier; Dillard Ricketts, James G. Read, Samuel H. Patterson and Andrew J. Hay. This bank is wholly commercial and its sound management has made it the foremost institution of its kind in Clark county. A savings department offers an opportunity for those of small means to profit by patronizing the Citizens' Bank, and its success has shown the wisdom of the directors.

In March, 1907, the Citizens' Trust Company was organized with a capital stock of twenty-five thousand dollars. John C. Zulauf is president. Charles Poinde.xter, vice-president, and John D. Driscoll secretarj' and treasurer. The directors are H. M. Frank, Ed. J. Howard. Charles Poindexter, John C. Zulauf, M. Z. Stannard and John C. Rauschenberger. The capital stock was paid up by a special dividend from the Citizens' National Bank. The shareholders of the Citizens' Trust Company are the same as those of the Citizens' National Bank. The Trust company does a trust business exclusively and their building at the corner of Spring street and Cmn-t avenue is fitted with the finest vault in the city, and with safety vault boxes for those who wish them. The building was erected in 1908, and with its furnishings cost over twenty thousand dollars.

The First National Bank of Jefferson\ille was organized and began business January 30, 1865, with a paid-up capital of one hundred thousand dollars. The organ.izers were James H. IMcCampbel'. president : \\'oods ^labury, \\'illiam L. McCampbell, Hiram Mabury, George ^^'. Ewing, Peter Myers. Levi Silberman. John F. W^illey, William W. Gilliland. Gabriel Poindexter and William H. Fogg, the latter leaving the Branch State Bank, where he was cashier, to become cashier of the new institution. All the directors were from Jeft'erson\-ille except ^^'illiam AlcCami^bell. who was a resident of Louisville.

The first place of business was on the west side of Spring street, two doors north of the alley between Front and Market streets, and the vault built for their use still remains in this room. The first bank building was purchased from the Lentz estate for the sum of nine thousand dollars. The banking hours were from lo a. m. to 2 p. m., except Sundays and holidays. In 1887 the capital was increased fifty thousand dollars, or to one hundred and fifty thousand dollars, as it still remains. Air. Fogg resigned as cashier in 1882, and since that time H. E. Heaton has held that position.

The present location of the First National Bank at Spring and Market streets is a handsome brick and stone building erected about 1870 at a cost of over thirty thousand dollars. The present capital and surplus is over two hundred and twenty thousand dollars. This bank has always operated as a staunch and conservative institution, extending its influence along lines of safety and to the betterment of all classes in the city iuid county. It is legally known as a bank of discount and deposit, and has lately added a department for savings with liberal interest rates added as accrued.

The Bank Of Charlestown

The Bank of Charlestown was chartered August 15, 1891, and opened for business September 9, 1891, in the room on the corner of Main and Market streets. Its capital stock is twenty-five thousand dollars, divided into two hundred and fifty shares of one hundred dollars each. The stock holders were M. B. Cole, J. D. Sharp. Ward H. \\'atson and eleven others. Mordecai B. Cole was the first president, \\'ilfred M. Green, vice-president, and A. M. Guernsey, cashier. The Board of Directors were M. B. Cole, W. M. Green, Rev. J. F. Baird, J. D. Sharp and W. H. Watson.

This bank does a general banking business and has increased its business with the growth of banking elsewhere in the county. In 1898 the bank moved into its new location on the northwest side of the court-house square. This building, constructed to meet the needs of the business, has a handsome Hall vault, of a design similar to that in the Citizens' National Bank of Jeffersonville, and is equipped with safety vault boxes for the use of patrons.

The First National Bank Of Charlestown

The First National Bank of Charlestown was chartered September 11, 1903, and started in business in October of the same year at the comer of Main and Market streets. Its capital stock is twenty-five thousand dollars. The first Board of Directors was John C. Zulauf, McD. Reeves, J. S. Robertson, J. F. McCulloch and George W. Lewman, and the board remains the same now with the exception that George H. Gibson has succeeded Mr. Lew- man. This bank does a general banking business, and is in a very prosperous condition, paying six per cent, dividends. The deposits amount to si.xty-five tlionsand dollars, and at present there is an undivided surplus of four thousand five hundred dollars on hand.

The Henryville State Bank

The Henryville State Bank was organized Febn.i;;ry ii, 1904, and began business March 17, 1904. Hardin Wilson, of Louisville; E. L. Elrod. George Bollinger, John Scholl, Charles Genner, John Hamm, Zach Taylor, and many others were interested in its organization. The capital stock is twenty-five thousand dollars, and its present surplus and undivided profits are five thousand dollars. The first president was Edward L. Elrod, George Bollinger, vice-president and W. Wayne W^ilson. cashier. The principal stockholders are Hardin \Mlson, John J. McHeniw, John W. Hamm, Edward L. Elrod. John S. Scholl, H. R. Hamacher, Henry C. Hamm, Elizabeth Corbett, Charles Genner, Zach Taylor and George Bollinger.

The Borden State Bank

The next bank organized in Clark county is located in the town of Borden, and was chartered by the State of Indiana. The Borden State Bank was organized October 20, 1905, with Samuel H. Karnes as president; G. M. Johnson, vice-president, and Murray S. Wilson, cashier, commencing business March 3, 1906. Opening with deposits the first day which showed the confidence of the public in the officers, the business of the l)ank has steadily grown into one of the strongest state banks in not only Southern Indiana, but, according to two of the state bank examiners, in the state. It has a capital stock of twenty-five thousand dollars.

During the first year of business the net earnings of the bank amounted to eight per cent, of the capital. The stockholders were paid a dividend of four per cent, and the remainder of the earnings carried to the surplus, it being the intention of the officers to put the institution on a sound basis independent of the stockholders' liability. At the close of business the second year the net earnings showed almost eleven per cent., of which amount an eight per cent, dividend was paid to the stockholders and the balance carried to the surplus. After six months of the third year it appeared that the earnings for the year would eclipse previous records. During the thirty months in operation not a single note has been accepted which has not been good for one hundred cents on the dollar. During the panic, so-called, of the fall of 1907 and the spring of 1908 the Borden State Bank did not suffer in the least from loss of confidence of the public, paying in full even- check presented by a customer or friend.

Baird S History Of Clark Co., Ind. 3I9

The Clark County Sentinel, of Borden, says of the Borden State Bank: "One of the excellent banking institutions of Clark county is the Borden State bank, which was established last spring. Its September statement shows strength and it is destined to become one of the leading financial institutions of the county." The officers of the bank seem to be very popular and to have the confidence of the people of Borden and vicinity. It has been a great convenience to the berry growers. Mr. Wilson, the cashier, reports that nearly fifty thousand dollars of beriy money passed through the bank during the season of IQ07, several thousand dollars' worth of small change having been paid out. It is estimated that ninety per cent, of the checks were under ten dollars, meaning that approximately eight thousand berry checks have been cashed at the bank without any expense to the grower. Wlien this record is compared with that of the balmy days when it was a case of the odd cents ofif for cash, the grower can fig^ure out what has been saved. That this bank is anxious to sen'e its customers is shown bv it keeping open from six to seven in the evening to accommodate the berry growers who arrive too late for regular banking hours.

Early in igo8 the movement for organizing a state bank at Xew \\'ashington took definite form, the articles of incorporation being as follows :

For the purpose of organizing an association to carry on the business of a bank of discount and deposit under the provisions of an act of the General Assembly of the state of Indiana approved February 7, 1873, and of the several acts amendatory thereof and supplementary thereto, the undersigned subscribe for the stock of said association to enter into the following articles of association :

Article 3. - Amount of Capital Stock of said bank shall be twenty-live thousand dollars, to consist of two hundred and fifty shares of one hundred dollars each.

Article 4. - Xames and places of residence of stiareholders and number of shares held by each is as follows, to-wit : N. H. Linthicum, New Washington, five : J. H. Dickey, Louisville, Kentucky, ten : J. L. Magruder, New Washington, thirty, and many others.

Henry F. Schowe was elected president and J. L. Magruder, cashier. Twelve thousand, five hundred dollars of the capital stock was paid in, being fifty per cent, of the total.

The Sellersburg State Bank

The last financial institution in Clark county was organized and the articles of incorporation sworn to November 2"^, 1908. It was organized under the name of "The Sellersburg State Bank. Its capital stock is twentyfive thousand dollars, consisting of two hundred and fifty shares at one hundred dollars each.