Delaware County, Indiana - Chapter 23: Banking and Finance, 1908

'BANKING AND FINANCE. Edited by C. H. Church. Western banking-, under state laws, during the first halt of the nineteenth century was conspicuous for its many failures, as the result of loose regulations and excessive issue of "wild cat" currency, almost in direct contrast to the strict supervision and business methods now prevailing, which form the basis for ideal banking.

A notable exception to the general rule during that experience and deserving special mention was the State Bank of Indiana, whose history the state may well be proud of, as its managers were men of sterling worth who made its career a notable success. It was chartered in 1S34, and passing through manv panics, never closed its doors or defaulted in its promises, going into voluntary liquidation in 1S66. The State of Indiana invested some $800,000 in this enterprise and in about twenty-five years its net earnings amounted to $3,500,000.

It was so successful that a feeling of hostility was aroused against it. which was engendered and promoted by the politicians for their own selfish purposes. A strong fight was made by this faction against the renewal of its charter, as the time approached for its expiration, as they desired a charter to issue for a new state bank, which they could control.

In 1S53 the legislature passed a free bank law and in 1855 renewed the charter for the bank of the State of Indiana, however, both of these bills had to be passed over the governors veto.

In order to delay the last bill taking effect, the matter was carried to the supreme court, who sustained the act, and the bank was reorganized with the Hon. Hugh McCuIloch of Fort Wayne, as president, and again commenced business in 1S57, and successfully weathered all financial storms, which wrecked other banks, leading a prosperous career until the introduction of the national system in 1S63, when itself and most of its branches became national banks.

While the state bank was undergoing reorganization the Muncic branch was established, being organized July z, 1S56, with a capital of $100,000, but did not open for business until January 2, 1S57. John Marsh was its first president, with J. W. Burson, cashier, and with these, the directors were William Petty, Volney Wilson and Edwin C. Anthony.

jssucs, making that part of the business practically prohibitive, the state branch went into voluntary liquidation, and the Muncie National Bank was chartered as its successor, and with the same officers, continued fur many vcars as Muncie's most permanent financial institution, enjoying a verv extensive business, and going into voluntary liquidation at the expiration of its charter in January, 1SS5. Mr. Burson continued as cashier until his death, scptcmbcr 21, 1S71, when S. A. Wilson was chosen as his successor. .Mr. .Marsh resigned as president in 1S74, when F. F. White was elected to the vacancy, and no material change occurred in its management during the reraaining period of its existence.

The building in which the Branch Bank and its successors carried on b;:;ine;s for over thirty years still stands on the northeast corner of the pubhe square, now the home of the Muncie Trust Company, and is one of the landmarks of the city, having stood there half a century. It was built in accordance with the current ideas of the time concerning bank architecture combining a banking house and home for the cashier.

The Citizens' Bank was organized November 16, 1874, and reorganized ss the Citizens' National Bank on March 15, 1S75, W1'tn George W. Soilker a.i its first president, who held the office eleven years, being succeeded bv A. L. Kerwood. John Marsh was its first cashier, with Arthur F. Smith assistant cashier. John Marsh continued as cashier until his death in 1SS7.

For a number of years this bank was located in a building on the south side of the public square, but in 1SS4 moved to the corner of Walnut and Jackson streets, in the room formerly occupied by the Claypool Bank, where it remained until 1S90, when it moved to its new quarters in the Anthony h'ock

During the panic of 1S93. this bank with many others throughout the country was forced to suspend, and Arthur W. Brady was appointed receiver. The suspension was only temporary, as arrangements were soon :::ade by which the bank was reopened with G. W. H. Kemper, president, and C. M. Turner, cashier, and all depositors were paid in full, and was succeeded by the Union National Bank.

Claypool Bank. One of the financial institutions of recognized standing in Muncie, up to about twenty vears ago, was the Muncie Eank, or popularly known as the "aypool Bank, established in 1S71, by A. J. Claypool, of Connersville, and -oca after Austin B. Claypool became associated in the undertaking, and 'ater on, Marcus S. Claypool.

It continued to be known as a safe, reliable, private banking house during its continuance in business, until about 1S84, when it was voluntarily discontinued.

In 18S6 George \V. Spilker, on retiring from the presidency of the Citizens' National Bank, in connection with his son, C. A. Spilker, established the Farmers' Bank, a private institution, conducting the same successfully several years, afterward converted to a national bank, and later on it was consolidated with the Union National Bank.

The oldest banking institution in the county from the point of continuance up to the present time, is the Delaware County National Bank, which at this writing, has completed twenty years of prosperous business, and throughout has been under the same roof, the Willard block, on the northeast corner of Main and Walnut. It was organized April 14, 1887, as a State Bank, and opened for business the following day, with capital stock of $50,000, and the following stockholders: R. Sprankle, J. R. Sprankle, C. H. Church, C. A. Willard, John Kirby, Isaac Meeks, William Brotherton, W. A. McClelian, Jesse Nixon, W. F. Watson.

It continued business under prosperous conditions until 1892, when it took out a charter as a national bank, under its present title, with Emmet M. Smith, president, and C. H. Church, cashier.

In 1S96, J. C. Johnson succeeded to the presidency, with W. E. Hitchcock, vice president. Mr. Johnson remained president until his death in 1904, when he was succeeded by Mr. Hitchcock; H. C. Haymond becoming vice president, with no change in the cashiership, C. H. Church having retained that position since the bank started in 1887 to the present time.

The organization of this bank dates from the discovery of natural gas in Delaware county, and the subsequent boom which came to Muncie, developing the city from ten thousand in 1SS7 to thirty thousand in 1907, and the Delaware County National Bank fortunately participated in all this prosperity, building up a large and extensive business, which still continues.

Its Board of Directors is composed of well known citizens of excellent standing in the business community, and are as follows : William E. Hitchcock, H. C. Haymond, C. M. Kimbrough, George A. Ball, John S. Smith, William H. Phillips, A. L. Johnson, George A. Stafford, C. H. Church. The Merchants' National Bank.

The Merchants' National Bank was organized in 1893, with Hardin Roads, president; Fred Klopfer, vice president; F. A. Brown, cashier, these same officers continuing at present.

It enjoys a very prosperous business and is counted one of Muncic's most substantial financial institutions. Its location is on East Main and .Mulberry streets, where it has elegant quarters.

The consolidation of the Citizens and Farmers' National Banks occurred in 1S95, with C. M. Turner, president; C. A. Spilker, vice president, and Edward Olcott, cashier, who were its first officers, and succeeded to the business of both banks under the title of the Union National Bank, occupying the quarters in the Anthony block.

C. M. Turner soon retired to engage in the glass business, when C. A. Spiiker was made president, with Edward Olcott, cashier. Later on T. F. Rose became president and C. F. Koontz vice president, Edward Olcott cashier, continuing as such officers at the present time.

This bank is having a successful career, doing its full share of Muncie's banking business, its' managers and directors being men of high standing, amply qualified for the purpose. The Board of Directors are as follows: T. F. Rose, F. Koontz, William W. Shirk, Benj. C. Bowman, A. C. Silverburg, Wallace Hibbitts, G. W. H. Kemper.

The youngest financial institution in the city is the People's National Bank, having been organized only about three years. It took over the business of the Muncie Bank, a small institution started during the oil boom, ostensibly to provide an oil bank for the operators, but on the failure of the oil field decided to discontinue.

The People's National Bank is a well managed, growing institution, having a good corps of officers and directors selected from among our best business men, and have excellent prospects of success.

The Muncie Trust Company. The Muncie Trust Company, which lias its quarters in the old Branch Dank or Burson building, at the corner of Walnut and Washington streets, was incorporated February 12, 1900, and was opened for business April 2, 1900.

Its officers, who have remained the same from the beginning, arc: J. M. Marin?, president; B. C. Bowman, vice president; H. M. Koontz, secretary.

This is primarily a trust and loan company, but a savings department is conducted. It also acts as trustee tor corporations or estates; is a prosperous reliable institution, officered by men of the highest standing and integrity.

assisted in its growth and prosperity, are three well conducted building and loan associations, whose combined resources arc practically $i,Sco,ooo, which represents that amount expended in homes for the people of this city, and in very many instances could not have been provided but for their assistance.

The oldest association is The Muncic Savings and Loan Companv, organi7.ed in iSSq, with only $150 deposited the first meeting night. It now reaches about $900,000.

The next one to organize was the People's Home and Savings Association; and next. The Mutual Home and Savings Association, all being in a prosperous condition, owing to conservative management.

There are three state banks and two private banks in Delaware county, in addition to those already mentioned; The Albany State Bank, at Albany; The Farmers' State Bank, and the Eaton State Bank, both at Eaton, the Gaston Banking Company at Gaston, and the Commercial Bank at Da!cville, all prosperous, well managed, and a great convenience to the community where located.

An enviable record has been made by the banking fraternity of Muncic. as it is developed that since the adoption of the national banking system, a period of nearly half a century, not a dollar has been lost to a depositor, and the business has been conducted along such conservative lines that it has resulted in contributing large sums to surplus and dividends, thereby extensively increasing the value of the original investments.

Another significant feature is the growth and development of Delaware county within the past twenty years, which has not only been rapid, but phenomenal, as evidenced by the extraordinary growth of the city of Muncic, the building up and extension of the smaller towns of the county, the increased values in farm property, and also, the extensive increase of individual wealth. These facts are strongly confirmed by the various financial institutions of the county, whose combined resources aggregate over six millions. a very large proportion of which naturally gravitates toward the center of traffic, the citv of Muncic, and is by the bankers, placed in the channels of trade and commerce, assisting in the general business and development of a citv in which every citizen of the county is not only vitally interested, but proud of its prosperity and achievements.