Fayette County, Indiana - Chapter 13, 1917

Chapter 13

The history of early banking in Connersville is enveloped in more or less obscurity and it is impossible to trace with any degree of accuracy the history of the private banks which existed prior to 1852. Connersville evidently did not have a bank chartered by the state until after the present Constitution was adopted in 1851, although some of the early merchants carried on a banking business for the convenience of their customers. Most of this so-called banking consisted of buying and selling notes and the handling of paper currency issued by the merchants themselves. During the flourishing days of the old White Water canal there was very little specie jn circulation in the state, practically all of the currency being in the form of bank paper of various kinds, and the "shin-plasters" issued by the merchants. When the Legislature chartered a state bank in 1834, the act establishing the bank divided the state into ten districts and provided that the directors should select one town in each district for the branch bank.

Fayette county was placed in the third district with the counties of Union, Rush, Wayne, Henry, Delaware and Randolph. The bank for the district was located at Richmond by the directors, Newton Claypool, Elijah Coffin and Achilles Williams. Claypool was then a resident of Connersville. If there was a bank of deposit in Connersville during the lifetime of the state bank chartered in 1834, it was a private concern and not a part of the state system.

^The Constitution of 185 1 provided for a state bank (Art. XI.) and the Legislature of the following year passed an act formally establishing a state bank. The act was dated May 18, 1852, and was to go into effect on the 1st of the following July. Connersville was one of the first fifteen banks organized in conformance with this act, the state bank directors reporting that many as being actually organized by December, 1852.

Of the first fifteen banks organized in 1852 the Bank of Connersville, as it was designated, started out with twice as much capital as any of the other banks, its original capital stock being $400,000.

Faykttf. County, Indiana Df.Veuipment Ok Banking

Tliis hank was opened for Imsiiiess in tlie rear of l'"rybarger's store which stood at the soutlnvest corner of Central avenue and Fifth street, However, it was not long- after the institution was opened before it was able to build a three-story brick building which stood on Central avenue between Fourth and Fifth streets. The first president of this bank was George Frybarger, later followed b\- A. B. Conwell. The Fayette County Bank was opened sometime in 1853 in the building which stood at the southeast corner of Central avenue and Fourth street, and which is now used as the Palace hotel. The stockholders of this bank included such men as Newton Claypool. L. D. Allen, Henry Gmidlander. .Minor Meeker. Josiah Mullikin, Henry Simpson and Meredith Helm. The cashier of this bank was L. D. Allen and when tlae board of directors replaced him with E. F. Claypool in 1854, he at once started a bank of his own. calling it the Savings Bank of Indiana.

Allen associated himself with Elisha Vance, a lawyer of Connersville, in his undertaking and they opened their bank in the building erected by the White Water Canal Company on Fourth street between Eastern and Central avenues. This building stands to the rear of the present Palace hotel and is now used as a residence. This bank issued one- and three-dollar certificates signed by L. I), .\llen and T. G. Stevens. J. L. Heinemann has some of these certificates bearing the date of August 2T,, 1854. The bank evidently did not command public confidence; at least it closed its doors within a year.

The Fayette County Bank was consolidated with the Connersville branch of the Bank of the State of Indiana in January, 1857. T'""^ directors of that institution were John Caldwell, Newton Claypool, Henry Simpson, Amos R. Edwards, Thomas J. Crisler, ^\^ W. Frybarger and Sherman Scofield.

James Mount and William Merrill opened a bank in 1857 '" t^i^ room formerly occupied by the Bank of Connersville, and for several years carried on a kind of bank business under the name of the Farmers Bank.

First National Bank

1873 P- H. Roots was chosen ])resident and Charles Mount, cashier. In 1879 P. H. Roots died and was succeeded in the presidency by his brother, F. M. Roots, and F. T. Roots, son of P. H. Roots, became vice-president. From 1873, until his death in 1883, G. W. Uhl was assistant cashier. The business of the bank is still conducted at the old location on the northwest corner of Central avenue and Fifth street. The present brick building was erected to replace the small two-story brick structure in which the business was formerly conducted.

The Fayette National Bank

On November 17, 1892, the Fayette Banking Company was organized and began business in the small room at the corner of Sixth street and Central avenue, now occupied by the Grand Leader store. J. B. McFarlan, Sr., served as president, Jos. I. Little, cashier and P. H. Kensler, assistant cashier. The first board of directors consisted of J. B. McFarlan, Sr., W. W. McFarlan, Jos. I. Little, William Newkirk and George M. Sinks.

Late in December, 1894, the company moved into the corner room of the McFarlan building just across the street from their old location, which has been occupied ever since by the institution and its successor - The Fayette National Bank.

The business was successful from the start, and when in 1902 the change was made to The Fayette National Bank, their deposits had grown from $12,806.52 to $301,184.48. At that time also the capital was increased from $30,000.00 to $100,000.00. The business has continued to grow steadily and solidly with the passing years, until now the deposits have reached

.While some of the original officers and directors have passed away, the bank has been practically under 'the same management all these years -

The present officials of the hank are: President, P. H. Kensler; vicepresident, J. E. Huston : cashier, Charles Casse! ; assistant cashier, Alton G. Trusler. The board of directors is comprised of E. \V. Ansted, P. H. Kensler, G. \V. Ansted, J. K. Huston and W. B. Ansted. The bank is a member of the Federal Reserve Bank.

Farmer.S And Merchants Trust Company

The Farmers and Merchants Trust Company, Connersville, was organized on April 5. 1902, with a capital stock of $100,000. The first officers of the company were : President, F. T. Roots ; vice-president, E. W. Ansted : cashier, B. F. Thiebaud ; secretary and treasurer, B. F. Thiebaud. The first

The following is the report of the condition of the Farmers and Merchants Trust Company, at Conners\ille, at the close of its business on November 17, 1916:

The Central State Bank at Connersville was organized on March 9, 1907, with a capital stock of $60,000. The first officials were : President, W. W. McFarlan; vice-president, A. E. Barrows;, cashier, Frederic L Barrows; assistant cashier, H. M.. McFarlan,

The present officers are: President, Alex Edwards; vice-presidents, E. M. Michener, F. I. Barrows; cashier. A. H. Rienian. The board of directors is comprised-of Alex Edwards, E. M. Michener, F. I. Barrows, A. H. Rieman. J. R. Mountain. B. M. Barrows, C. I. Sliowalter and George Manlove. The bank owns the building on the corner of Central avenue and Seventh street. By the early part of 191 7 the deposits were over $300,000.

I-Avette Savings And Loan Association

The Fayette Savings and Loan Association, of Connersville. was organized in May, 1887. During the thirty years it has been in operation it has been the means of assisting hundreds of its members to build and own homes of their own, and has tbus contributed inrna.,small.rHeasure to the general prospecity of the community. The association now has a subscribed capital

Stock of $1,495,000 and cash assets, about $700,000. A statistical summary of its condition at the time its last report was made shows the following: Total membership, 1,338; investing members, 842; borrowing members, 496; amount of capital stock subscribed and in force, $1,472,500; value of shares when matured, $100; rate of interest, 6 per cent. The present officers are as follow : President, John T. Lair ; vice-president, Richard G. Wait ; secretary, F. I. Barrows ; treasurer, E. M. Michener ; assistant secretaries, Caroline Barrows Dixon, Arthur Dixon; other directors. Fred C. Neal, Charles I. Showalter, Charles Monyhon.

The German Building and Loan Association of Connersville was incorporated on April 20, 1902. with an authorized capital stock of $500,000. The first officers were as follow : President, D. W. Andre ; secretary, John Rembusch : treasurer, F. R. Beeson. Its condition at the time of its last report is shown in the following summary: Total membership, 460; investing members, 310; borrowing members. 150; amount of capital stock subscribed and in force, $211,400; par value of shares when matured, $250; rate of interest, 8 per cent; total shares of stock in force, 2,114. The present officers of the association are as follow : President, James E. Pattee ; secretary, William Frank; treasurer, James McCann; attorney, G. Edwin Johnson.

Home Loan Association

The Home Loan Association of Connersville was incorporated on December 20. 1902, with an authorized capital stock of $1,000,000. The first officers were as follow : President, J. B. McFarlan ; secretary, John Payne ; treasurer, W. H. Bertsch; attorney. Finly H. Gray. The last report of the association shows the following: Total membership, 1,397; investing members, 1,061; borrowing meml^ers, 336; amount of capital stock subscribed and in force. $1,070,200; par value of share when matured, $100; rate of interest. 6 24/100 per cent. The present officers are as follow: President. W. T. Edwards ; secretary, S. O. McKennan ; treasurer, R. C. McKennan ; attornev, W. E. Ochiltree.