Vanderburgh County, Indiana - Chapter with an unread heading (no. 6 of those read), 1889

kRIOR to 1S34 Evansville was without ^6 banking facilities, and, indeed, up to that time there had been no pressingdemand in the little village for the conveniences necessary to rapid and extensive monetarv transactions. When, that year, the State Bank of Indiana was established, and a branch was located at Evansville, it was considered a bold undertaking on the part of its proprietors. Subsequent events, however, showed that their wisdom was not less than their faith in the future of the town. The banking business was inaugurated in a small building on Main street, where the cashier, besides keeping all the books, acted as porter and janitor as well. From this modest beginning the business has grown to vast proportions, occupying some of the largest and handsomest business buildings in the citv and enlisting in its service manv of the most acute intellects of the day. Capital being the foundation of ever)- kind of business, there can be no better witness of the prosperitv and importance of the city at any time than the amount of capital possessed by the banking institutions and used by the business concerns in the transaction of their affairs. The advance of business and trrowth of the communitv is nrobablv more accuratel)' demonstrated by the growth of the banking interest than by any other one standard that can be followed with equal precision. The branch of the old State Bank of Indiana, established here in 1834, had a capital, including state deposits and indi\-idual stock, of $80,000. In 1S43 this capital was increased to $150,000, of which $73,000 were state deposits. In 1850 the banking capital here was re-enforced by the establishment of the Canal Bank, which operated under the charter of the Evansville Insurance Company, the entire capital of the bank and insurance company being $250,000. Allowing one half of this sum to the bank would show the entire banking capital of the city to have been $202,000, not including state deposits in the State Bank; which sufficed until 1857, when a branch of the Bank of the State of Indiana was established, with a capital of $100,000, which increased the total banking capital to $225,000, at which sum it remained for six 3'ears. The capital of the branch of the old State Bank, it will be observed, is omitted from the aggregate mentioned as in use in 1857, that institution having been succeeded b}' the branch of the Bank of the State of Indiana.

In 1863, the First National Bank was established, with a capital slock of $500,000, and in the ten jears that followed the banking capital, through the establishment of new banks, private and national, grew to about $2,400,000. At that time, the beginning of the year 1873, in addition to the regular bank stock, there was a surplus of $610,000.00 divided among the several National banks of the city, making the total banking capital about $3,000,000.00. The panic of 1873 caused many convulsions in monetary circles, but no bank in Evansville was seriously affected. The city has never had a bank failure. Safetj- and stabilit}' have been preserved by careful and conservative manao;ement. Depositors have never had occasion for alarm and the greatest confidence is placed in all of the city banks by the general public. At the present time Evansville has four national, one savings and several private banks, all of which are doing a large business, the combined capital being in excess of $3,000,000.00, a sum considerabh' greater per capita of population than can be found in many of the principal cities of the country. At the close of business October 4, 1888, the loans and discounts of the four national banks amounted to

A brief account of the several institutions properly begins with the pioneer corporation, the Evansville National Bank. Organized in 1834, its capital including state and individual stock was $80,000.00. The records show that the first meeting of the board of directors was held November 11, 1834 - the members being Robert Stockwell, John Shanklin, Marcus Sherwood, William Le^'is, William Owens, Robert Barnes, Chester Elliott, James Cawson, Darius North, and John Mitchell. The board organized b}' electing John Mitchell president, and John Douglas cashier. These officers were continned until Mr. Mitchell's death, when Samuel Orr became president. In 1843, the capital of the bank was increased to $150,000.00, of which $73,000.00 was owned by the state. In 1S47, George W. Rathbone was made cashier, and continued in that position until March 4, 1857, when the bank was succeeded by the "Branch of the Bank of the State of Indiana." The first director}' board of the new bank was composed of Messrs. G. W. Rathbone, Robert Parrett, H. Q. Wheeler, R. R. Roberts, and

George Foster. Mr. Rathbone was chosen president, and Samuel Bavard cashier. Januar}', 1865, the bank was reorganized under the national banking act as the Evansville National Bank, with a capital of $300,000.00, which was subsequently increased to $800,000.00. W. J. Lowry was made president, and R. R. Roberts cashier, but afterward Samuel Bayard became cashier, and still later all the officers were changed, Mr. Rathbone being elected president, Mr. Bayard, vice-president, and V. M. Watkins, cashier. J. G. Kennedy succeeded Mr. Watkins, and in 1873 having resigned, his place was in turn occupied by Henry Reis, the present cashier. Mr. Bayard succeeded Mr. Rathbone, who subsequenth- removed to New York cit}', and Mr. John Gilbert was selected to fill the vacancy occasioned by Mr. Bayard's advancement. In June, 1883, the charter of the bank expired, at which time with the renewal of its charter, its name was changed to the " Old JVcitioiial Baiik.''^ The otllcers of the bank at this time are Samuel Bayard, president; John Gilbert, vice-president; Henrj- Reis, cashier; Samuel Bayard, David J. Mackej', William Ileilman Robert K. Dunkerson, Henry F. Blount, William M. Akin, Edward G. Ragon, and John Gilbert, directors; a galaxy of names guaranteeing fidelity to trust, and superior abilitv in the conduct of affairs. The capital stock of the bank is $500,000.00; its surplus $250,000.00, and its deposits 940,980.57. The stock has paid large dividends and commands a high premium in the market. The building now occupied b}' the bank on the west side of Main street, between Water and First, was built in 1836. It is a massive structure of imposing aspect, substantially built and well arranged for the transaction of the business which it was designed to accommodate. In the present year the building has been thoroughly repaired and re- fitted, its interior arrangement and finish displaying the highest degrees of art and skill- Tlie building is valued at $27,577.94. The career of the institution has been remarkable, growing in strength and popular favor as the years have advanced. From its organization as a small bank in 1834, it has wielded a beneficent influence on the business affairs of this part of the country. Its obligations have been fulfilled to the letter always, and because of its acknowledged solidity and wise management, it was selected as a national depositor}-. The chief executive of the bank, Mr. Bayard, has been identified with it for more than a third of a centurv, and has, bv his financial ability, sound judgment and high reputation for executive skill and untarnished honor, conduced in no small degree to the success and financial repute of tiie bank, now the oldest institution of the kind in southwestern Indiana, and in financial circles everywhere recognized as one of the best and soundest in the state.

T/ic F'ifft J^^jlioiial Bank. - The Evansville Insurance Company, which was granted a perpetual charter with banking privileges, January 21, 1850, commenced business under that charter as the Canal Bank, which was organized in the same year, the entire capital of the insurance company and bank being $250,000. John M. Stock well was elected president and James G. Jones secretary, who was very soon thereafter succeeded by W. T. Page. Operating under the free banking law of Indiana for many years, the concern did a successful business.

The growth of the nation, the friendly and unrestricted commercial relations between the several states, the development of natural resources, the increase of the products of the farm and the shop, the progress of commercial and manufacturing interests, naturallv brintrintr about a vast exchantre of commodities, rendered necessary a system of exchange, or correspondence, which would make the medium of exchange of a certain and fixed value in all parts of the country. The facilities for banking and issuing currency afforded by state laws were very faulty because of the fluctuations of values in monev' carried from one state to another. To remedy this the national banking law was enacted, by which national banks invest their capital in the bonds of the national government and by a deposit of these in the United States Treasury, receive a proportionate amount of their value in notes countersigned b}' the officials and issued b\' that department, thus providing, for circulation among the people, an issue guaranteed by the credit of the nation. By this means uniformity of values is secured and bank notes circulate freely and without (question, and at par, all over the country. The first bank in Evansville and indeed the sixth in the United States to make application for a charter under the new national bank law, was the First National Bank of Evansville, Ind., which was incorporated in 1S63 with a capital of $250,000, which was subsequently increased to $500,000. This bank, although the sixth to make application for a charter, was the twenty-seventh bank chartered. Some mistake was made bv which a trip to Evansville from Washington on the part of those having the matter in cliarge was necessitated, during which time twenty-one other banks were chartered. II. Q. Wheeler was its first president as a national bank, with W. T. Page as cashier. The fiirst board of directors was composed of Gillison Maghee, Robert Barnes, Charles Viele, John S. Hopkins, John Ingle, jr., M. J. Bray, S. M. Archer, H. Q. Wheeler and William Brown, all men of great prominence in the annals of Evansville. Mr. Wheeler was succeeded in the presidency in 1867, by Hon. John S. Hopkins, and he, in 1S80 bv Charles Viele. Each of the three presidents of this bank has been a distinguished citizen of pure character, unsuUied reputation, and of great executive abihty. Mr. James H. Cutler, the present cashier, was elected to that position in 1S65, and bv his wise, conservative, and honorable conduct has contributed largely to the present soundness and popularity of the institution. The present officers are: Charles Viele, president; James H. Cutler, cashier; Will Warren, assistant cashier; Thomas E. Garvin, John Ingle, Charles Viele, M. J. Bray, Isaac Keen, F. J. Reitz, Cyprian Preston and James H. Cutler, directors. In 1882 the original charter expired, at which time a ne.v one was applied for and received. From the commencement of its career this bank has enjoyed a successful business. Good dividends have been paid regularly on its stock, which has always been considered most desirable property. Its capital and surplus now amount to $700,000; its deposits to $818,- 894.25. The banking house at the corner of Main and First streets, is a handsome edifice, with every convenience in its internal arrangement for the transaction of its large business. It was built in 1864 and rebuilt and remodeled in 1882. Its value now is $40,000.

T/ic German A\itiunal Bank. - In January, 1873, the charter of the East Chester National Bank, of Mt. Vernon, New York, was purchased and transferred to this citv, and permission granted bv Congress to change the name to the " German National Bank of Evansville." The capital stock was placed at $250,000, with permission to increase it to $500,000. The first officers were Samuel Orr, president; John A. Reitz, vice-president, and Phil C. Decker, cashier. Directors: Samuel Orr, John A. Reitz,

In January, 1883, Mr. Orr was succeeded in the presidency by John A. Reitz; at the same time Phil C. Decker became vicepresident and Henry L. Cook, cashier. At the present time the directors are John A. Reitz, Samuel Bayard, Thomas Kerth, P. C. Decker, Chas. Schulte, Edward Boetticher, William Rahm, jr., James C. Orr and R. K. Dunkerson. Its capital and surplus amount to $300,000.00, and its deposits to $327,- 049.39. This bank commenced its career at No. 216 Upper First street, and now occupies convenient and commodious quarters at the corner of Third and Main streets. Its management has been wise, and successful, there being at the present time $154,- 489.45 in undivided profits. Those who control its affairs are citizens who have been identified for many vears with the business interests of the citv. Their capacity as financiers has been amph' demonstrated in the career of this bank.

Citizens' JCa/ional Bank. - This bank was organized in 1873, and commenced business at No. 121 Upper First street as successors to the private banking house of W. J. Lovvry & Co. It began with an authorized capital of $175,000. Its first officers were: R. C. Slaughter, president; S. P. Gillett, cashier. Directors: R. C. Slaughter, John J. Roach, L. Swormstedt, George P. Hudspeth, Samuel Vickery, F. W. Cook, James H. McNeely, Fred Lunkenheimer and S. P. Gillett. In 1878 Mr. Slaughter retired from the presidencv of the bank, and was succeeded by Matthew Henning, who, in 1883, was succeeded by S. P. Gillett, the present chief executive. In 1883 the office of vice-president was created, and Dr. C. P. Bacon was chosen to serve as vice-president. At the same time William L. Sworm- steclt was appointed assistant cashier, and in the followinj^ year was made casliier, the duties of which important office he has discharged with great satisfaction to the officers and patrons of the bank. The present board of directors is composed of ihe following citizens: F. W. Cook, C II. Kellogg, L. Lowenthal, A. C. Tanner, Samuel Vickery, S. P. Gillett, F. Lauenstein, W. M. Akin and C. P. Bacon. The capital stock and surplus amount to $240,000; its deposits to $281,448.92. The banking house is at the corner of Second and Main streets.

The Merchants' A\itioiiaI Bank. - A history of the banks of Evansville would be incomplete without some mention of the Merchants' National Bank, which, though now out of existence, at one time wielded a large influence in monetary circles here. It was organized February 8th, 1865. The capital stock was $350,000, all of which was promptly taken, notwithstanding it followed closely on the heels of two national banks heretofore spoken of. The directors for the first year were C. R. Bement, Richard Raleigh, W. J. Dallam, J. G. Venemann, W. W. Morgan, John A. Reitz, Morris Ranger, and Isaac Keen - Mr. Bement president, and John D. Roach cashier. In 1868 the officers were Richard Raleigh, president; John A. Reitz, vice-president, and Chas. W. Kerney, cashier. In 1868 H. L. Meadows succeeded Mr. Kerney as cashier; in 1869 Mr. Bement was again chosen president. Matt llenning, vice-president, and J. A. Lemcke, cashier. Chas. Decker succeeded Mr. Lemcke as cashier in 187 1, and in 1872 C. R. Bement again became president, and Matt llenning cashier. Subseijuentlv Mr. John Gilbert became vice-president of the bank and other changes occurred before the bank ceased doing business. A large proportion of the stock was owned by three wealthy gentlemen, who concluded, about 1885, to conduct the business as a private bank, and surrendered its charter, granted b}- the national government. After about a year's time it discontinued business, without loss, however, to any of its patrons. In 1873, at the corner of Main and First streets, a very handsome banking house was erected at a cost of $40,000.

The People's. Savings Bank. - Organized under the laws of the state of Indiana, this bank opened its doors for business on the 5th day of May, 1870. Its first officers were: Gen. J. M. Shackelford, president; John D. Roach, secretary and treasurer; J. M. Shackelford, Eccles G. Van Riper, M. Muhlhausen, John Laval, James Steele, Fred Lunkenheimer, Christian Hedderich and James W. Lauer, trustees. After the death of Mr. Roach, in 1870, Dr. John Laval was elected secretary and treasurer. January 14, 1880, Dr. Laval resigned, and on March 19th following, Fred Lunkenheimer was elected to fill the vacancy thus occasioned. His successor was Maj. Jesse W. Walker, who served from April i, 1885, to April 25, 1888, the date of his death. On May 14, 1888, Col. John Rheinlander was elected to discharge the duties of this important trust, and is now serving.

Gen. J. M. Shackelford served as president of the bank from its establishment until May 27, 1878, and M. Henning from that date until May 31, 1884, when he was succeeded by Dr. M. Muhlhausen, the present chici executive. The vice-president is Mr. H. V. Bennighof. At the outset the duties of cashier were performed by the secretary and treasurer, but when the business transacted became so large as to demand the appointment of a cashier, Jacob Haas was selected as such. On April i, 1880, he was succeeded by Michael Schaeffer, the present efficient cashier. The present board of trustees is composed of: Dr. M. Muhlhausen, H. V. Bennighof, M. Henning, Gen. J. M. Shackelford, James Steele, Col. John Rheinlander and Clements Reitz.

During the first day of its career the bank secured two depositors, one making a deposit of $2.00, and the other of $1.00, and the doors were closed on the dullest day's business ever known to it. From this small beginning it has daily grown in favor with the people until at this time its active depositors number about 2,500, and its average deposits exceed $650,000.00. The bank has paid a semi-annual dividend to its depositors for the use of their money, which has ranged from 4 to 10 per cent, according to the earnings. It has been fortunate, and wisely managed, has passed safely through the periods of financial depression, and has alwa^'s received and merited the confidence and esteem of its patrons, who are found among all classes. Every dollar intrusted to its keeping has been faithfully and honestly accounted for. In addition to the banks thus far mentioned, several private banking houses have been established in the city to meet unusual demands made at particular periods for banking conveniences. A leading one of these institutions is the banking house of Archer & Co., which employs a considerable amount of capital, and does an active business.

Building- and Loan Associations. - The legislature of Indiana, by an act approved March 5, 1857, which has been much improved by subsequent laws, provided for the organization of building and loan associations, which because of their patrons, the simplicity of their workings and the small payments required to secure the possession of shares, have been well named " poor men's banks." Perhaps no single agency has done more toward enabling the poorer classes, those who eat their bread by the sweat of their faces, to own their own homes and to lay up trivial amounts, which in the aggregate secure many of life's comforts, small sums that would otherwise have been wasted. The declared objects of these institutions are, to increase capital by accumulation, to assist their members in the acquisition of real estate, in the erection of buildings and in the removal of incumbrances on property. The pioneer association of this kind in the city was organized in May, 1873, with the following list of officers: Charles E. Baker, president; N. B. Hayward, vice-president; J. W. Jenner, secretary; H. C. Warren, treasurer and J. B. Rucker, solicitor. The benefits of such an association, wisel}- and carefully managed, soon became apparent, and on July i8th, 1874, ^ second association was formed. From that time to the present this financial element has been bus}- accumulating money and building houses for those who are willing to save little at a time and utilize the results of their toil. As the city grows their number increases. All through the outer portions of the city are neat and attractive homes inhabited by happy families enjoying the independence that ownership of a home affords. There are ten of these associations in the city, with a capital stock of $500,000.00 each, that being the limit fi.ved by law.