Johnson County, Missouri - Chapter 32: - Banks and Banking, 1918

IN EARLY DAYS - EARLY WARRENSBURG BANKS - EARLY' KNOB NOSTER BANKS -EARLY HOLDEN BANKS - BANKS TODAY - BANK OF HOLDEN - BANK OF KNOB NOSTER - FARMERS & COMMERCIAL BANK - CITIZENS BANK - BANK OF KINGSVILLE - BANK OF CENTERVIEW - PEOPLES NATIONAL BANK - BANK OF LATOUR - BANK OF LEBTON - COMMERCIAL BANTv- CHILHOWEE BANKBANK OF MAGNOLIA - FARMERS BANK OF CHILHOWEE - AMERICAN TRUST COMPANY' - PEOPLES STATE BANK- FARMERS BANK OF LEETON - FIRST NATIONAL BANK - SUMMARY.

In the early days there were no banks in Johnson county. The pioneers invariably carried what money they had on their person and all transactions in the early days were carried on by the payment of currency, or by barter and trade.

Early Warrensburg Banks. - In July, 1858, the Union Bank of Missouri organized a branch bank at Warrensburg. This was the first bank in Johnson county. The officers were, W. H. Colbern, president; W. H. Anderson, cashier, and S. P. Williams, bookkeeper. The bank was organized with a capital of $100,000 and it did a large volume of business from the start. At that time there was active business going on in the county and much speculation in land. The bank loaned considerable money on real estate, receiving usually not less than twelve per cent, interest per annum.

When the Civil War came on it in a measure paralyzed the business of this section and not only made the banking business uncertain but the threatened invasion of either the Union or Confederate army, or both of them, created a condition which made unsafe even the money in the vaults of the bank. In June, 1861, indications were that one of the two armies would soon invade W^arrensburg, and the officers of the bank decided that the safe thing to do was to hide the bank's money. They accordingly arranged with a man named John Parr, who lived two and one-half miles south of Warrensburg, to Iniry the money under his hearthstone. At midnight Dr. William Callioun. W. T. Logan, W. S. Hume and W. H. Anderson took the money, which amounted to seventv-five thousand dollars, to Parr's residence. He liad made preparations for hiding the treasure, l)y sending awav his slaves and his children so that no one but himself and wife and the parties who brought the money out would know of its hiding place. The money was placed in five strong wooden boxes, each containing fifteen thousand dollars, and placed under the hearthstone, where it remained from June until October. In the meantime the Confederate army under General Sterling Price, and the Federals, under Colonel Dare, of Illinois, had passed through \\'arrensburg and taken all the money that they could find. In October the cashier of the Union Bank of Missouri. St. Louis, Missouri, of which the Warrensburg institution was a branch, went to John Parr's place with the local officers of the bank and got their money and took it to St. Louis. After this money was hidden, the branch bank was suspended at Warrensburg, but the L^nion Bank of Missouri at St. Louis settled with the customers of the Warrensburg bank.

\\'. H. and G. ^\^ Colhern carried on a small private banking business in ^^'arrensburg during the sixties. In 1869 Cruce & Colhern engaged in the private banking business in \\'arrensburg with a capital stock of about twenty thousand dollars. This partnership was the forerunner of the Johnson County Savings Bank which was organized in 1872. of which George ^^^ Colhern was president and W. H. Anderson, cashier. The bank was organized with a capital of about fifty thousand dollars. It closed in July. 1893 ; was reopened for about a year, and again finally closed. F. G. Lunbeck and L. S. Hickman were appointed receivers for it and wound up its business.

In 1866, shortly after the close of the Civil War, the A. \\'. Ridings & Co. Bank was organized, with a capital stock of $31,000. A. W. Ridings was president and James Ward, cashier. In 1869 this bank was reorganized, becoming a national bank, with a capita! stock of $100,000. It failed in 1878. Its creditors were paid, and the stockholders were the only losers.

The Warrensburg Savings Bank was established July 28. 1871. with a capital stock of $55,000. This bank suspended business in 1879. liquidating all claims and paying all depositors.

Knob Noster. I do not find the first records, but it was organized in 1868. The first record I find is February 2, 1869. It was organized by Curtis Field, Samuel Workman, A. L. Churchill, W. H. Wells, Benton P. Taylor, Peter Sullivan, John N. Owsley, L. C. Littlefield, William Thornton, W. A. Wortham, Thomas F. Melvin and others. This bank ran until September 8, 1871, when the First National Bank of Knob Noster was organized with the following stockholders: Curtis Field, Ransom Wells, L. C. Littlefield, W. A. Wortham, W. H. Wells, A. L. Churhill, Thomas F. Melvin, Julia A. Fisker, G. H. Perkins and A. Case. Capital stock, $50,000. The first board of directors was Curtis Field, president ; A. Case, vice-president; Thomas F. Melvin, cashier; Ransom Wells, L. C. Littlefield, W. A. Wortham, W. H. Wells, A. L. Churchill, and G. H. Perkins. The board met every day and passed on notes offered for discount. Curtis Field continued as president and Thomas F. Melvin, as cashier during the life of the First National Bank. On May 29, 1875. it was voted that the First National Bank go into liquidation and the Bank of Knob Noster was organized in its place under state laws May 29, 1875.

Deposits in the early history of the bank were small, there were many days in which only a half dozen checks would pass over the counter and now it is not unusual for 300 to pass over the counters. In its early history the board met every day to pass on discounts. Later a discount board consisting of three members was appointed to pass on discounts. Now the board meets once a month to pass on them.

Banks Today .^There are now seventeen substantial banks in Johnson county. Two are national banks and the others state banks. The following is a sketch of each one arranged in order of establishment.

Bank of Holden. - The Bank of Holden is the oldest of the present Johnson county banks. It was organized ]\Iay 13, 1872. under charter No. 69, with a capital stock of $50,000, which was increased to $100,000 August 1, 1878. The first officers of the bank were: Lewis Chaney, president, and I. M. Smith, cashier and secretary, and W. .\. Campbell, T. J. Allison, I. Starkey, J. G. Cope and Charles Rluhm. directors. The capital stock was reduced to $50,000 again June 1, 1900. The present officers of this bank are: H. R. AlcCutcheon, president: W. F. McCutcheon, cashier, and the board of directors consists of H. R-

Bank of Knob Noster. - The second liank in the county is the Bank of Knob Noster. The .following is a complete sketch and is written by J. M. Kendrick: The first board of directors for the Bank of Knob Noster was, Curtis Field, T. F. Melvin, Gordon Hardey, Ransom Wells, C. B. Littlefield, Samuel Workman and A. C. Case. Curtis Field was made president and T. F. Melvin, cashier. Capital stock. $50,000. The board of directors met twice a week. T. F. Alelvin continued as cashier until July, 1876, \\hen C. B. Littlefield was elected cashier, which he held for thirty years, until July. 1906. when J. M. Kendrick was elected cashier and has continued as such. From 1867 to 1917 the bank has had three cashiers. C. B. Littlefield is the only one living of the first board of directors. Judge J. G. Senior has been continuously director in the bank for forty years. The first bank and its successors have had a number of presidents since its organization in 1867: Curtis Field, Gordon Hardey, John N. Kimzey. George O. Talpey, Samuel G. Kelly, John G. Senior. W. S. Shoemaker. W. D. Carpenter. John T. Lay and B. F. Summers. The capital stock was originally $50,000, was reduced to $30,000, then increased to $40,000, and then decreased to $30,000, the present capital stock. The first board of directors consisted of seven members, has varied a number of times, has been thirteen, then reduced to nine, and then increased to eleven, the present number. It went through the panics of 1873. 1893 and 1907 all right. It has paid interest on time deposits, from its organization, in the early years paying six per cent, and reducing the rate with the trend of the times. The present board of directors, B. F. Summers. W. R. Clark. \\'. D. Carpenter, J. H. Rothwell. James Hogan, P. G. Utley, C. W. Weidman, W. L. Charles. J. B. ^^'ampler. J. G. Senior and J. M. Kendrick. B. F. Summers, president: J. G. Senior, vice-president; J. M. Kendrick, cashier: V. B. Shepherd, assistant cashier: L. P. Lay, bookkeeper.

Farmers & Commercial Bank. - The Farmers & Commercial Bank of Holden. the third Johnson county liank. was organized March 17, 1881, with a capital stock of $25,000. The first officers were: W. M. Steele, president: George S. Young, vice-president, and Z. T. Miller, cashier. The original stockholders were: W. M. Steele, G. S. Young,

Z. T. Miller. D. C. Quick, J. S. Johnson, Richard M. Simpson, H. D. Smithson, J. C. Creighton and S. H. Farrar. This bank now has a capital stock paid in of $30,000, with a surplus fund of $30,000 and undivided profits of $20,000. So strong was the personality and control of William Steele, the deceased chief organizer of this bank and for a long time Holden's first citizen, that for years it has been much better known as "Bill Steele's Bank" than by its real name. One of his definite policies was always to keep on hand an unusually large amount of cash. Even in the 1907 panic, it is said the bank always paid its depositors cash on their checks if requested. The following are the present officers of the bank: I. G. Farnsworth, president; R. L. Jackson, vice-president; W. W. Morhart, cashier; F. R. Huber. assistant cashier. The directors are Messrs. Jackson, Farnsworth and Morhart and E. K. Steele, son of William Steele, the founder, Mr. C. Bell, John A. Doak, S. A. Murray, R. L. Miller and Sam C. Day.

Citizens Bank. - The Citizens Bank, the oldest bank in \\'arrensburg, was organized October 18, 1888, with a capital stock of $25,000, under charter No. 524. The first officers were: J. T. Cheatham, president; Marcus Youngs, vice-president; O. S. Wadell. cashier; J. T. Cheatham, Dr. C. W. Robinson, W. H. Hartman, J. A. Stewart, O. S. Wadell, Marcus Youngs, J. D. Eads, and E. N. Johnson, directors. On March 22, 1911, the capital stock was increased by a cash dividend of $75,000, making the capital stock $100,000, the present capital stock. The bank has a surplus of $25,000 and undivided profits of $23,000. It has paid $78,000 in cash dividends since its organization. The present ofiiicials are: Marcus Youngs, president; T. E. Cheatham, vice-president; W. H. Cheatham, second vice-president; J. V. Murray, cashier; A. Lee Smiser, assistant cashier; J. A. Stewart, G. A. Lobban, T. E. Cheatham, W. H. Cheatham, W. D. Faulkner, J. V. Murray, and Marcus Youngs, directors. Of the original directors of the bank three have died : J. T. Cheatham, W. B. Drummond, and O. S. Wadell.

Bank of Kingsville. - The Bank of Kingsville, Kingsville, Missouri, was organized June 18, 1890. The officers are: W. W. Messick, president; R. T. Fryer, vice-president; Joseph Greaves, cashier, and the directors are: W. W. Messick, R. T. Fryer, S. P. Gibson, B. Wallace and S. W. Jones. The paid-up capital stock is $10,000, and surplns. $20,000.

Peoples National Bank. - The Peoples National Bank is a result of the Peoples Savings Bank. This was opened as a private bank in a drug store by E. N. Johnson, sole owner, in 1890. with a capital of $5,000. As owner, E. N. Johnson continued the bank until the 20th of Julv. 1892, at which time a charter was taken as a state bank, with capital of $15,500. On March 16, 1897. tlie capital stock w^s increased to $25,000, a dividend of $9,500 being declared and stock issued therefor. On August 10, 1897, the Peoples Savings Bank purchased the Bank of Warrensburg, consolidating the business of tlie two tianks and liquidating the bank of Warrensburg. In 1900 J. D. Eads was electetl cashier, holding it for some time. Novem1)er 28, 1898. the capital stock was increased to $50,000 and a national charter taken out. In 1907 the Peoples National Bank declared an extra dividend of 50 per cent., increasing the capital stock to $75,000. the present capital stock. The surplus is $15,000: undivided profits. $20,000. The present officers are: E. N. Johnson, president: L. J. Schofield. \-ice-president : J. D. Eads, cashier; other directors are, E. E. Tracy, C. H. Dutcher. W. O. Redford, G. A. Gilbert.

Bank of Latour. - The Bank of Latour. Latour, Missouri, was chartered June 1, 1895: charter number 931. The officers of this bank are: Jesse Elliott, president: Taylor Deatley. vice-president: C. A. Dovenspike, cashier: and A. L. Feeback. assistant cashier. The directors are: Jesse Elliott, Taylor Deatley, C. L. Deatley, A. L. Feeback. J. E. Stitt. J. H. Eeebee, N. R. Dovenspike and C. A. Dovenspike. In 1917 the paid-up capital was $11,000. Surplus and profits, $9,780.

Bank of Leeton. - The Bank of Leeton was organized in 1896 and chartered September 14 of that year, under charter number 966. The officers are: H. E. Eewel, president; A. B. Venable, vice-president; C. D. Johnson, cashier: J. T. Kennedy, assistant cashier. The directors are: H. E. Eewel, A. B. Venable, C. D. Johnson, E. E. Wall, Rolla Stacy, C. M. Greer. J. J. Lee. J. R. Grinstead and J. T. Kennedy. The paid-up capital of the Bank of Leeton is $12,500; surplus and profits, $32,000.

organized in 1897, under charter No. 992. The following were the first officers of this institution: Dr. W. L. Hedges, president; A. S. Mayes, vice-president; F. L. Mayes, cashier, and the first directors were: Dr. W. L. Hedges, A. S. Mayes, F. L. Mayes, Isaac Markward, George W. Houts. James H. Parker and J. D. Eads. The capital stock was $25,000, which was later increased to $50,000. with a surplus of $50,000. The present officers are F. L. Mayes, president ; W. L. Hedges, vice-president; W. S. Clark, second vice-president; H. F. Berkley, cashier; A. H. Gilkeson, assistant cashier, and the directors are: F. L. Mayes, W. L. Hedges, W. S. Clark. H. F. Berkley, James H. Parker. George W. Houts and "W. J. Mayes. Messrs. Parker, Hedges, Houts and F. L. Mayes have been members of the board of directors since the organization of the bank.

Chilhowee Bank. - The Chilhowee Bank. Chilhowee. ^Missouri, was chartered June 29, 1901, under charter number 1086, with a capital stock of $10,000. The officers are: William P. Hunt, president; William Sweeney, vice-president; R. E. Sweeney, cashier; H. R. Butcher, assistant cashier, and the directors are : Lewis Corson. William P. Hunt. S. Ella Hunt. E. S. James, Charles H. McElwee, William Sweeney and R. E. Sweeney. In 1917 the surplus fund was $11,400.

Bank of Magnolia. - The Bank of Magnolia. Magnolia. Missouri, was chartered January 18. 1905. under charter No. 1327. The officers are: George D. Graham, president ; F. P. Parrott. vice-president ; G. V. Raker, cashier, and J. C. McDougal. assistant cashier. The directors are: R. T. McDougal, John Witteman. J. C. McDougal, George B. Graham. J. C. Raker, G. V. Raker and F. P. Parrott. The paid-up capital stock is $10,000. and the surplus is $2,000.

Farmers Bank of Chilhowee. - The Farmers Bank of Chilhowee was organized in 1907. Its charter number is 1565. dated October 10, 1907. The officers of this institution in 1917 were: F. M. Gray, president ; C. H. Gaines, vice-president ; ^^Mlliam Inglish. cashier, and the directors are : F. M. Gray, C. H. Gaines, \\\ R. Carr, D. L. Day, S. W. Paul. G. L. Park and William Inglish. Tlie paid-up capital stock is $10,000. Surplus and profits, $9,500.

American Trust Company. - The American Trust Company is the outgrowth of the consolidation of the Johnson County Trust Company witii tlie American Bank. Tlie Johnson County Trust Company was organized in 1908 and the American Bank in 1905 and in 1913 the two

Peoples State Bank. - The Peoples State Bank of Knob Noster is authorized under charter number 1767, and was chartered February 25, 1911. The following are the officers: R. M. Jenks, president; O. N. Whitsel, vice-president ; Frank Jenks, cashier.

Farmers Bank of Leeton. - The Farmers Bank of Leeton was chartered May 12. 1911, under charter No. 1773. The officers are: A. C. Todd, president; W. T. Baker, first vice-president; Guilford Morris, second vice-president; J. O. Reynolds, secretary and cashier; Henley Stacy, assistant cashier. The directors are G. L. Hall, L. C. Abbington, J. W. Shoemaker, A. C. Todd, W. F. Reynolds, J. H. Boone, S. R. Miller, W. T. Baker, Moses Nehr, F. G. Cooper, William Hinton, Guilford Morris. W. T. DesCombes, Henley Stacy and J. O. Reynolds. The paid-up capital stock of this bank is $20,000; surplus and profits, $7,510.

First National Bank. - The First National Bank of Holden is the baby bank of the county. It was organized under the national banking laws in 1913, with a capital stock of $30,000 and a surplus of $10,000. The first officers were I. G. Farnsworth, president; C. C. Teyis, vicepresident; and J. H. Tevis, cashier. These, with R. L. WHiitsett, Samuel Raber, Samuel Sankey and R. F. Tevis were the first directors. There were about thirty-three stockhodlers, and $25,000 deposits the first day. The present officers are : C. C. Tevis. president; R. L. Whitsett, vicepresident; A. A. Searle, cashier, and William S. Farnsworth, assistant cashier. The directors are : S. R. Sankey, R. L. Whitsett, R. F. Tevis, W. S. Farnsworth, S. R. Raber, C. C. Tevis and A. A. Searle.

done through them at first, the number of checks given was very small and the work of bank officers was very light. Today, business done through checks has increased enormously and the banks' work correspondingly.

(2) Many more loans were made on personal endorsements in early times than today. Neighbors and friends endorsed each other's notes, often when not financially justified in doing so. This practice has almost entirely ceased now, and most bank loans are made on the worth or credit of the borrower himself. There has been a great increase in loans on chattel mortgages or live stock (cattle, horses and mules). Missouri has an excellent chattel mortgage law, and these loans are a great aid to agriculture.

(3) Money was scarce, and interest rates were always ten per cent, or more, as the law allowed. Today, interest rates are chiefly six to eight per cent.

(4) Interest on time deposits was never paid generally until recent times. Some banks paid such interest early and some started and then abandoned it. Now all the banks pay such interest, usually three per cent. There were no savings accounts at all in the early days. Today these have been increasing, are of great value to those that keep them. Savings accounts today total many hundred dollars.

(5) Losses to the banks on bad loans are much less today than ever before. This is due to the fact that the bank officers are better trained and more capable men, and to the efficient system of bank inspection that has been established chiefly in the past twenty-five to thirty years. This requires good banking and prevents bad.

(6) The sources of income to the bank have been always about the same - namely, interest on loans. The Johnson county banks have practically always furnished exchange to their customers without charge.

(7) The best characteristic feature of the banks today is their increasing interest and leadership in things for the general good of the community. They have become liberal contributors to and helpers in movements for better farming, good roads, agricultural fairs and meetings, etc. And their work in the great World War going on is very important and increasing monthly.