Lafayette County, Missouri - Chapter 16: Banks and Banking, 1910

Chapter 16: Banks and Banking

Banking at an early day was not of as much importance as in modern days. Then business was carried on more on the barter plan and there was not the demand for banking houses as there is now. However, the system of conducting banking has materially changed, and for the better, since the first banks were established in this county. Under the old state banking laws, depositors were not assured that their money would be forthcoming, when wanted, at the cashier's window. "Wild-cat," state and private bank paper notes were the general rule. Hence, the farmer used to trade his stock and grain, receiving "checks," and these were in turn taken by merchants and wholesale dealers in payment for goods. Taxes and postage were about the only things that gold or silver was needed for, and even for such uses, metal money was so scarce that often as high as forty per cent, was paid for its use for a few months. At a very early day in this part of Missouri, furs, pelts and whisky went current for money ; later tobacco and hemp served the same purpose.

The first banking business transacted in Lafayette county was at Lexington, in 1845, when a branch of the State Bank was established. The presidents of these several state banks in Missouri were elected by the Legislature in joint-session. The first to hold this office at Lexington was Col. Lewis Green; the second was Lieut. -Col. James Young; third, Judge E. Burden, who served six years. There were, possibly, two more before the system was changed, and the "state" part of this Lexington bank was finally removed to Louisiana, Pike county. This change was made during the Civil war days. The Morrison-Wentworth banking house succeeded to the business of the old State Bank (branch). It was this bank from which the Union and Confederate governments in Missouri both demanded, and finally seized, almost a million dollars. It was mostly recovered, however, and an interesting account of the affair will be found in the War chapter of this volume. When the money was taken, in 1861, by orders of Gen. John C. Fremont, the bank was known as the Farmers Bank of Missouri.

The Robert Aull Bank

This banking concern was the first private bank started in western Missouri. It was established in 1849, by Robert Aull, and was successfully conducted many years. It finally merged into the Lafayette County Bank, which was established December 28, 1870, by John Aull and others. As a matter of fact, the first attempt at banking was carried on in the Aull mercantile house, the Lexington store being one of a series of stores in this state and in the edge of Kansas. People who had more money than they knew what to do with in business left it with Mr. Aull for safe keeping as early as 1843, and from this custom he finally engaged in the real banking business. Thus it was that Robert Aull commenced banking in earnest in 1845, and in 1848 he built a bank building, the same now being Joseph A. Wilson's civil engineering office, at No. 820 Main street. After a short time Mr. Aull was offered the presidency of the Farmers' Bank of Missouri, at a salary of ten thousand dollars, and accepted it. He continued there until the breaking out of the war, when he embarked in the same business at St. Louis. After accepting this position, he left his private business - that of the Aull Banking Company - in the hands of George Wilson, who had been his cashier. In 1870 what was known as Aull's Savings Bank was incorporated and operated for several years as such, but in a short time it was sold to what was known as the Lafayette County Bank, with James Aull, John Aull, George Wilson, George Wilson, Jr., J. A. Wilson, Maria Pomeroy and John C. Wood as incorporators. The first officers were George Wilson, Sr., president; John Aull, vice-president; James Aull, cashier, and Joseph A. Wilson as assistant cashier, but who later became the cashier. The capital invested in this concern was twenty-eight thousand dollars. It did a successful, safe and sound banking business, and withstood the great panic of the country, virtually saving others in Lexington from closing their doors. This banking house continued until it retired from the business on its own motion in 1899.

During the panic of 1873, the banks of Lexington agreed that no single depositor should draw over twenty-five dollars in any one day, and in this way all were safely taken through the stringency, with no loss to anyone.

The old Farmers' Bank of Missouri had a capital of one million dollars in gold and they issued paper money to the amount of three million dollars and were able to pay off dollar for dollar at all times. The old State Bank first transacted business in what later became known as the Aull mansion on Limestone street and Highland avenue; later, about 1855, they built the brick building now occupied by the order of Elks, on Main street.

The present banking facilities at Aullville were brought about by the establishment of the Aullville Bank in 1905. Its first officers were: W. N. Davis, president ; Henry Henning, vice-president ; H. H. Lohoefener, cashier. The capital is fifteen thousand dollars, and general deposits in 1910 amount to fifty thousand dollars. Its present officers are : John M. Handly, president ; Julius Maring, vice-president ; H. H. Lohoefener, cashier. The directors are John M. Handly, E. H. Handly, John E. Holtcamp, Julius Maring, H. H. Lohoefener, Cord Meyer and H. C. Angelbeck.

At Waverly, banking was conducted by the old Waverly Bank prior to the building of the railroad through this county. When the road reached Marshall, Saline county, the proprietors of the bank all moved to that city and engaged in business at that point. Then, in about 1881, the Middleton Bank was established at Waverly and flew high for many years, doing a safe, conservative banking business, until in May, 1905, through the dishonesty of its cashier, the institution suspended, paying off the depositors about sixty-three per cent of their claims. Its cashier was supposed to have been called urgently to see a relative in Kentucky who was ill nigh unto death. This was five years and more ago, and up to date he has failed to return and adjust matters. The failure was for about one hundred and twenty-five thousand dollars. The stockholders lost all and many depositors suffered as well. In the same month of this failure, the present banking house - the Waverly Bank - was established, with a capital of twenty-five thousand dollars. It has already carried as high as eighty-five thousand dollars in deposits, notwithstanding the community was badly shaken by the failure of the old banking house. Dr. W. S. Woods, of Kansas City, held a controlling interest in the new bank until May, 1910, when he sold to W. J. Althouse, of Cameron, Missouri. The only officers this bank has had are as follows: H. G. Neider, president; J. W. Wessel, vice-president; J. S. Croswhite, M. D., cashier ; W. H. Wessel, assistant cashier. This bank occupies the old bank building used by the Middleton Bank.

Mayview Banks

The first attempt at banking at the village of Mayview was when the American Bank of Higginsville established a branch at this point in the early eighties. Thomas T. Puckett was its cashier and manager. This continued to successfully operate until the law was so changed that branch banks were no longer allowed in Missouri.

The next bank at Mayview was known as the Bank of Mayview. It was established about 1892 and continued in business until January 7, 1897, when it suspended and was closed by the inspector of banks. For a time Thomas T. Puckett was the assistant cashier in this bank, but resigned before its failure. The failure caused but little loss on the part of depositors, as in the adjustment ninety-seven and one-half per cent was paid out on all claims.

The present bank at Mayview is the Farmers Bank of Mayview, that was established March 21, 1905, with ten thousand dollars of capital. Its officers originally were: President, J. S. Calfee; vice-president, J. A. Calfee; J. C. Calfee, cashier. At this date (June, 1910) the officers are: Ed S. Butt, president; Daniel Hoefer, vice-president; A. J. Hoefer, cashier. The capital is still ten thousand dollars, while the amount of deposits in June, 1910, was fifty-three thousand dollars.

Banks At Corder

The first banking at Corder was transacted by the Bank of Corder, organized about 1880, which continued a couple of years and sold to the American Bank, of Higginsville, and it was then operated as a branch bank under the old law then existing. In 1892 it was established as the Columbia Bank, with ten thousand dollars capital. They operated till 1903, when it merged with the Corder Bank, that had been organized in 1891.

Daring Robbery

Corder was the scene of a bank robbery in 1895 which came about as follows : It was in the hot days of August, when two men came to the bank and, at the point of a revolver, demanded of cashier William M. Groves what money the bank possessed at that time, which, fortunately, did not exceed a thousand dollars. The robbers having secured from the drawer and vault all but a small amount, which was overlooked, made their way out of town on horses. One of the men was from Kentucky and had resided around Lafayette county some months and had let a young man about twenty years of age into the secret of robbing this bank. They divided the money when far out of town, going then in a northerly direction. Soon as the alarm could be sounded men and horses were on their path, but only after a long, hot chase did they succeed in capturing one, - the young man, - who was surrounded and had become almost exhausted by the heat. He was taken back to Corder, placed in the hands of the deputy sheriff, who had arrived (20) about nightfall. He insisted on taking him to Lexington to the county jail, for safety, but the gathering mob insisted on taking him from the officer and hung him, not far from where the robbery was committed, while the principal bank robber went back to Kentucky. The clue given to the latter by his youthful accomplice caused his arrest in Kentucky, and had it not been for the aid of friends in that state he would have been brought here and tried, but as it was, he was allowed to escape and the matter was forever dropped.

Lexington Banks

The Commercial Bank was organized in 1884, and has a capital of seventy-five thousand dollars. Its deposits on the date above named were five hundred and thirty-three thousand dollars. The president was E. M. Taubman; cashier, W. J. Bandon.

The Lexington Savings Bank was established in 1869; has a capital of fifty thousand dollars ; deposits amounting to four hundred thousand dollars. Its president is Walter B. Waddell.

The Morrison-Wentworth Bank succeeded the old (branch) State Bank, and was organized in 1875. It has a capital of fifty thousand dollars; deposits amounting to eighty-seven thousand dollars. Its president is Judge Richard Field ; cashier, Samuel J. Andrew.

The Traders Bank was established in 1893. Its capital is fifty thousand dollars ; deposits to the amount of two hundred and seventy thousand dollars. Its president is W. G. McCausland ; cashier, B. R. Ireland.

Dover

The State Bank of Dover was established in 1906. It has a capital of ten thousand dollars ; deposits amount to twenty thousand dollars. Its president is H. L, Corbin; cashier, O. G. Congdon.

Napoleon

The Napoleon Bank was established in 1902 and has a capital of ten thousand dollars; its deposits amount to sixty thousand dollars. Its president is W. Strodtman ; cashier, F. L. Guy.

Wellington

The Wellington Bank was organized in 1888 and has a capital of ten thousand dollars ; deposits to amount of two hundred and thirty-three thousand dollars. Its president is J. A. Mann; cashier, H. B. Corse.

The Aullville Bank was organized in 1905. Its capital is fifteen thousand dollars; deposits, forty-six thousand dollars. Its president is J. M. Handly; cashier, H. H. Lohoefener. There was a branch bank from Higginsville started here about 1891, but is not in business at this date.

The Concordia Savings Bank was established in 1873. It now has a capital of twenty-five thousand dollars ; deposits amounting to eighty-three thousand dollars. Its president is A. E. Burns ; cashier, H. Ficken.- Its first president was H. H. Lohoefener, and F. L. Flanders was cashier. It was reorganized in 1898. Mr. Ficken has served as cashier over thirty-five years, and was the victim of the bank robbery in August, 1878.

The Farmers Bank of Concordia was established in 1901, with a capital of thirty thousand dollars. Its president was G. F. Brackmann, and its cashier is W. A. Brackmann. The last-named is still serving, but the president is now J. P. Lohoefener.

Corder

The Corder Bank was established in 1891. Its capital and surplus is now thirty thousand dollars; deposits amount to one hundred and thirty-nine thousand dollars. Its president is G. A. Ferking; cashier, William M. Groves.

Alma

The Alma Bank was established in 1884. The present capital is twentyfive thousand dollars ; surplus, seven thousand six hundred dollars ; individual deposits, eighty-five thousand dollars. Its officers are, J. W. Horner, president; P. H. Koppenbrink, vice-president; T. C. Marshall, cashier. December 30. 1896, this bank was robbed in the night time of one thousand four hundred dollars, the vault doors being blown off by explosives. The burglars were never captured.

Higginsville Banks

The American Bank was established in Higginsville in 1878. It has a capital of fifty thousand dollars ; deposits amounting to one hundred and ninety thousand dollars. Its president is A. E. Asbury ; cashier, H. F. Campbell. ,

The Bank of Higginsville was organized in 1882. Its present capital is sixty thousand dollars; deposits, three hundred and forty-four thousand three hundred and ten dollars. Its president is Charles Hoefer; cashier, Daniel Hoefer.

The Farmers Bank at Higginsville, which was established in 1908, has a capital of thirty thousand dollars; deposits amounting to fifty thousand dollars. Its president is L. T. Land ; cashier, J. A. Woestmeyer.

The Bank of Odessa was organized in 1880. Its present capital stock is fifty thousand dollars; deposits run as high as two hundred and twentyfive thousand dollars. Its president is J. C. Calfee; cashier, T. R. Taylor.

The Farmers Bank was established in 1883, with a capital of thirty thousand dollars. Its officers are: J. T. Ferguson, president; H. C. Armstrong, vice-president; B. Elliott, cashier. Its present deposits are about two hundred and thirty thousand dollars, while they have a capital of eighty thousand dollars.

Bank At Waverly

The Waverly Bank was established, upon the failure of the old banking house already described, in May, 1905, with a capital of twenty-five thousand dollars; its deposits have already reached (1910) eighty-five thousand dollars. H. G. Neider is president and Dr. J. S. Crosswhite, cashier.

The Bank of Mayview was established as the Farmers Bank in 1905, with ten thousand dollars capital. Its present officers are Ed. S. Butt, president ; A. J. Hoefer, cashier.