Fond du Lac County, Wisconsin - Chapter 13: Financial, 1912

Chapter 13: Financial

The business of banking is of great antiquity and in its simpler forms no doubt was understood and practiced by the Assyrians, Babylonians and Athenians. As the taking of interest for money lies at the root of all banking and furnishes the chief motive for it, wherever a people were sufficiently advanced to loan money for hire there would naturally spring up many of the practices and meth¬ ods of modern banking. The transfer of credits was undoubtedly known among the ancients. They used checks and bills of exchange, but for all that they were very far from having the confidence in credit business that has since been fostered by modern banking methods. They used gold and silver coin and other com¬ modities then in use as standards of value and media of exchange and had not invented representative money. It is more fanciful than correct to ascribe to the Romans the invention of modern banking. The business carried on by their money lenders and dealers was similar to that of the Jews of the middle ages and the Lombards.

When gold and silver were deposited, it was more in the nature of a special deposit to be kept until called for. There have always been money lenders but banks for lending money are of comparatively modern origin. The bank of Venice, which originated in 1171, may be pronounced the forerunner of modern banking. It was followed by the Bank of Genoa, 1320; Bank of Amsterdam, 1609; Bank of England, 1694; Bank of France, 1716; and others at later dates. In the United States there have been private banks and chartered banks and of the latter some have derived their powers from state legislatures and some from the Federal congress.

The National Bank Act, which became a law early in 1863, was modelled largely after the free banking laws of New York, Ohio and other states; and the distinctive principles which underlie it are government supervision of the oper¬ ations of the banks and a circulation based directly upon the securities and guar¬ antee of the government. The original act has undergone many modifications, some of them of considerable importance and while in its operations it has proved of great value to the commerce of the country it is undoubtedly capable of im¬ provement and further changes may be expected in it in the not distant future.

Financial institutions of Fond du Lac have been managed from the beginning with marked ability and integrity. Mistakes have been made and at times care- lessness cropped out, but the instances of the human weaknesses have been so few as to make them almost a negligible quantity in the solution of the subject of local' banking. The Farmers & Mechanics Bank was conducted many years under the supervision of Robert A. Baker and John S. Burrows, and successfully. The bank finally went into forced liquidation by reason of the laxity of its managers in scrutinizing collateral accepted for loans. The Exchange Bank of Darling & Company failed for various causes and these two institutions mark the extent of bad banking in this community.

The Exchange Bank Of Darling & Company

The Exchange bank received its financial strength from Dr. M. C. Darling and was under the management of his son, Keyes A. Darling, and a son-in-law, John A. Eastman. It was the first concern of its kind established in Fond du Lac, having been organized in 1850 by K. A. Darling, who was its president, Dr. T. S. Wright, vice president, and C. W. Whinfield, cashier. The business was con¬ ducted in a stone building erected for the purpose, at the southeast corner of Main and First streets, which was later occupied by the Wells' bank.

Farmers & Mechanics Bank

Henry O. and Robert A. Baker, who had conducted a grocers' business under the firm name of Baker Brothers, early in 1852 closed up the partnership affair and Henry O. Baker returned to New York. Robert A. Baker, remaining, opened a broker's office and, in 1856, in connection with S. B. Amory and others, organ¬ ized the Farmers & Mechanics Bank under the banking laws of the state of Wis¬ consin. S. B. Amory was made president and Robert A. Baker, cashier. In a few years' time Mr. Amory withdrew and Baker succeeded him as president, John S. Burrows taking the position of cashier. For many years this was a strong finan¬ cial concern, but the panic of 1873, together with land speculations, crippled it to such an extent that its doors were closed by the authorities. John S. Burrows soon thereafter died at Marquette, Michigan, and Mr. Baker died in Chicago.

G. Ruggles and S. E. Lefferts, in January, 1853, with B. F. Moore, president, and A. G. Ruggles, cashier. Its authority for doing business was under the state ' bank law. In 1865 the name was changed to the First National Bank of Fond du Lac, and Edward Pier was made president under the reorganization, B. F. Moore, vice president, A. G. Ruggles, cashier. The directors were Edward Pier, B. F. Moore, A. G. Ruggles, John H. Martin and Orrin Hatch. In 1866 J. B. Perry assumed the duties of cashier and conducted them faithfully and honorably for a space of thirty-five years. A. G. Ruggles was the president of the First National from 1875 untff his death in 1887, when E. A. Carey succeeded him and remained in office until 1903, when J. B. Perry was elected by the board as president, and his son, Ernest J. Perry, cashier. Others who served on the directorate may be mentioned, H. D. Hitt, a member for over fifty years; C. A. Heth, now deceased; Major E. R. Herren. B. Wild and G. W. Earl. *

The first headquarters of the Bank of the Northwest were on the south side of West First street in the rear of a store. In 1857 a new home was found for the bank on the corner of Main and Forest streets, where it is at the present day. The building was erected in 1873 and while it is modest in its appearance, still answers the purpose for which it was intended. The First National is one of the strongest financial institutions in Fond du Lac county. Its present officials are : J. B. Perry, president; E. A. Carey, vice president; E. R. Herren, vice president; Ernest J. Perry, cashier; Charles J. Breitzman, assistant cashier.

Commercial National Bank

The Commercial National Bank is the successor to an old banking house opened in 1870 by William H. Wells, at the southeast corner of Main and East First streets. Mr. Wells managed the business until his death, which occurred in 1888, and his brother, John C. Wells, remained in charge of the institution until 1898, when he died and was succeeded by M. T. Simmons, who with others, in 1901 reorganized the bank under the national banking laws, assuming for the insti¬ tution the title of the Commercial National Bank. Those associated with Mr. Simmons at the time were Henry Boyle, John T. Boyle, H. R. Potter, Frank B. Hoskins, George Giddings, F. E. Hoyt, E. D. Sutherland and A. G. Bechaud. The new corporation bought the property at the northeast corner of Main and East First streets, and in 1902 erected the present beautiful stone building, which in the summer of 1912 was remodeled at a cost of $25,000.

The officials of this strong institution are: H. R. Potter, president; Henry Boyle, vice president ; A. G. Bechaud, second vice president ; M. T. Simmons, cashier; F. A. Boyd, assistant cashier. Directors: H. R. Potter, Henry Boyle, A. G. Bechaud, M. T. Simmons, John T. Boyle, F. E. Hoyt, D. D. Sutherland, F. M. Givens and William Nast. The capital stock is $125,000; surplus and undivided profits, $103,600; deposits, $1,553,000.

Fond Du Lac National Bank

The above named financial concern was organized June 1, 1887, with a capital stock of $100,000. By 1903 the business had grown to such an extent that the capital stock was increased to $200,000. which has enabled the bank to render better service to its patrons and afford depositors a greater margin of safety With its capital, surplus, undivided profits and additional stockholders' liability, the bank now has a fund of over a half million dollars standing between the depositor and possible loss.

At the time of the organization of the Fond du Lac National Bank seven directors were selected: C. A. Galloway, J. A. Merryman, John Hughes, Judge N. S. Gilson, Frederick Rueping, Charles Schreiber and E. P. Sawyer. The first officials were: President, C. A. Galloway; vice president, Frederick Rueping; cashier. G. A. Knapp ; assistant cashier, L. Muenter. Mr. Galloway is still serving as president and Mr. Knapp retains the position tendered him when the bank was first opened for business. J. A. Merryman is vice president and T. C. Ebernau, assistant cashier.

Cole Savings Bank

The first savings bank opened in Fond du Lac was in 1866, organized by Edward Pier and E. H. Galloway, in a building at the southeast corner of Forest avenue and Macy street. The first president was Edward Pier; E. H. Galloway, vice president; Edward Colman, treasurer. Eventually Mrs. M. H. Galloway became president ; C. K. Pier, vice president ; and G. A. Knapp, treasurer. Mem¬ bers of the concern desiring to direct their attention to other affairs, closed up the business of the savings bank in 1886.

Another savings bank was organized in 1878 by C. L. Encking, which was known as the German Savings Bank. It flourished but a short time and then went out of existence. In 1878 William E. Cole started the Cole Savings Bank, which has been one of the successful financial institutions of Fond du Lac county. The bank was incorporated in 1890 under the state banking laws as the Cole Savings Bank, and in 1899, having purchased a part of the Amory block, a room was fitted up for the use of the bank. This is the present headquarters of the institution. Mr. Cole died in April, 1909, and since then his wife, Mrs. Annie E. Cole, has been president, and William I. Cole, cashier of the Cole Sav¬ ings Bank.

A savings institution was organized in 1867 by R. Ebert and J. C. Perry and named the German American Savings Bank. Mr. Perry retired from the concern after a few years' membership, and in 1883 the affairs of the institution were wound up. Its headquarters were in a building erected for the purpose on Main street.

Citizens State Bank

The Citizens State Bank is the newest institution for banking organized in Fond du Lac. It came into being May 22, 1911, and was organized with one hundred and fourteen stockholders. It began business at No. 104 South Main street, and probably by the time this volume is printed the Citizens Bank will be in a magnificent new home of its own, which it commenced building after tear¬ ing down the south half of the old Peoples Christian Association Hall. This new building is constructed of Bedford stone and the entrance to the main count¬ ing room is a very stately one indeed. The interior is modern in make-up and finish, and the furniture, vaults and safes are of the latest manufacture. The building has a frontage of twenty-five feet and cost about $25,000.

The Citizens State Bank is capitalized at $100,000 and has a deposit of $90,000. The officials are: President, E. A. Custer; first vice president, F. J. Wolff; second vice president, A. J. Pullen; cashier, John P. Kalt.

North Fond Du Lac First Wisconsin Bank

The First Wisconsin Bank of North Fond du Lac is of comparatively recent date, but in the suburban town is an institution that meets the needs and desires

First National Bank

The First National Bank was organized in 1864, with E. P. Brockway as presi¬ dent, and George L. Field as cashier. The birth of this bank, however, should be dated back to 1856, when the Bank of Ripon was organized by H. H. Mead, who became president, and E. P. Brockway the cashier. It was in 1864 that the Bank of Ripon discontinued the business to become part and parcel of the pres.ent First National Bank.

In 1890 H. H. Mead was elected president of the First National and in 1902 retired and George L. Field took charge of the position. The cashiership made vacant by the promotion of Mr. Field, was taken charge of by F. Spratt. A fine building had been erected but in 1882 was destroyed by fire. About the year 1909 on property secured at the southeast corner of the public square, the pres¬ ent handsome bank building was erected and the interior arrangements with » equipments are modern and artistic, and were installed both with an idea to the safety of the funds of depositors and with an effort to please the eye.

In 1912 the capital stock is $100,000; surplus and undivided profits, $40,000; deposits, $915,000. The officials are: George L. Field, president; Gard. Miller, vice president ; F. Spratt, cashier ; W. R. Dvsart, assistant cashier.

German National Bank

This bank was organized by L. D. Moses in 1889. L. D. Moses was selected as president; and I. M. Dakin, cashier. A short time afterwards C. F. Schloerb acted as cashier for a time but Mr. Moses retiring from the presidency, in 1902 Charles Cowan was elected in his stead and J. L. Stone was made cashier. At the time of the organization of the bank a substantial stone building was erected for its quarters. This bank was capitalized at $50,000. In 1912 the old home of the First National Bank, adjoining, was purchased and both banking rooms were thrown into one. The front of the First National Bank building was remodeled to conform to the German National Bank building, so that practically a new and handsome building was the result.

In 1903 the capital stock was increased to $75,000 and in 1907 further enlarged to $100,000. At this writing, 1912, the capital is $100,000; surplus and undivided profits, $50,000 ; deposits, $880,000. The officials are : Charles Cowan, president ; H. J. Faust, vice president ; James L. Stone, cashier ; A. B. Carter, assistant cashier.

Banks Of Waupun

Strange to say, that part of Waupun which lies in Fond du Lac county does not contain a bank. They are all in the adjoining county, but Waupun in a great measure is looked upon as a Fond du Lac county entity, and for that reason the banks of Waupun are given a place in this chapter. The first bank organized in the village was in 1851 under the State banking law, and L. B. Hills was the manager during its three years' existence. It was known as the Bank of Waupun.

The Corn Exchange Bank was established by William Hobkirk in 1854 and remained among the business institutions of the place until 1875, when Manager William Hobkirk absconded with the greater part of the firm's assets. This fin¬ ished the Corn Exchange Bank's career.

The Citizens Bank of Waupun, organized in 1876 by Almon Atwood, only continued in business for the space of a year. The Exchange Bank of George Jess & Company was one of Waupun's substantial financial institutions from 1876 until 1885, when the business was sold to George W. Mitchell, of Milwau¬ kee, and .George F. Wheeler, of Waupun. Both of the purchasers are Fond du Lac county men and stockholders, and with others organized at this time the First National Bank of Waupun. L. D. Hinckley was made president; W. Cald¬ well, vice president ; B. W. Davis, cashier.

Brandon

The bank of Brandon is that of F. R. Foster & Son. It is capitalized at $50,000 and has deposits of $375,000. The members of the firm are F. R. Foster and J. W. Foster.

At Campbellsport is the First National Bank. The officers are: F. J. Barber, president; John Loebs, vice president; Albert S. Schwandt, cashier. The capi¬ tal stock is $25,000 and deposits are $130,000.

At Oakfield is the Bank of Oakfield. It is capitalized at $25,000 and has a surplus of $2,500. The officials are : F. J. Bristol, president ; C. G. Morgan, vice president; W. E. Bristol, cashier.

At Rosendale is the Rosendale State Bank. It has a capital stock of $15,000. The officials are: W. J. Gillett, president; William Braatz, vice president; Frank Bowe, cashier.