USA > Iowa > Calhoun County > Past and present of Calhoun County, Iowa, a record of settlement, organization, progress, and achievement, Volume I > Part 19
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The holder of Calhoun County bonds has a security that is abso- lutely "gilt-edged." His bonds constitute a lien upon the entire taxable property of the county, the actual value of which is estimated at more than fifty million dollars. Even considering the custom of listing property for taxation at about one-fourth of its real value, the security represents nearly sixty dollars of wealth for each dollar of debt. The firm or corporation with $60 of assets for each dollar of liabilities would certainly be declared solvent-not only solvent, but in excellent financial condition. What further need be said as to the financial standing of Calhoun County?
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PAST AND PRESENT OF CALHOUN COUNTY
According to the auditor's tax duplicate for the year 1914, the valuation of the taxable property was distributed among the several civil townships and incorporated towns of the county as follows:
TOWNSHIPS
Butler
$
372,114
Calhoun
423,279
Cedar
519,527
Center
472,563
Elm Grove
430,451
Garfield
450,869
Greenfield
487,185
Jackson
488,782
Lake Creek
483,249
Lincoln
428,392
Logan
542,060
Reading
457,835
Sherman
457,504
Twin Lakes
452,076
Union
490,692
Williams
441,229
Total for townships $7,397,807
TOWNS
Farnhamville
$ 56,840
Jolley
39,549
Knierim
38,193
Lake City
265,604
Lohrville
143,968
Lytton (Part of)
5,252
Manson
206,146
Pomeroy
129,628
Rockwell City
308,468
Somers
35,208
Yetter
25,508
Total for towns
$1,254,414
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PAST AND PRESENT OF CALHOUN COUNTY
Now, to the value of the property in the townships and towns must be added money and eredits, which the laws of Iowa require to be assessed separate from other forms of property, to the amount of $1,396,301, bringing the grand total up to $10,048,522, which does not exceed one-fourth of the actual value of the property of the county. If the true value be taken into consideration as a security for the payment of the bonds outstanding, the wealth of the county represents over two hundred and fifty dollars of security for each dollar of the indebtedness. With such a financial showing it is not surprising that the bonds of Calhoun County find a ready sale when- ever they are placed on the market.
In the above table the incorporated Town of Rinard is omitted for the reason that the town was not incorporated until after the auditor's tax list was completed. The property valuation of Rinard is therefore included in the figures given for Cedar Township. In looking over the table one cannot but be impressed by the even and uniform distribution of the county's wealth. Only two of the town- ships show a valuation of over half a million dollars; one falls below $400,000, and the other thirteen show a difference of but a few thou- sand dollars between the highest and the lowest.
The first report as to the publie revenues of Calhoun County was made late in the year 1855, about three or four months after the county was organized. At that time Christian Smith, treasurer and recorder, reported the receipts of his office as $3.50; Peter Smith, county judge, reported fees collected amounting to $6.30; and Joel Golden, elerk, reported a collection of 25 cents, making the total receipts for the first three months of the county's history $10.05.
Five years later, at the elose of the fiscal year ending on July 1, 1860, the receipts amounted to $1,561.68, and the disbursements to $1,162.01. leaving a balance in the treasury of $399.67. Included in the disbursements were the salaries of the county officers, which aggre- gated $309.41 for the year. As some of the officers paid a portion of the expenses of their offices out of their salaries, a county office in Calhoun County at that time could hardly be considered a sineeure. Yet men of ability and integrity could be found to accept the posi- tions, though in that day the office sought the man about as fre- quently as the man sought the office-perhaps more frequently.
Upon the property valuation as shown by the above table for the year 1914, the total tax levied amounted to $428,932.66, or more than the assessed valuation of the entire property in 1870, fifteen years after the county was organized. Even a slight comparison of these
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PAST AND PRESENT OF CALHOUN COUNTY
conditions shows the almost marvelous development of Calhoun County in recent years.
On January 1, 1915, there were drainage bonds outstanding amounting to $235,409.26. Although these bonds constitute a lien upon the real estate in the various drainage districts for whose ben- efits they were issued, they are in no sense a part of the county debt.
BANKING
Modern banking systems owe their origin to the Bank of Venice, which was founded in 1587, though private individuals in Venice had been receiving deposits for about two centuries before the establish- ment of the bank by authority of the Venetian government. In 1619 the Bank of Amsterdam began business. It was modeled to a great extent after the Bank of Venice, but after a short time insti- tuted the policy of receiving bullion for deposit and issuing receipts therefor. As these receipts were transferable they served all the purposes of a cireulating medium and this gave rise to the idea that a paper currency must be redeemable in specie or bullion. When the Bank of England was established in 1694 the practice of the Bank of Amsterdam was copied and extended in the authority given to the bank to issue notes. The Bank of England is now beyond ques- tion the best known financial institution in the world.
After the depreciation of the continental paper eurreney issued by the American colonies at the time of the Revolutionary war, some financial legislation was necessary, and on the last day of the year 1781 the Continental Congress passed an act granting a charter to the Bank of North Ameriea, which was given the right to issue notes under a plan similar to that of the Bank of England.
The states of New York and Massachusetts granted charters to state banks in 1784, but with the adoption of the new Federal Con- stitution both the state banks and the Bank of North America sur- rendered their charters, and on February 25, 1794, Congress incor- porated the Bank of the United States. In July, 1832, President Andrew Jackson vetoed the bill granting a renewal of the bank's charter and a little later the public funds in the bank were with- drawn by exeentive order.
At the expiration of the time for which the Bank of the United States was chartered it passed out of business and the several states began the poliey of issuing charters to state banks, under authority conferred by aets of Congress. The rapid development of the
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PAST AND PRESENT OF CALHOUN COUNTY
resources of the country created a greater demand for currency and channels of exchange, and in the '40s began the era of what is known in American history as "wildcat banks," which continued until after the beginning of the Civil war in 1861. It is estimated that at one time there were over six hundred irresponsible, or "wildcat," banks scattered throughout the nation. Notes issued by such banks proved in the end to be practically worthless and created a prejudice in the minds of many persons against any system of banking.
But the necessities of civilization demand a currency of some char- acter and a quick and convenient method of effeeting exchanges. Added to this demand were the conditions growing out of the Civil war, which made an extension of the national credit imperative. In February, 1863, Congress passed the first act for the establishment of national banks with authority to issue notes based upon Govern- ment bonds as security for their redemption. The act proved to be defective in a number of important particulars and on June 3, 1864, President Lincoln approved another banking law, which, with subse- quent amendments, constitutes the authority under which nearly eight thousand national banks were operating in the United States in the year 1914. They are the only banks in this country that have the power to issue notes, all other banks being merely institutions of dis- count and deposit.
The prejudice against the "wildcat" banks already referred to was so great in Iowa at the time the state was admitted into the Union in 1848 that the first state constitution contained a provision that no bank should be established by state authority. The present constitution, which became effective in 1857, while more liberal in this respect than its predecessor, contains stringent provisions for the creation and regulation of banking institutions. Seetion 5, Article 8, of that constitution provides that :
"No act of the General Assembly, authorizing or creating cor- porations with banking powers, shall take effect, or in any manner be in force, until the same shall have been submitted, separately, to the people, at a general or special election, as provided by law, to be held not less than three months after the passage of the act, and shall have a majority of all the eleetors voting for or against it at such elections."
Seetions 6, 7 and 8 of the same article prescribe the manner in which state banks may be established and what features may be incor- porated in a general banking law. Seetion 9 reads as follows:
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PAST AND PRESENT OF CALHOUN COUNTY
"Every stockholder in a banking corporation or institution shall be individually responsible and liable to its creditors, over and above the amount of stock by him or her held, to an amount equal to his or her respective shares so held, for all its liabilities aecrning while he or she remains such stockholder."
Each state has its own laws for the regulation and control of banks organized within its boundaries, but the banks of Iowa and Calhoun County operate under the constitutional provisions above mentioned and the laws enacted in pursuance thereof. In addition to the provisions for the establishment of banks under the state law, each bank is subject to examination by the auditor of state, under whom there is a chief bank examiner and five assistants, whose duty it is to investigate the business of every bank in the state whenever ordered by the auditor to make such examination. The result of this system is that there have been but few disastrous bank failures in the State of Iowa.
ROCKWELL CITY BANKS
The first bank in Rockwell City was a private banking house established by the firm of Palmer & Searight in 1881, and for about three years it had no competition in the county seat. Joseph G. Palmer, who was president of the bank from 1882 to 1899, afterward went to Kansas City, Mo., and died in that city in May, 1907. The bank of Palmer & Searight quit receiving deposits in the early '90s and on May 1, 1899, its business was merged with the First National Bank of Rockwell City.
The Farmers Bank of Rockwell City was organized on July 1, 1884, by Washington Lewis, who had been for some ten years pre- vious to that time engaged in the banking business. Associated with Mr. Lewis were W. T. Smith and J. C. R. Layton, and F. P. Huff became connected with the bank in 1885. On Monday, May 1, 1899, the business of the Farmers Bank was absorbed by the First National.
The First National Bank, the oldest bank in Rockwell City, was organized early in the year 1899 and opened its doors for the trans- action of business on the 15th of April, with a capital stock of $50,000 and the following officers: E. A. Richards, president; J. C. Kerr, first vice president: F. P. Huff, sceond vice president; Charles D. Case, cashier. On May 1, 1899, it succeeded to the business of the Palmer & Searight Bank and the Farmers Bank, and was first located about the middle of the block on the south side of the public square.
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PAST AND PRESENT OF CALHOUN COUNTY
The present building, on the corner of Fourth and Court streets, was commenced in 1899 and was completed the following spring.
According to a statement issued by the bank on March 4, 1915, the capital stock is $50.000; surplus fund, $15,000; undivided profits, $1,500; deposits, $300,000. The officers of the bank for 1915 were: J. H. Bradt, president; E. H. Rich, vice president; F. P. Iluff, cashier; W. A. Sandburg assistant cashier.
The Rockwell City Savings Bank filed articles of incorporation on May 29, 1903, with a capital stock of $25,000. George R. Alli- son was the first president: W. S. DuBois, vice president; B. E. Sebern, cashier; and these officers, with the following, constituted the first board of directors: Andrew Wood, P. C. Holdoegel, E. H. Rich, A. F. Dean, E. A. Richards, E. C. Stevenson and D. W. Noel.
On May 2, 1904, the board of directors purchased the Rockwell Hotel property at the southeast corner of Fourth and Court strects- opposite the First National-moved the hotel building to the lot adjoining on the east and began the erection of the present home of the bank, which was occupied in the fall of that year. The Savings Bank grew rapidly in popular favor and in the spring of 1915 reported a capital stock of $25,000; surplus, $20,000; undivided profits, $5.000. and deposits of $350,000. The officers of the bank at that time were as follows: A. F. Dean, president ; E. H. Rich, vice president; G. W. Richter, cashier.
Articles of incorporation for the Security State Bank were filed with the county recorder on June 5, 1909, though it had been started as a private bank by George L. Brower in 1891. M. W. Fitz, of Manson, was the first president; M. W. Frick, of Rockwell City, vice president ; Edwin W. Bureh, cashier; O. A. Leonard, assistant cashier. The first board of directors was composed of the president, vice president, cashier, and the following named gentlemen: E. N. Baily, of Sac City: E. W. Townsend, of Lake City; F. E. Burnham, A. L. Johnson, F. F. Hunter and George L. Brower, of Rockwell City.
As soon as the secretary of state issued his certificate to the bank it began business in the Brower Building, at the northeast corner of Fourth and Court streets, where it is still located. The capital stock has been $60,000 from the beginning and in the spring of 1915 the undivided profits amounted to $5,000 and the deposits to $175.000. At that time the officers of the bank were: George L. Brower, presi- dent; F. E. Burnham, vice president; R. O. Hutchison, cashier.
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PAST AND PRESENT OF CALHOUN COUNTY
LAKE CITY BANKS
The oldest bank in Lake City is the First National, which had its beginning in the private banking house started by Peter Smith, under the firm name of P. Smith & Sons, in the early '80s. For some time the business was conducted in a small building just west of the public square. In 1884 a new building was erected on the corner where the First National is now situated. Ten years later the institution was reorganized as a national bank and the present name adopted.
S. T. Hutchinson was elected president at the time the bank was reorganized in 1894 and remained as the executive head of the con- cern until his death in May, 1914, when L. F. Danforth was elected to the presidency. The other officers of the bank at the beginning of the year 1915 were as follows: Walter Jacobs, vice president; G. G. Hutchison, cashier. The capital stock of the First National has always been $50,000. From a statement issued by the officials at the close of business on March 4, 1915, it is learned that the bank then carried a surplus fund of $20,000 and deposits of $440,000. In 1914 the bank erected a new building, modern in all respects and well equipped for banking purposes.
The Citizens Bank of Lake City was established in 1885 and in 1915 claimed to have the largest responsibility of any bank in the county. It occupies a handsome brick building at the southeast cor- ner of the public square, where a general banking business is carried on by E. W. Townsend, president; R. F. Townsend, cashier; L. E. Nokes, assistant cashier. In April, 1915, the bank carried deposits amounting to $350,000. A safe deposit vault is also conducted in connection with the banking business.
MANSON BANKS
Manson is entitled to the distinction of having the oldest banking house in Calhoun County. In 1879 E. A. Richards, afterward the first president of the First National Bank of Rockwell City, opened a private bank at Manson. It continued as a private bank until February 23, 1910, when it was incorporated as the Calhoun County State Bank, with a capital stock of $60,000 and the following officers: Henry Young, president; E. H. Rich, of Fort Dodge, vice president; Charles E. Bale, cashier. These officers, with John Somerville, George F. Braginton, J. P. Calmer and G. B. Moore, constituted the first board of directors. The same officers were in charge of the affairs of the bank in the spring of 1915, at which time the surplus Fol. 1-13
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PAST AND PRESENT OF CALHOUN COUNTY
amounted to $10,000, the undivided profits to $5,000, and the bank carried deposits of $325,000.
The Farmers Savings Bank was first started as a private bank in 1885, with H. J. Griswold as president and M. W. Fitz as cashier. On March 16, 1910, it was incorporated under its present name with a capital stock of $50,000 and the following officers: M. W. Fitz, president: M. E. Griswold, vice president; B. E. Sebern, cashier. The above named officers, M. J. Foley and A. J. Maher constituted the first board of directors. Mr. Sebern died in November, 1914, and F. B. Davis was made cashier, which is the only change in the official management of the bank since its incorporation. According to a statement issued by the bank directorate at the close of business on April 19, 1915, the capital stock remains at $50,000; the surplus was then $9,000; undivided profits, $7,100, and the deposits, $410,000.
Closely connected with the Farmers Savings Bank is the Griswold Land and Credit Company, which has the same officers and does busi- ness in the same building. It has a capital stock of $50,000 and a surplus fund of $30,000, which includes the undivided profits. This company deals in farm lands and makes loans on real estate, espe- cially farm property.
POMEROY BANKS
The First National Bank of Pomeroy is the successor of the old Pomeroy Exchange Bank, which was started by Gould & Moody about 1880. It was reorganized as a national bank in 1901 with a capital stock of $40,000 and in 1915 reported surplus and undivided profits amounting to $20,000. The officers of the bank at that time were: M. R. Moody, president; W. C. McCulloch, vice president; A. F. Volberding, cashier; H. J. Colburn, assistant cashier. This bank carries deposits of $225,000.
The Pomeroy State Bank was first incorporated under that name on November 7, 1890. Prior to that time it had been doing business as the Farmers Loan and Trust Company, of which James F. Toy was president and J. H. Lowrey was cashier. At the time of the incorporation the capital stock was fixed at $50,000 and the follow- ing were named in the articles as the first board of directors: A. A. Horton, M. F. Mullan, F. E. Blackinton, J. A. Holmes, L. W. Moody. J. L. Williams, H. J. Holst, F. L. Kenyon and F. A. Kenyon.
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PAST AND PRESENT OF CALHOUN COUNTY
On June 4, 1892, the bank was reorganized. Revised articles of meorporation were filed with the county recorder on that date, redue- ing the capital stock to $25,000 and providing for a board of five directors instead of nine. The first board of directors under the new arrangement was composed of D. W. Wight, president; A. O. Garlock, vice president; J. HI. Lowrey, cashier; J. L. Williams and G. W. Hamilton. In the spring of 1915 the bank reported a capital stock of $25,000; surplus fund, $15,000; undivided profits, $7,000, and deposits of $300,000. The officers at that time were: J. II. Lowrey, president; M. F. Mullan, vice president; John F. Gutz, cashier; R. C. Berry, assistant cashier.
LOHRVILLE BANKS
Lohrville has two banks-the Lohrville Savings Bank and the Commercial Savings Bank. In the fall of 1882 a private bank was opened in Lohrville by S. G. Crawford in a small frame building about a square south of the Chicago & Northwestern Railroad sta- tion. This building was torn down in March, 1915. After a few months Charles H. Wise became associated with Mr. Crawford and the firm then took the name of Crawford, Wise & Company. The business was continued as a private bank until October 12, 1904, when it was incorporated as the Lohrville Savings Bank, with a cap- ital stock of $20,000. S. G. Crawford was elected the first presi- dent: Abram Cain, vice president; Charles Allen, cashier; Irvin S. Jenkins, assistant cashier. These four officers, with F. H. Jenkins, constituted the first board of directors.
Soon after the bank was incorporated work was commenced on a new building, which was occupied in 1905. The officers of the bank in April, 1915, were: Irvin S. Jenkins, president; Abram Cain, vice president; Charles Allen, cashier. At that time the surplus fund amounted to $4,000 and the bank carried deposits of $200,000.
The Commercial Savings Bank of Lohrville was incorporated under the general banking laws of Iowa on February 6, 1907, with a capital stock of $20,000. The provisional directors, to serve until the first annual meeting of the stockholders, were as follows: A. Baird, A. J. McDermott, D. A. Evans, J. J. Gaffney, E. K. Mc- Elroy, F. S. Middleton, John Rasty, J. W. Moore and O. E. Griffin.
The board of directors then completed the organization by the election of A. J. McDermott, president ; D. A. Evans, vice president; G. W. Evans, cashier. The president and cashier were still holding
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PAST AND PRESENT OF CALHOUN COUNTY
their respective positions in the spring of 1915, but J. W. Moore had succeeded D. A. Evans as vice president and Fred S. Buffham had been added to the official staff as assistant cashier.
In 1909 the bank building was erected. Besides the bank's quar- ters on the corner, there is a large store room on the east, extending around to the street in the rear of the bank, the Odd Fellows have their hall on the second floor, and there is a barber shop in the base- ment. In the spring of 1915 the Commercial Savings Bank reported a surplus fund of $10,000 and deposits of $200,000.
MISCELLANEOUS BANKS
In addition to the banks above enumerated, Calhoun County has seven banking concerns of that class known as "rural banks." They are located in the smaller towns of the county and each one supplied a local demand for banking facilities.
The oldest of these rural banks is the Bank of Farnhamville, which was opened in January, 1893, by H. W. and Charles Beacham. It is a private bank, with a responsibility of $200,000, and is still conducted by the original founders. The present bank building was erected in 1909, and in April, 1915, the deposits amounted to $250,000.
The Peoples Bank of Jolley began business on April 1, 1896, in a one-story brick building erected for the purpose, with D. E. Hal- lett, of Sac City, as president; E. Criss, of Sac City, vice president; and J. E. Nutter, cashier and resident manager. In the chapter on Miscellaneous History will be found an account of the attempt to rob this bank on the night of December 6, 1904. The People's is a private bank and no information as to its financial condition is given in the latest edition of the Bankers Directory. At the beginning of the year 1915 D. E. Hallett was president; J. E. Nutter, vice presi- dent; and D. K. Harris, cashier.
In May, 1901, a private bank was opened in Somers. A little later it was incorporated under the Iowa laws as the Somers Savings Bank, with a capital stock of $15,000. On April 1, 1915, the bank reported a surplus of $4,000 and deposits of $125,000. At that time the officers of the bank were: A. F. Daughenbaugh, president; J. C. Cheney, vice president; F. A. Whitney, cashier; T. F. Moore, assist- ant cashier. In addition to the regular line of banking, the Somers Savings Bank devotes considerable attention to farm loans and has a well equipped collection department.
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PAST AND PRESENT OF CALHOUN COUNTY
The State Savings Bank of Knierim was started early in 1901 with a capital stock of $10,000 and the following officers: J. C. Cheney, of Fort Dodge, president; C. F. Duncombe, vice president; W. E. Clagg, cashier. At a meeting of the stockholders on Septem- ber 10. 1907, it was voted to increase the capital stock from $10,000 to $15,000, by using $4,000 of the surplus and the stockholders sub- scribing the balance pro rata. At the beginning of the year 1915 J. C. Cheney held the office of president; F. E. Seymour, vice president; C. A. Christopherson, cashier. The surplus at that time amounted to $9.000 and the bank carried $80,000 of deposits.
Rinard Savings Bank was incorporated on November 6, 1907, and was the outgrowth of a private bank established some three years before. The capital stock was fixed at $10,000 and the first officers were: Charles Beacham, president; H. C. Wetter, vice president; Starr G. Wilson. cashier. The president, vice president and the fol- lowing named gentlemen constituted the first board of directors: HI. W. Beacham, G. A. Cafferty, W. C. Cathcart and E. J. Wood- cock. The capital stock was subsequently increased to $15,000 and at the beginning of the year the deposits amounted to $75.000. The officers then were: Charles Beacham, president ; G. A. Cafferty, vice president ; J. C. Carnes, cashier.
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