USA > Illinois > McHenry County > History of McHenry County, Illinois, Volume I > Part 15
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39
Coneerning some of the men who have helped to make the Independent what it is today the following may be recalled by the older men of the community :
George II. White, now a Chicago lawyer, was city proseentor during the administration of Mayor Fred Busse; A. M. Leland, was an old time printer who passed away in Woodstock a few years ago; N. B. Burtch, who was a Civil War soldier and deeply interested in politics, died in recent years: O. M. Eastman, an eastern printer, learned his trade in Boston and formerly edited a paper in Fairbury, Ill .; Rev. II. V. Reed, founder of the Independent, was father of the late Myrtle Reed MeCulloch, the poet and writer : Lon MeLaughlin, who was prom- inent in state politics; and J. C. Blake, who was a manufacturer and real-estate man.
CRYSTAL LAKE JOURNALISM
The Crystal Lake Herald was established in 1876 as the Nunda Herald, by 1. M. Mallory, who conducted it till 1898. The next proprietor was J. V. Beatty who owned and operated the plant until his death. June 11, 1912, after which it was edited and managed by Frank LaTulip, for the widow until July. 1913, when it was purchased by L. W. Cobb and A. M. Shelton who ran the paper until August, 1915, after which Mr. Cobb continued alone until the Herald Publishing Company was incorporated with L. W. Cobb as president and general manager.
It is a Republican organ, runs eight pages, seven columns to the page, 22-inch column. The plant is equipped with a Cotterell eylinder, Chandler and Price jobber ; also a Pearl paper eutter and best of all the
Harvey S. Durkee & Wife
165
HISTORY OF McHENRY COUNTY
Mergenthaler linotype. The office also has a practical folder and other machinery of an up-to-date character.
The Herald circulates in Crystal Lake, Cary, Algonquin and through- out all southeastern MeHenry County. Its subscription rate is $2 per year. It is published each Thursday. From six to eight pages of this paper are home print.
It may be stated that the llerald was one of the first papers, if not the first in Mellenry County to east aside self-interest and devote its entire energies to the interest of the country during the World War, regardless of the consequences to itself from a business standpoint. The Herald was an American newspaper, first, last and all the time during the war, having one aim, to stand by our country and devote its energies to the winning of the war.
HEBRON TRIBUNE
This local newspaper was established at the village of Hebron, September 1, 1890, by James Il. Turner and Hurley B. Begun. One year later Mr. Begun purchased the interest held by Mr. Turner and conducted it five years; he passing away in abont 1897, one year later; George S. Boughton and Dr. E. V. Brown bought the Tribune and con- ducted the paper for one year, then selling it to Orson Boughton. G. C. Lemmers bought the paper of Mr. Boughton, in 1903, and operated it until 1913. The publication has had a continuons issue, save for a few months in 1913 just before the purchase of the plant by its present owner, Arthur D. Wiseman, in August, 1913.
It has an excellent eireulation in' Hebron, Alden, Richmond, Green- wood, Dorr. Chemung, Burton townships, and in Walworth County. Wis. Its publication day is Thursday and its subscription rate is $2.00 per year. It is a four-page (sometimes increased to six) journal of home print, and four pages "patent." Its machinery is propelled by electricity and includes a Prouty newspaper press, Gordon Jobbers and power paper-entter. This is the only newspaper ever established in Hebron and the present business is annually increasing.
RICHMOND GAZETTE
The Richmond Gazette was established in 1876 by II. B. Begun. Among the numerous owners of this local news-sheet may be recalled George Utter, J. Netherent, P. K. Wright, Fred E. Holmes, Roy E.
166
HISTORY OF MCHENRY COUNTY
Seott. John H. Brill, and present publisher Homer B. Gaston who pur- chased the plant in 1918.
It is a seven-column, eight to twelve page paper, issued every Thurs- day at a subseription rate of $2.00 per year in advance. It has a good cireulation in this county and also in Walworth County, Wis. Four pages of this journal are "patent" print and the remainder is set up at home. The equipment consists of modern machinery including a linotype and up-to-date presses, both in the newspaper and job departments. Politically, the Gazette is Republican. Its machinery is operated by means of an electric motor.
The Gazette has, with the passing years, had many excellent editorials and well-selected local news columns and has been greeted at many a fire-side as a welcome guest.
CHAPTER XII BANKS AND BANKING
BY FREMONT HOY
FIRST UNITED STATES BANK-FIRST BANK OF CHICAGO-WOODSTOCK BANK- ING INSTITUTIONS-STATE BANK OF WOODSTOCK-AMERICAN NATIONAL BANK OF WOODSTOCK-FARMERS' EXCHANGE STATE BANK-WOODSTOCK NATIONAL BANK-BANKING AT CRYSTAL LAKE-UNITED STATES BANK- IIOME STATE BANK OF CRYSTAL LAKE-HARVARD BANKING INSTITUTIONS -IHARVARD STATE BANK-FIRST STATE BANK OF HARVARD-FINANCIAL REMINISCENCES OF MC HENRY-FOX RIVER STATE BANK-RINGWOOD STATE BANK-FIRST NATIONAL BANK OF MARENGO-DAIRYMAN'S STATE BANK OF MARENGO-STATE BANK OF UNION-HEBRON STATE BANK- STATE BANK OF HUNTLEY-ALGONQUIN STATE BANK-WEST MC HENRY STATE BANK-SPRING GROVE STATE BANK-CARY STATE BANK-STATE BANK OF RICHMOND-VICTORY LOAN SUBSCRIPTIONS-PATRIOTIC SERV- ICE ACKNOWLEDGMENT-WAR WORK EXECUTIVE COMMITTEE-BANK SUMMARY.
A bank is an indispensable adjunct to any community. The wealth- iest men in the country have for years followed a practice now being adopted by the majority of their fellow citizens, of carrying on their business transactions by means of checks, drawing against their accounts with the bank of their choice, instead of carrying large amounts of money on their person. The banks of the country, however, play a much more important part in the commercial and industrial life than merely to afford accommodation for the personal needs of their customers. They determine the stability of every undertaking ; stand back of all industry from the agriculturalist who produces the raw material to the retail merchant who sell it direct to the consumer. Through their medium foreign trade is stimulated and encouraged ; countries, as well as indi- viduals and corporations, are financed, and the future of a nation often- times lies in the hands of the eapable and astute finaneiers. Therefore in dealing with the banks and banking interests of any community, the
167
168
HISTORY OF MCHENRY COUNTY
historian is handling one of the most important subjects of his record, and too much emphasis cannot be accorded to the value to the people of all classes, of the services rendered by these institutions within its confines.
FIRST I'NITED STATES HANKS
The Wall Street Journal, N. Y., is the authority for the statement that the Bank of New York is the oldest bank in this country, its elear- ing house number being "1," while the Bank of Manhattan is number "2" and the Merchant's National Bank is number "3." There are now nine banks in the United States reaching back into the eighteenth cen- tury. Of these, two are in Massachusetts, two in Connecticut, one in Pennsylvania, one in Delaware, one in Maryland, and two in New York. The Bank of Manhattan was organized by Aaron Burr in 1799, and the Merchant's National Bank of New York, was organized by Alex- ander Ilamilton in 1803.
Corporate banking in New York began with the organization of the Bank of New York by Alexander Hamilton in 1784. It obtained its first charter in 1792, and for fifteen years this bank, together with the New York branch of the First Bank of the United States, were the only banks doing business in either the eity or state of New York. With General Hamilton and the Federal party in control of the New York State Assembly, new bank charters were not obtainable by outside par- ties, and this gave rise to contentions on the part of the Anti-Federalists, led by Aaron Burr. By 1800, however, the United States had in opera- tion twenty-seven banks, and a decade later the number had increased to one hundred.
CHICAGO'S FIRST BANK
The city of Chicago had no regular banking facilities prior to 1835, but during December of that year, a branch of the State Bank of Illi- nois was located in that city. It was opened for business in a four- story building at the corner of LaSalle and Washington streets, where it was continued until 1843.
BANKS AND BANKING
Under the above caption, the late Lyman J. Gage, one of the most distinguished bankers of Chicago, wrote in part as follows for a con- temporary history :
169
HISTORY OF MCHENRY COUNTY
"The bank does not come to an embryo town perfectly organized and fully capitalized. It does not come on the first boat, nor build up its solid walls in a settlement of cabins and tents. There must pre- cede it some degree of maturity in business, some considerable accumu- lation of wealth, and an active commerce with distant regions.
"So long as a man uses his own wealth he is a capitalist ; it is only when he begins to employ money belonging to others and puts forth an organized system of credit that he becomes a banker.
"The different banking functions of deposit, discount, exchange and circulation do not arise simultaneously, but are put in operation suecessfully as the operations of business become diversified, and its needs pass beyond the facilities employed in ordinary transactions.
"An accumulation of money beyond the need of the present and which may be required at some unexpected moment, calls for a place of deposit where it may be kept safely and withdrawn at a moment when it can be profitably employed. A growth of manufactures call- ing for a temporary use of capital, or an enlargement of trade, giving occasion for the employment of money, while products are transported from point of production to that of consumption, give occasion for discount ; the need to realize at one point, the avails of sales at a dis- tant place, or the transmission of funds for the purchase of the raw- material of manufactures or the supply of trade, furnish a demand for exchange; while the requirements of daily transactions of traffic in the store, the shop, the farm, at home and abroad, call for a circu- lating medium less ponderous than the precious metals, and yet con- vertible at onee into them.
"As the business of banking is the outcome of the need of its facili- ties, so the men who assume control of its operations are usually those not trained by a long course of apprenticeship at the counter or desk, but such as happen, by reason of natural aptitude and the circumstances surrounding them, to be drawn into the vocation. Thus, the first bankers in a community are usually drawn from other callings-successful merchants, lawyers and men of versatility and ready adaption.
"As a community passes out of its embryo, and assumes a more stable condition, when the frontier settlement becomes the metropolis of a great and productive region, these conditions change, and there arises a call for banking institutions, with large capital, carefully regulated by law; and for managers learned in the principles of monetary seience. and trained in the intrieate business of the bank.
170
HISTORY OF MCHENRY COUNTY
"From 1843 until the enactment of the general banking law of 1851, there existed no chartered bank with full powers, in Chicago,
"During this period, a most heterogeneous mixture of paper had greater or less circulation. There were banknotes issued by Eastern and Southern banks, some good and others ranging through all degrees of depreciation to utter worthlessness. The city issued script which had local use as money, as it was receivable in payment of taxes. Canal script constituted a considerable part of the local circulation. There was also State Auditor's script, and St. Louis script, and the script issned by the small tradesmen 'good for groceries,' 'good for merchandise' and even it is reported 'good for a drink,' "
Such, then, was the condition of money affairs, not only at Chicago, but throughout the state, including MeHenry County, until the enact- ment of the national banking system which went into effect in March, 1863, after which "greenbacks" and banknotes were circulated as a medium.
MC HENRY COUNTY BANKING
Before 1852 this county had no regular banks in organized form. Such transactions as usually go through the local banks had to be executed in some outside city where there was a bank. Much of the trade prior to the Civil War was carried on by barter, one commodity being exchanged for another. The farmer traded his butter, eggs, meat and potatoes to the home merchant for their value in sugar, coffee, tobacco, eloth and similar commodities, for use by himself and his family. In ease he needed to borrow a certain amount of money, he applied to one of the few men throughout the county, who fortunately for themselves and their neighbors, had possessed considerable ready cash when they settled in the locality. In emergencies, a good eitizen could obtain from such a man what he needed by paying the prevailing rate of interest which until about 1880, amounted to from ten to fifteen percent per annum. The amount in excess of the legal state interest was known as "commission." Doubtless as late as 1876, the average of interest paid in this county on approved notes, ranged as high as twelve and one-half percent per annum.
According to statements made by several of the older residents of this county, the following conditions prevailed prior to the establish- ment of regular banking institutions in the county. S. R. Ward of Richmond recalls Judge William A. McConnell, commonly known as
171
HISTORY OF MCHENRY COUNTY
"Squire" McConnell, and Col. C. H. Gibbs, as gentlemen so circum- stanced as to be able to render service to their fellow citizens in the matter of making loans to them.
"Squire" MeConnell lived in a grove a considerable distance north- west of the village of Richmond, and used to keep his money in a small iron safe, but his neighbors, including Doctor Ward, told him that he was imprudent in not providing a better repository for his wealth, and insisted that he establish a bank at Richmond. This he finally did, but whether on account of the advice proffered him so freely, or because of his own excellent business sense, is only a matter of conjecture. He was for many years a justice of the peace, and for sixteen years was an asso- ciate judge of the county. Col. C. HI. Gibbs was proprietor of the Richmond House, and both of these gentlemen loaned thousands of dollars on short and longer loans, to people in the vicinity of Richmond and Hebron.
T. C. Schroeder, a general dealer at Richmond, in connection with his merchandising, also loaned money, even long after a bank had been established in the village. Many of the laboring men would leave their money with him for safe keeping, receiving from him a small rate of interest. This money he loaned to farmers in the surrounding regions.
J. C. Crumb carried on a banking business in a small way at Harvard, in the general merchandise store of A. E. Axtell, during 1866, but the following year he erected a bank on the corner still occupied by the banking institution in which the Crumb family is represented by the third generation as a stockholder. Before that date money had to be borrowed of individuals, or from some distant bank.
At Cary, the first banking was carried on by L. E. Mentch, who, in October, 1902, organized the Cary Exchange Bank. It was his practice to keep about $3,000 in his safe, which was in a small frame building. At midnight, in July, 1903, his safe was blown open and his capital stolen. The criminals were never brought to justice. While his losses amounted to $5,555, he was insured, and was able to continue his business. Hle erected the present briek bank building, and continued in the banking business until in April, 1914, when he sold his interest to thirty-seven stockholders, who organized the present Cary State Bank. Mr. Menteh then turned his attention to the real-estate business at Cary.
Joseph W. Christy, general merchant and postmaster at Ringwood, sometime in the seventies, began to loan money in small amounts on short time, to his neighbors and other patrons. Ile usually received about fifteen percent interest. A number of the laborers in his neighbor-
172
HISTORY OF MCHENRY COUNTY
hood, deposited their wages with him, and this money, on which he paid a small rate of interest, enabled him to enlarge his operations.
WOODSTOCK BANKING INSTITUTIONS
Dr. C. B. Durfee began the banking business at Woodstock in 1852, and carried it on for about two years, when he failed and was succeeded by the firm of Fuller & Johnson Co., at first composed of A. W. Fuller, C. B. Durfee, L. S. Church, Neill Donnelly, J. H. Johnson and W. G. Bentley. This firm of private bankers was re-organized under the national banking act, and became the First National Bank of Wood- stock, but, in 1869, C. B. Durfee & Co. again commenced business and continued as bankers for several years thereafter. In May, 1875, T. D. Murphy and Richard Bishop opened a private bank, which was continued for about three years. The First National Bank of Woodstock was established in 1864, with a capital of $50,000. L. S. Church was presi- dent : C. B. Durfee, cashier, and N. Donnelly, M. F. Irwin, L. S. Church, (". B. Durfee, A. M. Fuller and J. H. Johnson, directors.
STATE BANK OF WOODSTOCK
The State Bank of Woodstock was established December 19, 1889, by E. E. Richards, E. C. lewett, A. B. McConnell, G. K. Bunker, A. K. Bunker, M. L. Joslyn, William H. Stewart, B. S. Austin, George MeCon- nell and F. W. Buell. The original officials were: E. E. Richards, presi- dent : W. H. Stewart, vice president, and E. C. Jewett, cashier. The original capital of $25,000 has been inereased to $50,000, and there is a surplus of $50,000, with undivided profits of upwards of $8,000. A recent statement shows the following condition :
RESOURCES
Loans and Discounts $386.154.66
Overdrafts 170.35
U. S. Government Investments 45,184.00
Other Bonds and Stocks 87,477.56
Banking House, Furniture and Fixtures 21,600.00
Other Real Estate 2,007.94
Due from Banks, Cash. Exchanges, Checks & Collections 114,455.81
Total Resourees $657,050.32
173
HISTORY OF MCHENRY COUNTY
LIABILITIES
Capital Stock $ 50,000.00
Surplus
50,000.00
Undivided Profits (Net) 8,307.44
Deposits 546,604.26
Reserve
2,138.62
Total Liabilities $657,050.32
In 1910 this banking house purchased the Sherman business block, which has greatly increased in value, and is located on one of the finest business corners in the city, and this has been made into one of the most modern financial institutions in this part of the state.
The following men have served the bank as presidents: E. E. Rich- ards, and E. C. Jewett, and the two cashiers have been E. C. Jewett and HI. T. Cooney. The present officials are: E. C. Jewett, president, W. S. McConnell, vice president and II. T. Cooney, cashier.
AMERICAN NATIONAL BANK OF WOODSTOCK
The American National Bank of Woodstock was organized June 3. 1903. It was founded by John J. Murphy and George L. Murphy. The former was president of the First National Bank of Woodstock until 1889 when that institution was liquidated. The first officials of the American National Bank were: George L. Murphy, president ; Charles H. Donnelly, vice president, and W. C. Eichelberger, cashier. The pres- ent officials are : George L. Murphy, president ; Charles II. Donnelly, vice president ; George F. Rushton, vice president ; Charles L. Quinlan, cashier; E. F. Fuess and Byron D. Cheasbro, assistant cashiers. George 1. Murphy has been president of the institution ever since it was estab- lished in 1903. Charles L. Quinlan succeeded W. C. Eichelberger as cashier in 1908.
The present eapital is $50,000; the surplus is $50,000. Added to this amount are the undivided profits of over $15,000. The deposits are about $700,000. The latest statement shows the following condition :
RESOURCES
Loans, Bonds and Securities $687,129.19 Stock in Federal Reserve Bank 3,000.00
.
174
HISTORY OF McHENRY COUNTY
U. S. Bonds to Secure Circulation
25,000.00
Due from United States Treasurer
1,250.00
Interest Earned but not Collected 11,223.25
Cash on hand and due from Banks
141,656.49
Total
$869,258.93
LIABILITIES
Capital Stock and Surplus
$100,000.00
Undivided Profits
15,697.87
Cirenlation
24,300.00
Reserved for Interest
11,223.25
Reserved for Taxes
2.297.97
Interest Collected but not Earned
2.165.71
DEPOSITS
713,574.13
Total
$869,258.93
FARMERS EXCHANGE STATE BANK
Originally a private bank, established in 1887, the Farmers Ex- change State Bank was re-organized under its present name in January, 1916. It was founded by M. D. Hoy and George HI. Hoy, under the name of the Farmers Exchange Bank, M. D. Hoy & Son, proprietors. The original eapital was $25,000, but this has been increased until it is today $75,000, with surplus and profits shown of $26,000. The private bank did not require officials by title, but all papers were signed M. D. Iloy & Son. Several years later Fremont Hoy, John M1. Hoy and William P. Hoy were admitted into partnership under the name of M. D. Hoy & Sons. Fremont Hoy disposed of his interest in the firm of M. D. Hoy & Sons, in 1915, and retired from banking in both Woodstock and Huntley.
The present officials of the bank are: George H. Hoy, president ; L. T. Hoy and Geo. F. Eckert, vice presidents; John M. Hoy, cashier, and C. W. Whiting and F. V. Gieselbrecht assistant cashiers. George H. Hoy, the present presiding official has held this position since the concern was made a state institution, and has been connected with the bank since its inception.
The business block in which this bank is operated is owned by the Hoy Brothers. The bank has a surplus of $20,000; undivided profits
Howard D. Eaton M.D.
175
HISTORY OF MCHENRY COUNTY
of over $6,000. Its deposits in March, 1921, were $586,759.55; their gross assets $693,073.21.
The following condensed statement was made by this bank March 31, 1921 :
RESOURCES
Loans and Discounts
$548,227.45
Overdrafts
259.33
United States Liberty Loan Bonds
9,700.00
Furniture and Fixtures
2,000.00
Dne from Banks
98,245.38
Cash on hand
27,669.76
Checks and Cash items
6,971.29
Total
$693,073.21
LIABILITIES
Capital
$ 75,000.00
Surplus
20,000.00
Undivided Profits
6,284.77
Saving Deposits
218,638.67
Checking Deposits
370,120.88
Certificates, etc.
Reserved for taxes and Bond Department
3,028.89
Total
$693,073.21
WOODSTOCK NATIONAL BANK
The MeHenry County State Bank, now the Woodstock National Bank, located on Benton street, Woodstock, was organized in October, 1901, with a capital of $25,000, which has been inereased to $50,000; with a surplus of $10,000, and undivided profits of $7,000. Its officials were J. D. Donovan, president ; M. H. Fitzsimmons, vice president ; and Walter F. Conway, cashier. The above named bank was converted and beeame the Woodstock National Bank in 1920, the former officials being placed in charge.
The building in which the bank is operated is owned by the insti- tution. Mr. Donovan has been president since the inception of the bank, while the cashiers have been E. E. Bower and W. F. Conway,
176
HISTORY OF MCHENRY COUNTY
successively. Well-known business men of the county are members of the board of directors, they being: Theo. Hamer, E. C. Hughts, 11. A. Stone. M. H. Fitzsimmons, William Zimmerman, J. D. Donovan, and I. T. Bower.
The following statement was made by this bank March 17, 1921;
RESOURCES
Loans, Discounts, Securities
$343,731.95
Banking house, Furniture and Fixtures 22,300.00
Federal Reserve Bank Stock
1,800.00
Cash and due from banks
99,276.24
Checks and cash items
2,164.37
Interest earned but not collected
7,734.04
Total
$477,006.60
LIABILITIES
Capital
$ 50,000.00
Surplus
10,000.00
Undivided Profits
7,168.03
Reserve for taxes and Interest
10,073.85
Deposits
399,638.72
Dividends unpaid
126.00
Total
$477,006.60
BANKING AT CRYSTAL LAKE
Prior to 1891 Crystal Lake, or Nunda, had no banking institutions ; only being accommodated in the matter of exchanges through the mer- cantile establishments operating there during that period.
UNITED STATE BANK
In 1891 George E. Halloek, coneerning whom very little, if any- thing, was known by the citizens of that community, opened a bank- ing house which operated for about two years, and without mueh sup- port from the public. No bank existed subsequent to the discontinuance of the Hallock Bank, until 1895, when George K. Bunker, Burton Wright, Emery E. Richards, Emilus C. Jewett and Charles B. Wright, all of Woodstock, recognized the necessity, and the favorable oppor-
177
HISTORY OF MCHENRY COUNTY
tunity, for a bank at that place, and associating themselves in a co- partnership for that purpose, opened the Citizens Bank of Nunda, with a capital of $10,000; E. E. Richards acting as president ; George K. Bunker as vice president, and E. C. Jewett as cashier. On October 29. 1901. this bank was incorporated as the Citizens State Bank of Nunda, and the capital increased to $25,000. Charles B. Wright became cashier of the re-organized bank. On November 2, 1908, the title of the bank was changed to the Citizens State Bank of Crystal Lake, and sub- sequently, August 12, 1910, the capital was increased to $50,000. The bank continued under practically the same management up to July, 1915, excepting that E. C. JJewett had disposed of his interest in 1908, and therefore was no longer connected with it. George K. Bunker had been deceased for a number of years.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.