USA > Massachusetts > Suffolk County > Boston > Metropolitan Boston; a modern history; Volume II > Part 11
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The first woman to be employed by the bank was in 1907, when Miss Lila Nye became stenographer to the officers. She was succeeded by Miss M. Joy Craighead, who now acts as secretary to the treasurer, and there are twenty-five women employees in the bank under its present management. In 1908 the depositors' records were transferred from the old loose-leaf ledgers to a card ledger system.
One of the outstanding features of the bank's progress under Mr. Brock, was the opening of school savings banks under legislation enacted by the General Court. The first such bank was organized in the High School of Commerce on November 11, 1911. All the work of the bank was done by the boys themselves and on the first day the deposits amounted to $189.65-ranging from 10 cents to $25. Every group of forty boys elected its own trustee. The trustees organized for one year. The school bank at this high school is still in operation under the direction of the teacher supervisor. At the fall opening of the schools in 1926, sixty-two such banks were in operation in conjunction with the Home Savings Bank. Out of an enrollment of 44,000 in these schools, approx- imately 22,000 pupils were participating in school savings. Their de- posits in 1926 amounted to a total of $420,322.99.
During the World War the bank aided the Government in obtaining the widest possible distribution of Liberty Bonds. Arrangements were made for the bond purchasers to pay for the bonds in installments, sav- ing money for that purpose rather than withdrawing it from savings ac- counts.
Carl M. Spencer was elected treasurer of the bank in 1919, upon the death of Charles S. Norris. About this same time began the most remark- able growth of the institution. Intensive cultivation of depositors and the installation of the club savings idea was very much a contributing factor. The first Christmas Club was established in 1920, with 4,500 mem- bers saving about $216,774 for the Christmas holidays. In 1925 the club had increased to 13,350 members, with a total saving of about $700,000 in the club term. A Vacation Club was started in September, 1921, and grew from 2,200 members in that year to 6,800 in 1926.
422
METROPOLITAN BOSTON
In January, 1923, legislation was obtained from the General Court authorizing the bank to invest $2,000,000 in a site and building for a new banking house. The officers then began to look for a desirable site.
Meanwhile, in June of the same year, George E. Brock, most active of the bank's presidents during its history, passed away. He had served for a number of years on the Boston School Committee, of which he was chairman in 1913. He was one of the founders of the National Associa- tion of Mutual Savings Banks and served as its president for two years. Under him the deposits in the Home Savings Bank increased from $II,- 676,000 to nearly $40,000,000. Mr. Spencer was elected to succeed him, and H. Wendell Prout was elected treasurer to fill the vacancy caused by the promotion.
The trustees of the bank decided in 1924 that the best site for the proposed new bank building is the estate at 32-38 Bromfield Street, a landmark surrounded by historical traditions of two and one-half cen- turies. It was once the estate of Edward Bromfield, a London merchant who came to Boston in 1675, and after whom the street was named. It has a long and interesting history, but of late years has been owned by the Boston Wesleyan Association. A new and modern building will be erected by the bank on this site.
The officers of the institution are justly proud of the record of the past few decades. On June 30, 1926, the deposits of the bank amounted to $49,464,469.37, and the total assets were $54,481,259.98. More than 2,000 mortgages on real estate, representing over $31,000,000 were held by the bank. The 1926 officers were as follows :
President, Carl M. Spencer ; vice-presidents, Ira G. Hersey, Charles W. Leonard, J. Henry Russell, Carl Brandt, George H. Ellis and Charles C. Hoyt; treasurer, H. Wendell Prout; assistant treasurers, Robert F. Nutting, Nelson J. Bowers, and Lindley A. Bond.
Institution for Savings in Roxbury-The second oldest Boston sav- ings bank, the Institution for Savings in Roxbury, observed its one hun- dredth anniversary in February, 1925. It is the tenth largest bank of its kind in the city and has enjoyed a steady and prosperous growth.
At the time it was organized, Roxbury was a separate community of 4,500 people. Today, as a part of the city of Boston, Roxbury has a popu- lation in excess of 150,000. There were few savings institutions in the country in 1825, when several public-spirited citizens of Roxbury sought and obtained a charter from the Legislature, which was dated February 22 of that year. In common with other early institutions of a similar character, the word "bank" was avoided, because of the mismanagement of many of the commercial banks at that period.
The institution was opened on October 12, 1825, in Octagon Hall, at
423
A HISTORY OF BANKING IN BOSTON
the junction of Dudley and Kenilworth streets-a structure of natural pudding-stone, erected in 1815 by Captain Nathaniel Dorr, and which is still standing. The first officers were as follows :
President, David S. Greenough; treasurer, John Bartlett; secretary, David A. Simmons ; vice-presidents, Eliphalet Porter, John Prince, Jon- athan Dorr, John Bartlett, Isaac Davis, David S. Greenough, Jr., Joseph Curtis, Benjamin Goddard, Charles Davis, Samuel P. Loud, Willard Gay and Thomas K. Jones; trustees, Henry A. S. Dearborn, Nathaniel Dorr, John Lemist, Enoch Bartlett, Samuel J. Gardner, Ralph Haskins, Ben- jamin Billings, Ebenezer Seaver, Joseph Harrington, Ebenezer Wales, Samuel Guild, Samuel Doggett, Ebenezer Crafts, Stedman Williams, Benjamin Weld, William H. Spooner, Jonathan Richards, Henry Gard- ner, David A. Simmons, Sherman Leland and Jonathan A. Richards.
The purposes of the bank were set forth on the flyleaf of the first pass books in the following words :
The design of this Institution is to afford to those who are desirous of saving their money the means of employing it to advantage without running the risk of losing it as they are too frequently exposed to do by lending it to individuals who either fail or defraud them. It is intended to encourage the industrious and prudent and to induce those who have not hitherto been such to lessen their unnecessary expenses and to save and lay by something for a period of life when they will be less able to earn a support.
This plan will be particularly useful to seamen bound on a voyage, or soldiers, or other persons, who come in possession of money, received by way of wages, prize money, or gifts and gratuities, for which they have no immediate use, and which they wish to lay by for a rainy day.
Widows and children may also in this same way be provided for.
A young man, intending to marry at a future day, and young women, who may expect to change their condition, can here safely lay up a sum against a time when they" may want it more.
The early by-laws of the institution commanded the treasurer to keep the funds of the bank in a trunk. A close check was also kept on that official under a by-law which said: "It shall be the duty of two of the trustees in rotation, to attend at the office every other Monday at such time as they may agree, and to examine the journal of receipts of the fortnight previous, and see that the same are duly entered in the ledger, as also the receipts for payments, and see that the same are duly entered in the ledger, and ascertain the balance of monies and where the same is deposited, and give a certificate thereof for the treasurer's justification."
In 1863 the business of the bank had so grown that larger quarters became imperative. The Exchange Building had just been erected at 2343 Washington Street, by Aaron D. Williams, for many years a trustee and a vice-president of the bank. The second floor of the building was taken over by the bank, and later Mr. Williams presented the entire piece
424
METROPOLITAN BOSTON
of property to the institution. At that time the deposits amounted to $650,000, and the gift was a great help to the corporation. In 1898 the bank outgrew these quarters and a new building was erected on the same site, which was opened in 1901 under the presidency of John D. Williams, a near relative of Aaron D. Williams.
Some idea of the growth of the institution can be gained from the total deposits at five year intervals, as follows: 1885, $3,565,412; 1890, $4,973,046; 1895, $6,432,672; 1900, $7,847,931 ; 1905, $10,358,673; 1910, $11,802,314; 1915, $13,450,965 ; 1920, $14,057,325; 1925, $16,164,691. On June 30, 1926, the deposits of the bank had reached $16,761,530.84, and the total assets were $18,037,041.09.
The bank's officers in 1926 were: President, Charles Gaston Smith ; vice-presidents, Nelson Curtis, Sanford L. Treadwell and Joseph Mor- rill; treasurer, Henry West; assistant treasurer, Leonard C. Nickerson; trustees, John D. Williams, Charles G. Smith, William A. Gaston, Joseph Morrill, Wilfred Bolster, Sanford L. Treadwell, W. Dudley Cotton, Stan- ley M. Bolster, Nelson Curtis, Henry West, Fred Seaver, Hugh Nawn, Henry S. Adams, Stanwood G. Bradlee, Roland E. Chafey, Joseph N. Palmer, George S. Baldwin, Richard F. Andrews, Charles G. Smith, Jr., Charles H. Curtis, John Gaston and F. Delano Putnam.
North End Savings Bank-Of the so-called "younger banks," the North End Savings Bank, chartered in 1870, has been a very successful institution. It was opened for business on August I, of the same year; with the following officers :
President, Robert Marsh ; vice-presidents, Alonzo M. Giles, Matthew Keany, Thomas Mair, and Clinton Viles ; clerk, George S. Derby ; trus- tees, Henry C. Brooks, William C. Burgess, Michael Carney, Harvey Carpenter, E. H. Dunn, Dennis F. Flagg, H. W. Fuller, Henry R. Glover, Adino B. Hall, Nathaniel Hamilton, Peter Harvey, James Healy, William A. Holmes, Thomas L. Jenks, Samuel P. Langmaid, E. Rollins Morse, George W. Parmenter, Lewis Rice, C. J. F. Sherman, N. B. Shurtleff, Jesse Tirrell, Charles A. Vialle, Charles E. Wiggin and William C. Wil- liamson.
The first banking offices were located at 80 Union Street, two doors removed from the site of the famous Green Dragon Tavern, referred to by Daniel Webster as "the headquarters of the Revolution." At this old tavern Paul Revere and other patriots were wont to meet, and it was here that the famous Boston Tea Party was planned. Forty-four ac- counts were opened on the first day, a total of $5,745 being deposited.
After occupying these quarters for four years, the bank then moved to 89 Court Street. In 1876 a removal was made to 57 Court Street. In 1926 the bank again moved, this time to 52 Devonshire Street, diagonally
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A HISTORY OF. BANKING IN BOSTON
opposite the Old State House. During this entire period the institution made a steady and healthy growth. On June 30, 1926, the total deposits amounted to $7,737,647.83, and the assets were $8,371,953.09.
The officers of the institution for the year 1926 were as follows :
President, Frank E. Buxton; vice-presidents, Charles E. Wiggin, Charles G. Burgess, John T. Burnett, Robert J. Dunkle ; clerk, Edwin A. Bayley ; treasurer, John A. Bent; trustees, Leon M. Abbott, Charles G. Bancroft, Edwin A. Bayley, John A. Bent, Charles G. Burgess, John T. Burnett, Frank E. Buxton, Robert J. Dunkle, Hollis French, Herman Holt, Jr., John K. Howard, Harry L. Jones, Albert G. Keith, Wilbur S. Locke, William Gordon Means, Charles E. Phipps, John S. Richardson, Charles P. Shillaber, Sidney F. Squires, William E. Stanwood, Winthrop Wetherbee, Arthur M. Wiggin and Charles E. Wiggin.
Eliot Savings Bank-The Eliot Savings Bank, in the Roxbury dis- trict, is the twelfth oldest savings institution in Boston, having been organized in 1864, the last year of the Civil War. The charter was granted late in February of that year and on April 13 the institution opened its doors in the building at the corner of Washington and Dudley streets. Judge William S. Leland of Roxbury was the first president.
The name of the bank was taken from John Eliot, pastor of the first congregation in Roxbury and apostle to the Indians. Originally the bank was known as the Eliot Five Cents Savings Bank, but on March 25, 1916, the words "Five Cents" were eliminated. At that time the bank moved into new quarters in a building at 165 Dudley Street, which it had erected.
From its inception the bank has had a steady growth. On June 30, 1926, its total deposits amounted to $12,633,930.43, and its assets were $13,668,762.21. The officers for 1926 were as follows :
President, Albert E. Carr; vice-presidents, William S. Leland and Albert F. Hayden ; treasurer, Frank E. Granger ; clerk, Fred N. Russell ; trustees, Samuel G. Adams, Charles E. Aldrich, Augustus Bacon, Jud- son Baldwin, Donald M. Blair, John F. F. Brewster, Albert E. Carr, Frank M. Curtis, Alfred P. Emmons, George L. Fisher, Albert F. Hayden, Frank Houghton, William S. Leland, Walter R. Meins, Frank W. Men- dum, Gorham Rogers, Fred N. Russell, Llewellyn D. Seaver, William H. Slocum, William M. W. Spring, Frank S. Waterman, George W. Wheel- wright and Frank O. Whitney.
Boston's Cooperative Banks-Cooperative banks were established in Massachusetts by an act of the Legislature, under the name of Coopera- tive Saving Fund and Loan Associations, in 1877, although they had ex- isted as building associations in other States for a number of years previ- ously. These institutions had been highly successful in Pennsylvania,
426
METROPOLITAN BOSTON
particularly in Philadelphia, and for this reason the Massachusetts act was copied largely from the Pennsylvania law.
From their beginning in Massachusetts, these institutions have been operated-as their purpose was defined in the original law-"To enable persons of moderate means, dependent upon their own savings, to pro- vide themselves with homes which they shall own." That they have been phenomenally successful and have aided many thousands of wage- earners to own their own homes, is shown by their record.
During the first year, 1877, ten of these cooperative banks were in- corporated and started business. The first to be incorporated was the Pioneer Cooperative Bank, in Boston, on July 26. The Homestead Co- operative Bank, of Boston, incorporated on September II, was the fourth oldest institution of the kind in the State. All of the first ten are still active, two in Boston, two in Brockton, and one each in Cambridge, Fitchburg, Haverhill, Lynn, Taunton and Worcester.
In 1879 the cooperative institutions were placed under the supervision of the State Commissioner of Banks, and required to make annual reports of their condition. In 1880 six new banks were added to the original ten. In 1882, by legislative act, the loans of these institutions were restricted to first mortgages on real estate. In 1883 the name of Cooperative Sav- ing Fund and Loan Associations was changed to Cooperative Banks, and in 1885 a law was passed providing for the creation of a guaranty fund by these banks as a protection against losses.
In 1887, just ten years after their establishment, there were fifty-one cooperative banks in Massachusetts, with combined assets amounting to $4,211,948.86. With the fiftieth anniversary to be observed in 1927, there were in Boston alone on June 30, 1926, a total of fifty cooperative banks, with combined assets of $106,129,146.89.
Throughout the State the cooperative banks give evidence of having been soundly managed. In their almost half century of operations only seven in the State have wound up their affairs. Five of this number closed when it was discovered that there was not sufficient business for their successful continuance, and all paid 100 per cent on liquidation. Two were obliged to close on account of poor investments, one of them paying 100 per cent, and the other 89 per cent.
Of the Boston Cooperative banks, the largest is the Merchants, with total assets of $24,193,666.77, and was incorporated in 1881. The second largest, the Workingmen's, with total assets of $18,809,727.57, was incor- porated in 1880. The third largest, the Volunteer, has total assets of $10,070,263.18, and was incorporated in 1887.
The list of cooperative banks in Boston, together with the amounts of total assets and due shareholders, is as follows :
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A HISTORY OF BANKING IN BOSTON
BOSTON COOPERATIVE BANKS-June 30, 1926. Bank.
Total Assets.
Due Shareholders.
Andrew Square
$52,675.30
$52,216.24
Ansonia
20,021.03
17,930.66
Back Bay
207,757.48
194,073.90
Belleview
296,355.75
288,302.48
Boston
6,172,035.44
5,913,330.86
Brighton
889,756.67
832,305.30
Business Men's
219,632.95
210,735.00
Charlestown
368,267.04
343,684.84
Codman
346,220.78
324,834-37
Congress
177,979.86
I 53,889.81
Dorchester
1,762,813.61
1,698,060.80
Dudley
227,387.33
222,495.26
Edward Everett
243,014.61
224,161.27
Enterprise
2,005,315.3I
1,893,291.29
Eureka
30,355.09
27,336.43
Faneuil
124,299.04
I13,544.58
Farragut
329,143-36
313,070.31
Federal
I,020,575.58
976,523.31
Forest Hills
799,404.44
760,681.37
Germania
2,189,835.08
2,105,448.28
Guardian
1,728,054.52
1,627,602.47
Harvard
940,254.80
906,755-55
Highland
1,304,190.23
1,222,208.61
Homestead
1,816,954.70
1,612,840.04
Hyde Park
2,345, III.15
2,228,878.38
Jamaica Plain
248,674.29
237,284.48
Joseph Warren
2,044,465.19
1,922,625.50
Mattapan
1,093,276.53
1,029,878.63
Meeting House Hill
782,936.25
759,107.94
Merchants
24,193,666.77
23,008,320.71
Metropolitan
530,992.33
492,963.08
Minot
70,411.16
69,214.32
Mt. Washington
2,927,957.7I
2,800,605.II
Noddle Island
406,885.53
382,314.13
North Dorchester
752,067.2I
723,338.52
Pioneer
1,755,377.58
1,641,197.03
Real Estate
1,490,759.42
1,445,565.52
Roslindale
884,855.78
841,945.48
Roxbury
1,171,068.22
1,084,029.19
Shawmut
435,530.67
418,436.39
South Boston
186,031.70
178,083.33
South End
115,985.76
110,814.37
Suffolk
3,411,915.37
3,212,946.22
Telephone Workers'
103,319.49
100,522.77
Trimount
2,221,288.20
2,104,648.43
Union
353,068.33
343,211.3I
Volunteer
10,070,263.18
9,590,652.12
West Roxbury
3,781,666.29
3,576,784.29
Workingmen's
18,809,727.57
17,864,792.13
$106,129,146.89
$100,764,550.16
Boston's Credit Unions-Massachusetts was the first State to recog- nize credit unions by authorizing their incorporation. Such organiza- tions, under various names, had been in existence in other countries for a great many years, but it was not until 1909 that the demand became suffi- ciently strong in this country to attract legislative attention. During
2,669,545.2I
2,561,067.65
Massachusetts
428
METROPOLITAN BOSTON
that year the General Court of Massachusetts enacted a law creating the credit union system, which was approved by the Governor on May 21. Numerous other States have officially recognized these institutions since that time.
Credit unions are now to be found in many of the large industrial and mercantile companies, and also as community enterprises. As they have expanded in size, it has become necessary for the State to give them strict supervision to make sure that their development is along proper and safe lines. After two years of agitation, the General Court enacted a revision of the credit union laws in 1926, under which groups which formerly did a business of the same nature as credit unions under declarations of trust and other agreements, were compelled to seek credit union charters or go out of business.
As a result of the 1926 act, there was a tremendous increase in the number of these institutions during 1926. The close of the year found Boston with 97 credit unions, of which 66 had been incorporated during that year. These 97 credit unions had a total membership of 32,258. The Boston figures for 1926 are somewhat remarkable when it is considered that just five years before there were only 82 credit unions in the entire State of Massachusetts, with a total membership of 32,226.
The oldest of these institutions in Boston is the Industrial Credit Union, which was incorporated November 23, 1910, and opened for business December 7 of the same year. It is not one of the largest of the credit unions of the city, however.
The Telephone Workers' Credit Union, which was organized on March 3, 1917, leads all of the others in size. It has total assets of $779,- 397.81. Outstanding shares amount to $424,650.39, and the institution has deposits of $250,427.35. The total number of members at the end of 1926 was 6,422, and of this number 3,704 were borrowers. Five per cent dividends were paid on deposits during the year 1926, and six per cent to shareholders. Charles F. Donahoe is president of the credit union ; Ned C. Loud, treasurer, and Edward L. Shanney clerk of corporation.
The second largest credit union in Boston is the Blue Hill Neighbor- hood Credit Union, which was incorporated and began business on Janu- ary 3, 1921. It has total assets of $274,743.50 (on December 31, 1926), and a membership of 1,809. Its outstanding shares amount to $214,020.15, and its deposits, $48,391.73. S. Frank Greenstein is president; Harry Gerber, treasurer, and Joseph G. Kofman, clerk of corporation.
The other leading credit unions, in the order of their size, are as fol- lows: Beacon Hill Credit Union, total assets, $225,165.74, membership, 1,206; West End Credit Union, total assets, $218,851.26, membership, 1,272; Filene Cooperative Association Credit Union, total assets, $202,-
429
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A HISTORY OF BANKING IN BOSTON
370.43; membership, 1,727; Boston and Maine Railroad Employees' Credit Union, total assets, $171,636.95; membership, 1,784; Boston Post Office Employees' Credit Union, total assets, $155,301.61 ; membership, 1,804 ; City of Boston Employees' Credit Union, total assets, $124,351.43 ; membership, 1,934.
As so many of the institutions are newly incorporated and had just started in business at the time of the compiling of this record, no attempt will be made to list the other credit unions.
At the end of the year 1926, the aggregate of the total assets of the 97 credit unions in Boston was $3,331,519.32. The total amount of the outstanding shares was $2,335,800.15, and the total of deposits at interest, was $723,512.94.
It would seem that the credit unions are merely on the threshold of their history, and that some of these institutions may grow to a powerful size in the years to come. They are performing a highly useful service and are a distinct adjunct to the city's financial system.
Boston's Investment Banking Houses-The history of Boston's In- vestment Banking Houses, which can be but briefly touched upon here, is a record of pioneering in many lines of the development of a Nation. Financial Boston has played an important part in the commercial and industrial life of the United States. Few people probably realize the deep debt of gratitude the country owes to some of the far-sighted Boston financiers of the nineteenth century, who had the courage to risk their fortunes and the fortunes of their friends in opening up and making secure new fields of investment, which not only became profitable, but upon which the growth of the country has rested.
In the early days the Boston merchant bankers, with their fleets of trading vessels ploughing the seven seas, largely controlled the com- merce of the colonies. For a half century this domination continued, and business houses were established in the Far East and in European coun- tries to expedite the importing of merchandise and other commodities. Gradually, as other ports developed their commerce Boston suffered from the competition, especially so because of its geographical location.
A striking illustration of how legislative bodies may hamper and stifle trade occurred in Massachusetts during this period when Boston was slipping from the throne of commercial supremacy. In 1824 the General Court enacted legislation imposing a tax of one per cent on auc- tion sales of imports from China. Until that time Boston was the center of the tea trade of the country, and dealers from all sections attended the public auctions at the Boston port, where this tea was disposed of. The tax was estimated to cut the profits of a shipload of tea by as much as $3,000, with the result that the cargoes proceeded to New York instead
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430
METROPOLITAN BOSTON
of Boston. Where Boston had almost all of the trade before, it was found that New York rapidly took it away, because of the burdensome tax which had been imposed. In the year 1857, to six shiploads of tea landed in Boston, forty-one were landed in New York. The General Court, when it finally saw what it had accomplished, repealed the tax, but it was too late. The tea trade was lost, never to be regained.
Legislative interference has also been given as one of the compelling reasons why Massachusetts textile interests have been moving to South- ern States, but the geographical location, which finds the State so far away from the largest markets of the country and from the source of the raw products, is probably a far greater factor.
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