USA > Massachusetts > Suffolk County > Professional and industrial history of Suffolk County, Massachusetts, Volume II > Part 24
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This bank was to continue from the first Monday in October, 1813. to the first Monday in October, 1831, and was to be subject to the same rules, etc., as those of the State Bank chartered in 1811, with the ex-
31
242
SUFFOLK COUNTY.
ception of certain specified modifications. The capital stock was not to exceed $1,000,000, in shares of $100 each, one-fourth of each share to be paid in before October 1, one-fourth before January 1, 1814, and the residue when directed by the stockholders. Certain other features of the charter are worthy of mention. The bank was to "have, hold, purchase, receive, possess, enjoy and retain " lands, rents, tene- ments and hereditaments to the amount of $50,000, and no more, at any one time, but was not restrained from holding real estate in mort- gage or on execution, as security for, or in payment of, any debts due the bank. It was not to loan moneys, make discounts, nor issue any bills or promissory notes, till the capital in gold or silver in its vaults amounted to $250,000-one-fourth of its whole capital. And this fact was to be ascertained by three commissioners appointed by the govern- or. Moreover, the bank must loan to the State any required sum, not exceeding ten per cent. of the capital stock, reimbursable by five annual installments, or any shorter period, with interest not exceeding five per cent. The State also had the right to subscribe an amount, not more than $500,000, in addition to the capital stock, and subject to the usual bank rules and regulations.
The following were among the most prominent of the original share- holders in the New England Bank at the time of its organization, with the number of shares subscribed :
Samuel Appleton 100
French & Everett 70
Nathan Appleton
100
John Gore 100
Ebenezer Appleton
100
David Greenough 100
Phineas Adams
20
David Hinckley 100
Joseph Allen .
100
Edward Blake, jr
100
Benjamin Humphrey 40
John Bumstead, jr
100
George Lyman 100
Samuel May 100
Joseph P. Bradlee
15
Edward Motley 100
David W. Bradlee
15
Allan Melville 100
Israel Munson. 100
Samuel & David Bradlee 20
Josiah Marshall 100
Samuel S. Bradlee
15
George Odiorne 50
Enoch Bartlett.
100
Daniel P. Parker 100
Charles Barrett 100
William Perkins 25
Samuel Cabot, jr 100
Thomas Parsons 40
James S. Colburn
100
Benjamin Rich 100
Cornelius Coolidge
70
Henry G. Rice.
100
Samuel Dorr
100
William Ropes. 100
Benjamin Dane
30
Jeffrey Richardson 15
Isaac Hull 50
Thomas & John Bradlee 40
Josiah Bradlee
100
243
BANKING INSTITUTIONS.
Nathaniel P. Russell
100
Patrick T. Jackson
100
Paul Revere & Son
50
Francis Lee
100
Nathaniel R. Sturgis
100
Francis C. Lowell
100
William Sturgis
50
Giles Lodge
50
Russell Sturgis
111
William Lawrence
20
William S. Shaw
100
Amos Lawrence 20
Robert G. Shaw.
100
Samuel Train
20
Lemuel Shaw
100
John D. Wilhams & Co .
100
Asaph Stone.
100
Samuel G. Williams
100
William II. Sumner
20
Phineas Upham
100
Richard 1). Tucker
100
Benjamin M. Watson
.100
Israel Thorndike, jr.
100
John Wood.
100
llarvard College
200
Francis Welch
100
Joseph Goddard.
30
Josiah Whitney
25
Nathaniel Goddard
50
Whitwell & Bond
William Goddard
30
Isaac Winslow. 30
Benjamin Goddard
30
John Warren
It will be seen that the seventy-four of the original stockholders sub- scribed for 5, 480 shares, amounting to $548, 000, on an average of seventy- three shares each. Harvard College took the largest number, 200 shares, while the families of the Appletons, Bradlees, Lawrences, Sturgises, Shaws and Goddards were well represented. All of the names in the list have been long identified with the history of Boston. Many of the descendants, but none of the original stockholders, are now living.
The first directors of the New England Bank were twelve in number, and were chosen at a meeting of the stockholders "at the rooms of said bank," in the Old Exchange Coffee House, October 4, 1813. They consisted of Edward Blake, jr., Samuel Dorr, Nathaniel Goddard, John Gore, David Greenough, Francis C. Lowell, Daniel P. Parker, Ben- jamin Rich, William Ropes, Lemuel Shaw, William Sturgis and John D. Williams. Nathaniel Goddard was chosen president, and Ebenezer Goddard cashier. As the powers and duties of the directors specified in the original "By-Laws, Ordinances and Regulations " were similar to those of other then existing banks, we give the following as a speci- men of all. They were certainly sufficiently numerous, varied and comprehensive: They were to have full power to procure a suitable place for transacting the bank business, by purchase or lease, and to sell, dispose of and exchange the same; they must erect or prepare suitable buildings, with safe and convenient vaults and with suitable furniture and apparatus: they were to appoint and fix the times at which the first and second installment of $25 on cach share must be paid in, and to give notice thereof; to appoint a cashier, tellers, clerks
244
SUFFOLK COUNTY.
and other suitable officers; to preseribe and define their respective duties; to order suitable bonds to be given and oaths to be taken by them for securing the faithful discharge of their respective duties; to fix, determine and pay their respective salaries and compensations: to procure all necessary plates, stationery and other articles for the use of the bank; to fix discount days; to make rules and regulations concern- ing discounts; to preseribe forms for bonds and mortgages; to make rules and regulations concerning loans on bonds and mortgages; to appoint a suitable person "of the profession of the law," as solicitor; to prescribe his duties and fix his compensation ; to preseribe all neces- sary forms for powers of attorney to be used at the bank ; to make all necessary rules and regulations for their own government and for the management of the interests of the institution, "not repugnant to the rules and regulations established by the stockholders, the act of incor- poration, or the constitution and laws of this Commonwealth; " and finally they were to "generally enjoy, possess and exercise all the powers granted to this corporation in cases not otherwise specially pro- vided for." The thoroughness of these manifold directions for the directors is worthy of all praise, except that in the last clause. Those responsible and weary gentlemen might possibly possess and exereise all these powers, but to be able to "enjoy " them must have been be- yond the possibilities.
One of the original ordinances of the New England Bank may have suggested the present "Safe Deposit " system for the security of vali- ables. It was enjoined that the bank should take charge of the cash of all those who might choose to place it there, free of expense; and should keep it subject to the owner's order, payable at sight. Deposits of ingots of gold, bars of silver, plate, or other valuable articles of small bulk, were received in the same manner and returned on demand of the respective depositors. This practice was long ago abolished. It assumed a responsibility heavy and troublesome. The services it rendered are now performed by safe deposit companies, which make it a highly systematie and remunerative business.
The New England Bank was for a period of seventy years located at 67 State street, corner of Kilby, a location of historic interest. It was at this spot that the famous Boston Massacre took place, and on the site of the old building at that time stood a popular tavern known as the "Bunch of Grapes." In 1886 it sold its building to the Washington Insurance Company and removed to its present location in the Equit- able Building, corner of Milk and Devonshire streets.
245
BANKING INSTITUTIONS.
The New England Bank was once largely engaged in receiving and paying what were called country bank bills, and also in negotiating bills of exchange on England, and this business it continued until the Snf- folk Bank introduced its system of redeeming bills of country banks. In January, 1865, its charter was changed to the New England National Bank, at which time it paid to its stockholders an extra dividend of twenty-five per cent. on its capital of $1,000,000. Forgeries upon this bank have been trifling, and its record with regard to runs and suspen- sions is the same as that of other leading Boston banks. As a State and National bank, since its incorporation in 1813, it has never passed but one dividend-in 1826-a period of eighty years, covering practi- cally the financial history of the country.
The presidents of the New England Bank have been as follows: Nathaniel Goddard, 1813 to 1823; Samuel Dorr, 1823 to 1833; Philip Marrett, 1833 to 1846; Thomas Lamb, 1846 to 1884; Samuel Atherton, 1884 to 1890; Charles W. Jones, 1890 to the present time. The cashiers have been Ebenezer Frothingham, jr., 1813 to 1824; Philip Marrett, 1824 to 1833; Seth Pettee, 1833 to 1844; Charles F. Swan, 1874 to the present time. The present officers and directors are: Charles W. Jones, president ; Charles F. Swan, cashier; Arthur C. Kellock, paying teller; Jacob C. Hartshorne, receiving teller; Amos L. Swindlehurst, bookkeeper; Henry C. Grant, collection clerk. Directors: Samuel Atherton, John T. Bradlee, Charles W. Jones, John D. W. Joy, Will- iam G. Means and J. Herbet Sawyer.
The condition of the New England National Bank, as made to the comptroller of the currency at the close of business March 6, 1893, was as follows:
RESOURCES.
Loans and discounts
$2,993,918.29
U. S. bonds to secure circulation 50,000.00
Stocks, certificates, claims, etc ... 28,400.00
Due from approved reserve agents 298,069.91
Due from other National Banks 156,631.58
Current expenses and taxes paid 24.155.18
Checks and other cash items. 676.30
Exchanges for clearing-house 59,209.95
Bills of other banks 881.00
Fractional paper currency, nickels and cents 56.66 Specie 177,028.00
Legal tender notes 47,000.00
Redemption fund with U. S. treasurer (5 per cent. of circulation) 2,250.00
Total
53.838.306.87
246
SUFFOLK COUNTY.
LIABILITIES.
Capital stock paid in
$1,000,000.00
Surplus fund
600,000.00
Undivided profits
151,480.98
National Bank notes outstanding.
45,000.00
Dividends unpaid 3,249.50
Individual deposits subject to check.
1,531,402.95
Demand certificates of deposit .. .
4,707.00
Due to other National Banks.
186,296.52
Due to State banks and bankers
366,089.92
Total
$3.838,306.87
TREMONT NATIONAL BANK.
The Tremont National Bank was originally incorporated under the name of the Manufacturers' and Mechanies' Bank, February 14, 1814, with a capital of $1,500,000, of which the Commonwealth might sub- scribe $500,000, one-third of the stock to be reserved for manufacturers and mechanics. The incorporators named in the act were: George Sullivan, John Bellows, William Appleton, Winslow Lewis, William Cochran, Thomas B. Wales, Seth Knowles and Ezra A. Bourne. Among the original stockholders of this bank, with the number of shares taken by cach, were:
William Appleton 130
Seth Knowles 130
Nathaniel W. Appleton
130
Charles F. Kupper 100
Jonathan Amory
120
Edmund Monroe 120
Ezra A. Bourne.
130
John McLean 130
Stephen Brigham.
130
John Peters 120
Charles R. Codman
120
Edward D. Peters 100
William Cochran. 120
James Richardson
130
Pliny Cutler 120
Ephraim Robbins
100
Jonathan Dorr
130
Benjamin Russell
150
Sammel Downer
130
David Sears, jr. 120
Jonathan Davis
130
Jeremiah Thayer 100
Samuel Dexter
100
Nathan Tufts 100
Aaron & Charles Davis
100
Dr. Aaron Tufts
120
Samuel Fales
120
Oliver C. Wyman.
130
Samuel Torrey
100
Edward Whitwell
100
Andrew Homer
100
Benjamin Weld
130
Jonathan Hunnewell
130
Timothy Wiggins.
100
John Hancock
120
The above familiar names summon up suggestive memories. They were the foremost men of the city at that day, merchant princes, kings
247
BANKING INSTITUTIONS.
of commerce and fathers of manufactures. Many of them were also pioneers in that banking system violently, because ignorantly, opposed in this country at first, but soon so triumphantly vindicated by their foresight, honor and sagacious management, that then and to this day the banks of Boston have been proverbial for soundness, and have be- come features in her character, which justify no small degree of local pride.
The first board of directors was chosen at a meeting of the stock- holders held March 1, 1814, and was composed of the following mem- bers: Benjamin Russell, John Bellows, George Sullivan, Thomas B. Wales, Isaac Stevens, E. T. Andrews, Jonathan Dorr, Winslow Lewis, Joseph H. Dorr, Samuel Fales, Seth Knowles and Jonathan Hunnewell. At the same meeting John Bellows was chosen president and Chester Adams cashier. With these officers, and Daniel Woods, first teller ; Andrew Oliver, second teller; William Coffin, first bookkeeper; George Wheeler, second bookkeeper, and John Wheelwright, discount clerk, the bank commenced operations in a room under the Massachusetts Bank. The land on which the Tremont National Bank building stands was purchased in April, 1814, for $14,000, a very high price in those days. The building which now occupies this site was erected in 1852.
The name of the Manufacturers' and Mechanics' Bank was changed to Tremont Bank by act of the Legislature passed March 8, 1830, at which time the capital was reduced to $500,000, having previously been reduced from original amount, $1,500,000 to $250,000, February 11, 1816. At the time the name of this institution was changed to Tre- mont Bank, Henry Jacques was president and James Dalton cashier. The directors were: Henry Jacques, S. T. Armstrong, Joseph Eveleth, David R. Grigg, Levi Merriam, Isaac Stevens, E. T. Andrews, Caleb Curtis, Henry H. Fuller, John F. Loring, Benjamin T. Reed, and George Wheelock. In 1850 the capital was increased to $1,000,000, in 1860 to $1,500,000, and in 1865 a stock dividend of 3313 per cent. was made, making the capital $2,000,000. December 14, 1864, the bank was reorganized as a national bank, under its present title of The Tremont National Bank; its officers and directors at this time were Andrew T. Hall, president ; Amos T. Frothingham, cashier ; Andrew T. Hall, Nathan B. Gibbs, Charles B. Shaw, W. Endicott, jr., Isaac Thacher, William Perkins, Ezra 11. Baker, Thomas M. Devens, direc- tors. The presidents of the bank from its organization to the present in order of service have been as follows: 1811 to 1818, John Bellows;
248
SUFFOLK COUNTY.
1819 to 1823, John Phillips; 1824 to 1829, Isaac Stevens; 1830 to 1832, llenry Jacques; 1832 to 1843, Samuel T. Armstrong; 1843 to 1815, Andrew T. Hall; 1826 to 1887, William Perkins; 188; to the present time, Aaron llobart. The cashiers have been: 1814 to 1819, Chester Adams; 1819 to 1847, James Dalton; 1847 to 1891, Amos T. Frothing- ham; 1891 to the present time, D. E. Snow. In 185% Enoch Train retired after a service of twenty-seven years as a director. In 1864 Caleb Smith died after serving thirty-five years as a director. In 1869 Charles B. Shaw died, having served as a director for twenty-six years. In 1875 Andrew T. Hall died, having served as president and director for forty-four years. In 1896 Ezra H. Baker died after a service of thirty years. In 1880 Nathan B. Gibbs died after a service of forty years as a director. In 1883 Isaac Thacher died after serving for forty- three years as a director. In 1882 William Perkins died after a service of forty-four years as president and director. James Dalton retired after serving for twenty-eight years as cashier, while Amos T. Froth- ingham, at the time of his death in 1891, had been continuously con- nected with the bank as teller or cashier for fifty-six years. Aaron Hobart, the present president of the bank, has been a director for thirty- two years; William Endicott, jr., for thirty years, and Thomas H. Devens for twenty-eight years. D. E. Snow, cashier, has been con- nected with the bank for forty-two years; John K. Hinckley, receiving teller, for forty-one years; J. J. Underhill, paying teller, and Charles O. Tufts, book-keeper, cach for thirty-nine years. The board of direc- tors for 1892 is composed of the following members: Aaron Hobart, Thomas M. Devens, William Endicott, jr., Francis A. Osborn, George Thacher, Henry Endicott and Francis H. Manning.
The condition of the Tremont National Bank at the close of busi- ness, March 6, 1893, as reported to the comptroller of the currency, was as follows :
RESOURCES.
Loans and discounts
$2,981,191.21 2.62
Overdrafts, unsecured
U. S. bonds to secure circulation
50,000.00
Stocks, certificates, etc.
436,000.00
Due from approved reserve agents
157,160.45
Due from other National Banks
165,410.15
Due from State Banks and bankers
1,168.66
Current expenses and taxes paid
11,405.32
Premiums paid on U. S. bonds 5,000.00
Checks and other cash items.
11,514.31
1
1
1
Jinjal Ritch
2.40
BANKING INSTITUTIONS.
Exchanges for clearing-house.
225, 213. 19
Bills of other banks
4,974.00
Fractional paper currency, nickels and cents 203.28
Specie
142,300.00
Legal tender notes
76,889.00
Redemption fund with U. S. Treasurer (5 per cent. of circulation)
2,250.00
Total
$4,270,212.49
LIABILITIES.
Capital stock paid in
$2,000,000,00
Surplus fund
375,000.00
Undivided profits ..
99,981.64
National Bank notes outstanding
45,000.00
Dividends unpaid
2,399.00
Individual deposits subject to check
1,318,017.16
Certified checks
100,206.77
Cashier's checks outstanding
2.957.54
Due to other National Banks
155, 177.58
Due to State Banks and bankers
61,972.80
Bills payable
110,000.00
Total
$4.270,712.49
SUFFOLK NATIONAL BANK.
On the 10th of February, 1818, a charter was granted by the Legis- lature of Massachusetts to a banking institution known as the Suffolk Bank, which was destined to exert upon the currency of New England an influence little dreamed of by its projectors, but so wholesome that it gave uniformity and stability to its currency, reduced the discount on it to a minimum and by holding it in check tended to keep it in a sound and healthy condition. Among the subscribers to the stock of this bank were many of the most influential men of the day, such as William and Nathan Lawrence, John W. Boott, Eben and John Breed, Otis Everett, Ebenezer Francis, William, Abbott and Amos Lawrence, William Payne, Patrick T. Jackson, Charles Lowell, Daniel P. Parker, George Bond, Samuel R. Miller, William Prescott, Caleb Loring, Na- thaniel P. Russell. S. G. Williams, Alfred Willis, John Wood, Edmund Munroe and Gardiner Greene. The first dircetors were: Ebenezer Breed, Andrew Ritchie, Thomas Motley, Samuel Ilubbard, John W. Boott, George Bond, Daniel P. Parker, William Lawrence, Eliphalet Williams, Edmund Munroe, Patrick T. Jackson and Ebenezer Francis.
32
SUFFOLK COUNTY.
The bank was opened for business on the first day of April, 1818, on the second floor of the building on State street owned by Barney Smith, Ebenezer Francis having been previously elected president, and Matthew Parker cashier. In April, 1819, the bank was moved to the second floor of the building on the corner of State and Kilby streets, then and for many years occupied in part by the New England Bank. The directors at once, in addition to the regular business of the bank, turned their attention to foreign exchange. To the business of buying and selling exchange was added that of buying in London United States stocks and dollars. The foreign exchange business was con- tinued until April, 1826, when a final settlement was made with its London agents, and the bank turned its attention almost exclusively to receiving and redeeming the bills issued by the New England banks.
The redemption of country bank notes by the Suffolk Bank began in February, 1819, at which time a committee composed of the president, Ebenezer Breed, and Nathan Appleton reported as follows: " That it is expedient to receive at the Suffolk Bank the several kinds of foreign money1 which are now received at the New England Bank, and at the same rates. That if any bank will deposit with the Suffolk Bank $5,000 as a permanent fund, with such further sums as shall be suffi- cient from time to time to redeem its bills taken by this bank, such bank will have the privilege of receiving its own bills at the same dis- connt at which they were purchased."
With the New England Bank, which for some time had been re- deeming foreign bills, the Suffolk at once entered into a lively com- petition, and as a natural result the discount on country notes was materially lessened. Previous to this time the discount on Massachu- setts bills had been one per cent., and on bills of other States much greater. Competition at once reduced the rate on the former to one- half of one per cent., and even lower.
At this time the city was flooded with country money. The circula- tion consisted almost entirely of the notes of banks outside of Boston. With more than one-half of the banking capital of New England, the Boston banks supplied only one twenty-fifth of the bills in use. Two of the directors of the Suffolk Bank, John A. Lowell and William Lawrence, had become deeply impressed with the evils attending this
1 By the term " foreign money " was meant, not the money of foreign countries, but the notes issued by banks outside of Boston. This distinction it will be necessary to bear in mind for a clear understanding of what follows.
2.51
BANKING INSTITUTIONS.
undue issue of country money. In view of this fact, they were ap- pointed a committee to confer with the other banking institutions of Boston concerning measures which might check the enormous issue of country, and especially Eastern, money, and of securing to the bills of the Boston banks a just proportion of the circulation. They addressed a letter to each of the Boston banks clearly stating the evils existing. and proposing " that a fund of - - hundred thousand dollars, to be assessed in proportion to their respective capitals, be raised by the several banking institutions who may agree to the arrangement, to be placed at the disposal of one or more banks for the purpose of sending home the bills of the New England banks in such way as may be ex- pedient. That this capital shall be paid in the bills of the several banks, which shall be indiscriminately paid out for the purchase of Eastern money. That the profit or loss shall be in common, after charging a reasonable compensation for any extra service rendered by the officers of the bank receiving them. That this fund shall be with- drawn at any time by a vote of a majority of the banks concerned, and that the president and directors of the receiving bank shall be at liberty to decline continuing the agency when they see fit, expecting no re- muneration for the services which they may render in this business for the common good."
This letter led to a meeting of representatives of the Massachusetts Bank, Union Bank, State Bank, Manufacturers' and Merchants' Bank, Eagle Bank and Suffolk Bank, which was held April 24, 1824, when it was voted that the sum of $300,000 was necessary to carry the scheme into effect, divided in the following proportion among the respective banks: State, $50,000; Massachusetts, $50,000; Union, $40,000; Man- ufacturers' and Merchants', 840,000; Columbian, $30,000; Eagle, $30,- 000; Suffolk, $60,000. These sums were subsequently ratified by the banks interested, and the Suffolk Bank was chosen as the agent of the associated banks. It was agreed that the Suffolk Bank should receive from the associated banks all this foreign money at the same or less discount than the New England Bank or other banks in Boston received it, and should send it home for redemption ; that any bank might with- draw by giving thirty days' notice, and that the Suffolk Bank might give up the business at any time by giving the same notice.
Under this arrangement the Suffolk Bank began the receiving of foreign money on the 24th of May, 1824. The country banks were naturally very much excited and loud in their opposition. They felt
252
SUFFOLK COUNTY.
that the result would be the curtailment of their cirenlation and the necessity of keeping a larger specie reserve. In derision they called the associated banks the " Holy Alliance," and some dignified the Suf- folk Bank with the title of the "Six Tailed Bashaw." But they soon found that a promise to pay, printed on the face of a bank note, meant a promise to pay in specie on demand, and that the Suffolk Bank was not to be frightened or turned out of its course by sareastie words. The charge of the foreign money affairs was placed by the directors in the hands of a committee composed of Ebenezer Breed, William Law- rence, John A. Lowell and Jeffrey Richardson. Two of this original committee, John A. Lowell and Jeffrey Richardson, served during the whole continuance of the system, forty-two years, and Williani Law- rence until his death in 1848, a period of twenty-three years.
On the 25th of April, 1825, Ebenezer Francis resigned the presidency of the bank and Samuel Hubbard was elected in his plaec. Mr. Hub- bard resigned in the following November, and Henry B. Stone was chosen as his successor. Mr. Stone was the first teller of the Suffolk Bank when it opened for business in 1818. Subsequently, and at the time of his election as president, he was cashier of the Eagle Bank.
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