USA > Missouri > Encyclopedia of the history of Missouri, a compendium of history and biography for ready reference, Vol. I > Part 22
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father-in-law. His father-in-law was Henry Weber, formerly counselor at the court of Frederick William III, king of Prussia, a gentleman of great learning, a noted linguist and a correspondent and friend of such dis- tinguished men as Goethe, Humboldt, Rau- mer and Longfellow. Mr. Weber, who trans- lated Longfellow's poems into the German language in the rhythm of the original, was also a fine musician, and composed masses, songs and organ offertories. On his death- bed he composed his own funeral hymn, pre- pared it for a male quartette and copied it in a clear, firm hand. It was sung at his funeral, and the words, as printed, were cut on his monument in Bellefontaine Cemetery. He died at St. Charles, at the age of eighty-nine years. One of the great musical societies organized by Professor Balmer was the Phil- harmonic Society, which began its existence in 1859. and was composed of the remnants of former societies. He was chosen president of this society and held that position for many years. After it ceased to exist as a regular organization on account of the dishonest practices of one of its officials, the members were held together in a social way, and dur- ing the war period, at the summons of Pro- fessor Balmer, gave the opera "Martha" for the benefit of sick and wounded soldiers, which proved a great success financially, and received unstinted praise on account of its artistic merits. So much a part of the musical life of St. Louis was Professor Balmer that he greatly endeared himself to people of all classes with whom he was brought into con- tact. He lived a long and useful life, and on the occasion of the celebration of his golden wedding anniversary, in 1890, messages and letters of congratulation came to him from all parts of the world. His remains now rest in Bellefontaine Cemetery, and his last resting- place is marked by a magnificent monument, erected by his wife, and crowned with a bust of the distinguished composer and artist. re- markably lifelike in appearance.
Baltimore & Ohio Southwestern Railroad .- A system whose main line ex- tends from Belpre, Ohio, to East St. Louis, a
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BAND OF HOPE -- BANKING IN MISSOURI.
distance of 533 miles, with branches to Louis- ville, Kentucky, and to various points in Ohio, and Indiana, together with the Springfield division, which is a road 228 miles in length from Beardstown, Illinois, to Shawneetown, in the same State. It had its origin in 1893, in the absorption by the Baltimore & Ohio Rail- road system of what had previously been known as the Ohio & Mississippi Railroad and its branches. The Baltimore & Ohio Railroad was the pioneer railroad of America. The original company was organized under a char- ter granted by the Legislature of Maryland, February 28, 1827. The corner stone of the work was laid July 4, 1828, by Charles Carroll, of Carrollton, one of the signers of the Decla- ration of Independence, and the road was opened from Baltimore to Ellicott's Mills, four- teen miles, May 22, 1830, the motive power being horses. August 25, 1830, the first loco- motive, "Tom Thumb," was used on the road. It was built by Peter Cooper, and weighed one ton. The Ohio & Mississippi Railroad was made up of roads chartered by the States of Indiana, Ohio and Illinois, the first act of in- corporation being granted by the State of In- diana, February 14, 1848. The Legislature of Illinois was long hostile to any road which should not terminate at Alton, which was sought to be made a formidable rival of St. Louis. This opposition was overcome through the influence of leading citizens of the States named. Among these was John Brough, then editor of the Cincinnati "Enquirer," and after- ward Governor of Ohio, and the road was long known as the "Brough Road," on ac- count of his prominence in connection with it.
Band of Hope .- A temperance society organized in St. Louis, April 14, 1861, by H. D. Moone, and which was an offspring of the Chapter of Temperance and Wisdom. The youth of both sexes were admitted to the band, pledging themselves to abstain from profanity and the use of intoxicating liquors and to- bacco. Its first president was one of the youths who joined the order, but Mr. Moone later became president and held that office for twenty-eight years. The parent society grew rapidly into popular favor and its member- ship has ranged from three hundred to five hundred at different periods of its existence. Father John Libby, famous in his day as a temperance worker, was for many years super- intendent of the society and had under his
charge in all more than five thousand children, who graduated from the organization as they grew up. He was succeeded as superintend- ent by J. W. Barnes, who still holds the po- sition. The Band of Hope, celebrated its thirty-third anniversary in 1894, in which five hundred children were participants, and an- other notable anniversary celebration was held April 14, 1898.
Bank Clerks' Association of Mis- souri .- An association organized in St. Louis, May 22, 1871, with William Shields, of St. Louis, for first president ; O. E. Owens, of St. Louis, vice president ; James T. Howen- stein, of St. Louis, corresponding secretary ; George D. Barklage, of St. Louis, recording secretary ; C. D. Affleck, of St. Louis, treas- urer. The objects are "to promote social acquaintance and personal friendship among its members; afford relief to the aged and disabled, and benefit the families of deceased members ; and aid members who are out of employment to secure situations." Membership is limited to persons between eighteen and forty-five years of age holding positions in bank or banking house, clearing house or trust company in Missouri-honorary membership being extended to bankers, officers and directors of banks, on the payment of an annual fee of $io. The monthly dues from active members are fifty cents; on the death of a member an assessment of $2 is made upon every active member, and within thirty days of the death, the sum of $1,000 is paid to the beneficiary of the deceased. In case of sickness or temporary disability of a member, an allowance of $25 a month may be made, if desired, provided the aggregate go not over $100. The annual meeting is held the third Tuesday in May. In the year 1899 over $3,000 was paid out in sick benefits, and there was a considerable permanent fund be- longing to the association. The original charter having expired, it was rechartered in 1897.
Banking in Missouri .- The history of banking in Missouri may be divided into four periods-the first being that uncertain time prior to 1837, marked by the opening of three banks, one after another, in St. Lonis-the Bank of St. Louis in 1816, the Bank of Mis- souri in 1817, and the Branch of the United States Bank in 1829. The first was a failure,
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the second was not a success, and the third had to be closed up when the parent bank in Phila- delphia went down under the veto of President Jackson. in 1832. Then followed makeshifts of one kind and another, the chief of which was the Cincinnati Commercial Agency, through which the government at Washington made its payments ; but the grow- ing commerce of St. Louis, the thriving lead trade of Washington County, the fur trade with the upper Missouri River, and the in- creasing intercourse between St. Louis and New Orleans by steamboats called for more perfect and satisfactory methods of exchange than any hitherto supplied, and, therefore, in 1837, the Bank of the State of Missouri was established by act of the Legislature-and this began the second era. The enterprise was a great success, and for twenty years the "Old Bank," as it came to be called, was the money autocrat of the West-its capital $5,000,000, its field of circulation and operation the whole region between the Mississippi River and the Pacific Coast, and its management so wise and safe as to secure absolute popular confidence. Its notes were good in the foreign countries of New Mexico and Chihuahua, and when the emigration to California came, in 1849, they were carried in considerable quantity to Cali- fornia and Oregon, where they commanded a premium over gold. One-third of the capital of the bank was contributed by the State, which had authority to name several of the directors. The parent bank was in St. Louis, with branches at Fayette, Palmyra, Jackson, Springfield and Lexington. In 1852, a com- mittee of the Legislature appointed to examine into the conditions of the constitution reported the assets of the parent bank at St. Louis at $3,983,131 ; Jackson branch, $349,850; Pal- myra branch. $358,217 ; Fayette branchi, $384,- 807; Lexington branch, $402,966; Spring- field Branch, $201,067; total $5.770,039. The State's investments in the stock of the bank were $100,000 on account of the Seminary fund ; $575,667 on account of the State School fund ; $6,273 on account of the sinking fund ; and $272,263 in its own right. The circulation of the bank in 1852 was: Parent bank, $1,- 461,000 ; Fayette branch, $237,690; Palmyra branch, $208,390; Jackson branch, $199,050 : Springfield branch, $139,770; Lexington branch, $238,050. The net profits from May 8, 1837, to June 30, 1852 (fifteen years), were : Parent Bank, $1,227,659; Fayette branch
$178,894 ; Palmyra branch, $105,119; Jackson branch, $79.628 : Springfield branch, $82,771 ; Lexington branch, $123.538 ; total, $1,824,109. These profits being at the rate of about two and a half per cent per annum, show that the good which the institution accomplished for the public was, in some measure, at the cost of its stockholders.
The next era of Missouri banking began in 1857, with the enactment of a law providing for a general banking system to supply the people with an ample, sound and safe cur- rency of notes payable in specie on demand, to circulate within the State at par. Such a currency had become an urgent need, for, the limited circulation emitted by the old bank was inadequate, and the constantly increasing demands of business encouraged irresponsible "wild cat" and "red dog" banks in Illinois, Wisconsin and Nebraska, to flood Missouri with their notes, which, though taken at a dis- count of five to twenty per cent, managed to circulate because there were no better ones, in sufficient quantity, to be had. This law of I857 gave seven new banks of issue-the Mer- chants', the Mechanics', the Southern, the Exchange, the Union and the St. Louis, and the Farmers' Bank of Lexington. The notes of these banks, issued on a basis of three dol- lars to one in specie in their vaults, constituted a currency which was accepted at par in all parts of the State, expelling the depreciated notes issued under the free banking laws of other states and accomplishing great good in facilitating the transaction of business. The old bank of the State was by the law of 1857 authorized to establish additional branches- and this system, a great improvement on any- thing that had been tried in the State before, continued until the year 1862, when it began to be superseded by the national bank system. The national bank notes, with the greenbacks and certificates issued from the United States treasury at Washington, have completely dis- placed the issues of the State banks; but the State banks, though ceasing to be banks of issue, have not disappeared. So far from this, they outnumber the national banks, and ex- ceed them in capital and deposits. May 5, 1899, there were in Missouri 495 State banks. showing capital stock paid in, $19,924,805 ; surplus funds on hand, $6,127,084 ; undivided profits, $1,575.607 ; total of these three items $27,627,496; deposits subject to draft at sight by banks and bankers, $6,351,709; deposits
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BANK OF NIANGUA.
subject to drafts at sight by individuals, $65,- 882.888; deposits subject to draft at given dates, $18,162,665-total deposits, $90,397,- 262. Among their resources were, loans un- doubtedly good, $73,496,257; bonds, $6,545,- 332 ; national currency of all kinds, $4,674,880; gold and silver coin, $3.526,737. In 1899 there were 63 national banks in Missouri, show- ing capital. $17,615,000; surplus, $4,023.000 ; undivided profits, $3,546,000; total of these three items, $25,184,000; deposits, $68,870,- 000. Among their resources were, loans and discounts, $87,088,000; United States bonds. $6,974,000 ; caslı and cash items, $16,708,000. In April, 1899, there were 88 private banks in Missouri, having capital, $933,370; surplus. $204,479 ; undivided profits, $132,982 ; total of these three items, $1,270,831 ; deposits, $6,- 106,178. Among their resources were, loans and discounts of all kinds, $4,789,623. June 1, 1899, the whole number of banks, state, national and private, in Missouri was 644 and their aggregate of capital, surplus, undivided profits and individual deposits was $203,227,- 674, or $61.21 average per capita, for the estimated population of the State. December 2, 1899, there were 19 banks in St. Louis, having an aggregate capital of $16,900,000 ; surplus, $9,732,999 ; total of these two items, $26,632,999 ; deposits, $104,002,784. Their re- sources were, loans, $81.232,264; bonds and stocks, $13,549,355 ; cash and exchange, $36,- 236,994. There were also four trust com- panies having aggregate capital of $7.500,000; surplus, $2,999.764: total of these two items, $10,499.764 ; deposits, $31,678,761. Their re- sources included loans, $25,948,687 ; bonds and stocks, $7,135,608; cash and exchange, $8,- 152,977. The banks and trust companies combined showed capital and surplus, $37,- 132,763 ; deposits, $135,681,545; loans, $107,- 180,951 ; bonds and stocks, $20,684,964; caslı and exchange, $44,389,972. The national banks in St. Louis paid. in 1899. $479,000 in dividends ; the State banks $729,000; and the trust companies $270,000; total, $1,478,000. On the 7th of September, 1899, there were five national banks in Kansas City, with capital stock of $2,300,000; surplus, $642,500; un- divided profits, $402,190; total of these three items, $3,344,690 ; individual deposits $17,363,- 400 ; loansand discounts, $23,638,715; cash and cash items, $4,501,639. The State banks of that city showed capital stock $420,000; sur- plus, $40,000; undivided profits, $8,214; total
of these three items, $468,214; individual de- posits, $2,291,693. Their loans and discounts were $1,276,777; cash and cash items, $137,- 454. The national banks and State banks to- gether showed capital surplus and undivided profits, $3,812,904: deposits, . $19,655,093 ; loans and discounts, $24,915,492; cash and cash items, $4,639,093.
Joplin has two national and three State banks-the former showing aggregate capital and surplus of $245,000 and deposits of $1,- 108,000; and the latter capital and surplus of $210,000 and deposits of $395,340; making total capital of $460,000 and total deposits of $1,403.340.
Carthage has three national banks, with an aggregate capital and surplus of $347,000, and deposits of $1,100,000; and one State bank with a capital and surplus of $105,500; and deposits of $130,000; making a total capital and surplus of $452,500 ; and deposits of $1,- 477,000.
Carterville has one national bank, with a capital and surplus of $53,110; and deposits of $140,010. Webb City has one bank with a capital and surplus of $24,000, and deposits of $50,000.
St. Joseph has two national banks, with capital and surplus of $507,000 ; and deposits of $2,397,007 ; and six State and private banks with capital and surplus of $501,460; and de- posits of $3,950,480; making a total capital and surplus of $1,008,460; and deposits of $6,- 347,487.
Sedalia has three national banks, with ag- gregate capital and surplus of $362,000, and deposits of $736,000 ; and three State banks with aggregate capital and surplus of $428,- 470; and deposits of $502,490; making total capital and surplus of $790,470; and of de- posits of $1,238,490.
Springfield has two national banks and four State banks, with aggregate capital and sur- plus of $474,000, and deposits of $943,000.
DANIEL M. GRISSOM.
Bank of Niangua .- About 1833 there was formed in St. Louis, with headquarters at Waynesville, in Pulaski County, an organi- zation known commonly as the Bank of Niangua. It had a president, cashier, clerks, board of directors, and for some time paid enormous dividends. Internal discord, re- sulting from one stockholder not receiving dividends he thought he was entitled to, re-
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BANKS AND BANKING IN KANSAS CITY.
vealed that the organization was a band of counterfeiters, and had in the mountains of Pulaski County a cabin where the counter- feiting was done. The workmanship on the notes was so perfect as to deceive bankers at Philadelphia and elsewhere, and hundreds of thousands of dollars of the spurious money was put in circulation. After the work of the band became known, the leaders quickly left the country. Details of the operations of the band are lost to tradition, though mention of their doings is made in "Wetmore's Gazetteer of Missouri," published in 1837, and reference to the same is made in "Campbell's Gazetteer," published in 1874.
Banks and Banking in Kansas City .- The time when the merchants of Kan- sas City were obliged to take charge of the money of customers and small dealers, and furnish such commercial exchange as was pos- sible with the limited means at command, is in the memory of the old resident of western Missouri. During the years of Kansas City's early history the nearest banks were at Lex- ington, and to that point prospective borrow- ers and holders of large checks and drafts were compelled to go. During the winter season very little business requiring exchange was done. Occasionally such accommodations were obtained from the government at Fort Leavenworth. Branches of banks organized under the State laws were established early in the fifties at Liberty and Independence, Mis- souri, and the banking facilities for Kansas City business men were thus brought much nearer home. In a few years Kansas City had far ontstripped the neighboring towns which boasted of banking facilities when she had none. Since the year 1856, when the first hank was established, until the writing of these lines, the banks of Kansas City have steadily grown in patronage and influence, and are now strong and indispensable factors in the great financial scheme of the developing West.
The first banking house in Kansas City was that of Northrup & Chick, established in 1856. During the preceding year these wholesale merchants, who had acquired a high standing in financial circles, and who held large de- posits for the people of town and country, opened an office for buying and selling ex- change, and this grew into the first bank in a city that has reason to be proud of her insti-
tutions of this class. In 1865 Northrup & Chick sold their bank to J. Q. Watkins & Co.
In 1857 a branch of the Mechanics' Bank of St. Louis was established in Kansas City. The business done by this institution during the first few years of its existence was satisfactory. The troubles attending the Civil War reduced profits and caused complications, but in the face of these numerous difficulties the bank continued business until 1871, when its affairs were closed.
A branch of the Union Bank of St. Louis was organized in Kansas City in 1857. The business of this bank, like that of the branch of the Mechanics' Bank of St. Louis, was en- tirely satisfactory up to the time of the Civil War. In 1861 the Union Bank removed its Kansas City funds to St. Louis, and closed up the affairs of the branch establishment. Thomas Johnson, a well known pioneer of western Missouri, took an important part in the affairs of this bank during the war, at one time going to Leavenworth, Kansas, with the bank's cash and securities in order to insure their safety.
The Kansas City Savings Association was organized in April, 1865, with a capital of $20,- 000. In 1873 Dr. James Buchanan Bell, who had been identified with the banking interests of Chillicothe, Missouri, became the president, and C. J. White, cashier. W. A. Powell after- ward bought the interest of Dr. Bell, and be- came president of the association. The cap- ital was increased from time to time and the organization grew stronger. In 1881 Dr. W. S. Woods bought Powell's interest and be- came president. The statutes regulating banks were changed by the Legislature, so that the stockholders found it expedient to surrender their charter as a savings bank and organize as the Bank of Commerce. The capital was then $200,000, and organization was effected in 1881. The affairs of the old bank were ab- sorbed by the new and the former officers were retained. In the summer of 1887 the bank was put under government control, and has since been known as the National Bank of Com- merce.
J. Q. Watkins & Co. purchased the pioneer banking business of Northrup & Chick, the transaction being made in 1865. This firm continued business until December, 1877, when its interests were sold to the National Bank of Kansas City. W. H. Seeger, the present second vice president of the Union
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BANKS AND BANKING IN KANSAS CITY.
National Bank, was connected with the Wat- kins bank.
In 1865 the old First National Bank was organized, and two years later Howard M. Holden bought a controlling interest in it and became the cashier. This bank was prosper- ous, and in 1872 its capital was increased to $500,000, its capital up to this time having been only a quarter of a million dollars. In 1872, when the increase was made, Mr. Hol- den became the president, M. W. St. Clair was made cashier, and W. H. Winants was chosen assistant cashier. September 25, 1873. the First National temporarily suspended pay- ment, as a result of the financial panic of that year. A short time later it was reopened and became the chief promoter of the grain and cattle business. January 29, 1878, the bank was compelled to close its doors again, and passed into the hands of a receiver appointed by the comptroller of the currency. The bank had become the correspondent of a large num- ber of Western banks at this time, and its sus- pension naturally brought about much em- barrassment, but the unmarketed products found purchasers in the East, and the currency necessary to move the salable grain, cattle, etc .. was soon at hand. James T. Howenstein was first appointed receiver for this bank and Walter J. Johnson succeeded him, closing up the bank's affairs in 1881. The depositors were paid in full.
The Mastin Bank was organized in Febru- ary, 1866. August 3, 1878, this State organi- zation, with deposits aggregating $1,300.000, closed its doors. It was first a private bank- ing house, under the name of John J. Mastin & Co. In 1871 it was reorganized under the State laws, with Seth Ward as president.
The German Savings Association was or- ganized in 1868, with a capital of $100,000, 20 per cent of which was paid in. Anthony Sauer was president of this association, and Henry L. Huhn was cashier. The Union Ger- man Savings Bank was also organized in 1868, with a capital of $100,000. Peter W. Ditsch was president, and John S. Harris was cashier. These two banks were consolidated in 1871, with Henry Tobener as president, and under the name of the Union German Savings Bank continued business until 1873, when final fail- ure came.
November 27, 1871, the Kansas City Na- tional Bank opened for business and continued until November 13, 1875, when it went into
voluntary liquidation. Attention is called to the name of this bank, and to the fact that it should not be confused with the National Bank of Kansas City, referred to in another part of this article. John B. Wornall was the first president of the Kansas City National, and D. L. Shouse was the first cashier. In the cessation of business its affairs were trans- ferred to the Bank of Kansas City. in 1875, which in 1878 became the National Bank of Kansas City.
A business record of six years was made by the Commercial National Bank. June 3, 1872, it was authorized to begin business. Opera- tions were continued until February 11, 1878, when the affairs of the bank were placed in the hands of a receiver.
In 1875 the Bank of Kansas City was organ- ized, with J. S. Chick as president. In 1878 it became a national bank, under the name of the National Bank of Kansas City. From 1884 to 1887 it was the largest bank in the city, and when the panic of 1893 struck the financial world its deposits were about $4,000,000. These deposits were rapidly withdrawn, caus- ing the bank to close its doors in July of that year. The following October the bank was again opened, with Mr. Chick as president, and J. Q. Watkins, Jr., as cashier. Business was continued until March, 1896, when the doors were finally closed and the affairs of the bank given over into the hands of John Perry, the government receiver. The depositors have all been paid in full, 6 and 55-100 per cent in- terest being paid on the face value of all claims.
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