History of Saint Louis City and County, from the earliest periods to the present day: including biographical sketches of representative men, Part 87

Author: Scharf, J. Thomas (John Thomas), 1843-1898
Publication date: 1883
Publisher: Philadelphia : L.H. Everts
Number of Pages: 1358

USA > Missouri > St Louis County > St Louis City > History of Saint Louis City and County, from the earliest periods to the present day: including biographical sketches of representative men > Part 87

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It was the first bank established in Missouri, and was organized on Sept. 2, 1816, with the following directors : Samuel Hammond, William Rector, Ber- nard Pratte, Risdon H. Price, Moses Austin, Theo- dore Hunt, E. B. Clemson, Justus Post, Robert Simpson, Charles N. Hunter, Walter Wilkinson, Theophilus W. Smith, and Elias Bates. On the 20th of September, Col. Samuel Hammond was elected president, and John B. N. Smith cashier. The capi- tal stock was one hundred thousand dollars.

For over a year the bank was a most popular institu- tion. It created an extraordinary impetus in business circles, encouraged the public mind, and was every- where regarded as a most excellent enterprise. Early in 1818, however, there was a reaction, caused, it is said, by speculative and unsafe investments on the part of the management, and the stockholders and directors became divided. The antagonism finally culminated in a rupture in the board, and the seizure of the bank property by what was known as the Thomas H. Benton faction among the stockholders. These proceedings are fully set forth in the subjoined protest in the interest of the ousted officials, bearing date Feb. 13, 1818 :

" TERRITORY OF MISSOURI, } 88.

COUNTY OF ST. LOUIS.

"I, Joseph V. Garnier, a notary public in and for the county of St. Louis, in the Territory aforesaid, duly commissioned, at the request of the president and directors of the Bank of St. Louis, stating among other things that on Wednesday, the 11th day of February inst., a meeting of the board of directors of said bank being held at the banking-house of said bank (being discount day) after the business of the day had been gone

through, a certain resolution was offered by Joshua Pilcher, a director, supported and seconded by Elias Rector, also a diree- tor, having for object the removal from office of cashier of said bank of John B. N. Smith, which being carried in the affirma- tive by a majority of two (ten of the directors being present), a motion was made by the said Joshua Pileher that the board proceed to the appointment or election of a cashier, which being also carried, the board proceeded to the election of a cashier, when, after two ballots without effect, on the third ballot The- ophilus W. Smith was declared duly elected the cashier of the said Bank of St. Louis by a majority of four votes, three votes being in the negative and seven in favor of the said Theophilus W. Smith. That upon the result of the election being made known, three of the directors then present, to wit, the said Joshua Pilcher, Elias Reetor, and Robert Simpson, tendered their resignation as directors of the said bank, which being re- corded, their seats as directors of the said bank were declared ·vacated, and an entry of the same was made on the minutes of the proceedings of the said board of directors. That shortly after a tumultuous assemblage of persons was seen in and about the banking-house of said bank, instigated, it is supposed by the said Joshua Pilcher and Elias Rector, in consequence of the said election and appointment of the cashier as aforesaid, and for no other cause as is verily believed. That the said Joshua Pilcher, Elias Rector, Thomas H. Benton, Lieut. James McGun- negle (of the army of the United States), Thompson Douglass, Stephen Rector, Thomas Handy, John Little, Jeremiah Con- nor, Taylor Berry, and Col. Daniel Bissel, also in the army of the United States, with others, at present unknown, did, as they also believe, enter the banking-house of the said bank with an intent forcibly to wrest from the president, directors, and officers of the said bank the possession thereof ; and did actually then and there pass a resolution to possess themselves of the keys of the outer doors of the said bank, and did accordingly, or one of them for the whole and in the name of the whole, actually take possession of the same, and, having ordered out the subordinate officers of the bank, did lock up the doors thereof. The said president and directors further state that the aforesaid Joshua Pilcher and others did afterwards assemble near the said bank- ing-house at the counting-room of the said Joshua Pilcher, and then and there demanded of the president the delivery by him of the keys of the vault of the same, which being refused, they did afterwards, on the evening of the same day, again assemble together, when the following resolution was adopted, to wit: ' Resolved, That a committee of five persons be appointed to take charge of the keys of the bank and to have the custody of the banking-house, and deny admittance to the said governing directors and their officers, and will assist in putting them out if they gain admittance by any means,' a copy of which was left by the said Joshua Pileher and Jeremiah Conner with Eli B. Clemson, the president pro tem., legally appointed by the president, who was prevented from attending by indisposition. They, the said Pileher and Connor, in conjunction with Thomas H. Benton, having previously declared to the said Theophilus W. Smith, the cashier of the said bank, that it was their deter- mined intention to carry the said resolution into effect should an attempt be made to regain the possession of the said bank and banking-house, which said declaration and threats thus made by the said Pilcher, Connor, and Benton, for themselves and on behalf of the aforementioned Elias Rector, James Me- Gunnegle, Thompson Douglass, Stephen Rector, Thomas Hanly, John Little, Taylor Berry, and Daniel Bissel, the said parties thus protesting had no doubt and verily believed would be carried into execution should an attempt be made at regaining the possession of the said bank and banking-house, whereby and wherefor all attempts at the same have by the said protesting

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HISTORY OF SAINT LOUIS.

parties heen thought useless and even dangerous. Afterwards, to wit, on the 12th day of the same month, Theophilus W. Smith, the eashier of the said hank, made of the said Joshua Pilcher, Thomas H. Benton, and Jeremiah Connor a demand of the keys of the said bank, which were denied him ; Col. Eli B. Clemson, the president pro tem., also made a demand of the keys aforesaid of the said Joshua Pilcher, and the same were refused and denied him ; wherehy the said president and direetors and the suhaltern officers of the said hank have heen prevented from attending to the duties of their respective appointments, to the great damage, prejudiee, and detriment of the said Bank of St. Louis, the stockholders thereof and all others concerned, either directly or indirectly, with the same.

" Whereupon I, the said notary, at the request aforcsaid, have and do herehy protest against the said Joshua Pilcher, Elias Reetor, Thomas H. Benton, James McGunnegle, Thompson Douglass, Stephen Reetor, Thomas Hanly, John Little, Jere- miah Connor, Taylor Berry, and Daniel Bissel, and all others concerned, for all the damages, losses, interests, and costs suffered or to be suffered by the said president and directors of the Bank of St. Louis, the stockholders in the said hank, whether eollee- tively or in their individual capacity, and all others concerned in business with the said hank of whatever nature soever, in consequence of or resulting from the taking possession by the said Joshua Pileher, Elias Reetor, Thomas H. Benton, James McGunnegle, Thompson Douglass, Stephen Rector, Thomas Hanly, John Little, Jeremiah Connor, Taylor Berry, and Daniel Bissel of the said Bank of St. Louis and the hanking-house thereof, and the keeping out of the same the said president and directors, and therehy putting a stop to and preventing the carrying on of the business of the same and exposing it to dis- order."

Legal proceedings were instituted against those who took forcible possession of the bank, and on February 20th following it was announced that "the banking- house of the Bank of St. Louis having been restored to the possession of the board of directors by the in- dividuals in whose possession it has unlawfully been, the public are hereby notified that the bank will be open for business as usual on Monday, the 23d day of February inst., at ten A.M. By order of the board. S. HAMMOND, President."

On March 3d following the opposition party pub- lished the following protest :

" TO THE PUBLIC: Whereas, a notice was given by the presi- dent and directors of the Bank of St. Louis to the public that the Bank of St. Louis would open on Monday, the 23d inst., for the transaction of business ; and whereas that period has passed without his notification having been complied with, hut another advertisement has been published, notifying the public that the Bank of St. Louis would remain elosed until the 10th March next, stating among other reasons for such a measure that 'it is helieved' (by the president and direetors) 'that a eomhina- tion has heen formed for the purpose of embarrassing the pro- ceedings of said bank, which combination still exists,' the un- dersigned, stockholders in the said bank, being fully satisfied that no such combination has ever existed, and that this is only a pretext of the said president and directors to shield themselves from the imputation sueh a proceeding was caleu- lated to draw upon them from the puhlie, and also to give an additional coloring to the proceedings of the 11th and 12th inst., and heing also convinced that no substantial eause exists

for the adoption of such a measure hy the said president and directors, we do therefore most solemnly protest against such a proceeding on the part of the said president and directors as ealeulated materially to injure the interests of the stockholders in said hank; we do also further protest against the manner in which the business of the said hank is at present conducted, hy keeping the doors closed and refusing the payment of their paper, at the same time receiving payments from many indi- viduals who are obliged to enter the hanking-house hy a private door for that purpose.

"Stephen Rector, Thompson Douglass, Joshua Pilcher, Elias

Reetor (agent for William Rector), Thompson Douglass (at- torney for Risdon H. Price), J. MeGunnegle, J. McGun- negle (attorney for Daniel Bissell), Taylor Berry, T. H. Benton (for self and Thomas Wright), John Little, Thomas Hanly.

"ST. LOUIS, Feh. 26, 1818."

On March 12, 1818, the board of directors, through S. Hammond, president, issued a notice that "the public mind having become tranquillized, the Bank of St. Louis opened for business on Tuesday last, re- deemed its paper in specie, and the public are hereby notified that it will continue to redeem its paper in specie on its presentation." 1

After the disagreement of February, 1818, the bank continued to decline until July, 1819, when it finally collapsed, to the serious disadvantage of its stockholders. On July 12, 1819, the following notice declared the suspension of the first bank established in St. Louis :

"The directors of the Bank of St. Louis, finding that the operation of the bank cannot be continued either with profit to the stockholders or advantage to the community, have deter- mined to suspend the business of the bank. A general meeting of the stockholders has therefore heen called to take into con- sideration the propriety of continuing or elosing finally its eon- eerns; and in the mean time, to save the creditors of the hank from losses or unnecessary delay in the liquidation of their de- mands, the directors have made specific assignments of the effects of the hank, appropriating them so as to discharge the dehts due by the bank as promptly as possible.

" The Bank of St. Louis, after a suspension of business for

1 The directors of the Bank of St. Louis prior to the 8th of Deeemher, 1817, for that year were Samuel Hammond, Robert Simpson, Thompson Douglass, Justus Post, Thomas Wright, Risdon H. Price, Moses Austin, William Rector, Eli B. Clemson, J. B. N. Smith (cashier), Joshua Pilcher, Samuel Perry, Theo- dore Hunt, Elias Bates; after Dee. 8, 1817, until Feb. 11, 1818, Samuel Hammond, Justus Post, Joshua Pileher, Walter Wil- kinson, James Mason, Moses Austin, Elias Rector, Eli B. Clem- son, Nathaniel B. Tucker, J. B. N. Smith (eashier), J. J. Wil- kinson, Robert Collet, Elias Bates, Robert Simpson ; after Feb. 11, 1818, to Dec. 14, 1818, Samuel Hammond, Walter Wil- kinson, Justus Post, Nathaniel B. Tueker, Eli B. Clemson, Theophilus W. Smith, James Mason, Rufus Easton (two vaeaneies), J. J. Wilkinson, Stephen F. Austin, Elias Bates, Theophilus W. Smith (cashier) ; from Dee. 14, 1818, Risdon H. Prieo (president), Stephen F. Austin, Rufus Easton, Fred- eriek Dent, Jesse G. Lindell, Samuel Hammond, John Nivin, Samuel Perry, John Hall, Robert Simpson, Eli B. Clemson, James Clemens, Jr., Paul Anderson.

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about twelve months, resumed operation on the 3d of March last, under the expectation on the part of the directors of being able, if not to continue the operation of the bank successfully, at least to collect the debts due the bank, and pay the claims against it more promptly than while in a state of suspension. The first object of the directors, therefore, was to acquire a fund on which to commence temporarily until the bank could collect the debts due to it.

" By order of the board of directors.

" RISDON H. PRICE, President."

Branch Bank of the United States .- In the year 1829 a branch of the Bank of the United States at Philadelphia, chartered by Congress in 1816, was estab- lished in St. Louis with the following officers : John O'Fallon, president, William Clark, Thomas Biddle, Peter Lindell, William H. Ashley, John Mullanphy, George Collier, James Clemens, Jr., Matthew Kerr, Pierre Chouteau, Jr., and Edward Tracy, of St. Louis, Samuel Perry, of Potosi, and Peter Bass, of Boone, directors ; Henry S. Coxe, cashier ; George K. McGunnegle, clerk ; and Thomas O. Duncan, teller. John O'Fallon was re-elected in 1830, 1831, 1832, and 1833, and after the latter date we find no account of the institution, which succumbed about that time to the embarrassments growing out of the determined hostility of President Jackson's administration to the parent bank at Philadelphia.

The directors during these years were as follows : 1830, John O'Fallon, William Clark, Thomas Biddle, William H. Ashley, John Mullanphy, George Collier, James Clemens, Jr., Pierre Choutcau, Jr., Edward Tracy, Jesse G. Lindell, John Kerr, Louis Vallé, of Ste. Genevieve, John Bull, of Chariton ; 1831, John O'Fallon, John Mullanphy, George Collier, Jesse G. Lindell, Bernard Pratte, John W. Johnson, Thomas Biddle, William H. Ashley, John Kerr, Danicl D. Page, Charles Wahrendorff ; 1832, John O'Fallon, John Kerr, Jesse G. Lindell, Daniel D. Page, Bernard Pratte, John W. Johnson, John H. Gay, James Clem- ens, Jr., Henry Von Phul, Peter Powell, Edward Tracy ; 1833, J. O'Fallon, D. D. Page, B. Pratte, Sr., J. H. Gay, J. Clemens, Jr., H. Von Phul, E. Tracy, G. Collier, J. Mullanphy, A. Kerr, A. Gam- ble. On the 12th of March, John O'Fallon was unanimously re-elected president.

The affairs of the branch bank in St. Louis were conducted with the strictest integrity, and the directors never forfeited the confidence reposed in theni by the public.

The Bank of the State of Missouri1 was chartered in 1837, the act of incorporation being signed Feb- ruary 1st of that year. On that day, in the evening,

the election for president and directors took place, with the following result : John Brady Smith, of St. Louis, president of the parent bank ; Hugh O'Neill, Sam- uel S. Reyburn, Edward Walsh, Edward Dobyns, William L. Sublette, John O'Fallon, directors of the parent board.

Branch at Fayette: J. J. Lowry, president ; W. H. Duncan, J. Viley, Wade M. Jackson, James Ear- eckson, directors. On the 20th of February a sub- scription was opened for the $50,000 capital stock required to authorize the subscription on the part of the State, and $108,000 was realized. The capital stock was $5,000,000, and the State held one-third of the amount. The bank purchased the house of Pierre Chouteau, on Main Street near Vine, shortly after- ward, and on April 15th began operations.

In June, 1837, the board of directors was com- pleted by the appointment by Governor Boggs of C. C. Detchemendy, of Ste. Genevieve, and Carty Wells, of Warren, as directors on the part of the State. The organization of the bank was then as follows: Presi- dent, John Brady Smith ; Directors, Hugh O'Neil, Edward Walsh, Samuel S. Reyburn, William L. Sub- lette, Edward Dobyns, John O'Fallon, D. C. M. Par- sons, Thomas West, C. C. Detchemendy, Carty Wells (on the part of the State), George K. McGunnegle, Theodore L. McGill (elected by the stockholders) ; Cashier, Henry Shields.

John Brady Smith was one of the most efficient officers the bank cver had. He remained at its head for many years, and died March 17, 1864.

Mr. Smith accompanied his father to St. Louis at an early period, and was at one time one of the most extensive and liberal merchants in St. Louis. As tlie first president of the bank, he administered its affairs with safety and liberality during several trying periods of financial disaster. He was collector of the county of St. Louis for several years, and at all times en- joyed the fullest confidence of his fellow-citizens.

On the 31st of July, 1837, the bank began issuing its own paper, the lowest denomination of notes being twenty dollars. In 1839 it suffered a serious loss in the abstraction of one hundred and twenty thousand dollars in foreign coin stored in its vaults, and although an arrest and prosecution followed, and every effort was made to recover the money, it was without result. In 1857 the institution was reorgan- ized under the general law of the State of that year, and with its branches then had a cash capital of three million two hundred thousand dollars. There were eight branches, one at each of the following places : Cape Girardeau, Palmyra, Canton, Fayette, Springfield, Arrow Rock, Louisiana, and Chillicothe.

1 The old Bank of Missouri was incorporated Feb. 1, 1817, as heretofore stated, but had only a brief existence.

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HISTORY OF SAINT LOUIS.

In 1866 the stock held by the State was sold, and the bank was reorganized under the National Bank- ing Act. Its title was changed to "The National Bank of the State of Missouri," the stock of all of the branches was consolidated with that of the parent bank, and the institution began operations as a national bank Nov. 1, 1866. The aggregate capital at the date of this movement was $3,410,300. Col. James H. Britton, formerly of the Third National Bank of St. Louis, was elected president, Judge Barton Bates vice- president, E. P. Curtis casliier. Under this manage- ment the bank purchased all the water loan of five million dollars in 1868. In June, 1876, it having been found that the existing capital was too great to be profitable, it was deemed expedient to reduce it to two million five hundred thousand dollars.

Up to 1877 the National Bank of the State of Missouri was believed to be the strongest, as it was the oldest, institution of its kind in St. Louis. The bank had been uniformly successful and_prosperous, its business had been most extended, yet it had always been conducted upon sound banking principles. It had never made money fast, but had paid its semi- annual dividends regularly. Of it it was said at this time, " In the long course of years during which the National Bank of the State of Missouri has been a leader in the banking business of the West, it has maintained its position in public confidence and es- teem. It has survived panics and crises without being disturbed, and when banks were tumbling down in ruins on all sides this old and stanch institution stood as solid as a mountain."

Among the early officials of the bank were some of the most prominent men in the State. Its other presi- dents besides Mr. Smith, before its organization under the National Act, were Ferdinand Kennett, Bernard Pratte, Joseph Charless, Edward Walsh, Robert Camp- bell, James M. Hughes, and Robert A. Barnes.

Mr. Barnes was born in Washington, D. C., Nov. 29, 1808. His father was Jesse Barnes, of Charles County, Md., whose ancestor emigrated in 1662 from the county of Norfolk, England, to the southern part of Maryland, settling near the site of the present town of Port Tobacco. His mother was Mary Evans, of Prince George County, Md.

When thirteen years old he was placed in charge of an uncle, Richard Barnes, of Louisville, Ky., from whom he obtained his business education. Having determined to make St. Louis his home, he removed thither, arriving on the 17th of May, 1830, and has resided there ever since.

continued as such until November, 1866, a period of nearly twenty-six years, during the last eight of which he was its president. In November, 1866, as we have seen, the institution became a national bank, when its management passed into other hands. He was also a director in various other corporations. Mr. Barnes has never had any political aspirations, and has led the quiet life of a private citizen. On the 28th of January, 1845, he married Louise de Mun, third daughter of Jules de Mun and Isabelle Gratiot. There is no living issue of this marriage.

A large proportion of the subordinates of the old Bank of Missouri were in its service for a long term of years. Up to the year 1877 it had had only three cashiers,-Henry Shields, A. S. Robinson, and E. P. Curtis.

Early in 1877 rumors became current to the effect that the bank was embarrassed by reason of shrinkage in the value of its securities. This led to an investi- gation by the comptroller of the currency, which re- sulted in an order for the election of a new board of directors. At this election in May, 1877, four new members were chosen, consisting of Hon. John B. Hen- derson, N. S. Chouteau, Web M. Samuel, and H. S. Mills. At the next meeting of the board after the election it ordered an examination of the affairs of the bank, appointing for that purpose the gentlemen named above in conjunction with J. H. Britton, pres- ident, and Barton Bates, vice-president of the bank. The result was a unanimous vote to wind up the bus- iness, either by securing the appointment of a receiver, or by placing the bank in voluntary liquidation.

The failure of the bank created the greatest sur- prise, as there were few persons in the West who doubted its strength and solvency, and so strong was the confidence placed in it that the city and State funds were deposited in it. Its suspension was as- cribed to the following causes :

In 1873, when the panic came, the bank found itself in possession of many securities, real and personal, which at the time were fully up to the values for which they were pledged. Subsequently the shrink- age in valucs was so great that the assets could not be kept up to the standard. This depreciation was all the more severely felt because of the general depres- sion in trade during the previous thrce years, which had prevented all the banks of the country from mak- ing the profits of former years. The bank had a good record as a promoter of public enterprises. It took corporation loans, it aided the building of railroads within the State borders, it subscribed liberally to the stock of the new Merchants' Exchange, and it as-

In December, 1840, Mr. Barnes became a director in the Bank of the State of Missouri, and was ' sisted the tunnel and bridge enterprises and the Eads

Robert A. Rames

LIBRARY 3H1 10 UNIVERSITY OF ILINOIS.

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BANKS, AND OTHER FINANCIAL INSTITUTIONS, AND BANKERS.

jetties. No city or county or State loan was offered in the market but that the bank made bids. At the time of the failure its board of directors was composed of J. H. Britton, president ; Barton Bates, vice-pres- ident ; James B. Eads, John B. Henderson, N. S. Chouteau, J. S. Walsh, C. F. Burns, Web M. Samuel, and H. S. Mills.

The Exchange Bank was chartered in 1856, with a capital of five hundred thousand dollars, and was one of the few institutions of its kind that did not reorganize under the national banking laws. Books for subscriptions to the stock were opened on the 21st of March, 1857, at the office of Bogy, Miltenberger & Co., and the advance notice of the fact was signed by the following corporators and commissioners : Lewis V. Bogy, Andrew Christy, Edward Cabot, Joseph S. Peasc, Samuel B. Wiggins, M. L. Jackson, L. Dorsheimer, Bartholomew Rice.

On the 9th of October, 1857, the stockholders elected as directors Lewis V. Bogy, Louis Dorsheimer, Joseph S. Pease, M. W. Warne, E. Schneider, J. W. Spalding, John D. Perry, John T. Douglass, Louis C. Herschberg, A. Berthold, A. M. Waterman, Stephen Hoyt, J. B. Osborn. On the 11th of the same month Lewis V. Bogy was elected president. In 1869 the bank erected a building at 217 North Third Street, and removed from its old location opposite the custom-house. In 1874, Joseph Bogy was elected president. The Exchange Bank, and its New York correspondent, the Chemical Bank, were the only banks which did not suspend specie payment in their circulation. This bank always paid coin in redeeming its bank notes.

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History of Saint Louis City and County, from the earliest periods to the present day: including biographical sketches of representative men, Part 87

Author: Scharf, J. Thomas (John Thomas), 1843-1898 Publication date: 1883 Publisher: Philadelphia : L.H. Everts Number of Pages: 1358

Author: Scharf, J. Thomas (John Thomas), 1843-1898
Publication date: 1883
Publisher: Philadelphia : L.H. Everts
Number of Pages: 1358