USA > Ohio > Montgomery County > Dayton > History of Dayton, Ohio. With portraits and biographical sketches of some of its pioneer and prominent citizens Vol. 2 > Part 1
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org.
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39
MVI. L
102
128
REYNOLDS HISTORICAL GENEALOGY COLLECTION
ALLEN COUNTY PUBLIC LIBRARY 3 1833 00821 2570
Digitized by the Internet Archive in 2016
https://archive.org/details/historyofdaytono02crew
HISTORY
OF
DAYTON, OHIO.
vol. 2
--
.
WITH
PORTRAITS AND BIOGRAPHICAL SKETCHES
OF SOME OF
ITS PIONEER AND PROMINENT CITIZENS.
DAYTON, OHIO: UNITED BRETHREN PUBLISHING HOUSE, Publishers.
1889.
..
1634128
CHAPTER XVII.
Banking-Dayton Manufacturing Company-First Loan -- New Banking Law-Trials of the Bank-Final Suspension of Specie Payments-Closing Up the Business of the Bank- New Banking Law Promised-On National Banks -- Various Views-New Banking Law-Dayton Branch of the State Bank-The Dayton Bank -- The Crow-bar Law -- The City Bank-The Farmers' Bank-The Miami Valley Bank-The Exchange Bank -- The Dayton National Bank - National Banking Law - First National Bank - Second National Bank-Third National Bank-Merchants' National Bank-Fourth National Bank -- Union Sife Deposit and Trust Company -- Dayton Savings Bank -- Teutonia National Bank-Dayton Building Association, No. 1-Concordia Building Association- Franklin Building and Savings Association-New Franklin Building Association- Germania Building Association-Mutual Home and Savings Association-Other Build- ing Associations.
-
HIE first banking company in Dayton was established in 1813. In I November of that year a series of meetings was held by the business men of the place for the purpose of organizing a bank, and in December following, the Dayton Manufacturing Company was incorporated by the legislature. This company began business in a stone building standing on the east side of Main Street, at the north corner of the alley south of Water Street. On the 28th of the month, directors were elected as follows: H. G. Phillips, Joseph Peirce, John Compton, David Reid, William Eaker, Charles R. Greene, Isaac G. Burnet, Joseph IL. Crane, D. C. Lindsley, John Ewing, Maddox Fisher, David Griffin, and John HI. Williams. On May 19, 1814, the board organized by the election of II. G. Phillips, president; George S. Houston, cashier. On July 4, 1814, the board of directors was enlarged by the addition of J. N. C. Schenck, George Grove, Fielding Gosney, and Benjamin Van Cleve.
The amount of stock issued was $61,055, and the bank opened for business August 14, 1814. The first loan recorded is one for $11,120 to the United States to aid in carrying on the war. The salary of the president was one hundred and fifty dollars per annum, and that of the cashier four hundred dollars. Both were afterward increased. In November, 1814, Mr. Phillips resigned the presidency, and Joseph Peirce was elected his successor. In 1815 the company built a stone house on the east side of Main Street, north of First.
In June, 1815, a statement was made showing the condition of the . bank as follows:
363
364
HISTORY OF DAYTON.
ASSETS.
LIABILITIES.
Gold and silver $34,154 35
Stock paid in $25,633 00
'Treasury notes.
1,000 00
Notes issued
61,200 00
Bills discounted.
56,871 81
United States deposit .. 5,120 00
Paid on banking house.
S80 00
Individual deposits. 19,171 51
Currency
28,340 87
Duo Miami Exporting Company. 7,313 91
Expenso
2,255 18
Due other banks
2,728 02
Discounts
2,338 77
Total.
$123,505 2]
Total .. $123,501 21
The circulation of the bank was afterward increased to $134,671, a part of which circulation was "change tickets," for 61 cents, 123 cents, 25 and 50 cents.
On March 27th, the cashier notified the stockholders that $5 on each share of stock was required to be paid at the bank by the Ist of May. In 1817, Henry Bacon was employed as attorney for the bank, as a professional character of reputable standing. In 1818, William Huffman, Henry Bacon, and George W. Smith were elected directors, and in 1819, Alexander Grimes was elected. In December, 1818, the following state- ment of the condition of the bank was made, in accordance with a resolution of the legislature, requiring all banking companies in the State to make a statement of their standing:
Capital stock paid in ... $61,840 .00
Notes of other State banks 14,140 00 .
Notes in circulation. 96,128 00 Due from Obio banks. 7,083 00
Deposits 19,873 00 Due from other banks 1,100 00
Bills discounted.
111,272 00
Real estate
680 00
Credit of profit and loss
3,099 00
Ohio notes 9,810 00 Total $361,108 00
Joseph Peirce, the president, died in September, "821, and Benjamin Van Cleve was elected to succeed him. President Van Cleve died in November following, and was succeeded by George Newcom. The insti- tution had now come upon hard times for the banking business. Most of the banks in the country found it necessary to suspend specie payments, but the Dayton Bank proved to be one of the strongest institutions of the kind in the State. In February, 1822, James Steele was elected president of the bank, and on March Ist, George S. Houston, the cashier, notified the public that the stockholders had resolved to close the concerns of the institution as soon as possible, and requested all persons holding notes to present the same for payment on or before May 1, 1822. The bank did not, however, close its business, but continued on until 1825, when a new banking law was passed which at first was deemed a favorable one, but ou account of oppressive taxes it became evident that the bank must go down,
365
BANKS AND BUILDING ASSOCIATIONS.
In 1829, Henry Stoddard was elected director, and for a year or two the bank was in a state of suspension. . In May, 1831, George S. Houston, the cashier, died, and was succeeded by Charles R. Greene. On the 15th of March, preceding, a committee consisting of II. G. Phillips, James Steele, and Luther Bruen, requested the stockholders to meet at the postoffice on the 27th of April, and vote for or against reviving and putting in opera- tion the institution. In July, 1831, the board was re-organized by the election of nine directors: James Steele, II. G. Phillips, David Stone, Jacob Catterlin, William Eaker, Henry Stoddard, Luther Bruen, Charles G. Swain, and John Rench. James Steele was elected president; Alexander Grimes was elected cashier, and D. Z. Peirce, assistant cashier. In 1833, , Henry Stoddard was employed as attorney for the company at a salary of fifty dollars per annum. A meeting of the stockholders was held on Saturday, November 30th, for the purpose of taking into consideration the propriety of increasing the capital stock of the institution. Shortly afterward the legislature authorized the changing of the name to the Dayton Bank, and thenceforward it was known by that name. J. II. Bowen became assistant cashier, then J. A. Dusang, and in 1889, John Ilarries. Peter Odlin and. James Perrine became directors in 1886, and Mr. Jewett and D. Z. Peirce in 1839.
In the meantime the bank had a difficult task to perform to keep from suspending specie payments. The difficulty was caused by the warfare of President Andrew Jackson on the Bank of the United States On the 30th of June, 1837, the Muscatine Gazette said that the Bank of Dayton continued to pay specie, and that it was the only bank in the United States that had refused to respect President Jackson's treasury order. But while it was true that the bank continued to pay specie for its notes when they were presented, yet the confidence of the people in its soundness was such that they preferred to hold the notes of the bank, knowing that they were at any moment convertible into specie. Being thus equivalent in value to specie and far more convenient to handle in the transaction of business, it is not strange that the people preferred the bank notes. There was also manifest a strong tendency on the part of the people to hoard the notes of the Dayton Bank, which was in itself a striking proof of the law of business which compels sound money, or that which is the most valuable, to disappear from circulation when there is in use also a depreciated currency. Under such a condition of things, Ohio paper, provided Ohio banks were known to be specie paying banks, would become as scarce throughout the country as did the paper of the Dayton Bank in this community.
On the 29th of June, 1839, a statement of the condition of this
366 .
HISTORY OF DAYTON.
bank was published, which showed that the capital stock amounted to $174,007.16; the cirenlation to $118,455, and the deposits to $78,085.18, and the total assets of the bank amounted to $115,354.22. From 1832 to 1840, the dividends paid by the bank averaged 93 per cent. The bank continued to pay specie on demand for its notes up to about the first of April, 1841. At a meeting of the stockholders, held May 15, 1841, it was determined by an almost unanimous vote to issue paper money redeemable in current bank-notes to the amount of $174,000, the amount of its capi- tal stock paid in. This decision was arrived at and made with dne regard to the interests of the community at large. It was done for the purpose of affording relief and supplying the community with a good and safe circulation. The following temporary rules and regulations were adopted:
1. That for the present this bank will suspend specie payments upon issues made after this date.
2. That this bank pledges itself to resume specie payments as soon as the banks of this State and of other States will permit.
3. That during the suspension of, specie payments the specie balance of the bank shall not be reduced except for the payment of its notes now out, and its specie deposits now or hereafter to be made; but all proper means shall be used to increase its quantity; and the issues of the bank at no time shall exceed the capital stock paid in, and the notes issued shall on the face of them be payable in current bank-notes and receivable in payment of taxes.
4. That the situation of the bank may be at all times apparent to the public, a monthly statement of its condition shall be published.
Inasmuch as the charter of this bank expired on the 1st of January, 1843, and as the officials did not desire to close up the affairs of the bank, a memorial was forwarded to the legislature of the State on the 21st of December, 1841, making application for a renewal of the charter, or for time to wind up its business without oppression to those who were indebted to it. The legislature, however, failed to grant the prayer of the memorial in either respect, and it became necessary, therefore, to prepare for the winding up of the affairs of the institution. The principal reason for the application for a renewal of the charter was the extremely low prices of produce and real estate, and the embarrassment arising from passing from a redundant currency and high prices to the condition of things as they were at that time. In February, 1842, a statement was published, showing the condition of the bank as follows:
367
BANKS AND BUILDING ASSOCIATIONS.
ASSETS.
LIABILITIES.
$
Bills and notes. $157,381 97
Capital stock paid in $174,007 16
Ohio stocks 25,000 00
Circulation payable in specie. 12,528 00
Due from Western banks
4,159 68
Circulation payable in currency. 32,440 00
Due from Eastern banks.
500 16
Individual deposits. 54,409 40
Real estate and banking house.
2,970 08
Other liabilities. 5,204 79
Protests: 21 37
Total
$278,589 35
General expenses
866 00
Western bank notes
26,334 00
Gold and silver
61,356 10
Total $278,589 35
On March 30, 1842, the cashier issued a notice to the stockholders to the effect that, for the purpose of closing up the business of the bank by the time its charter would expire, the board of directors had resolved to commence paying stockholders their stock as fast as the notes due the bank could be collected. By January, 1843, it was desired to have the business of the bank entirely closed. This step was rendered necessary by the refusal of the legislature to re-incorporate the bank or to permit its capital to be invested in a State bank. '
At this time the business of the country was at a very low ebb. The state of the market in the whole country-cast, west, and south-was so exasperating that dealers in produce concluded to lie still rather than risk their capital by investing in any line of trade, while everything was so uncertain. Flour was selling at three dollars and seventy-five cents per barrel; whiskey had been steadily declining for some time and was selling at ten cents per gallon; wheat was seventy-five cents per bushel and dull at that. All the millers in the neighborhood suspended opera- tions and were waiting for times to improve. Such was the condition of things at that time.
On the 27th of January, 1843, the stockholders of this bank were called together for the purpose of finally closing up its affairs. More than three fourths of its capital stock had been refunded, and there. re- mained some twenty thousand dollars of its notes and bills to be collected. Thus closed the career of one of the soundest banks in the country, for no other reason than that the legislature refused to renew its charter.
A promise was made, however, that there should be a better banking law enacted than any the State had yet had. How well this promise was fulfilled will be seen later in these pages. It is now deemed appropriate to take a cursory view of public opinion in Dayton and vicinity with reference to what was one of the most absorbing topics of the time and the principles of which are perhaps yet, in many localities, but imperfectly understood. This is the question as to whether a national bank or a
368
HISTORY OF DAYTON.
system of national banks is of benefit to the country. - The veto of the recharter of the United States Bank and the order for the removal of the deposits by President Jackson, caused a great deal of excitement at the time, because of the necessary disturbance of business incident thereto. A public meeting was held on the 5th of April, 1884, at Dayton, to con- sider the condition of the country in view of the removal of the deposits. Warren Munger was appointed president of the meeting; Joseph Barnett, Elias Matthews, and William J. MeKinney, vice-presidents, and James Stover and William Potter, secretaries. A committee was appointed, consisting of David Lamme, Amos Irwin, David Reid, Robert MeCanless, Elisha Brabham, William H. Starr, William Dodds, George Farquhar, Henry Stoddard, and John W. Van Cleve, to prepare a series of resolu- tions expressive of the sense of the meeting. The preamble and reso- lutions were as follows:
" WHEREAS, The citizens of Montgomery County were lately in the en- joyment of all the prosperity which the bounty of nature and their own industry could afford them, and had nothing to desire but a proper admin- istration of the laws to render that state continual and permanent, and,
" WHEREAS, In consequence of an ill-advised measure of the exeeu- tive department of the government of the United States, that state of prosperity has been within a few months exchanged for one of depression, in which the value and products of labor have depreciated, the currency has become unsettled, and commercial faith and credit have been impaired · to a degree unexampled in any like space of time, and,
" WHEREAS, While they are willing to bear without complaint the evils which may result from natural and unavoidable causes, they think they owe it to themselves not to remain passive under measures of their government which are calculated to oppress them instead of affording that protection which a free people ought to enjoy; therefore,
"Resolved, That this meeting considers the removal of the deposits from the Bank of the United States as a principal cause of the depression which has ensued, and that they regard the measure as directly opposed to the interests of the people of the United States and as a violation of the faith of the nation toward that institution.
"Resolved, That it is the opinion of this meeting that the restoration of the deposits of the public money to the Bank of the United States is a measure demanded both by justice and expedieney, and would more than any other measure restore confidence, re-establish credit, and insure a return to the recent prosperous situation of the country.
"Resolved, That this meeting believes that the experience of the last sixteen years has shown a National Bank to be indispensable to the estab-
360
BANKS AND BUILDING ASSOCIATIONS.
lishment and preservation of a sound currency; and that they recommend a recharter of the present Bank of the United States, with such modification as the wisdom of congress may deem proper and necessary."
The above resolutions were adopted with but one dissenting voice, and a committee was appointed by the meeting to draft a memorial to congress, the committee consisting of William J. Mckinney, James Stover, and John W. Van Cleve. A committee, consisting of forty-one persons, was then appointed to circulate the memorial for signatures. The memorial was to be forwarded to the Hon. Joseph IL. Crane, member of congress from this district.
On April 9th, another meeting was held to consider this same question, those present at which looked at the matter in a different light from those who took part in the former meeting. At the latter meeting the state- ment was made that the first meeting was gotten up for party purposes, to strike directly at the President of the United States, and the measures of his administration; that the United States Bank was a dangerous and corrupt institution, hostile to the great cause of American freedom, and at war with the best interests of the people, establishing a powerful moneyed aristocracy which must trample upon the prospects of the Republic, and crush every hope of the advocates of human liberty throughout the world; therefore all of those who were opposed to the recharter of the United States Bank were requested to meet at the courthouse on the 19th of April, to formulate their sentiments on this question. To this request were signed the names of seventy-five citizens of Dayton and vicinity.
With reference to the resolutions adopted on the 5th, the Dayton Whig said on the 7th, that owing to its being election day, the committee circulating the memorial had succeeded in securing the names of a large number of unsuspecting persons; that a large committee of Masons and anti-Masons, and anti-Democrats was appointed to cajole the citizens into placing their signatures to the memorial, and that there would doubtless be a few respectable names secured, to which our mis-representatives in Washington, Messrs. Ewing and Crane, would testify, etc.
In reply to this, the Journal of the 15th said that the " office-holders " had issued orders to the party to attend an anti-bank meeting, and continued:
" When fees are fixed by law, and the office-holder can save more of his salary when the prices of agricultural products are low, than when they are high, it is clear why the present state of things suits him. When the farmer has to sell three barrels of flour for as much money as he formerly got for two, he is losing one third of his labor, cte. There was nothing surprising, therefore, in seeing the persons who were engaged
370
HISTORY OF DAYTON.
in the anti-bank movement opposed to the National Bank, because the worst times for the country were the best times for them."
The meeting of the 19th was held, however, notwithstanding the motives of those engaged in the movement were impugned, and it was said to be the largest meeting ever held in the county up to that time. A large proportion of those present were farmers and mechanics. The Hon. John Turner was made president of the meeting; David S. Davis, Jacob Neible, James Patterson, Colonel Emanuel Gebhart, and Michael Hildegras, vice-presidents; James Douglas, Jessie Iliggins, and Christian HIellrigle, secretaries. A committee was appointed to draft a preamble and resolutions expressive of the sense of the meeting, the committee consisting of William L. Helfenstein, William Sawyer, Captain John Garner, John Shelby, Solomon Price, James Brown, John McDargle, Henry Shideler, John Williams, Philip Slifer, Joseph Wolf, and George Patton.
·
The meeting then adjourned for a short time, and when it reconvened the committee on resolutions made its report which, when published, filled nearly seven columns of the Whig. The report stated that the meeting believed that a crisis of deep and solemn importance had arrived when every citizen should boldly and fearlessly express his opinion and raise his voice against the dangers that were threatening his rights by a usurping and lawless bank, which aimed to place itself above the government and the people. In such a crisis to be silent were treason. No construction of the constitution, except the old Federal doctrine which fritters away the constitution to a mere nothing, could find a power on which to base a bank; and hence, from the first bank in 1792, up to the present time, the great advocate of human liberty, Thomas Jefferson, and the distinguished members and the great masses of the Democratic party, had hated and opposed this moneyed power as hostile to the constitution, and in direct and palpable variance with the views of the framers of the constitution, who designed this to be a hard-money government.
The first three of the long series of resolutions adopted by this meeting were as follows:
"1. That as no power expressed or implied can be found in the con- stitution to create a corporation for banking purposes, we believe the Bank of the United States is entirely unconstitutional, and that the violation of the constitution in the grant of its charter cannot justify a second violation of the constitution in its recharter.
"2. That as the framers of the constitution designed ours to be a hard-money government, we most cordially desire a return to constitu- tional times when gold and silver shall constitute the currency.
-
371
BANKS AND BUILDING ASSOCIATIONS.
" 3. That as we believe that paper is the natural enemy of gold and that from the time of Alexander Hamilton to the present, it has ever been the policy of the United States Bank and paper system advocates to dis- courage the circulation of gold, so as to give success to paper currency, we view the United States Bank as the power that has expelled gold from the country, and, therefore, to restore it to circulation the power that expelled it must be put down."
The other resolutions were generally in a line with these three.
Returning now to the local banking institutions of Dayton, it may be stated that the city was without facilities of this kind from January, 1843, to June, 18-15, with the exception that for a part of the time, D. Edwards, a broker, carried on a kind of banking business in Harde- man's row, on Third Street, near Main; though during all this time the question of improved banking facilities was continually being discussed, promised, and hoped for. As early as October, 1841, it was said that a branch of a State bank, with a capital double that of the Dayton Bank, then in existence, would be of vast importance to the business interests of the city. There were, it was said, a large number of different kinds of important manufacturing establishments which needed facilities of this kind, and the advantages of the position of the city for both manufactures and banking were almost unsurpassed.
On the 27th of February, 1843, a bill was passed by the house of representatives, which had been passed by the senate a week before, incorporating a bank in Dayton. One section of this bill was as follows: "Be it enacted by the general assembly of the State of Ohio that Edmund Smith, Nathaniel Wilson, Christian Koerner, William Eaker, and their associates and successors, be, and they are hereby, incorporated by the name of the Bank of Dayton for the term of eighteen years from the 1st of May, 1843, to be located at Dayton, Montgomery County, in this State, and to be entitled to all the privileges, and be subject to all the duties, liabilities, restrictions, and requirements of the act entitled, 'An Act Regulating Banking in Ohio,' passed March 7, 1843, and the act amendatory thereto. The capital stock shall consist of one hundred thousand dollars, to be divided into shares of one hundred dollars cach, with the privilege of increasing the same to five hundred thousand dollars."
This act was signed March 10, 1843, by John Chaney and William C. Walton. The charter was granted by the legislature, in response to a petition signed by ninety citizens of Dayton and the vicinity, but in the petition the request was made that the capital stock should be fixed at. two hundred thousand dollars. After the charter was granted, Dr.
:
$
372
HISTORY OF DAYTON.
Thomas O'Keffe was appointed special commissioner to receive subscrip- tions to the capital stock of this bank. For several months, however, no progress was made in securing subscriptions to the capital stock, either from want of effort on the part of those who had been instrumental in having the bank chartered, or from want of interest or confidence on the part of the people. At length, however, on April 23, 1845, it was reported that the work of securing subscriptions was progressing favorably, and on May 16th, it had reached one hundred thousand dollars.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.