A standard history of Allen county, Ohio : an authentic narrative of the past, with particular attention to the modern era in the commercial, industrial, educational, civic and social development, Part 62

Author: Rusler, William, 1851-; American Historical Society (New York)
Publication date: 1921
Publisher: Chicago ; New York : The American Historical Society
Number of Pages: 598


USA > Ohio > Allen County > A standard history of Allen county, Ohio : an authentic narrative of the past, with particular attention to the modern era in the commercial, industrial, educational, civic and social development > Part 62


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With the report of the 1920 U. S. census showing that at sixty years of age eighty per cent of the population belongs to the dependent class, there is sufficient reason why a spirit of thrift should be instilled into the rising generation-come easy, go easy-and those who make money most rapidly understand all about it; they must always climb, and sometimes those who start at the top climb down the ladder ; while economists say it is only three generations from shirt sleeves to shirt sleeves, there are some who hold on to their fortunes-keep their money. Why should it be true that a fortune as well as a type of citizenship should run out in the third generation? In the livestock world there is some attention given the question of heredity.


There are almost as many billionaires as millionaires in Allen County, and if every man were a millionaire, then his dollars would not be worth anything to him; under the recent hue and cry about the high cost of living, the dollar does not seem to buy its wonted number of commodities. The plan of buying commodities on installments is no longer popular, since people cannot spend money rapidly enough; credit is established for the whole amount unless there is strict adherence to a cash basis. In the reconstruction period through which Allen County and the rest of the world is passing, the luxury of today becomes the price-adjust- ment-sale necessity tomorrow, and it seems that Allen County business men are equal to the price-shifting emergencies-made a sufficient margin of profit while the war-time conditions prevailed, to tide them over the readjustment difficulty. Some who transacted a two-year volume of business in one year, simply fortified themselves against the inevitable slump in the prices of commodities.


It is bad enough to be poor without seeming poor, and yet the Allen County settlers were under the necessity of many distadvantages; they resorted to subterfuges, and since it is only the mind that pays the taxes on air castles, it is well enough to have them; whether or not Allen county has the proletariat class, there is a great body of wage-earning people in the different community centers ; when American labor talks about salary it is a definite acknowledgment of satisfactory economic conditions, but the wage-earners are in the majority, and were caste permissible then wages stamps them as middle class; the common people are in the majority, and Lincoln once declared that God loved them because He made so many of them.


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HISTORY OF ALLEN COUNTY


When riches take wings they usually exceed the speed limit, and all uninvited poverty always finds its way into economic conditions. Abso- lute freedom from poverty brings about a boastful sort of patriotism that is not well pleasing in the sight of God or man, and in time too many people come to look upon their advantages as theirs from personal rights, while they were simply fortunate in point of inheritance. Every one should treat Dame Fortune with consideration in order that her smiles may continue, and it is said that God's blessings always do one of two things-make people keener in His service, or dull their moral sensibilities. While character or citizenship is wealth, it has no exchange value in the open market ; while bankers always express confidence in the future, the man who would borrow money must nevertheless fur- nish security ; and yet it is urged that the basis of credit in business relations is character rather than money.


Different people in every community have different economic stand- ards ; while one man would rather leave a crib full of corn than a well- selected library to his posterity, some others, like Mary of old, have chosen the better part, and money is not the only incentive. No matter what one's own experiences may cost him, he must foot the bills him- self ; the young man whose head and hands are educated by the stern schoolmaster of necessity is fortunate, compared with the profligate son of a rich father who must inevitably beg when thrown upon his own resources. "Who steals my purse steals trash," exclaimed the Bard of Avon, and yet a bank account gives a man the necessary confidence in himself. A bank deposit is a subdued force in a man's nature, and while few understand the currency bill, many know what to do with the paper dollar; it restores equilibrium-is a sort of minor chord in the music.


ALLEN COUNTY TAX DUPLICATE-It is estimated by the state tax commission that the Ohio personal property duplicate for 1920 is in excess of $4,000,000,000, and while there are always some who withdraw their money from the banks on tax-listing day, the state tax commissioner says such practice is not so common now as in the past; he says further : "I believe people are more honest about their tax returns than formerly because they have become used to paying taxes." While the banks used to allow depositors to draw their money, and put it into a New York draft or other non-taxable security for a day and then return it, under the present Ohio laws this is an impossibility; stock in Ohio corpora- tions is exempt from taxation, and the same is true of Liberty borids, War Savings stamps and other government securities; they are, there- fore, popular investments.


On June 6, 1831, when the first official business was transacted within the bounds of Allen County the tax levy was eight mills on the dollar; the simple life prevailed and internal improvements had not advanced the rate of taxation; since then it has advanced by leaps and bounds, and according to County Auditor C. R. Phillips, the taxable property in 1919 amounted to $114,000,000, and in 1920 it reached $114,492,940, not including possible sequestered fortunes. It all depends upon the honesty of those returning their property for taxation; those who lay up their treasure in heaven do not always acknowledge all of their treasure on earth; there are "conscientious objectors" among property owners in Allen County. A by-stander declared that if Allen County property were all listed for taxation, it would swell the amount to more than $150,000,000, but he did not offer any solution for the difficulty. County Treasurer Lehr E. Miller, in 1919, collected $1,464,067.69, and in 1920 he aproached $2,000,000 in his collections. There were some


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record-breaking days in the second installment which was in process of collection. The last Allen County realty appraisement was in 1910, and another is due. While some changes have been made in the Lima busi- ness district, another real estate appraisement will increase property valuation in Allen County. It is estimated that if the new appraisement is properly done it will increase the property value of Lima alone from $45,000,000 to $100,000,000, and thus the increased revenue at the present tax rate would solve all the financial problems of Allen County.


The county auditor makes the tax estimate from the tax duplicate, and the treasurer collects the money. The tax rate is always higher in the towns than in the townships and some of them have already reached the limit because of local public improvements. The townships take care of the town expenses except for street improvements, which are taxed to the corporations, the township trustee takes care of the poor who do not live in public institutions. The Lima tax rate, including city, county, state and schools is $1.62, and some of its best factories are outside of the city limits. While there are no exemptions for manu- facturers, they secure a lower rate of taxation outside. From a financial standpoint Lima ranks among the first cities of the United States, accord- ing to preliminary data for a social survey compiled by the Chamber of Commerce. County Auditor Phillips says the immensity of the task of re-appraising every piece of real estate in Allen County is under- estimated by the majority of citizens; it means that all farm and city property must be inspected and its value determined; this is an immense task and it will require time to accomplish it.


Writing on economics in the Toledo Blade, Lima Beane says: "The majority pays the taxes while the minority runs the country," and it is undeniable that taxes and death are the portion of all; one cannot judge the financial rating of a man from the clothes he wears, so many who are provided with the purse of a tramp have the inclinations of people of wealth; there is talk about the shriveled souls of the million- aires, but it is always among those who have little money. A wag once remarked that the conservative business man uses the word dollar about as often as a group of society women use the word man in an ordinary conversation, but his dollars pave the way for his business and the man paves the way for the woman's social advancement. If there are wizards of finance in Allen County today who want to die poor, there are plenty of opportunities for separating themselves from their money. It was a Frenchman who said the greatest enemy of the United States is the government printing office ; it grinds out an endless stream of money.


ALLEN COUNTY BANKS-Money is no incumbrance at all, and in Allen County there are some comfortable bank accounts; the stocking depository joke holds good in all the rest of the world outside of Allen County. It is rather a fine distinction, but the dictionary meaning of the word depositary is a person, while depository is a place, and there are many places where Allen Cunty depositors may leave their money. Thrift or spendthrift raises the question of saving or wasting money, and what the gun was to the colonist the bank account is to the citizen of any community. There are four national, one state and a number of private banks in the different Allen County towns; while there has been some stringency and a few bank failures, in the main depositors have always had confidence in local banking institutions.


Wherever there is a bank account, the family is regarded as on the highway to prosperity ; women who are the financial or purchasing agents for many well regulated families, have always been bankers-aye, the


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HISTORY OF ALLEN COUNTY


stocking safety deposit is known to Allen County women, and yet who has not heard the quaint masculine wail:


"My income is the least as iz But I should wear a smiling phiz If only wife would mind her biz And not make life one long drawn quiz."


and there are homes-of course outside of Allen County-where there would be no economy or saving at all, only for her inquiry and initiative in the matter. "'Honor thy father and thy mother," but not a stranger's check," is the motto of Allen County banks today. While "There is a reason" is a copyrighted trade mark, THERE IS A REASON.


Before a bank may be incorporated under the statutes of Ohio, it must show sufficient reason for its existence. In order to secure a charter, a private bank must have $25,000 capital stock, and in order to continue its operations an established bank must show a capital of $10,000, or at once increase its stock; the country bank is a community necessity, and there is an excellent distribution of banks in Allen County. In "Poor Richard's Almanac" Benjamin Franklin says: "If you would be wealthy think of saving as well as getting," and the banker becomes the custodian of the community funds ; confidence is a necessity.


The New York Savings Bank Association has issued the statement that every man, woman and child in the world would have $13.58 from an equal distribution of all the money on deposit in mutual, stock and postal savings banks of the globe, and that would give Allen County almost $100,000, aside from its heavy depositors. It is estimated that one quarter of the total savings of the world is held in U. S. A. In the whole world there are 146,277,394 holders of small savings accounts ; the combined deposit amounts to $23,123,285,677, and $158.08 is thus the average bank deposit; how does Allen County check up with the rest of the world? The average deposit account in the mutual and stock savings banks in the United States is $571.99, and the average per inhabitant is $61.85, almost five times the average for the world; more than ten per cent of the people of the United States have savings accounts, and it leads the world in the average deposit account.


Allen County banks emphasize the feature of savings accounts. The community centering at Bluffton is served by the First National Bank and by the Commercial Bank & Savings Company; Beaver Dam, the Farmers and Merchants Bank; Elida, the Farmers Bank; Delphos, the National, Commercial and Peoples banks; Harrod, the State Bank; Lafayette, the Lafayette Banking Company; Lima, the First National, Old National, Amercian, Metropolitan, Lima Trust and City banks ; Spencerville, the Citizens & Farmers Bank. While there are other loan companies throughout the country, they are not under the same organization as the banks nor are they permanent fixtures. There are some building and loan societies that have had much to do with the material development of Allen County. George Feltz of the Citizens Building & Loan Company, since the recent death of a Cincinnati citizen, is the oldest building and loan man in Ohio. In 1872 he organ- ized the Mechanics Building & Loan Association which was in time merged with the Third Building & Loan, and finally became the Citizens Building & Loan Company; the South Side Building & Loan; Lima Home & Savings Company; Central Building & Loan; Allen County Savings Association and the Mechanics Building & Loan Association all serve the community in Lima.


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HISTORY OF ALLEN COUNTY


The Chamber of Commerce issues the statement that the bank clear- ings in Lima in 1910 amounted to $17,740,633, and that in 1919, the amount had reached $55,159,162, which was about trebled in nine years, showing the strides made in the commercial world, and there are always some who transact business outside of the county. This fact was dis- covered in connection with the different Liberty Loans, Allen County not receiving full credit because the loans were reported from the areas floating them; ordinarily it is said that bond issues lead to bank- ruptcy, but in Allen County the first and second Liberty loans were largely subscribed for by the banks; when Allen County farmers finally understood the situation better, the third and fourth loans were taken largely by popular subscription; money came easily when it was under- stood that it was being loaned to Uncle Sam.


George E. Bayley, chairman of the Allen County Liberty and Victory Loan campaigns says the figuregrams issued through the Federal Reserve bank of Cleveland are not absolutely accurate, since money was some- times obtained outside of the fifth area of the Fourth Federal District, and that some of Allen County's biggest subscriptions were reported from other centers. When the citizens of Allen County awakened to the possibility of having Germany as a dictator, and they realized what values might be placed on their property, an effective organization was formed and each loan overreached its quota ; with their purchasing offices the large centers had the advantage; there were loans reported in Allen County from Beaver Dam, Bluffton, Delphos, Elida, Harrod, Lafayette, Lima and Spencerville. Wherever there was a bank there was a loan, the different centers reporting for contiguous territory. Only Bluffton, Delphos, Lima and Spencerville were represented in the first loan, and while more individuals participated in the second loan, the fourth loan represented the most money.


The figuregram sent out from the Federal Reserve Bank of Cleveland shows that more Allen County citizens had part in the first than in the fourth and fifth loans. In the first loan 4,775 persons subscribed for $1,048,550; in the second, 16,170 persons handled $1,450,950; in the third loan 12,339 subscribers handled $2,557,200; in the fourth and largest Allen County loan the number of subscribers dropped down to 2,413, while the loan amounted to $2,800,350, and in the Victory loan only 1,474 subscribers handled $2,063,300; in the grand total of the five loans-four Liberty and the final Victory-the amount of $9,920,350 was taken by 37,171 persons. It may be the 1,474 persons holding out faithful and swinging the Victory loan were in on each loan; 4,775 persons started and 1,474 persons were in at the final effort; however, there were a number of plus subscribers in the Victory loan ; the required amount was over-subscribed in all of the loans.


Chairman D. C. Wills of the district paying through the Federal Reserve Bank in Cleveland, said: "Since the entrance of our country into the war, it has had at its disposal two great armies-an army of fighting men, and a financial army; both armies necessarily have worked together, or otherwise the war would not have been won. Now that the armistice has been signed, and peace negotiations are pending, the military army is gradually being demolished, as its part of the work is nearly at an end; to the financial army has been given the honor of seeing to it that the monetary expenses of our victory are paid," and all the world knows the result. "Allen County never failed," held true again. While Bluffton, Delphos, Lima and Spencerville handled the first loan (township reports are not available in any of the loans), Beaver Dam reported $83,700; Bluffton, $415,800; Delphos, $1,507,200;


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Elida, $94,350; Harrod, $61,150; Lafayette, $74,300; Lima, $6,017,600, and Spencerville, $373,400, each bank in Allen County finally acting as an agent for Uncle Sam in securing the money. The increased amounts in the different loans indicated that the people were growing accustomed to the process ; while some run well for a season, others gathered momen- tum from the different loans, Mr. Bayley saying the forces were finally so well organized-some having supported all of the loans-that when it came to the Victory loan the money was paid without much effort on the part of the organization; it was like clock work in Allen County. So many performed excellent service that Mr. Bayley finds it an impossi- bility to pay tribute to individuals. The fact that Allen County attained to its quota in each loan is tribute quite sufficient.


In his farewell address to the American army at the close of the Revolutionary war, General George Washington said: "The name of America which belongs to you in your national capacity must always exalt the just pride of patriotism; you have in a common cause fought and triumphed together; the independence and liberty you possess are the work of joint counsels and joint efforts; of common dangers, suf- ferings and successes." Those words apply with equal weight to the military and financial armies who together triumphed again; the soldiers under Washington were fighting against the Mother Country, while in the last instance they were united against the Fatherland. The sons of America were allies in the World war. The citizenry who "carried on" at home, keeping the armies afield had their part in winning the war. The banks were the bulwarks of the nation, and America helped to sustain the credit of the world. The American loans helped to sustain other armies in the field. Now that the time of settlement approaches, the Allies are bargaining with each other, but America never entered war for conquest.


"Keep the home fires burning," and Allen County banks are again financing the domestic situation. A news item at the 1920 Christmas- tide, says: "Lima banks yesterday mailed more than a quarter of a million dollars to Christmas Savings Club depositors who have been saving a few pennies each week, in anticipation of the annual gift- giving season; the largest amount mailed out from any one bank was from . the Lima Trust Company, the checks totaling $125,000 at this institution. Bank officials are already formulating plans for next year's Christmas Savings clubs, and they declare that advance information leads to the belief that 1921 will see a great increase in the number of Christ- mas Savings depositors." The Christmas Savings Deposit idea was launched by the First National Bank and the Citizens Building & Loan Company, and soon all the banking houses opened similar accounts; the depositors beginning with small amounts and increasing from week to week until a goodly sum accumulates within a year; the plan has found favor with many who are thus fortified with Christmas money.


A holiday time news item says: "Tonight for the first time in the history of banking in Lima the doors of all the leading financial institu- tions will swing wide to welcome Savings and Christmas club depositors. Chief of Police Roush is on the job and has assigned a triple detail of armed blue coats and plain clothes men to patrol the banking district between the hours of 2:30 and 8 o'clock p.m., to insure the safety of savings depositors; bankers are not agreed on the plan, but they all admit that the psychological time to interest people in saving is when they have the money; other cities have adopted the Saturday Night Savings Bank plan, and the experiment will be watched with much inter- est in Allen County."


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Some happy phrase maker has characterized finance as the liquid motion of the fluidity of money, and there is a saying that "A fool and his money are soon parted," and the Saturday night banking may be the solution of the difficulty. There are two household words in every community-capital and labor-and the sooner there is capital to the credit of labor, the sooner there will be an amicable adjustment of diffi- culties ; it is necessary that capital and labor understand each other and work together. Perhaps there are none in Allen County whose principal occupation is clipping coupons, and yet there are many bank depositors. Every little town feels the need of a Savings bank, and Allen County banks are equipped with modern safety devices, time locks, etc. The newspapers are full of bank robbery stories, and forewarned is fore- armed in the Allen County banking institutions.


While Allen County banks have withstood the maelstrom-the whirl- winds of financial difficulties in most instances-there have been a few bank failures; there have never been heavy withdrawals of deposits because of lack of confidence. At the time of the monetary panic in 1873, B. C. Faurot, who was then at the height of his prosperity, was enroute to California; when news of a nation-wide panic reached him he telegraphed the banks in Lima that he was returning, and the local panic which was in prospect subsided when the creditors saw his attitude toward it; he owned 700 acres of cultivated farm land in Allen County, and he at once placed his property between the depositors and a possible loss of their funds on deposit ; this restored local confidence and perhaps averted a panic; it demonstrated the fact again that Mr. Faurot was a man with a vision, and always equal to the emergency. At the time of the demonitization of silver he saved the day in Allen County.


There was a Hurd & Jacobs Bank that closed its doors in the early history of banking in Lima, but T. K. Jacobs, Sr., later paid every dollar, and the depositors lost nothing; he had the confidence of the public and finally pulled out of the difficulty. Mr. Jacobs was a philan- thropist who prospered in all of his undertakings, although he realized temporary embarrassment. While Mr. Faurot finally redeemed all the paper of the Lima National Bank in 1873, the bank was temporarily embarrassed; with his railroad and other investments he fostered too many financial propositions. The Farmers Savings Bank was forced to the wall at the time, and in 1880, the First National Bank of Bluff- ton experienced difficulties ; it was a private bank and did not pay any- thing to depositors.


The rumbling of thunder in a clear financial sky was heard in Lima . at the Christmastide, 1900, when $21,000 in late deposits was missing, and the door of a time lock vault was standing open in a bank operated by Gus Kalb and N. L. Michaels. The janitor, Elijah Bowsher, had the bankers arrested for libelous utterances, and recovered judgment against them ; finally he was entrapped and proved to be the guilty party. Seven years elapsed before the details of this daring bank robbery came to light, and the culprit was finally brought to justice; the bank was Jewish capital, Kalb and Michaels having established it, and it was as an accommodation on their part that they received late deposits from Lima business men on Christmas Eve. Christmas came on Saturday, and on Sunday morning when the owners visited the bank, the $21,000 Saturday night deposits which had been placed as a lump sum in the safe, was missing, and the vault door was standing open; it was more than a nine days' wonder; it was a seven years' mystery; seemingly there was no explanation. Finally the story was told by a woman.




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