USA > Ohio > Hamilton County > Cincinnati > Cincinnati, the Queen City, 1788-1912, Volume II > Part 23
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Thus by the end of the year 1834, Cincinnati had the branch of the Bank of the United States, in its building with the agency office of the first branch bank above it; the Franklin Bank, the Commercial Bank, the Lafayette Bank and the Miami Exporting Company, all on Main street, and all doing strictly a banking business, including note issue; the Ohio Life Insurance and Trust Co., with two million of capital, doing a more varied business than the other banks; and not issuing any notes ; the Cincinnati Savings Institution, still being managed by a president and twenty-four directors, solely for the benefit of its depositors; Mr. Bates's private institution called the Exchange Bank and Savings Institution, which was making a special effort toward savings accounts, and having a mod- erate amount of its notes in circulation ; and the exchange office of G. R. Gilmore & Co. The local bank notes circulated freely at par, being perfectly acceptable to the Branch Bank. Other bank notes circulated in proportion to the distance from the point of issue, the greater part of the money in active use being specie or Cincinnati bank notes ; foreign notes being soon banked and sent for collection.
The second branch of the Unted States Bank at Cincinnati did not receive the criticism which the first branch had received, although the first branch had in reality, as is now the general opinion, been a great help to Cincinnati in prevent- ing the continued expansion and excessive rise in real estate values, which had preceded and largely been the cause of the great depression of 1820. The second Branch Bank had kept the local bank notes at par, by constantly presenting them to the issuing banks for redemption, receiving notes from the other branches, and preventing the outstanding circulation of the banks from becoming too great. The officers and directors of the Branch Bank in 1834 were: James Reynolds, president ; Peter Benson, cashier ; directors : Charles Gazzam, Wm. Neff, Wm. McLean, Thomas W. Bakewell, Lewis Howell, Charles Sontag, B. Storer, Lewis Whiteman, Benj. Urner, Griffin Taylor, Chas. C. Clarkson, Jacob Resor. The capital assigned to the branch amounted to $1,700,000.
In 1836 the charter of the United States Bank expired, and a new charter was not obtained. Accordingly the branch offices were closed, and Timothy Kirby acted as agent for the bank, combining the new agency office with the old one which had still been managing the real estate and other holdings of the first
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branch. It was not until some years later that the affairs of the United States Bank were finally wound up in Cincinnati.
The new building on Third street, to be occupied by the Franklin and La- Fayette Banks, was in the process of construction during the year 1836, and in those days was the handsomest building in the financial section of the city.
BANKS LISTED IN THE CINCINNATI DIRECTORY FOR 1836.
Ohio Life Insurance & Trust Co., northwest corner Fourth and Main streets. Capital $2,000,000 .- Micajah T. Williams, president ; Samuel R. Miller, secretary ; J. M. Perkins, cashier ; Vachael Worthington, solicitor ; Thomas J. Matthews, ac- tuary ; Josiah Lawton, paying teller; Wm. M. Morton, receiving teller ; Henry Haynes, bookkeeper ; Chas. E. Lynch, discount clerk ; Lysle Lodwick, messenger ; Isaac G. Burnet, notary.
Commercial Bank, east side Main street, between Third and Fourth. Capital $1,000,000 .- J. S. Armstrong, president ; Wm. S. Hatch, cashier ; directors, James McCandless, John McCormick, John M. Rowan, J. R. Coram; Aaron G. Gano, Jacob Strader, Jos. Smith, Jas. Johnston, Nathaniel Wright, James Hall. Of- fering days, Wednesday and Saturday. Discount days, Monday and Thursday. Bills of exchange discounted every day.
Franklin Bank, west side Main street, between Third and Fourth. Capital ยท $1,000,000 .- John H. Groesbeck, president; Augustus Moore, cashier ; directors, David Loring, O. M. Spencer, Sr., D. Corwin, John P. Foote, G. Taylor, Geo. W. Jones, Marcus Smith, Wm. S. Johnson, E. S. Haines, J. McGregory, F. Lawson, J. C. McClellan.
LaFayette Bank. Capital stock, $1,000,000 .- Josiah Lawrence, president ; W. G. W. Gano, cashier; directors, John D. Jones, Caleb Bates, Davis B. Law- ler, Henry S. Tatem, Wright Smith, C. Donaldson, Chas. Clarkson, Geo. W. Neff, Wm. McLean, Morgan Nevelle, S. P. Chase, S. W. Phelps, Wm. R. Foster, notary. Offering days, Mondays and Thursdays. Discount days, Tuesdays and Fridays.
Miami Exporting Company Bank northeast corner Court and Main streets. Capital $600,000 .- J. C. Wright, president ; J. G. Lamb, cashier ; directors, Dan- iel Gano, J. W. Caldwell, J. W. Coleman, James Taylor, C. S. Ramsay, Geo. Gra- ham, Jr., Geo. W. Jones, Jr., C. W. Gazzam, J. M. Bissell, W. R. Morris ; Jos. Pierce, notary.
Cincinnati Savings Institution No. 5 West Third street .- Geo. W. Jones, pres- ident ; H. H. Goodman, secretary ; directors : Wm. Burke, Jacob Burnet, Stephen Burrows, Wm. Crossman, John P. Foote, Calvin Fletcher, Joseph Gest, J. H. Groesbeck, David Gwynne, Wm. Hartshorne, E. S. Haines, M. T. Williams, Daniel H. Horne, E. P. Langdon, Jas. McIntyre, E. Morgan, Geo. C. Miller, Wm. Neff, Jacob Resor, Jos. Smith, Wright Smith, Sr., O. M. Spencer, Sr., Wm. Stephenson, Charles Tatem. Office open for receiving deposits on Mon- days, from 10 to I.
Exchange Bank & Savings Institution. Private Institution. John Bates & Co., proprietors. Wm. Surtees, cashier.
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By the end of the year 1836 the new building of the Franklin and Lafayette Banks was completed, and in January, 1837, the Lafayette Bank moved in, soon being followed by the Franklin Bank, into the other wing of the building. The Cincinnati Savings Institution moved to the office of A. J. Wheeler, Esq., Peter Outcalt becoming secretary. Mr. Jones was still president, and the twenty-four members of the board were almost unchanged. The institution received deposits from $1 to $1,000, on which it paid 6 per cent interest if left four months or longer. A committee from the board met every Monday to discuss the affairs of the institution.
The Exchange Bank moved into the old office of the Franklin Bank on Main street, between Third and Fourth.
During this changing of offices by several of the banks, money matters were becoming more and more a matter of concern to the country. There were several runs on banks in New York and other cities early in the year, and the Cincinnati newspapers ran a daily column devoted to the "money grippe" as they termed the stringency. Cincinnati withstood the panic for some time, and it was not until most of the eastern cities had suspended specie payments, that action of this sort became necessary here. On May 17, 1837 the Cincinnati banks announced that they would suspend specie payments, in order to prevent being drained by the east of specie, where they were not paying specie. J. C. Wright, V. Worthing- ton, John H. Groesbeck, J. A. Armstrong, Jacob Burnet, Josiah Lawrence and N. W. Thomas formed the committee which agreed upon this action.
A citizens' meeting was held to consider the matter of specie payments, at which meeting Evan Gaither was the chairman, and Bellamy Storer, Henry Rockey, J. W. Piatt and Aaron Valentine were made a committee, who reported that in their opinion the suspension of specie payments was expedient, but sug- gesting a request to the banks, that they pay all requests of $5 and under in specie. They also suggested the issue of fractional notes or "shinplasters" to help the present scarcity of small change.
Fractional currency, although many people suggested its issue, did not ap- pear at this time, but as specie disappeared more and more from circulation, note issues, both authorized and unauthorized, appeared, the general suspension of specie payments making the circulation of such issues possible. Some corpora- tions obtained the right of note issue from the state, which right was in some cases badly abused. This was the case in this year when the Ohio Railroad is- sued notes from one dollar to five dollars, which were practically worthless a few years later, as no material work had been done toward building the road. The Newport Lyceum circulated its notes in May of this year, soon having a large amount in use on both sides of the river. This issue was of short life, however, when the assets to protect the notes were found entirely inadequate. The "New- port Lyceum scene" was referred to in arguments in favor of currency reform and regulation, which was a great topic of the day, and one which brought forth many different opinions.
On June 14, the Ohio Life Insurance & Trust Co. announced that they would resume specie payments, advertising "Deposits that may be made with this com- pany in specie or its own notes will be paid in specie." Resumption of specie payments was only undertaken with various restrictions, and the "panic of 1837"
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was felt over the whole country for some time, note issues of the banks and others increasing, in spite of general protest, and fear of the result.
Although the year 1838 still felt the effects of the late panic, two new banks started in Cincinnati, the Mechanics' and Traders' Bank, at the corner of Main and East Third streets, William Price being the president, and Delafield & Bur- net's Bank, at the old postoffice building. They were both private banks, the Me- chanics' & Traders' Bank not incorporating until some time later. Delafield & Burnet's bank circulated checks on J. Delafield, New York, payable at the bank- ing house in Cincinnati. The circulating medium of the country was still in a very chaotic state during this year, and in December the leading merchants of Cincinnati agreed not to accept notes of the Exchange Bank, Delafield checks, and several foreign notes, but the agreement was not lived up to. Josiah Law- rence was now president of the Lafayette Bank, whose notes, with those of the other incorporated banks of the city, were in very good credit.
The years 1839 to 1841 were uneventful in the banking section of the city. The Delafield Bank liquidated, and G. R. Gilmore & Co. started the Bank of Cin- cinnati, using the name already used before 1820, George Hatch being cashier, and G. R. Gilmore president. E. D. John became president of the Mechanics' & Traders' Bank, and A. Barnes cashier of the Exchange Bank. P. Outcalt & Co. were doing an exchange business, while Mr. Outcalt, as secretary of the Cin- cinnati Savings Institution, was accepting the savings deposits at the same office. In 1839 the state of Ohio limited the legal bank note issue to three times the specie on hand, the limit formerly having been three times the capital of the bank. A board of three bank commissioners was appointed, the need for bank supervision and restriction being more and more felt.
The Lebanon Miami Bank, at Lebanon, opened an agent's office in Cincinnati, in 1841, where its notes were payable. The auditor of state arranged with the bank to redeem all checks and certificates given for work done on the Miami Canal from Cincinnati to Piqua. However the funds to care for the demands made were not sufficient, and on December 29, 1841, the Cincinnati agency closed. This failure was an unsettling influence on the public, and circulating notes were more carefully scrutinized. Uncertainty about the value of the different notes in cir- culation reached a focus when on Jan. 8, 1842, all the "Victualers" of the town met and agreed to accept notes of chartered banks only, to the exclusion of all unauthorized tickets and checks, excluding notes of the Exchange Bank, Bank of Cincinnati, Cincinnati Banking & Loan Office, and appointing a committee to investigate the solvency of the Miami Exporting Company and the Mechanics' & Traders' Bank. This action created a feeling of more and more unrest.
On January 10, 1842, the Miami Exporting Company assigned. The next morning a crowd collected about the doors of the closed bank-news soon reached them that the Bank of Cincinnati had not opened its doors that morning, and as the agitation and unrest of the crowd increased, its numbers were augmented. By eleven o'clock the crowd became a mob, broke into the bank, destroyed all the moveable property, scattered notes and books and papers around, a large amount of circulating notes being carried off. The city guard arrived, and succeeding in dispersing the rioters, who, however, collected further down the street, and as their numbers increased again, assailed the guard. Shots were fired, a few cit-
1821
J.& G.R.GILMORE
OFFICE OF J. & G. R. GILMORE, BANKERS AND BROKERS 30 Main Street, 1821
JUDGE JACOB BURNET President Cincinnati Branch. 1817-1820
BUILDING ERECTED FOR THE CINCINNA" BRANCH OF THE UNITED STATES BANK Completed in 1819. It was located on Main Str below Fourth Street
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izens being wounded. By this time the mob was again beyond control, and moved down Main street, until they reached John Bates' Exchange Bank, just below Fourth street. They sacked this office completely, scattering notes and papers over the street. They also broke into Noah Lougee's exchange office next door, doing but little damage there, as the safe withstood their attacks. After this, the mob was considerably smaller, and no more violence was attempted, although a crowd collected in front of the Mechanics' & Traders' Bank. As this institution paid all demands made in specie, the depositors soon dispersed.
Following this upheaval, there was a great deal of discussion and speculation as to what the paper of the closed banks, the Miami Exporting Company, the Bank of Cincinnati, and the Exchange Bank, was worth. $25,850 of the stolen notes of the Miami Exporting Company were recovered, and the affairs of the institution put into the hands of a committee. Liquidation proceeded slowly, Miami Exporting Company notes being quoted at 58 per cent discount, a year later. Mr. Bates redeemed his notes regularly, but did not reopen the bank.
Thus by March, 1842, banking affairs resumed their normal course. The Cincinnati and White Water Canal notes, issued from $1 to $5 were largely in circulation, and a bond issue to care for these notes, which circulated at varying rates of discount, was being agitated.
1843
From the year 1843 up to the year 1850 Cincinnati's financial affairs were undisturbed, and as the city was increasing in population rapidly, the banks pros- pered. The population of the city more than doubled in the ten years preceding 1850, reaching 115,438 in that year, and this great growth necessarily affected the banking interests.
1844
The Citizens' Bank opened at 25 East Fourth street in 1844, Mr. W. Smead having the largest interest in the firm. This was the only private bank in the city except the exchange brokers, and since the incorporation of the Mechanics' & Traders' Bank. Private banking, however, now began to increase. Ellis & Morton, and P. Outcalt & Co. accepting deposits from this time on, and Wil- liams & Wheeler opening an office as bankers at the northwest corner of Main and Third street.
1846-1848
In 1846 Williams & Wheeler discontinued the firm name, and the City Bank succeeded them, incorporating soon after. Then by 1848 there were six chartered banks, the agency office of the United States Bank was still maintained, and the private banks and bankers had increased to ten in number, as follows:
Citizens' Bank, J. W. Smead & Co., James Gilmore & Co., T. S. Goodman & Co., and A. J. Wheeler, all on Main street. Ellis & Morton, George Milne & Co., P. Outcalt & Co., People's Bank (owned by P. B. Manchester) and the Phoenix Bank, all on Third street between Main and Walnut, and Moses Morris on the west side of Sycamore street.
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This period was marked by two changes in Cincinnati. First, by the sudden increase in the number of private banks, some of which were doing considerable business, and second by the change in the charters of the Franklin and the Mechanics' and Traders' Banks, which became branches of the State Bank of Ohio.
The State Bank of Ohio was created in 1845, with a capital of $6,150,000, to be apportioned among twelve districts, with provision for sixty-three branch banks. Each branch was to have a charter of its own, to run until 1866. and a complete separate existence, subject, however, to supervision by a board of con- trol at Columbus, which furnished all the circulating notes for each branch; and which required a deposit of 10 per cent of the capital of each branch in either Ohio state stock, or United States legal tender, to be held as a redemption fund. Individual liability of the directors of the branch banks was also included in the act.
Thus the Franklin Branch Bank, and the Mechanics' & Traders' Branch Bank, as they were now called, issued only notes of the State Bank of Ohio, payable at their offices, distinctly their own obligation, but otherwise their business con- tinued the same, the same officials and directors, being in control.
The year 1850 marked a few banking changes. Messrs. Hatch and Langdon opened the Central Bank, at the northwest corner of Main and Court streets, Stanley Hatch and Solomon Langdon being the partners. Gilmore and Company became Gilmore & Brotherton, James H. Brotherton becoming a partner of James Gilmore. The Merchants' Bank of Cincinnati, on the west side of Walnut street, just below Third street, opened, N. P. Inglehart being the cashier. This, a private bank, made special efforts for savings deposits, and foreign exchange business. Other new private banks which opened during this year were McMicken & Co., the New England Bank, the Union Bank of Brown & Ramsey, and the Ohio Savings Institution of B. F. Sanford & Co.
Thus when Charles Cist published his "Cincinnati in 1851," he devoted a good deal of space to the financial institutions, as there were six incorporated banks, and sixteen private banks and bankers. In explaining the large number of private banks, Mr. Cist says: "From the limited amount of banking capital heretofore allotted to Cincinnati by the Ohio legislature, the business of private banking has become an interesting feature in the growing commercial operations of our city."
On the opposite page will be seen the names of the officers and directors of the chartered banks.
The following individual characteristics of the private banks are interesting whose total business formed a considerable portion of the banking activity of the city at this time, the year 1851.
Ellis and Morton, at the corner of Third and Walnut streets, paid 6 per cent interest on deposits, and charged a uniform rate of 12 per cent on discounts, lending only to those having accounts with them. Their deposits amounted to about $800,000, and they did a large exchange business. Mr. Ellis had started the business of an exchange broker, about 1842, and had enlarged the business from year to year, until the firm now was one of the largest of the private banks.
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T. S. Goodman & Co., on Main street just above Third, were really successors of the old exchange office of H. H. Goodman & Co., the present firm consisting of Timothy S. Goodman, Charles Goodman, and W. A. Goodman. Their com- mercial accounts did not equal those of Ellis & Morton, as they catered more to- ward individual accounts, whose total reached a large figure. .
George Milne & Co. on Third between Main and Walnut streets, dealt more in exchange, both foreign and domestic, not paying interest on deposits, except those under special contract. They carried balances in New Orleans, and quoted rates on exchange at that point.
The Citizens' Bank of W. Smead and Company was the oldest private bank at this time, not counting the exchange business which had preceded the present banking business of some of the other firms. Its deposits in the year 1851 were about $750,000 and its total assets $1,046,248.58. It paid interest on deposits at 6 per cent and varied its rate of discount.
INCORPORATED BANKS IN CINCINNATI, 1851.
Ohio Life Insurance & Trust Co., southwest corner Main and Third streets. Capital, $2,000,000-Charles Stetson, president; William Greene, secretary ; G. S. Coe, cashier ; S. P. Bishop, assistant cashier ; directors, Charles Stetson, Jacob Burnet, John C. Wright, Samuel Fosdick, D. B. Lawler, Timothy Walker, S. C. Parkhurst. A. M. Taylor, W. W. Scarborough, George Luckey, W. G. Breese, D. Kilgour, Samuel Forrer, S. F. Vinton, Moses Taylor, Robert Bayard, J. B. Hosmer.
Commercial Bank, 132 Main street. Capital, $1,000,000 .- Jacob Strader, president ; James Hall, cashier ; Rufus King, solicitor ; directors, Jacob Strader, James Hall, John McCormic, Rufus King, David P. Strader.
Franklin Branch Bank, Third street, between Main and Walnut streets, Cap- ital, $1,000,000 .- J. H. Groesbeck, president; T. M. Jackson, cashier ; W. S. Groesbeck, solicitor ; directors, J. H. Groesbeck, J. C. Culbertson, John B. Groes- beck, T. M. Jackson, John Kilgour.
Lafayette Bank. Third street, between Main and Walnut streets. Capital, $1,000,000 .- George Carlisle, president; W. G. W. Gano, cashier; directors, George Carlisle, E. S. Haines, Samuel Wiggins, Moses Brooks, George K. Schoenberger, Fenton Lawson, R. W. Lee, S. S. L'Hommedieu, Pollock Wilson.
Mechanics' & Traders' Branch Bank, 100 Main street. Capital $500,000 .- T. W. Bakewell, president; Stanhope S. Rowe, cashier; directors, T. W. Bake- well, D. A. James, John H. James, Samuel L'Hommedieu, F. Eckstein, Jr.
City Bank, North side of Third street, between Walnut and Vine streets. E. M. Gregory, president ; J. P. Reznor, cashier ; directors, E. M. Gregory, L. D. Ingalsbe, J. P. Reznor, Wm. Burnet, Thomas Heaton, J. K. Glenn, William S. Scarborough.
B. F. Sanford & Company, or the Ohio Savings Institution, as they called the bank at the northeast corner of Fourth & Walnut streets, was one of the newest institutions, paying 8 and 10 per cent interest on deposits, which were increasing rapidly. The members of the firm being B. F. Sanford and John D. Cook.
S. O. Almy's Bank, was the most recently started of the private banks, open- ing an office on Third street, this year, Dr. S. O. Almy having left the firm of J. B. Sanford & Company.
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The Central Bank of Messrs. Langdon & Hatch, was situated at the corner of Main and Court streets, handling most of the uptown business, buying and selling city orders-paying interest on deposits, and its business was steadily growing.
. Gilmore & Brotherton, on Main street below Columbia, did not pay interest on deposits, but did an extensive exchange business, and their standing in the finan- cial world was high, being the oldest of the exchange houses, J. and G. R. Gil- more having started in 1820, although the same firm had not been in active operation continuously from this date.
The Western Bank of Scott & Mckenzie, was the only banking firm in its section, at the corner of Western row (now Central avenue) and Fifth street, beginning business this year, having good prospects.
Burnet Shoup & Co., on the northwest corner of Third and Walnut, was an- other new firm, more of an exchange office than a bank; however, undertaking the collection of uncurrent bank bills and various foreign collections.
The Phoenix Bank on Third street, between Main and Walnut, which had started business in 1848, was doing a regular banking business, paying interest on deposits, buying and selling exchange, both domestic and foreign.
The Merchants Bank of Cincinnati, on Third just below Walnut, was one of the newer banks, not making direct loans, but purchasing local business notes, and having capital in England, thus being prepared for and catering to foreign exchange business. They also handled savings deposits, upon which they paid 9 per cent interest.
The Peoples' Bank of P. B. Manchester, the Union Bank of Brown & Ramsey, A. J. Wheeler, A. G. Burt, Wright Clark & Co., P. Outcalt & Co., and Mc- Micken's bank, were the other bankers whose business included banking and exchange.
In the year 1852, the Ohio Savings Institution incorporated as the Savings Bank of Cincinnati, with John D. Park as president; B. F. Sanford, cashier ; J. G. Douglas, solicitor ; and Messrs. B. F. Sanford, J. D. Park, G. A. Wheeler, A. G. Sanford, J. B. Russell and S. J. Camp, directors. The banking room was still at the northeast corner of Fourth and Walnut streets.
The next year Stanhope S. Rowe resigned as cashier of the Mechanics' & Traders' Bank, and started the private bank of S. S. Rowe & Company. Wood & Dunlap, Geo. S. Wright & Co., S. S. Davis & Co., and W. W. Cones & Co., also started private banks during the year. Almy's Bank became known by the firm name of Almy & Wilcox. Dunlevy, Atwood & Company succeeded Dun- levy, Debarrow & Company, and Ellis & Sturgis succeeded Ellis & Morton. The Franklin Branch Bank gave up its charter in this year, continuing the business under the firm name of Groesbeck & Company.
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