USA > Ohio > Hamilton County > Cincinnati > Cincinnati, the Queen City, 1788-1912, Volume II > Part 26
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The Southern Ohio Loan and Trust company, organized at this time, more as a building association at first than as a trust company, with Samuel Bailey, Jr., president, H. P. Piper vice president, Mac. S. Todd secretary, W. H. Campbell, treasurer. The Safe Deposit Company changed its charter in this year, becoming the Cincinnati Safe Deposit and Trust Company, thus inviting trust company bus- iness on Third street, in addition to the old safe deposit business which they had had since 1866. The following year, 1891, the Central Trust and Safe Deposit Co. increased its capital to $250,000, Levi C. Goodale being president. Henry Meyer was now president of the Atlas National with George Guckenberger cashier, Ed. J. Herzog succeeding the latter as assistant cashier of the German National. Charles A. Hinsch had now become cashier of the Fifth National Bank.
A number of other changes in the officials of the various banks had now been made. Richard Dymond was president of the Central Trust and Safe Deposit Company, with Sol. P. Kineon, vice president, Edward Worthington, treasurer, and Frank O. Suire secretary. S. P. Bishop had succeeded to the presidency of the Cincinnati Safe Deposit and Trust Company, with S. R. Burton vice pres- ident, and G. H. Grimmelsman secretary. Thos. H. C. Allen was now president of the Cincinnati Savings Society, with E. P. Stout vice president, and W. S. Magley treasurer. The Fifth National Bank had as its president Robert M. Nixon. The National Lafayette Bank had elected J. V. Guthrie vice president, succeeding Henry Peachey, C. J. Stedman becoming cashier, and W. H. Simpson assistant cashier.
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HING . 420
WESTERY CERMAN AJ RANK
THE OLD WESTERN GERMAN BANK
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CINCINNATI-THE QUEEN CITY
The panic of 1893 disturbed the financial district of the city, which, since the bad effects and the depression following the 1873 panic had disappeared, had been very prosperous.
This period of trouble was general throughout the financial world, and Cin- cinnati again proved herself in good condition, and well able to care for her credit and the general credit of her merchants even during bad times. The panic was attributed to a general expansion of business-many lines of trade were over-stocked, and credit inflated. On June 6, 1893, the clearing liouse passed the following resolution :
"It is hereby agreed by the members of the Clearing House Association of Cincinnati, Ohio, that in view of the present demand on the reserves of the banks, and for the protection of our industry and commercial interests, the Clearing House Association through its committee is authorized to issue, not to exceed one million dollars, represented by loan certificates which shall be received in settlement of the daily balances between the members thereof, and the same will be furnished to the members on the delivery of approved securities, at 75 per cent of their market value. Said certificates shall not be negotiable and shall be used only for the purpose of settlement between the members and the clear- ing house. Securities so delivered shall be valued by a committee of three con- sisting of the following named members: L. B. Harrison, William A. Goodman, James Espy, who shall serve in connection with the president of the association (M. M. White being the president at that time) and same shall be received at seventy-five per cent (75 per cent) of the value so fixed. Each member shall receive a receipt for securities deposited. Said committee shall have charge of the securities, of different kind, deposited by said members, and shall place the same in a safe deposit company for safe keeping. Said committee shall per- sonally supervise the issue of the loan certificates, and shall be called together upon the application of any member of the clearing house who may desire to obtain said certificates, notice being given to the president or manager of the association, or in the absence of either of them, to any member of the com- mittee, and the said certificates shall bear interest at the rate of eight per cent (8 per cent) per annum, which interest shall be paid by the member to whom the same are issued, and for the time so used. The committee has authority to employ clerical force, if necessary, to carry out the objects proposed. The expense incurred by the said committee shall be assessed and paid by the mem- bers receiving the certificates proportionally. The following committee, con- sisting of the president of the First National Bank, the president of the National Lafayette, and the president of the Fourth National, shall determine the time when such certificates shall be issued."
This resolution was made in view of possible trouble, but the period was passed without the necessity of using a single certificate, in which respect Cin- cinnati showed herself better able to handle her business than several other of the clearing house cities which had passed similar resolutions.
This panic was not marked by the long period of depression after it that was a part of the panic of 1873; there was but one new bank started, the City Hall Bank, which was in process of organization when the panic began, and opened during it. The only failure occurred in 1895, when the Commercial Bank, the
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oldest bank in the city failed, which had had a continuous existence since its organization in 1829-commencing in business in 1830; during its existence it had been first a state bank, then a firm, then a state bank, a national bank for a few years, and a state bank again, since 1872. The liquidation of the Commercial Bank was protracted over a number of years, and the final loss to depositors was considerable.
The next few years were uneventful. In 1898, the Cincinnati Safe Deposit and Trust Company was absorbed by the Central Trust and Safe Deposit Com- pany; S. R. Burton becoming vice president of the merged institution; the fol- lowing year the Brighton German Bank Company was organized, with Max Mosler, president ; F. L. Haffner, vice president ; and the offices of the new bank opened at Harrison and Colerain avenues, being the only bank in this section of the city.
Thus, by the beginning of the year 1900, Cincinnati had thirteen national banks, one savings society, one private bank, two trust companies and five state banks, of which sixteen were members of the clearing house.
The decade from 1900 to 1910, marked a great increase in the number of banks in Cincinnati; this was due to the need felt for more trust companies, the increasing use of savings banks, and the establishing of banks in different sec- tions of the city to care for the needs of the section, the banking district up to this time, having been of a comparatively narrow area, except for the Western German Bank at Twelfth and Vine and the Brighton German Bank at Harrison and Colerain avenues.
The new trust companies, in the year 1900, were the Provident Savings Bank and Trust Company, and the Cincinnati Trust Company, which opened in February and December respectively. The former was originally two corpora- tions, the Provident Savings Bank, and the Provident Trust Company, with a capital of $250,000 each, with joint offices in the Chamber of Commerce build- ing entering on Vine street. The officers were: B. H. Kroger, president; George Peck, vice president and manager ; and J. Edward Hatch, secretary and treasurer. The Cincinnati Trust Company, capitalized for $500,000, occupied the basement of the southwest corner of Fourth and Walnut until the first floor was remod- eled for them; Guy W. Mallon was president, N. S. Keith, secretary and treas- urer, F. R. Williams, assistant secretary and R. W. Neff, cashier.
The Unity Banking and Savings Company with J. J. Jung, president, opened at Vine and McMillan streets in 1900, and the Columbia Bank and Savings Com- pany at Vine and Court streets in 1902.
During this year the Central Trust and Safe Deposit Company increased its capital to $500,000; the Union Savings Bank and Trust Company acquired the deposits of the Cincinnati Savings Society, making the old office of the Savings Society, its Fifth street branch.
The following year, 1903, four new banks were organized ; the Cosmopolitan Bank and Savings Company, on Freeman avenue, with Chas. E. Roth, president ; the Home Savings Bank Company, the Southern Ohio Savings Bank, affiliated with the Southern Ohio Loan and Trust Company, and the Security Savings Bank and Safe Deposit Company. During the year, Geo. B. Cox became president of
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the Cincinnati Trust Company, C. C. Richardson and M. E. Moch, vice presidents, N. S. Keith secretary and F. R. Williams treasurer.
The next two years marked the sudden moving of many of the Third street banks to Fourth street. The First National Bank building at Fourth and Walnut streets, of nineteen stories, was completed in June 1904, the Ingalls building was erected, with the Merchants National Bank occupying the second floor, the Citi- zens National built at the corner of Fourth and Main, the German National at Fourth and Vine, the Third National on Fourth between Vine and Race, and the Fourth National on Fourth between Vine and Walnut. Thus the so-called "street" became Fourth street instead of Third, as many years before it had changed from lower Main street to Third.
This period was also marked by many changes in the presidencies of the larger banks: W. S. Rowe became president of the First National after the death of L. B. Harrison in 1902; M. E. Ingalls became president of the Merchants National, C. H. Kellogg succeeded J. D. Hearne at the Third National. C. B. Wright became president of the Ohio Valley National, upon the resignation of James Espy, S. R. Burton succeeded to the head of the Lafayette, after the death of W. A. Goodman, and John M. Blair became president of the Equitable National.
In August, 1904, the Ohio Valley National Bank was absorbed by the First National, making the combined capital $3,700,000, with W. S. Rowe president, Joseph Rawson and C. B. Wright vice presidents, and T. J. Davis cashier. The following January, 1905, the First National merged with the National Lafayette, increasing the capital to $5,000,000. S. R. Burton and C. J. Stedman became vice presidents. Another merger of banks took place this same month when the Merchants National absorbed the Equitable National, increasing its capital to $1,200,000, and adding to its list of officers, A. S. Rice, as vice president and W. P. Stamm, as cashier.
From 1905 to 1907 ten new banks were chartered by the state and opened in various sections of the city as follows: The Queen City Savings Bank and Trust Company, Walnut Hills Savings and Banking Company, Stock Yards Bank and Trust Company, West End Bank, East End Bank Company, Hyde Park Savings Bank, Liberty Banking and Savings Company, Metropolitan Bank and Trust Com- pany, and the Pearl Street Market Bank. Of these new institutions the Queen City Savings Bank and Trust Company was the largest, with a capital of $500,- 000, with W. A. Julian president and M. M. Robertson, vice president. M. M. Robertson became the president in 1907.
In 1906 the Fifth National Bank increased its capital to $1,000,000, Charles A. Hinsch being president; James M. Glenn, vice president; Edward Seiter, cashier ; Monte J. Goble, and Charles H. Shields, assistant cashiers. Late in the year, the Citizens National Bank absorbed the Franklin Bank, the oldest bank in the city, which had been chartered in 1832. Early in 1907 the American Na- tional Bank was organized with a capital of $500,000 and opened an office on Fourth street, west of Walnut, becoming a member of the clearing house.
The year 1907 was destined to mark another upheaval of the financial world, as 1857, 1873, and 1893 had been years of especial disturbance to the business of the country. The panic of 1907 swept the whole United States with a sudden-
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ness more marked than that of the preceding panics, and the scarcity of actual currency to care for the needs of trade and manufacture became so marked, that it became known as a money panic.
The suddenness with which the lack of enough currency became felt neces- sitated prompt action throughout the country on the part of the banks to care for the situation and to protect the credit of each community; the country dis- tricts all looked to their respective local centers, making action of the various clearing house cities urgent.
The Cincinnati Clearing House appointed a committee of W. S. Rowe, presi- dent of the First National Bank, chairman; G. P. Griffith, vice president of the Citizens National Bank; W. W. Brown, vice president of the Merchants Na- tional Bank ; George Guckenberger, president of the Atlas National Bank ; Charles A. Hinsch, president of the Fifth National Bank; and Casper H. Rowe, vice president of the Market National Bank; to act together and handle the present crisis. The pressing need was the extraordinary lack of currency; this was felt in all the large financial centers, who at the most, could only care for them- selves and their territory; accordingly Cincinnati had to rely on itself and pre- pare to care for the territory depending upon it.
The condition of affairs was severe late in October 1907-retail trade, pay- rolls, labor, the country sections, etc., created a greater demand for currency, particularly in small denominations, than the supply could meet. Accordingly the clearing house committee realizing that the situation must be met by their action, as the whole country was affected by the same stringent condition of money, arranged the issue of cashier's checks, called "script," by each of the fourteen clearing house banks, in denominations of two, five, ten and twenty dollars, payable through the clearing house, well secured by securities pledged for their redemption. The committee received from each bank various securities, either bonds or customers notes, which had to be acceptable to the committee, against which they delivered to each bank not more than 75 per cent of the value of the securities, in script to the various banks, which were then signed by the banks and put into circulation ; the first one appeared November fourth.
The necessity for emergency currency was felt so keenly that the merchants cooperated with the banks in aiding the circulation of the script, advertising that they would accept script for purchases, and in some instances advertising a special discount for script or cash. Thus, if there had been any doubts of the acceptance of the script for practical use in pay-rolls, for paying labor, the aid of the citizens and the press dispelled it, no disturbance of any kind being felt, the cashiers checks passing as currency freely.
Other clearing house cities issued similar checks, and the situation soon be- came more relieved-the panic and fear which had led to the hoarding of currency by the over cautious became less violent and soon more actual currency ap- peared in circulation. Thus in a few weeks after the issuance in Cincinnati the clearing house committee called for the retirement of 25 per cent of the issue : that amount of notes was returned to the committee by each bank, the numbers of the retired bills carefully checked off of the list of those issued, a proportionate amount of collateral was returned to each bank, and the returned scrip was burned in the presence of the committee and an official of the bank of issue.
CINCINNATI CLEARING HOUSE
725
EVAATI, NOV. 4TH 1907
RST * DATE BANK TWENTY DOLLARS
PAYABLE THROUGH
$2090
CASHIER
PAYA
CINCINNA
$1000
*3
PAYAB
CINCINNAT $500
PAYABL CINCINNATI $200
CLEARING HOUSE CERTIFICATES, 1907
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After the first retirement the banks turned in the notes very quickly, and in an incredibly short time practically all were retired except a small portion held by the public, a few lost or destroyed, etc.
Thus the money panic of 1907 was soon over, Cincinnati having passed through the period with great credit to herself, caring for its merchants, manu- facturers, and keeping the adjacent territory supplied with a circulating medium. The check to business, however, was severe, and the following years showed the effects of the panic throughout the country. The issuance of emergency cur- rency by the various clearing houses was felt to have been the only mode of procedure possible under existing monetary laws-from the now more apparent need of an elastic currency system in the country, the advisability of legislation to effect some change for the better became a universal topic which led to the establishing of the National Monetary Commission by the government which has now, 1911, offered the suggestion of a National Reserve Association, or cen- tral bank owned by all the banks of the country, to issue circulating notes se- cured somewhat as the panic scrip was, in times of stringency, thus creating a really elastic currency. As yet this is merely a plan offered to the country for criticism and improvement to be put in the form of a bill to be introduced into congress only when it is felt to be in a form generally acceptable, and, as far as possible, approved by the different sections of the country as a remedy to exist- ing currency conditions.
The year 1908, following the panic, was a very quiet one in Cincinnati, gen- eral business being inactive. In June the Fifth and Third National Banks con- solidated, as the Fifth-Third National Bank, with a capital of $2,500,000, oc- cupied the Third National's building, with Charles A. Hinsch president, W. A. Lemmon, E. A. Seiter vice presidents, Monte J. Goble cashier, C. T. Perin, C. H. Shields, F. J. Mayer assistant cashiers. In November the American National Bank was absorbed by the Fifth-Third, making the capital $2,700,000.
The year 1909 marked the organization of five more banks, the Mohawk German Banking and Savings Company in May, the Commerce and Deposit Bank in June, the Evanston Bank, the Court House Savings Bank in July, and the German American Commercial and Savings Bank in October. In December of this year the First National and the Merchants National Banks consolidated, the First National increasing its capital to $6,000,000, W. W. Brown became a vice president of the First, W. P. Stamm, and C. A. Stevens becoming assistant cashiers.
In January 1910, the private bank of S. Kuhn & Sons was absorbed by the Fifth-Third National Bank, its deposits transferred, Louis Kuhn becoming a vice president of the Fifth-Third National Bank. This marked the disappearance of private banks in Cincinnati, which had been at one time far greater in num- ber than those with charters. In August the Queen City Savings Bank and Trust Company went into liquidation, the deposits transferred to the Provident Savings Bank and Trust Company, and its assets liquidated, the liquidation extending over a long term, the amount to be paid stockholders being still undetermined. The only new bank to organize was the Winton Savings Bank at Winton Place.
The present year of 1911 has been marked by the establishing of a clearing house examiner ; Samuel L. McCune, formerly the National Bank examiner for Vol. II-14
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this district, was chosen as resident examiner, to examine all clearing house banks and banks clearing through members, to report the result of each examination to the president and directors of each institution respectively, with suggested changes where needed. The necessary details of the new examining department of the clearing house took considerable time, and the actual examinations are expected to start during the winter months of 1911-1912.
Two failures of state banks occurred during the year; in April the Com- merce and Deposit Bank closed, and in September the Metropolitan Bank and Trust Company failed to open-both institutions are in process of liquidation under the direction of the state banking department.
The death of George Guckenberger, who had been president of the Atlas Na- tional Bank since 1894, was a great loss to the banking district. Albert Lack- man was elected to succeed to the presidency, William Guckenberger becoming vice president, Charles J. Ziegler, cashier, and Christian Haehnie, Jr., assistant cashier.
The four large trust companies joined the clearing house in September, namely the Central Trust and Safe Deposit Company, the Union Savings Bank and Trust Company, the Cincinnati Trust Company, and the Provident Savings Bank and Trust Company, making fourteen members in all, namely, the First, Second, Fourth, Fifth-Third, Citizens, German, Market, and Atlas National Banks, the Western German Bank, City Hall Bank, and the four trust companies.
There have been three increases in capitalization during the last few years; in 1909 the Second National Bank doubled its capital, making it $1,000,000-shortly after which, E. E. Galbraith became president, upon the resignation of C. H. Davis. The Cincinnati Trust Company increased its capital to $1,000,000; early in 1910 the Fifth-Third National increased its capital to $3,000,000, from $2,- 750,000. Thus in 1911 the combined capital of the National Banks is $13,900,000, and that of the State Banks and Trust Companies $5,743,910. The total deposits in September, 1911, in both National and State banks amounted to about $134,- 000,000.
The Postal Savings Bank was opened in Cincinnati early in September, at the postoffice, under the new Postal Savings Bank Act; thus the United States government became interested in banking again after a lapse of sixty-five years, when the branch of the second bank of the United States was withdrawn in 1836, when the renewal of its charter was refused.
CINCINNATI BANKS AND BANKERS IN THE YEAR 1872, GIVING THEIR CAPITAL STOCK OR THE AMOUNT LISTED FOR TAXATION TO THE COUNTY AUDITOR.
C. F. Adae and Company, called German Savings Institution, southwest cor- ner Third and Main. Mrs. Ellen Adae, A. Seinecke, Carl A. G. Adae, Chas. A. Adae. Tax return, $11,157.
Andrews, Bissell & Co., northeast corner Third and Walnut. Tax return, $28,000. A. H. Andrews and H. B. Bissell.
Bepler & Co., northwest corner Third and Main. Edward Bepler.
A. G. Burt & Co., northeast corner Third and Walnut. Tax return $30,000. A. G. Burt and John T. Hooper.
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Cincinnati Savings Society, 29 West Third street. J. L. Wayne, president ; Henry Kessler, vice president; J. L. Thompson, treasurer.
Commercial Bank, 132 Main street. Capital, $200,000. E. H. Pendleton, president ; Hugh Colville, cashier; Edward A. Foote, assistant cashier.
S. S. Davis & Co., 61 West Third street. Tax return, $12,245. S. S. Davis and F. S. Davis.
Espy, Heidelbach & Co., southeast corner Third and Vine. Tax return, $128,742. James Espy, Phillip Heidelbach, Louis Heidelbach, Isaac Ickelheimer.
Evans & Co., 73 West Third street. Tax return, $63,659. Jason Evans, H. W. Hughes.
First National Bank, northwest corner Third and Walnut. Capital $1,200,000. L. B. Harrison, president; A. S. Winslow, vice president ; Theodore Stanwood, cashier ; Geo. W. Forbes, assistant cashier.
Fourth National Bank, 69 West Third street. Capital $500,000. Theodore Cook, president; M. M. White, cashier.
Franklin Bank, Third street. B. F. Brannan, president; John Kilgour, vice president.
Gilmore, Dunlap & Co., 108 West Fourth street. Tax returns, $27,000. James Gilmore, Wm. J. Dunlap, Robert E. Dunlap, John G. Brotherton.
Heidelbach, Baur & Co., southeast corner Third and Vine. Phillip Heidel- bach, Theodore Baur, James Espy, Louis Heidelbach, Isaac Ickelheimer.
Jos. A. Hemann & Co., southwest corner Third and Walnut. Tax return, $34,400. Joseph A. Hemann.
Samuel B. Keys & Co. Tax return, $17,556. Samuel B. Keys, Edward T. Lea.
E. Kinney & Co., 51 West Third street. Tax return, $67,956. Eli Kinney, Wm. R. Lowe, F. M. Huburd.
Lafayette Bank, Third street. Tax return, $61,160. Joseph C. Butler, Henry Peachey, Reuben R. Springer, Chas. P. Cassilly. Joseph C. Butler, president ; Henry Peachey, cashier.
Larkin, Wright & Co., 25 West Third street. Tax return, $283,250. Joseph F. Larkin, John R. Wright, John Cochnower, Harvey DeCamp, John M. Phillips, Thos. Sharp, Richard S. Rust, C. W. Friend, Thomas Fox, George Fox.
Merchants' National Bank, 77 West street. Capital $1,000,000. D. J. Fallis, president ; John Young, vice president; H. C. Yergason, cashier ; W. W. Brown, assistant cashier.
Miami Valley Savings Society, 13 West Third street. Henry E. Spencer, president ; W. B. Dodds, treasurer.
N. G. Nettleton & Co., 69 West Third street. Tax return, $24,067. N. G. Nettleton.
Safe Deposit Co. of Cincinnati Lafayette Franklin Bank Bldg. Joseph C. Butler, president; Samuel P. Bishop, secretarv.
Seasongood, Netter & Co., 37 West Third street. Tax return, $35,117. Jacob Seasongood, Jacob Netter, Adolph J. Seasonood, Albert Netter.
Second National Bank, Courthouse Bldg. Capital, $200,000. Seth Evans, president ; W. H. Davis, vice president ; S. S. Rowe, cashier.
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