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 2
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On the 21st of the month the following board of directors was elected: Alexander Grimes, Charles G. Swain, Robert W. Steele, J. D. Phillips, Peter Odlin, Samuel Shoup, Warren Estabrook, David Stout, and Herman Gebhart. Peter Odlin was elected president, and David Z. Peirce, cashier.
About the same time there was established an "independent bank," by the name of the "Dayton Bank." The stockholders of this bank held a meeting May 1, 1845, at the store of Winters & Shaeffer for the purpose of taking the preliminary steps required by law for the presen- tation of the application for banking privileges to the board of bank commissioners, which was to meet at Columbus, May 5, 1845. An organ- ization of the bank was also effected at that meeting for the commencement of business, the directors elected being as follows: Jonathan Harshman, Sr., John Rench, Thomas Brown, Daniel Beckel, Jonathan Harshman, Jr., Henry Van Tuyl, and David Davis. Jonathan Harshman, Sr., was elected president, and Valentine Winters, cashier.
The specie capital of this bank was sixty thousand dollars, and the amount of stocks upon which the circulation was based was one hundred and twenty thousand dollars. A room was chosen on Third Street, adjoining Winters & Shacffer's store, in which to conduct the business of the bank. On May 20th, Commissioner Grimes counted the specie of the new bank and found it correct. It consisted almost entirely of the same specie which was in the vaults of the old Dayton Bank when its charter expired, and had been lying idle there ever since.
The State Bank had a room on Second Street, in Phillips' Block, a few doors east of Main Street, for temporary purposes, but it soon moved to a building on Old Market Street, a few doors from Main, and there commenced operations July 7, 1845.
Thus were there established two banks in Dayton, both of which were felt to be in the hands of safe, conservative business men. The Dayton Bank made its first quarterly exhibit on the 4th of August, 18.45, showing its condition to be as follows:
378
BANKS AND BUILDING ASSOCIATIONS.
ASSETS,
LIABILITIES.
Gold
$6,099 50
Capital stock paid in ...
832,360 00
Silver
37,744 03
Notes issued 1's $1,655
Deposits subject to sight draft
28,921 48
Notes issued
3's 4,457
Bank-notes on hand
112 52
Notos issued
5's 9,990
Bills and notes discounted.
46,427 87
Notes issued
10's 590- 19,682 00
Personal property
537 47
Duo other banks 11,238 39
Expenses
65 27
Due depositors 64,099 54
Profits. 627 21
Total
$128,007 14
Total
$128,007 14
On the same day the Dayton branch of the State Bank made the following exhibit of its condition:
ASSETS.
LIABILITIES.
Gold and silver $34,364 45
Capital paid in $37,178. 00
Deposits in New York and Balti-
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more
10,820 69
Due other Ohio banks. 1,584 46
Ohio bank notes on hand.
11,361 00
Other State bank-notes
17,936 00
Profits, etc.
116 62
Bills and notes on band
8,365 03
Due from other branches
97 23
'Total
$83,542 98
Due from other Ohio banks.
404 65
Exchange and expenses
190 93
Total. $83,542 98
This bank, it will be seen, had no circulation at that time, but by the 20th of the month, notes had been received and put into circulation. These notes were described as handsome specimens of the engraver's art and of superior paper. Their appearance, it was said, was hailed with delight by the citizens, though this was not on account of their beauty. They were issued under a system which for years the people had been striving to establish-a system entitled to confidence in every way.
At the time when the second quarterly statement was made, November 3, 1845, the assets of this bank had become $163,010 and its circulation $60,800. It was divided up into 1's, $3,200; 3's, $9,600; 5's, $16,000; and 10's, $32,000.
At the same time the total assets of the Dayton Bank were $281,853.88, and its circulation in 1's, $7,688; 3's, $7,500; 5's, $22,785; 10's, $29,840; 20's, $4,740; total circulation, $72,553.
In reference to this bank, Mr. J. II. Winters, president of Winters' National Bank, in an address on banking in Dayton, delivered February 21, 1888, at the inauguration of the rooms of the Dayton Board of Trade, made the following remarks:
"The Dayton branch of the State Bank made collections, bought
.
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Due other branch banks. 300 00
Due depositors
41,363 90
374
HISTORY OF DAYTON.
and sold exchange, received deposits, but paid no interest therefor, and loaned money at six per cent, the charter limit, but frequently received a higher rate by directing its impecunious customers to make their paper payable in New York, instead of here, so that when the note matured the maker would be compelled to pay the same in exchange or its equivalent. This would ordinarily give the bank an additional one per cent on its loan, which, under the high taxes of the 'Crow-bar Law' of that day, was no unimportant item, though it was claimed that such procedure was an indirect violation of the State Bank charter.
" The Dayton branch was not the only bank to assist its profits in this way, and I venture the assertion that there was not a bank in Ohio which did not practice in the same school. Tradition tells us that its discount committee met but once a week, and that on these occasions the lives, characters, and prospects of the borrower and his endorsers and of their immediate friends and relatives underwent a searching examination. Be this as it may, the old bank was a staunch ship, well-manned and ballasted, against which the waves of panic and business prostration beat harmlessly, a credit and help to our city and a marvelous success in days when success meant something more than to succeed.
" The private banks were not so conservative. In the competition for business they were urged on by a generous but dangerous rivalry, and offered and paid to their depositors on daily balances, interest at the rate of six per cent per annum. As a consequence, there was gathered into. their keeping a vast sum, for those times, of the idle money of the city and country. This in turn they loaned to their customers at rates vary- ing from ten to twelve per cent, seldom more, seldom less, the difference in the rate indicating the grade of paper offered, and as the loanable money exceeded the legitimate wants of our city, outside paper, that is, paper from adjacent towns and cities, was in demand.
"As much of the outside paper could not have been first-class, heavy losses followed from the portion still unpaid when the inflation bubble was punctured.
" I remember overhearing a conversation between the heads of our firm and Joel O. Shoup, a neighboring banker. Mr. Shoup was trying to dispose of the paper of Gregory & Burnet, and Ezekiel Ross, of Cincin- nati. As our firm hesitated about taking the paper, Mr. Shoup became somewhat excited, and bringing his fist down on the table with great force, exclaimed: ' Winters, any man, having the money, who would not discount old Zeke Ross' paper, ought to be hung.' To avoid this alternative the paper was taken, and is still hell by the purchasers.
" The ordinary rate for gold and New York exchange was one-half
375
BANKS AND BUILDING ASSOCIATIONS.
of one per cent premium, buying, and one per cent selling; but in times of great monetary excitement, it frequently ran much higher. Foreign collections, and checks and drafts on points outside of New York, Boston, Philadelphia, Baltimore, and Cincinnati, were charged for at rates gauged by difficulties of collection. The New York and Cincinnati banks and bankers paid their correspondents interest on their daily balances at rates ranging from four to six per cent."
Much more might be quoted from this interesting address of President Winters, did space permit, but the above extract will serve to show some- thing of the nature of banking in ante-National Bank days.
The high taxes of the " Crow-bar Law " have been referred to above. For some time before its passage the banks refused to pay the taxes imposed upon them by the laws of the State, and the " Crow-bar Law " was passed authorizing county treasurers to open the bank vaults and safes with a crow-bar, if necessary, in order to collect the taxes duc the State from the banks. No such proceeding was ever necessary in Dayton, but it was necessary for the county treasurer to collect the taxes in an unusual manner, and he doubtless would have put in force the law in a literal manner, had it been necessary to do so. The banks always knew when the tax would be collected, and left the money in a bag where the treasurer or his deputy could find it upon entering the bank. This course was taken in order to keep up the protest against the operation of the law. G. B. Harman was deputy treasurer at the time the tax was collected the first year in Dayton, and found it necessary only to go into the bank and pick up the bag containing the amount of taxes in gold, which he carried away without opposition or resistance of any kind-this being the understand- ing with the authorities of the bank. The tax was collected in this way, however, only two years, for the question of the constitutionality of the law under which the high taxes had been levied, was submitted to the supreme court, and by that body declared unconstitutional, and, as a consequence, the State was compelled to refund the amounts collected in violation of the constitution of the State.
In the latter part of December, 1815, this bank moved into Shoup's Building, at the southeast corner of Second and Jefferson streets. Mr. Peirce resigned as cashier in March, 1849, and Charles G. Swain was . elected as his successor and served in that capacity with Mr. Odlin as president until April, 1865, when the capital and business were transferred to the Dayton National Bank.
With reference to the Dayton Bank, it may be stated that John Rench was elected president in March, 1850, upon the death of Mr. Harshman, and in November following Mr. Winters resigned as cashier
.
376
HISTORY OF DAYTON.
and Jolm B. Chapman was appointed in his place. This bank discon- tinued business in the spring of 1852.
The City Bank was a private bank owned by J. O. Shoup and Samuel Tate, Sr., with Joseph A. Dusang as cashier. It was located on the north side of Third Street, four doors cast of Jefferson Street, and was opened for business August 7, 1850. In April, 1852, Mr. Tate withdrew from the firm and the business was continued for several years.
The Farmers' Bank was opened for business November 20, 1850. It was established by Daniel Beckel, William Dickey, and Joseph Clegg, and was located in the Ohio Block on Third Street west of Kenton Street. Mr. Clegg withdrew from the firm March 29, 1852, and the bank was moved to the northeast corner of Jefferson and Third Streets. Mr .. Dickey withdrew October 24th, of the same year, and Mr. Beckel con- tinued alone until the close of the bank in 1854.
The Miami Valley Bank was established in 1851, and opened for business on the 10th of the following September. Daniel Beckel was president of this institution, S. C. Emley, cashier, and the dircetors were Daniel Beckel, Nathaniel Strong, J. McDaniel, Daniel A. Haynes, and Joseph Clegg. The bank was at first located in room Number 3, of the Ohio Block, but was afterward moved to the Dayton Bank room on Third Street, near Main, where the business was closed.
The Exchange Bank was opened for business at the northeast corner of Main and Third Streets, April 5, 1852. It was owned by Valentine ' Winters, Jonathan Harshman, R. R. Dickey, and James R. Young. Messrs. Dickey and Young withdrew September 26, 1853, and Messrs. Harshman and Winters continued until 1857, when Mr. Harshman withdrew and John H. Winters became a member of the firm. The firm name was then changed to V. Winters & Son, who continued and largely increased the business, and for many years held rank with the best banks in the country. In the fall of 1861 the business was moved from the northeast corner of Main and Third Streets into a building which was after- ward torn down to give place to the handsome structure now occupying the site. January 1, 1882, it was converted into a National Bank, known as Winters' National Bank. Its capital stock was fixed at three hundred thousand dollars, and its first officers as a National Bank were J. H. Win- . ters, president; J. D. Platt, vice-president; J. C. Reber, cashier; J. II. Winters, J. D. Platt, Valentine Winters, L. B. Gunckel, J. Decker, J. M. Phelps, James Stockstill, Samuel Craighead, and E. M. Wood, directors. J. II. Winters retained the presidency of the institution until August 8, 1882, when he resigned the position for the purpose of making a tour around the world, and during his absence Valentine Winters served in
LicuHGrock.
377
BANKS AND BUILDING ASSOCIATIONS.
that position. J. II. Winters returned to Dayton and was elected to his old position as president of the bank August 8, 1883, and has served in that capacity ever since. The other officers remain the same as noted above. The capital stock remains at three hundred thousand dollars and a surplus of twenty thousand dollars has accumulated. Regular dividends have been made varying with earnings of the bank. They have been eight per cent until recent years; now they are but six per cent.
In previous pages may be found references to, if not a complete history of, the Dayton branch of the State Bank. The last election of directors of this bank was held in January, 1864, resulting as follows: l'eter Odlin, Ilorace Pease, J. II. Achey, J. Estabrook, T. A. Phillips, Dr. II. Jewett, and II. Gebhart. Peter Odlin was chosen president, and C. G. Swain, cashier. At the close of 1864, the stock of this bank was transferred to the Dayton National Bank. During the twenty years of the existence of the Dayton branch of the State Bank it had paid regular dividends, and at its close divided a handsome surplus, never having suspended payment for a day. The Dayton National Bank held its first clection for directors February 7, 1865, with the following result: Peter Odlin, J. H. Achey, Horace Pease, G. W. Rogers, Harvey Conover, Her- man Gebhart, Joel Estabrook, Dr. II. Jewett, and T. A. Phillips. Peter Odlin was elected president and C. G. Swain, cashier. The following changes have occurred in the board of directors and officers: H. S. Fowler was elected in the place of Herman Gebhart, deceased, January 14, 1808; William Clarke, in the place of Joel Estabrook, resigned, August 12, 1869; R. R. Dickey, in the place of II. S. Fowler, deceased, August 12, 1869; Josiah Gebhart, in the place of Dr. H. Jewett, de- ceased, January 10, 1871; Edward W. Davies, in place of Peter Odlin, resigned, November 8, 1871; W. P. Callahan, in place of Edward W. Davies; deceased, January 13, 1874; William II. Sins, in place of Horace Pease, deceased, August 12, 1875; George L. Phillips, in place of T. A. Phillips, deceased, January 8, 1878; Isaac Van Ausdal, in place of George L. Phillips, resigned, November 11, 1880; Calvin L. Hawes, in place of Isaac Van Ausdal, resigned, January 10, 1882; S. W. Davies, in place of William Clarke, deecased, June 15, 1882. J. II. Achey became president on the resignation of Peter Odlin, and William HI. Simms was made vice-president December 13, 1883. Charles G. Swain died August 7, 1866, and was succeeded as cashier by II. C. Hiestand. Mr. Hiestand resigned January 14, 1869, and was succeeded by W. S. Phelps, who resigned July 31, 1884, and was succeeded by James A. Martin, the present cashier. At the present time the officers of this bank are William II. Simms, president; S. W. Davies, vice-president, and James 20
378
HISTORY OF DAXTON.
A. Martin, cashier. The capital, surplus, and undivided profits of the bank are $380,000, and the present board of directors are as follows: G. W. Rogers, II. Conover, R. R. Dickey, Josiah Gebhart, W. H. Sinms, S. W. Davies, R. C. Schenck, Jr., John Cramer, and E. E. Hawes.
The National Banking Law was passed by congress February 15, 1863. About the Ist of March following, a movement was inaugurated in Dayton for the establishment of a bank here under the new law. In a few hours' canvass of the city, about one fourth of the requisite capital stock was subscribed. The movement was, at the same time, general throughout the State. The entire amount of the capital stock, $125,000, was rapidly taken, and a meeting of the stockholders of the proposed new bank was held April 10th to finally decide as to the propriety of establishing the institution. On the 23d of April, a meeting of the directors was held, and the stockholders were requested to pay in their subscriptions. By the 24th, the stock was all paid up and the bank fully organized. The board of directors elected were as follows: S. Gebhart, Henry Herrman, Thomas Parrott, Caleb Parker, John L. Martin, Daniel E. Mead, Samuel Marshall, George W. Shaw, and Josiah Gebhart. The president of the bank was S. Gebhart, and the cashier, G. B. Harman. The certificate authorizing this bank to commence business was issued by Samuel T. Howard, acting comptroller of the currency, June 22, 1863, and on the 26th of the month the stockholders were notified by the cashier that certificates of stock were ready for delivery to the proper parties.
In this connection, it may not be improper to note the rapidity with which national banks were established in Ohio, as compared with other loyal States. On August 20, 1868, there were in Ohio fifteen national banks with an aggregate capital of $3,043,000, while in all the other States there were but twenty-five national banks with an aggregate capital of $3,710,000. The largest bank in the Union at that time was the First National Bank, of Cincinnati, and the next in size was the Second National Bank, of Cleveland. The former had a capital of $1,000,000 and the latter of $600,000. New York State had five national banks with an aggregatetcapital of $670,000.
The First National Bank of Dayton, the history of the establishment of which is given above, continued business until 1870, when it went into voluntary liquidation, and was succeeded by the private banking firm, Gebhart, Harman & Co., consisting of Simon Gebhart, G. B. Harman, and W. B. Gebhart. This firm continued business until February, 1883, when it was merged into the City National Bank, which was incorporated with a capital stock of $200,000. The first board of directors of this
379
BANKS AND BUILDING ASSOCIATIONS.
bank were Simon Gebhart, G. B. Harman, W. B. Gebhart, Ezra Bimm, Henry C. Graves, P. M. Harman, and Joseph R. Gebhart. The present board are the same with the exception that W. P. Callahan has taken the place of G. B. Harman. The capital stock of the bank is the same as at first; the surplus is forty thousand dollars, and the undivided profits are twenty-five thousand dollars. The location of the bank is at No. 39 West Third Street.
The Second National Bank was organized about the same time with the First. A meeting of the stockholders of the Second National Bank was held at the courthouse May 14, 1863, at which the following directors were elected: Jonathan Harshman, James Perrine, G. W. Kneisly, T. S. Babbitt, William P. Huffinan, Robert Chambers, L. R. Pfouts, N. B. Darst, and D. C. Rench. On the 15th, Jonathan Harshman was elected president, and D. C. Rench, cashier. The certificate of this bank was Number 10, and the bank was authorized to commence business on the 22d of June, by Samuel T. Howard, acting comptroller of the currency. The bank commenced business on the 20th of June, 1863, at Number 48 North Jefferson Street. The charter of this bank expired by limitation on the 25th of May, 1882, the law permitting the extension of bank charters not having then been passed.
The Third National Bank was chartered May 4, 1882, its certificate being Number 2,678, and its capital stock being four hundred thousand, dollars, with a surplus of one hundred thousand dollars. This bank commenced business May 10, 1882. There were originally, and are now about one hundred stockholders in this bank. The first board of directors were as follows: William P. Huffman, Daniel Keifer, T. S. Babbitt, E. J. Barney, George W. Kneisly, John K. MeIntire, Rufus J. King, George W. Shaw, and Preserved Smith. The first officers were: William P. Huffman, president; Daniel Keifer, vice-president, and Charles E. Drury, cashier. The present board of directors are: T. S. Babbitt, Rufus J. King, George W. Shaw, Thomas A. Legler, Daniel Keifer, John K. MeIntire, Walter W. Smith, George P. Huffman, and A. Newsalt. John K. MeIntire became president of this bank in January, 1888; Rufus J. King is now the vice-president; Charles E. Drury has always been the cashier, and Charles Rench became assistant cashier February 19, 1884.
The Merchants' National Bank was incorporated February 15, 1871, with a capital stock of two hundred thousand dollars. The first directors were: Caleb Parker, Daniel E. Mcad, Samuel Marshall, John Powell, J. W. Dietrich, James Applegate, E. D. Payne, N. Ohier, and J. C. Peirce; John Powell was elected president, and A. S. Estabrook, cashier. For a short time this bank did business on Main Street, while the present build-
380
HISTORY OF DAYTON.
ing on the southwest corner of Third and Jefferson Streets was being erected. Daniel E. Mead was elected president in 1873, and during the same year J. C: Peirce was elected vice-president. Alexander Gebhart became vice-president in 1886, and the officers at the present time are: Daniel E. Mead, president; Alexander Gebhart, vice-president, and A. S. Estabrook, cashier. The capital stock is now three hundred thousand dollars, and the surplus sixty thousand dollars. The present board of directors are: Daniel E. Mead, Alexander Gebhart, J. C. Peirce, E. A. Daniels, John R. Reynolds, D. L. Rike, James Applegate, Solomon Rauh, and N. Ohmer.
The Fourth National Bank was organized carly in January, 1888, and commenced business on the 12th of that month. The number of its cer- tificate is 3,821, and the number of stockholders one hundred and fifty. The first and only directors were and are E. J. Barney, John W. Stoddard, William E. Crume, Edward Canby, C. J. Ferneding, Torrence Huffman, Houston Lowe, W. J. Shuey, and J. B. Thresher. The first officers of the bank, who still retain their positions, were J. B. Thresher, president; Torrence Huffinan, vice-president, and Ziba Crawford, cashier.
This bank is located on the northeast corner of Third and Jefferson streets, in a new four-story brick building erected for its accommodation. Its rooms are elegant and cheerful, and for the better protection of its funds it has one of the celebrated Corliss safes, of which there are only two in Ohio, the other being in Youngstown.
The Union Safe Deposit and Trust Company was incorporated February 3, 1887. The incorporators were Joseph B. Thresher, James D. Platt, John W. Stoddard, Eugene J. Barney, Torrence Huffman, Edward Canby, Clement J. Ferneding, Edwin R. Stilwell, William J. Shuey, and "Abram D. Wilt. The company was incorporated with a capital of one hundred thousand dollars. The object of the company is to furnish facilities for the safe keeping of valuables, such as deeds, mortgages, jewelry, insurance policies, bonds, certificates of stock, valu- able packages, parcels, etc., to such persons as cannot afford to purchase safes for their own use, and even to those who have such safes, but which they may feel are not absolutely burglar or fire-proof. The facilities of this company consist of a modern safe deposit vault on the main floor of the new bank building, on the northeast corner of Third and Jefferson streets. This safe deposit vault was designed by MacNeale & Urban, of Cincinnati, especially for this company, and no expense has been spared which was necessary to render it strictly burglar and fire-proof. All the latest improvements which mechanical skill has devised for insuring strength and security have been adopted and used in its construction. The very best workmanship has been employed, and the result is an
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381
BANKS AND BUILDING ASSOCIATIONS.
impregnable vault, which is believed to have no superior in the country. The interior is fitted up with a large number of safes and deposit boxes of various sizes, suitable for all requirements. These are rented by the year, at prices varying from five dollars to fifty dollars. No safe-holder can open his own safe without the assistance of a vault attendant, who must partially unlock it, when it can be opened by the keys of the safe- holder. The vault itself is twelve feet six inches wide, sixteen feet eight inches long, and seven feet high in the clear inside. In the construction of this vault a combination of metals has been used-malescent steel, Besse- mer steel, chrome steel, and homogeneous, each one half inch thick, the quality of resistance lacking in one being supplied by the other. This . two-inch thick case of plates is surrounded by a wall of masonry, averag- ing twenty inches in thickness, filled in between metal and masonry with cement. There is ample space around the vault and between it and the heavy walls of the building itself, which is all the time under the observa- tion of watchmen, so that it would seem to be an impossibility for burglars to make even an attempt to break open the vault, much less succeed in such an attempt.
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