USA > Wisconsin > Milwaukee County > Milwaukee > History of Milwaukee, city and county, Volume I > Part 33
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39 | Part 40 | Part 41 | Part 42 | Part 43 | Part 44 | Part 45 | Part 46 | Part 47 | Part 48 | Part 49 | Part 50 | Part 51 | Part 52 | Part 53 | Part 54 | Part 55 | Part 56 | Part 57 | Part 58 | Part 59 | Part 60 | Part 61 | Part 62 | Part 63 | Part 64 | Part 65 | Part 66 | Part 67 | Part 68 | Part 69 | Part 70 | Part 71 | Part 72 | Part 73 | Part 74 | Part 75 | Part 76 | Part 77 | Part 78
Growth of the Banking Business .- Between 1840 and 1850 the population of Wisconsin increased from 31,000 to 300,000. It was admitted as a state into the Union May 29, 1848, and most of this marvelous increase took place while
3-19
BANKING AND FINANCE
it was yet in its territorial condition. An article in the Encyclopedia Britan- nica, on this point, says: "At the census of 1840, with the exception of a few thousand French-Canadians, the population was made up of American- born pioneers from the Eastern states, and in the southern portion of the terri- tory of a sprinkling of men from Kentucky, Virginia and farther south. Be- Tore the next eensus was taken the revolutionary movement of 1848 in Ger- many, led to the emigration of thousands from that country to Wisconsin, and there was an increase of nearly 900 per cent in the population from 1840 to 1850. * * The German element predominates markedly in Milwaukee."
Thus while in proportion to population the need of banking facilities in 1841 was double what it had been in the year before, each of the nine years fol- lowing added an equal inerement to that need. But the Mitchell business grew faster. The hour had come and also the man. He saw his opportunity and made the most of it. His deposits which in 1840 were but $6,000, within a dozen years had been augmented to a million and a half. Within fourteen years the institution in which he as clerk had been paid less than a hundred dollars a month was all his own. Smith was bought ont, all the shares and prestige of the establishment, all had become Mitchell's.
Vicissitudes of a Banker's Life .- "Let it not be supposed, " says the writer of the article in the Wisconsin Historical Society's Collection, "that our banker, though 'monarch of all he surveyed,' had been walking a primrose path. There were many so-called 'runs' which rushed upon him like torrents or cataracts. Panies, fomented by distant rivals or neighbors who hoped to rise by his ruin, would seize depositors. Then steamers would suddenly land crowds, all calling for coin. Still larger swarms from the country would throng in. In 1849, Chicago and Detroit combined to crush the ouly for- midable opposition their bankers encountered in the Northwest.
"Whatever Mitchell certificates the conspirators could accumulate were concentrated for payment in Milwaukee on the day after Thanksgiving of that year, simultaneously with the announcement that Smith's bank, the Chicago fountain of all the Mitchell monetary streams, had shut up. The report appalled Wisconsin depositors like thunder from a clear sky. But Mitchell denied its truth, hurried swift riders to Chicago, so that Smith expressed specie by both land and lake, while Mitehell paid up all comers till banking hours were over, and then had his cashier, David Ferguson, keep on paying till bed-time.
"Even at this erisis money came in as well as went out. People laughed at their own fright when they learned that Smith's bank had been closed on no week day but Thanksgiving. The raid blew over leaving nine-tenths of the certificates outstanding. Nothing heightened his prestige more than these cyclones, which proved him to be invincible."
Milwaukee Banks .- Although the First Wisconsin National Bank is now only a little more than two years old, in tracing its history we must go back to the Farmers' and Millers' Bank, which was chartered in 1853 with a capital of $50,000. E. D. Ilolton was the president and II. II. Camp was the cashier.
In 1863 when the National Bank Law went into effect, the First National Bank was formed. It was a reorganization of the Farmers' and Millers' Bank.
MARSHALL & ILSLEY BANK
-
25.
-
-
THE MARSHALL & ILSLEY BANK
351
BANKING AND FINANCE
On April 4, 1870, the Home Savings Bank was opened for business. This remained in existence for only a few months, for on October 27, 1870, it merged with the private banking firm of Moritz von Baumbach & Company, thus forming the German Exchange Bank. In August, 1879, the German Exchange Bank merged with the Bank of Commerce which had been organized in June, 1870. The new bank took the name of Merchants' Exchange Bank. This bank was absorbed by the First National on January 1, 1894. In the `60s, the Houghton Brothers and Samuel MeCord organized the private bank of Houghton, MeCord & Company. In 1875 the name was changed to Houghton Brothers & Company, while in 1893 the Houghton Bank was reorganized as the Central National, with George G. Houghton as president and Herman F. Wolf as cashier.
The Central National was consolidated with the Wisconsin National in 1898. The latter had been organized with $1,000,000 capital in 1892. Fred- erick Pabst was the first president. In 1908 when L. J. Petit was president, the capital was doubled. Mr. Petit remained as president until July, 1919, when the Wisconsin National merged with the First National. Fred Vogel, Jr., the president of the First National, resigned at the time of the merger. Oliver C. Fuller, the president of the Wisconsin Trust Company, was chosen president of the First Wisconsin National Bank. Mr. Fuller heads the First Wisconsin National Bank, First Wisconsin Trust Company and First Wiscon- sin Company, the three financial institutions which comprise the First Wiseon- sin group. The vice presidents of the bank are Walter Kasten, 11. O. Seymour, Edgar J. Hughes, Herman F. Wolf, Robert W. Baird, Henry Kloes, J. M. Hays and August W. Bogk.
The First Wisconsin National Bank oeenpies the spot on which Milwau- kee's first white boy was born in 1836. On the same block but on the site of the Trust Company Building, there is a tablet erected to Solomon Juneau, who began trading with the Indians here in the early days.
The oldest bank in Wisconsin is that of Marshall & Ilsley. It began in 1847, when Samuel Marshall opened a brokerage business here. In 1849 he went into the banking business with Charles F. Ilsley. This bank was ineor- ported and has been in existence ever since. John H. Pnelicher is the pres- ident.
The Second Ward Bank was established in 1855 with a capital of $25,000. This became the Second Ward Savings Bank in 1865. It is frequently re- ferred to as the Uihlein Bank because it is owned largely by the Uihlein family.
Following the passage of the State Banking Law in 1853 a good many institutions were organized in Milwaukee. The Bank of Milwaukee which later was made the National Exchange Bank was established in 1855. J. W. P. Lombard is the president and William M. Post the eashier. The Marine Na- tional Bank which is still in existence was established in 1856, with a capital of $50,000. Washington Becker is the president.
The Plankington Bank, which was organized in 1877, failed during the panic of 1893.
The Marshall & Ilsley Bank is the oldest bank in continuous existenee in
352
HISTORY OF MILWAUKEE
the Northwest. Seventy-five years ago, on April 21, 1847, Samuel Marshall opened a banking office in a small store on East Water Street under the name of Samuel Marshall & Company. Seventy-five years -- a long time when measured by the life of a business firm or of an individual-a short time when measured by the extent of civilization. Ilow few there are left to tell of. those days when Milwaukee was an infant city of one year, when Wisconsin was still a territory. Those were days of young men and of small beginnings. Mr. Marshall was twenty-seven years old, a Quaker of sound judgment and high principles, a man of integrity.
The first advertisement of his firm as it appeared in the Daily Sentinel and Gazette, May 3, 1847, is illustrative of the type of business Mr. Marshall and Mr. W. J. Bell, his partner at that time, were carrying on :
SAMUEL MARSHALL & CO. Exchange Brokers, Milwaukee, Wis.
Land Office Money, Unenrrent Bank Notes, and Certificates of Deposits, bought and sold on liberal terms. Sight Exchange on New York for sale in sums to snit purchasers. Collections on New York, Buffalo, Cleveland and Detroit, made on favorable terms. Deposit accounts kept. Office, 196 E. Water Street.
In 1849, Charles F. Isley became associated with Mr. Marshall and shortly afterwards, the firm name was changed to Marshall & Usley. Five years later, in 1854, the capital of Marshall & Ilsley had grown to $25,000. The bank had been prospering along with the city which now contained 25,000 inhabitants. Not only was Milwaukee growing rapidly, but people were pouring into the whole state and a pressing need for banking facilities became widespread. One of the first duties of the newly formed legislature, therefore, was to frame a general banking law. Doubtless, not many persons realize that in those days the referendum was already an integral part of democratic gov- ernment, for the people had incorporated in their state constitutions a clause which provided that no banking aet could become a law until it had first been passed by the people themselves. A referendum on the question, "Bank or no Bank" was held in 1851, when a large majority voted for banks, and in 1852, after the Legislature adopted a carefully drawn banking aet, it also had to be submitted to the people before it could become a law. The law under which all the banks of Wisconsin, except the national banks, are doing busi- ness today is based on that aet, which may be called "essentially, preeminently, and peenliarly a people's law."
In 1888 the bank was incorporated under the Wisconsin State Banking Law as Marshall & Isley Bank with a capital of $200,000. This was increased in 1895 to $300,000, in 1905 to $500,000, and in 1917 to $1.000.000. The increase in deposits for the last thirty years shows that the business of the bank has steadily grown. The deposits were :
1890 $2,545,516.00
1900
3.923,366.77
353
BANKING AND FINANCE
1910
8,617,488.47
1920 22,862,472.58
In 1901, Mr. Marshall retired as president to be succeeded by Mr. Hsley who held this office until his death in 1904. Succeeding presidents have been Gustav Reuss, 1904-1908 : James K. Ilsley, 1908-1915; John Campbell, 1915- 1920; John H. Pnelicher, 1920-
The rapid growth of the bank from its inception, necessitated continual moving into larger quarters. The various offices, each considerably larger than the one before, have been located on East Water Street and on Broad- way. In 1906, a branch bank was ereeted to care for the south side business. The present building of the bank was completed in 1913. It was designed not only to furnish a fitting and convenient home for the bank, but by its strength, dignity and architectural beanty, to be a fitting monument to its founders, Samuel Marshall and Charles F. Ilsley.
The bank is carrying out the ideals of its founders. Its aim is to serve well the community with which it has grown. Each succeeding group of officers has recognized that solidity and substantiality combined with character and integrity are the elements which make for the longest life and the greatest usefulness in business; and each group has steadfastly held to these basic considerations in planning for the growth and development of the business. The bank has grown as the community has grown-solidly and substantially -and today stands as an evidence of the spirit of those who gave and those who are giving their lives to a community service of high character.
The Marine National Bank of Milwaukee dates its ancestry back to May 7, 1839, when the Wisconsin Marine and Fire Insurance Company was organ- ized by George Smith and Alexander Mitehell.
That company was empowered by its charter to receive deposits, issue certificates, lend money and do an insurance business. George Smith was president and Alexander Mitchell, secretary. Their certificates of deposit resembled bank notes and circulated throughout the country the same as currency, and while notes issued by other institutions frequently depreciated in value or became utterly worthless, those of the Wisconsin Marine and Fire Insurance Company were always redeemed on demand in gold coin. The total amount outstanding in 1840 was about $42,000 which increased gradu- ally until in 1852 there was outstanding $1,470,235.
It is a well known faet, and within the recollection of pioneer citizens still living, that the "Mitchell Bank" curreney, as it was known, enjoyed the prestige throughout the entire Northwest of being the only currency in cirenlation during the period named that was considered safe to accept and hold over night without fear of depreciation.
In 1853 a charter was taken out by Mr. Mitchell under the banking laws of Wisconsin and the word "Bank" was added to the name. Again in 1880 the charter was renewed for twenty years or until 1900.
Mr. Mitchell died in 1886 and being the sole owner of the bank bequeathed the capital stock in equal shares to his son John L. Mitchell, David Ferguson, and John Johnston, who became officers of the bank, remaming such until 1893.
Vol. 1-23
354
HISTORY OF MILWAUKEE
At the time of Mr. Mitchell's death the capital of the bank was $100.000. the surplus $2,158,000, which was a lund really representing a smn due to Mr. Mitchell carried outside of the deposits, while the general deposits amounted to $6,000,000.
In 1887 the capital stock was increased to $500,000, and the deposits and general business of the bank grew steadily until the panic of 1893 fell on the country, when the bank was found to have a substantial amount of slow and uncollectible loans, making it necessary to suspend payment and have a receiver appointed. Mr. Washington Becker was made receiver and within six months, after overcoming what appeared almost insurmountable obstacles, fresh capital of $500,000 was raised and the bank resmed with Mr. Becker as president, John L. Mitchell, vice president, and John Johnston, cashier. When the charter expired in 1900 the deposits, which aggregated $7,870.000 at the time of the suspension, had been fully liquidated with interest.
In July, 1900. The Marine National Bank of Milwaukee was organized under the national laws with a capital of $300,000 and began business, assum- ing the deposit liabilities of the old bank.
Washington Becker became president, John L. Mitchell and John Johnston, vice presidents, and Arthur H. Lindsay, cashier. The deposits were then $1,693,000. In 1906 the capital was increased to $500,000 which remained unchanged December 31, 1921. The earned surplus on that date amounted to $1.000,000, while the deposits were $8,756,000.
The officers are: Washington Becker, president; Arthur H. Lindsay, vice president ; Edward H. Williams, cashier; George W. Moore, assistant eashier ; George D. Prentice, assistant cashier ; Thomas J. Durnin, secretary.
Directors: Washington Beeker, president ; Thomas Daly, vice president Old Commercial National Bank, Oshkosh, Wis .; Francis E. Dewey. president Edward Dewey Company : Stephen Il. Hoff, president Hackett, Iloff & Thier- mann, Ine .; Alfred F. James, president Northwestern National Insurance Company : Arthur H. Lindsay, vice president ; Edmond J. Lindsay, president Lindsay Brothers, Ine .; Samuel MeCord, capitalist ; Herbert A. Viets, presi- dent Fuller-Warren Company.
National Exchange Bank .- Jamiary 2. 1922, marks the sixty-seventh anni- versary of the founding of the National Exchange Bank of Milwaukee.
Organized in December, 1854, as the Bank of Milwaukee, by C. D. Nash, it began business the following month and continued until March, 1865, when it became the National Exchange Bank. During these sixty-five years, the bank has had but three presidents. Mr. Nash served until 1892 when he was succeeded by Charles Ray who retired in 1900. Mr. Ray's place was taken by J. W. P. Lombard, now the active head of the institution.
A glance at the list of officers and directors from the date of the bank's organization to the present time,-sixty-seven years filled with remarkable changes,-shows that men prominent in the business life of Milwaukee have been connected with the National Exchange. The directorate inchided: C. D. Nash, 1865-1892: Jolin Bradford, 1865-1878; John Plankinton, 1865-1888; S. S. Daggett, 1865-1868: J. II. Van Dyke, 1865-1909; R. W. Peake, 1868-1869; Edward P. Allis, 1869-1878; F. J. Blair, 1878-1890; W. G. Fitch, 1879-1891;
355
BANKING AND FINANCE
Grant Fitch, 1888 to date: G. D. Van Dyke, 1890-1899; George R. Nash, 1890- 1893; Charles Ray, 1890 to date; J. W. P. Lombard, 1891 to date; Samuel M. Green, 1893-1901 ; J. E. Friend, 1893-1912; Charles Allis, 1900-1901 : Henry F. Whitcomb, 1902 to date; Frederick W. Sivyer, 1902-1903: W. D. Van Dyke, 1909-1910: F. L. Pierce, 1910-1919; Lawrence Fitch, 1910 to date; Harry J. Brown, 1912 to date, and Frank R. Bacon. 1919 to date.
Vice presidents who have served the National Exchange Bank are: John Bradford, 1865-1879; John Plankinton, 1879-1888; W. G. Fitch, 1888-1891; Charles Ray, 1891-1892; J. W. P. Lombard, 1892-1900, and Grant Fitch, 1906 to date.
Second vice president : Charles Ray, 1890-1891, and J. W. P. Lombard, 1891-1892.
During the sixty-seven years of the life of the National Exchange Bank, the bank has had but three cashiers. They are: W. G. Fitch, 1865-1888; Grant Fitch, 1888-1906, and William M. Post, 1906 to date.
The list of assistant cashiers includes : Abbott Lawrence, 1882-1886; Grant Fitch, 1886-1888: George R. Nash, 1888-1889: Frederick Kasten, 1889- 1892; William M. Post, 1900-1906, and G. W. Augustyn, 1913 to date.
The National Exchange Bank, then the Bank of Milwaukee, opened for business in a three-story briek struetnre at Detroit and East Water streets. This was a most pretentious structure in the days before the Civil war. After several years in this location, the bank moved into a new five-story building at 86 Michigan Street, in the heart of Milwaukee's financial district. This banking house soon became too small and in 1887, the bank was moved to its present location at Michigan and Broadway, up to that time the site of the Newhall House, Milwaukee's famous hostelry which burned with the loss of scores of lives. The bank's capital has grown to $500,000, with surplus and undivided profits of over $700,000.
Through the period of the Civil war and the troublesome reconstruction days that followed the end of the struggle between the North and South, and through financial panies which wrecked many larger banks and made paupers of millionaires, the National Exchange Bank has been of service to the community in precisely the fields which at present identify it-the fur- thering not of speculation but of commerce, and the furnishing of assistance to the individual merchant, business man and country bank.
Second Ward Savings Bank .- Three seore and ten years ago the founda- tion was laid for the Second Ward Savings Bank. From that day to this the corner stone policy has been to provide a sound and conservative bank- ing service for the Milwaukee and Wisconsin publie, under the direction and management of men of wide business experience and conservative judicial minds.
On December 26, 1855, by formal articles of partnership. the old firm of Wilmanns, Jacobs & Company was reorganized to conform with the new state banking statute of April 19, 1852, and took the chartered name of "Second Ward Bank." This name in those days was more significant than it is today as the Second Ward embraced all of Milwaukee west of the river fortifications. The partners were Messrs. Augustus A. Wilmanns and William H. Jacobs.
.
-
--
THE SECOND WARD SAVINGS BANK Located at the intersection of West Water and Third streets
357
BANKING AND FINANCE
In abont 1866 a further reorganization was effeeted under the corporate name of "Second Ward Savings Bank" and the controlling interest fell to Messrs. Joseph Schlitz, Valentine Blatz, William H. Jaeobs and Phillip Best. Mr. Jacobs was eashier and aetive manager until his death in 1882. He was succeeded as cashier by Mr. C. C. Schmidt, who was succeeded by W. L. Cheney in 1912. Mr. Cheney was cashier until his death in 1916. Mr. G. L. Weigle was then made cashier and is still in that position. At the death of Mr. Best in 1869 his interests were acquired by Capt. Fred Pabst and Emil Sehandein. At the death of Mr. Joseph Schlitz, in 1875, his interest fell to Mr. August Uihlein. Mr. Blatz continued as president until his death in 1894, when Mr. August Uihlein became president. After the death of Mr. Schandein and Captain Pabst in 1900, their stock interests were acquired by Mr. August Uillein. At the death of Mr. August Uihlein, in 1911, Mr. Joseph E. Uihlein, the present incumbent, became president.
Except for a few years, under the early partnership arrangement when the headquarters were on Chestnut Street, near Third, the main office has been located from the beginning at Third, West Water and Cedar streets. The present banking building, constructed in 1912, is the third structure occupied by the bank on the same site.
In 1873 a branch known as the Sixth Ward Branch was established at Third Street and Reservoir Avenue, and in 1874 another branch known as the Ninth Ward Braneh was established at Vliet Street and Central Avenue. Both of these branches were rebuilt in 1912 and are now known as the Ninth Ward Branch, Twelfth and Vliet streets, and the North Side Branch, Third and North Avenue.
With the advent of the new structures in 1911-12 eame an enlarged or- ganization and the aggressive poliey of developing a commercial as well as a savings banking business. At present the bank is on about a 50-50 basis. That is, about half of its deposits are savings and half commercial.
In this policy of progress the securities business was also included, and a bond department was organized in 1911. In January, 1920, the business of this department was turned over to the Second Ward Seenrities Company, a eor- poration organized for the express purpose of dealing in securities. It is controlled by the identical stockholders of the bank.
The capital which was originally $25,000 has been consistently inereased to meet the needs of an enlarged business. It was raised from $200,000 to $1,000,000 in 1909, and is backed up today with a surplus of $1,000,000 in addition to liberal undivided profit and contingent reserves.
It took about thirty years (to 1880) for the deposits to reach a million and another thirty years (to 1910) to reach ten million. In 1920 the deposits passed the thirty-five million mark. The latter figure represents the bank balances of some fifty thousand (50,000) clients, of which about forty thou- sand (40,000) are savings depositors. This makes the Second Ward Savings Bank the second commercial bank and the first savings bank in the State of Wisconsin.
The bank has an unbroken dividend record of twenty-five years. It has withstood the shock of three United States wars. It has weathered the finaneial storm of four major panies. It is now emerging from the economie
358
HISTORY OF MILWAUKEE
crisis of the World war in the enviable position enjoyed by few banks-with a large surphis, and liberal reserves.
Seeond in Commercial importance, first in Savings, unexcelled in personal service, the Second Ward" Savings Bank and the Second Ward Securities Company boast of their unmarred history, and look to the future with that assurance of continued success and usefulness to the community which such a record justly inspires.
American Exchange Bank .- The American Exchange Bank had its incep- tion in the fact that the southern seetion of the city was without an adegnate financial institution to render immediate service to the business interests lo- cated there. While the retail interests, which had in an earlier day grown up in the northeastern part of the south side had been drifting westward. the manufacturing and small jobbing interests eontinned to grow.
The need, therefore, of an efficient banking institution to serve not only for the business interests that had grown up in this section of the city, but for the general public as well, became apparent.
Thus, the German-American Bank, which later became the American Exchange Bank was founded by Emil Durr, who had for years been identified with the humber business and later with the United States Gypsum Company. and who became its president. Charles F. P. Pullen, formerly a banker at Evansville, Wis., became the organizer, cashier and manager of the institution, associating with him F. F. Riedel, also an experienced banker.
The charter was issued in 1892 and the bank was opened at the northeast corner of Reed Street and National Avenne, where a branch of the present bank is still maintained. Owing to the large German population in this see- tion of the city, business expedieney suggested the name of the German- American Bank. The original eapital stoek was $100,000 and the opening deposits aggregated $160,000.
In January, 1900. the capital stock was increased to $200,000. Edwin Reynolds, who was then the general manager of the E. P. Allis Company, became the president of the bank. During the same year a branch bank was opened at the corner of Kinnickinnie and Lincoln avennes, with F. F. Riedel as manager. It was known as the Bay View Branch.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.