OHIO BANKING
INSTITUTIONS, 1803 TO 1866.
BY A. B. COOVER.
A bank, as we understand and use the
word, is simply a plan
of organizing capital, by which the full
benefits of the latter are
secured. The separate means of
individuals are united together,
and a large sum thus constituted is
hired out at interest to those
who need it. This combination, and the
manner of its use, may
be compared to a dam across a valley,
and the accumulation in
one body the water of separate springs,
which otherwise would
be of little service; but being united,
they form a propelling
power for extensive machinery.
Without organization of capital in some
form, a community
must remain in comparative barbarism.
The few who possess
wealth above their immediate wants must
either send it away
for investment where it would enrich
other places, or it would
for the most part lie dead, while the
poor would continue in
ignorance and drudgery.
After it is organized, a bank gathers
more capital by saving.
It presents the first practical idea of
economy and increase to
thousands of people.
For several centuries past, banks have
been the successful
medium through which credit has not only
been preserved, but
great wealth acquired.
The first bank of which we have any
authentic history was
established in Genoa, Italy, in
1407-five hundred years ago.
The Bank of Amsterdam was established in
1609, and shortly
after, those of Hamburg and Rotterdam.
The Bank of Eng-
land was established in 1694; the Royal
Bank of Paris in 1718;
the Bank of North America in 1781, and
the Bank of the United
States in 1791.
Under laws passed in 1837 a banking
system known as the
"Wild Cat" system was formed
in the United States; under this
law about all that was needed to start a
bank was an unlimited
(296)
Ohio Banking Institutions, 1803 to 1866. 297
amount of nerve and the necessary capital to pay the engraver and printer for making the notes-this in some instances was not of importance and the bills were obtained on credit. There is much history to be gained through the study of the antiquated paper money of the United States, and within the last three or four years collectors have begun to recognize them as a legitimate branch of numismatics. To the uninitiated a broken bank bill is but a worthless scrap of paper,-but stop a moment,-when we look at an old bank bill the first thing which strikes our fancy, and arouses our curiosity, is the odd pictures engraved thereon. Scenes representing progress in the agricultural, manufacturing and mining districts. Portraits and signatures of men who have |
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Bank Examiners were appointed by the State, to visit each bank within the State, to examine the books and see that the required amount of coin was held by the bank according to law. The above sketch illustrates a bank in a prosperous condition. History records a number of instances in which the coin had been borrowed for the occasion and upon the return of the Examiner within a short period, without notice to the bank, no coin would be found within the vaults. |
298 Ohio Arch. and Hist.
Society Publications.
since become famous by having either
been sent to Congress,-
or to jail. Then the history of the rise
and fall of each in-
dividual bank appeals to us; the place
which it took for good or
evil in the community in which it was
located. Then follows a
desire to study the whole banking system
of the United States
from the establishment of the Bank of
North America in 1781
to the War of 1861-65. We then want to
know more about
the World's financial system from the
beginning of banking up
to the present time.
The history of banks and banking in Ohio
covers a period
of more than one hundred years. However,
our part in this
history will be restricted to the first
half of the nineteenth
century.
The State of Ohio was admitted into the
Union March 1,
1803. The first bank was organized in
April, 1803, at Cincin-
nati, under the name of "The Miami
Exporting Company." This
bank was established to facilitate
trade, and was capitalized for
$500,000, a monster sum in those days.
Shares were made one
hundred dollars each, payable five
dollars in cash and forty-five
dollars in produce and merchandise
acceptable to the President
and Directors. The remaining fifty
dollars was to be paid the
second year, also in produce. This bank
issued bills and re-
deemed them in notes of other banks. The
bills of this bank
were counted as good money for a period
of about forty years.
The first regular banks of the State
were founded in 1808,
the Bank of Marietta and the Bank of
Chillicothe. In 1809,
the Bank of Steubenville was organized
with a capital of $100,-
000. The Muskingum Bank of Zanesville
and the Western Re-
serve Bank of Warren followed, each with
a capital of $100,000.
The Farmers' & Mechanics' Bank of
Warren was organized in
1813 with a capital of $200,000.
In order to furnish a better currency
for the State, the
Legislature, on February 23, 1816,
enacted a general banking
law, incorporating the following
banks:-The Franklin Bank of
Columbus; the Bank of Lancaster; the
Belmont Bank of St.
Clairsville; the Commercial Bank of Lake
Erie at Cleveland; the
Bank of Mt. Pleasant, and the Bank of
West Union, each with
a capital of $100,000. This law made the
State a partner in
Ohio Banking Institutions, 1803 to 1866.
299
the profits and the capital of these
institutions by setting apart
one share in twenty-five on each bank
free, and permitted the
renewed banks to create new stock
accordingly.
In 1817, six new banks were chartered as
follows: The
Bank of Circleville; the Bank of
Gallipolis; the Bank of Ham-
ilton; the Farmers' Bank of Canton; the
Portsmouth Bank,
and a new bank at Steubenville. In 1818
the Geauga Bank of
Painesville was formed as a northern
outpost of commerce,
while the formation of the Commercial
Bank of Cincinnati, with
a capital of $300,000, kept up the
south-western end of the
State.
The Bank of the United States
established a branch at Cin-
cinnati in January, 1817, andone at
Chillicothe in October of
the same year. The charter of the Bank
of the United States
provided the method of taxation. In 1821 the
Legislature of
Ohio enacted a law to withdraw from the
Bank of the United
States the protection and aid of the
laws of the State.
The Legislature of Ohio was very hostile
to foreign bank-
ing institutions, or banks within the
State controlled by foreign
capital. Repeated acts of hostility were
passed, changing the
bank charters, especially by altering
the manner of taxation. By
an act passed March 14, 1853, it was
enacted that if a bank
should refuse to pay the tax assessed
against it, which might
be different from that provided in its
charter, within five days
after notice, the treasurer was
authorized to seize all money or
valuables found in the bank. To the
county treasurer or com-
missioner was given power to break any
door or window, or if
found necessary to obtain the property
of the bank, the doors of
the bank vault could be broken open.
Prior to 1838, and for the most part,
down to the legislation
incident to the Civil War, local banking
was regulated by the
State, and was practically free. Under
prescribed rules, any
individual or corporation might issue
notes on a pledge that they
would be redeemed when presented.
Generally speaking, the so-called banks
in the early days of
Ohio were literally established without
capital or experience on
the part of those who managed the same.
Notes for circulation
were scarce, and when obtained were of
doubtful value. In
300 Ohio Arch. and Hist. Society Publications. addition to the untrustworthy character of the bank-notes in circulation, counterfeits were so abundant that it required the knowledge of an expert to avoid them. There were counter- feits on a large portion of the Ohio banks, as well as the Bank of the United States. The engraving on the bank-notes of that day was so poorly done that it was no difficult task to imitate them. The reports of the Secretary of the Treasury show that in 1835 there were twenty-four banks in Ohio, with a combined capital of $5,819,692; but owing to faulty methods and insecure foundations the number rapidly decreased until in 1845 there remained but eight banks with a combined capital of only $2,171,007. A new system was fathered by the State in 1845, in which the State Bank of Ohio was created, with a capital of $6,150,000, which was divided into twelve districts, and provisions made for the establishment of sixty-three branches, forty-one of which were in actual operation. These banks were chartered to run until 1866, and were under the supervision of a Board of Con- |
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Ohio Banking Institutions, 1803 to 1866.
301
trol, which furnished all the notes for
circulation. The branches
were required to deposit ten per cent.
of their capital in stock
of Ohio or United States money as
collateral, to be applied to
the redemption of notes when any bank
failed.
The act incorporating the State Bank of
Ohio provided for
the establishment of independent banks.
In relation to the branches of the State
Bank, the only
security that their notes would be
redeemed in case of failure
was the responsibility of the other
branches, each branch be-
ing responsible for the redemption of
the notes of all the rest.
The Independent banks deposited with the
Treasurer of State,
bonds on which they received ninety per
cent. of circulation. The
result demonstrated that the State Bank
System was equally as
safe as the other, for while out of
forty-one branches established
six failed, their notes circulated just
as well as before, were
received by all the branches and all
other parties in the State at
par with the solvent branch issues, and
were returned to the
office in Columbus, where they were
redeemed from a fund pro-
vided for that purpose and the notes
then destroyed.
The following is a list of the banking
institutions located in
Ohio from 1803 to 1861 and as much of
the history of each bank
as it has been possible with my limited
facilities to obtain. My
authority for statements made concerning
the banks is from a
miscellaneous collection of data made in
collecting Antiquated
Paper Money during the past ten years.
There may be errors and omissions in
this list, however I
am confident that it is the nearest
complete of any article of the
kind heretofore published.
Akron-
Akron Branch of the State Bank of Ohio;
J. W. Mc-
Millen, President; A. M. Eberman,
Cashier.
Ashtabula-
Farmers' Branch of the State Bank of
Ohio; O. H.
Fitch, President; A. F. Hubbard,
Cashier.
Athens-
Athens Branch of the State Bank of Ohio;
J. Ballard,
President; J. R. Crawford, Cashier.
302 Ohio Arch. and Hist. Society
Publications.
Bloomingville-
Bank of Sandusky Bay.
Bridgeport-
Belmont Branch of the State Bank of
Ohio; Jno. War-
field, President; John C. Tallman,
Cashier.
Cadiz-
Harrison Branch of the State Bank of
Ohio; C. Dewey,
President; B. W. Phillips, Cashier.
Canton-
The Farmers' Bank of Canton; in 1837 had
a paid up
capital of $80,000 and bills in
circulation to the amount of
$172,446.
The Stark County Bank; J. A. Saxton, President,
and
E. P. Grant, Cashier.
Chillicothe-
The Bank of Chillicothe; capital stock
$500,000, in
1837 the circulation amounted to
$472,477.
Chillicothe Branch of the State Bank of
Ohio; Wm. H.
Douglass, President; J. B. Scott,
Cashier.
The Farmers' & Mechanics' Bank.
Farmers', Mechanics' & Merchants' Bank. (It is
claimed that notes issued by the above
named bank were
fraudulent, as there was no bank of that
name in Chil-
licothe.)
Ross County Branch of the State Bank of
Ohio; O. T.
Reeves, President; A. Spencer Nye,
Cashier.
The United States Bank; organized and
established in
October, 1817.
Cincinnati-
The Bank of Cincinnati; organized in
1814, with a
capital stock of $140,000. Ethan Stone,
President; Lot
Pugh, Cashier.
Bank of the Ohio Valley; W. A. Goodman,
Cashier.
Cincinnati & Whitewater Canal
Company.
The Citizens' Bank.
The City Bank of Cincinnati; Geo. S.
Baker, Presi-
dent; S. Roberts, Cashier.
Ohio Banking Institutions, 1803 to 1866. 303
The Commercial Bank; incorporated in
1829, charter
expired in 1844, capital stock
$1,000,000, and in 1837 notes
in circulation to the amount of
$1,115,548. James Hall,
President; C. B. Foote, Cashier.
The Consolidated Banking Company.
The Exchange Bank & Savings
Institute.
The Farmers' & Mechanics' Bank;
organized in 1812,
incorporated in 1813, capital stock
$2,000,000. William
Irwin, President; Samuel W. Davies,
Cashier.
The Franklin Bank; incorporated in 1833,
charter ex-
pired in 1843, capital stock $1,000,000,
circulation in 1837
$485,878. J. H. Groesbeck, President; T.
M. Jackson,
Cashier. This bank was rechartered in
1843 and closed in
1856.
The Franklin Branch of the State Bank of
Ohio; J.
Kilgore, President; T. M. Jackson,
Cashier.
The Hamilton County Bank.
Lafayette Bank; incorporated in 1834,
charter expired
in 1854, capital stock $1,000,000,
circulation in 1837 $478,-
083. George Carlisle, President; Wm. G.
W. Gano, Cashier.
Mechanics' & Traders' Bank.
Merchants' Bank.
Merchants' & Traders Branch of the
State Bank of
Ohio; S. L. Hommedieu, President; C. E.
Nourse, Cashier.
The Miami Exporting Company Bank;
incorporated
in 1803, capital stock $500,000 of which
$292,955 was paid
up. In 1837 bills were in circulation to
the amount of $383,-
645. Oliver M. Spencer, President;
Samuel C. Vance,
Cashier.
The Ohio & Cincinnati Loan Office.
The Ohio Life Insurance & Trust
Company; incorpo-
rated in 1834, charter expired in 1843
and rechartered in
the same year. Capital stock paid up in
the year 1837,
$628,594 and bills in circulation to the
amount of $392,595.
Phoenix Bank.
Platt & Company's Bank.
The Savings Bank; John D. Park,
President.
304 Ohio Arch. and Hist.
Society Publications.
The United States Bank; a branch of this
bank was or-
ganized and established in Cincinnati in
January, 1817.
The Western Bank.
Circleville-
The Bank of Circleville; (old Bank)
incorporated in
1818, charter expired in 1843.
The Bank of Circleville; (new Bank)
incorporated in
1834, charter expired in 1855; however the
bank failed and
was closed in 1854. The capital stock
was $200,000 and in
1837 bills were in circulation to the
amount of $145,741.
J. L. Franklin, President; H. K.
Lawrence, Cashier.
The Pickaway County Bank; M. Brown,
President; O.
Ballard, Cashier.
Cleveland-
The Bank of Cleveland; capital stock in
1837, $205,925,
and bills in circulation to the amount
of $242,834.
The Bank of Commerce.
The Canal Bank; Isaac L. Hewitt,
President; T. C.
Severance, Cashier.
The City Bank of Cleveland; Lemuel Wick,
President;
Alfred Clark, Cashier.
The Commercial Bank of Lake Erie;
capital stock in
1837, $400,000, and bills in circulation to the
amount of
$356,133.
The Commercial Branch of the State Bank
of Ohio;
W. A. Otis, President; T. P. Handy,
Cashier.
The Forest City Bank; J. G. Hussey,
President; W. H.
Stanley, Cashier.
The Franklin Bank.
The Lafayette Bank.
Mechanics' & Traders' Bank.
Merchants' Branch of the State Bank of
Ohio; T. M.
Kelly, President; P. Handy, Cashier.
Branch of the Ohio Life Insurance &
Trust Company.
Columbus-
The City Bank of Columbus; incorporated
in 1845.
"This institution went into operation
near the same time as
the Exchange and Franklin Branch Eanks;
under the same law,
Ohio Banking Institutions, 1803 to 1866. 305
but a different provision of it, which
authorized Independent Banks,
secured by the deposit of State stocks
with the Treasurer of State.
This bank was located in the same
building as the Columbus Insur-
ance Company, and, to a great extent,
the stockholders in one of
these institutions were also in the
other; and so also with the direc-
tory of both institutions, which became
in their business much mixed
up together.
"Joel Buttles was the President of
the bank until the time of
his death, in the summer of 1850. Then
Robert W. McCoy was
President until the time of his death in
January, 1856. Thomas
Moodie was Cashier during the whole
existence of the Institution.
"Finally the Bank and the Insurance
Company both failed; the
Insurance Company in 1851, and the Bank
suspended and closed its
doors in November, 1854." (History
of Franklin County, 1858.)
The Clinton Bank; incorporated in 1834,
and in 1837
had a paid up capital of $299,500 and
bills in circulation
to the amount of $115,046. W. M.
Sullivant, President;
D. W. Deshler, Cashier.
"The Clinton Bank of Columbus was
chartered 1833-34, and in
October, 1834, the first Board of
Directors was elected, and consisted
of William Neil, Christopher Neiswanger,
David W. Deshler,
Demas Adams, John Patterson, Jesse
Stone, Noah H. Swayne,
Joseph Ridgeway, Bela Latham, William S.
Sullivant, William
Miner, 0. W. Sherwood, and Nathan
Medbury. William Neil was
elected President, and John Delafield,
Jr., Cashier. Mr. Neil con-
tinued President until January, 1846,
when he was succeeded by
William S. Sullivant, who was continued
President until the charter
expired January 1, 1854. Mr. Delafield
was succeeded as Cashier
by John E. Jeffords, in January, 1838.
Mr. Jeffords died in April,
1842, and David W. Deshler was then
appointed Cashier, and
continued until the expiration of the
charter. After the expiration
of the charter, some half dozen of the
principal stockholders in the
old bank formed themselves into a new
private banking company,
and continued to do business as such in
the same room. They
styled their institution 'Clinton Bank,'
merely dropping from the
old name the words 'of Columbus.' The
notes of the old Clinton
Bank of Columbus were redeemed by the
new concern at par."
(History of Franklin County, 1858.)
The Exchange Branch of the State Bank of
Ohio; in-
corporated in 1845, with a capital of
$125,000. W. B. Hub-
bard, President, and H. M. Hubbard,
Cashier.
Vol. XXI. -20.
306 Ohio
Arch. and Hist. Society Publications.
"In February, 1845, the banking
law, to incorporate the State
Bank of Ohio, and other banking
companies, was passed. Books
were immediately opened, and the
requisite amount of stock soon
subscribed for three new banks-the
Exchange Branch and the
Franklin Branch of the State Bank; and
the City Bank based upon
State stocks.
"The Exchange Bank went into
operation on the 24th of May,
1845, with a capital of $125,000, the
charter of which expired on the
1st of May, 1866.
"The first Board of Directors of
the Exchange Bank were,
William B. Hubbard, D. T. Woodbury,
Edwards Pierpont, O. Follett,
and Peter Hayden. The successive
business officers were as follows:
Presidents. -
"William Hubbard, May 24, 1845 to
June, 1852.
"William Dennison, Jr., June 22,
1852 to Jan. 1, 1856.
"D. W. Deshler, January 1, 1856 to
1858 and later.
Cashiers. -
"H. M. Hubbard, May 24, 1845 to
1853.
"M. L. Neville, June 1, 1853 to
1855.
"C. J. Hardy, January 1, 1856 to
1858 and later."
(History of Franklin County, 1858.)
The Franklin Bank of Columbus;
incorporated in 1816,
with the charter to expire in 1843. In
1837 there was a
paid up capital of $481,500 and notes in
circulation to the
amount of $272,396.
The Franklin Branch of the State Bank of
Ohio; in-
corporated in 1845, with a capital stock
of $175,000. Samuel
Parsons, President, and James Espy,
Cashier.
"The Franklin Bank went into
operation July 1, 1845, with a
capital of $175,000. The charter
expiring May 1, 1866. The first
Board of Directors were, Gustavius Swan,
Samuel Parsons, George
M. Parsons, Wray Thomas and Thomas Wood.
The successive
business officers were as follows:
Presidents. -
"Samuel Parsons, July, 1845 to
July, 1852.
"Thomas Wood, May, 1852 to July,
1853.
"D. W. Deshler, July, 1853 to 1858
and later.
Cashiers. -
"James Espy, July, 1845 to July,
1854.
"Joseph Hutcheson, 1854 to 1858 and
later."
(History of Franklin County. 1858.)
The Mechanics' Savings Institute.
Ohio Banking Institutions, 1803 to 1866. 307
Cuyahoga Falls-
Summit County Branch of the State Bank
of Ohio; E.
N. Sill, President; E. S. Comstock,
Cashier.
Dayton-
The Dayton Bank; incorporated in 1814,
rechartered in
1843, closed and discontinued in 1856.
In 1837 this bank
had a paid up capital of $167,203 and
bills in circulation to
the amount of $65,612.
The Dayton Branch of the State Bank of
Ohio; Peter
Odlin, President, and Charles G. Swain,
Cashier.
The Miami Valley Bank; Daniel Beckel,
President,
and S. C. Emley, Cashier.
The Dayton Manufacturing Company;
"In November, 1813, meetings of the
Dayton business men
were held with a view of establishing a
bank. The next month
the Dayton Manufacturing Company was
incorporated by the Legis-
lature. On December 28, the following
Directors were elected:
H. G. Phillips, Joseph Peirce, John
Compton, David Reid, William
Eaker, Charles R. Greene, Isaac G.
Burnet, Joseph H. Crane, D. C.
Lindsley, John Ewing, Maddox Fisher,
David Griffin, and John H.
Williams. May 19, 1814, the board
organized by the election of
H. G. Phillips, President, and George S.
Houston, Cashier. The
banking hours were from 10 A. M. to 1 P.
M. * * * During
the winter (1814) the community had a
new experience in the
appearance of one and two dollar bills,
of the Dayton Manufacturing
Company, fraudulently raised to twenties
and one hundred dollar
bills." (History of Montgomery
County. 1882.)
Delaware-
The Bank of Delaware; W. E. Moore,
Cashier.
The Delaware Branch of the State Bank of
Ohio; H.
Williams, President, and B. Powers,
Cashier.
Eaton--
The Preble County Branch of the State
Bank of Ohio;
J. Harshman, President, and H. C.
Heistand, Cashier.
Elyria-
Lorain Branch of the State Bank of Ohio;
E. Dewitt,
President, and John R. Finn, Cashier.
308 Ohio Arch. and Hist.
Society Publications.
Franklin-
The Franklin Bank of Portage County;
Zenas Kent,
President; Charles Peck, Jr., Cashier.
Fulton-
The Orphans' Institute Bank.
Gallipolis-
The Bank of Gallipolis.
Granville-
The Bank of Granville, (also known as
the Granville
Alexandrian Society). Organized in
1814-15; in the year
1837 this institution had a paid up
capital of $146,129 and
notes in circulation to the amount of
$101,213. Alexander
Holmes, President, and R. R. Roach,
Cashier.
"At an early period an act of the
legislature incorporated the
Granville Alexandrian Society. It was
supposed the law conferred
banking powers, accordingly a bank was
established about 1814
or 1815.
"The banking house was a one story
building, and stood at the
southeast corner of Broad street and the
public square. It issued
circulating notes and did a general
banking business. It is not
certain who its first directors and
officers were, but Elias Gilman,
Silas Winchel, and Timothy Spellman,
residents of Granville, were
of the board, with Alexander Holmes, of
Newark, as President,
and R. R. Roach, as Cashier.
Subsequently G. Swan, was Cashier,
and he was succeeded by Elisha S.
Gilman. This was no doubt
the first banking institution in the
county.
"In 1817, in common with other
banks in the State, * * *
the bank failed to redeem its notes, and
suspended payment, when
its notes greatly depreciated. In 1836
the bank was revived, prin-
cipally by Buffalo parties. Henry Roop
was made President, and
A. G. Hammond, Cashier. Mr. Hammond did
not continue long,
and A. J. Smith succeeded him. Mr. Roop
retired from the presi-
dency after a time, when his place was
supplied by some person
interested in the bank in Granville. The
public did not have great
confidence in this bank, its issues not
being in much favor, and it
suspended payment in 1841. Its business
was wound up by order
of the court, and some of its
stockholders were made individually
liable for its outstanding notes." (Licking
County History, 1881.)
Hamilton-
The Bank of Hamilton; incorporated in
1817, with a
capital stock of $100,000. In 1837 this
bank had bills in
Ohio Banking Institutions, 1803 to 1866. 309
circulation to the amount of $106,343. Closed in
1842.
John Riley, President, and William
Blair, Cashier.
"On the 19th of December, 1817, the
Bank of Hamilton was
incorporated with a capital of $300,000,
and went into operation
on the 30th day of July, 1818. The
capital stock paid in was
$33,062.68. This institution continued
to do business for only two
or three years, the pressure of the
times and depreciating of bank
paper in the West forced them to direct
their measures towards a
close of their business. * * * The first
president of the Bank
of Hamilton was John Reily, and the
first cashier, William Blair.
* * * From 1824 to 1835 directors were
annually elected to keep
the bank alive. In 1835 additional
shares were subscribed and the
bank again went into operation. * * *
The hard times pressure
finally compelled the bank to close its
doors on February 9, 1842.
The directors were arrested. It was
claimed they issued more notes
than their charter called for. One
director was placed on trial and
acquitted. All the other cases were
nolled." (History of Hamilton
County. 1896.)
The Butler County Bank.
Peck Bank; incorporated in 1857. Dr.
John P. Peck,
President, and John B. Cornell, Cashier.
Shaeffer & Curtis Bank.
Ironton-
The Iron Bank; James Rogers, President,
and George
Williard, Cashier.
The Ohio State Stock Bank.
Kirtland-
The Kirtland Safety Society Bank.
Lancaster-
The Hocking Valley Branch of the State
Bank of Ohio;
D. Tallmage, President, and M. A.
Daugherty, Cashier.
The Lancaster Bank; in 1837 this bank
had a paid up
capital of $200,000 and bills in
circulation to the amount of
$274,423. The dividends of the Lancaster
Bank from 1817
to 1839 averaged 13%.
Lebanon-
The Lebanon-Miami Banking Company;
incorporated
in 1816, charter expired in 1843.
310 Ohio Arch. and
Hist. Society Publications.
Logan-
The Logan Branch of the State Bank of
Ohio; F. Cam-
bell, President, and J. Walker, Cashier.
Manhattan-
The Manhattan Bank.
Mansfield-
The Bank of Mansfield; organized in
1816. John Gar-
rison, President, and Mr. Elliott,
Cashier. This institution
applied for a charter which was denied
them.
The Farmers' Branch of the State Bank of
Ohio; in-
corporated in 1847. James Purdy,
President, and H. Colby,
Cashier. (John Rhodes was succeeded by
J. M. Rhodes as
Cashier in 1850, and he in turn
by Colby in 1851. At the
expiration of the charter of this bank
it was merged into
a National Bank.)
Marietta-
The Bank of Marietta; incorporated in
1808, re-char-
tered in 1816, charter expired in
1843. Paid up capital in
1837, $1O1,090, and bills in circulation
to the amount of
$120,271. Rufus Putnam, President, and
David Putnam,
Cashier.
"The first corporation in the State
which exercised banking
powers exclusively, was chartered
February 10, 1808, as the Bank
of Marietta. The directors named in the
charter were Rufus Put-
nam, Benjamin I. Gilman, William
Skinner, Paul Fearing, Dudley
Woodbridge, Earl Sproat, and David
Putnam. This charter was
for the term of ten years. * * * In 1816
the charter, although
not yet having expired, was extended,
under the banking act of
1816, to January 1, 1843.
"* * * The following were the
successive Presidents and
Cashiers:
"Presidents:-Rufus Putnam, Benjamin
I. Gilman, Dudley
Woodbridge, Levi Parker, and John Mills.
"Cashiers:-- Benjamin Putnam, David
Putnam, David S. Cham-
bers, Alexander Henderson, William B.
Barnes, Arius Nye, and
A. T. Nye.
"* * * The first safe was merely a
plank chest, barred with
iron and secured by a padlock."
(History of Washington County. 1881.)
Ohio Banking Institutions, 1803 to 1866. 311
The Marietta Branch of the State Bank of
Ohio; in-
corporated in 1845. John Mills,
President, and N. L..Wil-
son, Cashier.
"A branch of the State Bank of
Ohio, was organized and
commenced business November 3, 1845,
under the name of the
Bank of Marietta, with John Mills,
President, and Noah L. Wilson,
Cashier. * * * In 1857, Noah L. Wilson
resigned and I. R
Waters was elected Cashier."
(History of Washington County. 1881.)
Marion-
The Bank of Marion; W. W. Concklin,
President, and
J. Ault, Cashier.
The Ohio State Stock Bank.
Massillon-
The Bank of Massillon; incorporated in
1834, charter
expired in 1855, business closed in
1856. In 1837 this bank
had a paid up capital of $200,000 and
bills in circulation to
the amount of $320,181. Charles K.
Skinner, President,
and F. E. Platt, Cashier.
The Merchants' Bank; Isaac Steese,
President, and S.
Hunt, Cashier.
The Union Branch of the State Bank of
Ohio; M. D.
Wellman, President, and L. Hurxthal,
Cashier.
Miamisburg-
The Washington Bank; incorporated in
1844. R. S.
Wheelock, President, and L. P. Morris,
Cashier.
(This institution was incorporated as
the Washington Social
Library Company, and was supposed to
have banking privileges.)
Middletown--
The Canal Bank.
Monroe Falls-
The Monroe Falls Manufacturing Company.
Mount Pleasant-
The Bank of Mount Pleasant; incorporated
in 1816:
charter expired in 1843. In 1837 this
bank had a paid up
312 Ohio Arch.
and Hist. Society Publications.
capital of $194,495 and bills in
circulation to the amount of
$195,980.
Mount Pleasant Branch of the State Bank
of Ohio;
James Gills, President, and Jonathan
Burns, Cashier.
Mount Vernon--
The Knox County Branch of the State Bank
of Ohio;
incorporated in 1848. H. B. Curtis,
President, and J. C.
Ramsey, Cashier.
"The Knox County Bank of Mt.
Vernon, O., was organized as
a branch of the State Bank of Ohio, in
1848. Henry B. Curtis,
President, and John C. Ramsey, Levi L.
Lewis, and J. Frank An-
drews were the successive Cashiers. The
life of the Knox County
Bank extended from 1848 to 1865, when it
was reorganized and
became known as the Knox County National
Bank."
(History of Knox County. 1881.)
The Owl Creek Bank of Mount Vernon;
organized in
1816, capital stock $500,000. James Smith, President, and
L. S. Silliman, Cashier.
"The following is an account of an
institution with the above
euphonious name, located upon the banks
of Owl Creek, and within
the precincts of Mt. Vernon. The
engraving above gives a view of
one of 'the owls' issued by this bank.
They were of every denomi-
nation from the shinplaster form of 61/4
cents up to $10.00. * * *
From journals and old files of that day,
we have compiled
the following. There being great complaint of the scarcity of
money after the war (1812), large
numbers of people in the
various cities and towns in the United
States, and more particularly
in the West and Ohio, conceived the idea
of multiplying the
quantity of paper in lieu of money by
manufacturing what is called
currency. Among other points, those of
Mount Vernon determined
to engage in the business of making
money. As early as December,
1814, a meeting was held, and articles
of association for the organ-
izing of a bank, to be called 'The Owl
Creek Bank of Mount Ver-
non,' were entered into, fixing the
capital stock at $150,000, divided
into shares of $50 each, and appointing
certain commissioners to
open stock books, etc. Petitions were
then presented to Legislature,
praying for a charter; and after having
petitioned the Legislature
for an act authorizing such an
association, and having been denied
the grant, determined to 'go it alone,'
on their own hook.
Ohio Banking Institutions, 1803 to 1866. 313
"On the 10th day of April, 1816,
the first meeting on record
of those who inaugurated the Owl Creek
Bank was held at the
court-house in Mount Vernon. * * * As
showing the feeling
existing in regard to such banks, in the
winter of 1816-17 an enemy
of the bank killed a tremendous big owl,
and bringing it into town,
he rudely threw it down upon the
counter, exclaiming, 'There,
d'm you, I've killed your president.'
"The bank building was a rough, yet
substantial piece of work-
manship, a mixture of Doric and
Corinthian styles of architecture,
weather-boarded; and with four-penny
nails thickly driven through
its batten door and window-shutters, so
thieves could not cut in and
steal. On the ground it covered about
fourteen feet square, and
was one low story in height, and painted
red.
"The office of the Bank President
was no sinecure in those days,
at least of the Owl Creek Bank, for we
find that the chief owl was
at all times compelled to defend his
institution.
"Such is, in brief, the history of
the Owl Creek Bank; an
institution which, in part from its
outre name, has acquired more
notoriety than any other that has ever
existed in America-if
not in the world. The fame of the
'United States Bank' was not
more widely extended. Its failure
created no greater dismay.
Nations civilized and tribes savage have
seen and handled its money.
In its brief life, yet protracted
existence, it has been cursed most by
those whom it befriended, and wronged
most by those who professed
to be its friends.
"The evil day came upon it--even in
its early youth; before
it had become full grown, the keen
frosts nipped it. Its crest
fell and its petals closed in, because
too much light struck in
on it suddenly. Its head wilted; it
fell; and great was the fall
thereof. Its sunshine friends deserted
when the cloud portended
the coming storm--some who had received
its money and upon
whom it had showered its benefits, and
some who had lent their
credit and volunteered their names to
the infant, deserted its cause,
and attempted to plead infancy and
limitation in bar. As with
the human kind, when life is almost
extinct, doctors are often
called in only to attend upon the
corpse; so, in this instance, lawyers
were brought in at the eleventh hour to
the wake. In the last
pangs opiates were sought to be
administered, and the sleep of
forgetfulness was invoked by a few.
"After thirty years in the courts,
the last dollar of its issue
presented was redeemed, and, forty years
after its birth, 'all that
was of earth earthy' of the Owl Creek
Bank of Mount Vernon,
was consigned to its final resting
place-The Great Book of
Records." (History of Knox
County. 1862.)
314 Ohio Arch. and
Hist. Society Publications.
Newark-
The Licking County Branch of the State
Bank of Ohio;
Benjamin Elliott, President, and J. E.
Blythe, Cashier.
The Newark Plank Road Company; C. Brady,
Presi-
dent.
New Hagerstown-
The New Hagerstown Bank.
New Lisbon-
The Bank of Columbiana; incorporated in
1816, charter
expired in 1843. In 1837 this bank had a
paid up capital
of $60,000 and bills in circulation to
the amount of $150,000.
New Philadelphia-
The Bank of New Philadelphia; C. Deardorff, Presi-
dent, and J. Blickensderfer, Cashier.
"The first and for many years the
only banking house in New
Philadelphia, was known as
Blickenderfer's Bank. The business
was conducted in a small building which
stood on Lot 150, High
Street, the site of the new hotel. A
bill for $5, now in possession of
E. A. Deardorff, establishes the fact
that the 'Bank of New Phila-
delphia,' which issued it, was in
existence in 1817.
"C. Deardorff was then President,
and J. Blickensderfer, Cashier.
A notice published in the Chronicle in
November, 1819, directing the
stockholders to meet at the office of
Sylvester Johnson, to transact
important business, indicates that the
banking business was con-
ducted for several years. Money in that
day was scarce, and the
bank flooded the village with paper
currency for amounts ranging
from a sixpence upward.
"Mr. C. H. Mitchner preserves this
graphic account of the
institution: - 'Like all other banks of
that day in Ohio, it was
honestly run on paper money only,
although the bills promised to
pay in gold or silver on sight. It was
started to build up the
town, but met with a sad accident. One
day a stranger stopped
in with $10,000 of the bills of the bank
and demanded the coin.
The officers told him to call again in a
short time. This gave them
time to hide. They shut the bank and
adjourned to Sluthour's
(carpenter) shop. He told them that he
had not many shavings
made, and that they had better separate;
that he would hide the
cashier in the shavings, while the
president, having on a pair
of buckskin breeches, had better go into
the red brush, and stay
until the stranger left. Thus they kept
shady until he was out of
town. In a very short time he returned
to the bank, and having no
Ohio Banking Institutions, 1803 to 1866. 315
specie for him, they let the bank go up
higher than a kite, and it
never came down.'
"About 1852 or 1854, Peter Hines
found the bank safe in a
garret. It was an old fashioned
hair-trunk, lined with newspaper,
and behind which he found two Spanish
quarters, dated 1796 and
1800, which the writer purchased for $1,
so that he could boast
of having all the specie of the first
bank of New Philadelphia
when it bursted." (History of
Tuscarawas County. 1884.)
New Salem-
The Farmers' Bank of New Salem;
incorporated in
1816.
The Jefferson Bank.
Norwalk-
The Bank of Norwalk; incorporated in
1831, charter
expired in 1850. In 1837 this bank had a
paid up capital of
$161,245 and bills in circulation to the
amount of $187,874.
Norwalk Branch of the State Bank of
Ohio. Timothy
Baker, President, and John Gardner,
Cashier.
Ohio City-
The Ohio Railroad Company;
This Company was incorporated in 1836.
In 1836, the residents
of Brooklyn township, in Cuyahoga
County, procured the passage
of an Act incorporating themselves into
a city, and gave to this city
the high sounding name of "The City
of Ohio." Considerable
rivalry existed between the residents of
the City of Cleveland and
the City of Ohio; in fact the City of
Ohio was the first to be
incorporated as a city. In 1854, the
rivalry of the two cities having
ceased, and Cleveland being the largest
in the number of population,
it was decided to annex the City of Ohio
to Cleveland, which was
done on June 15, 1854.
At the same session in which the City of
Ohio was incor-
porated, an act was passed to
incorporate the Ohio Railroad Com-
pany, the chief office of which was
located in the City of Ohio.
The Ohio Railroad Company obtained a
large advance in money
from the State, under the act of 1837
which authorized the State
to loan its credit to railroads. By the
17th section of its charter,
the treasurer was authorized to issue
orders, and under this power
it issued a large amount of orders in
the similitude of bank bills.
316 Ohio Arch. and
Hist. Society Publications.
Painesville-
The Bank of Geauga; incorporated in 1829, charter ex-
pired in 1844. In 1837 it had a paid up
capital of $87,000
and bills in circulation to the amount
of $178,813. Daniel
Kerr, President, and S. S. Osborn,
Cashier.
Piqua-
The Piqua Branch of the State Bank of
Ohio; Wil-
liam Scott, President, and Joseph G.
Young, Cashier.
Portsmouth-
The Commercial Bank of Scioto;
incorporated in 1817,
charter expired in 1843. In 1837 it had
a paid up capital
of $268,621 and bills in circulation to
the amount of
$248,857.
"The old Commercial Bank of Scioto
was chartered by a
special act of December 16, 1817. Its
capital was $100,000. It
was organized and ready for business
December 17, 1817, with
Thomas Waller, President and Elijah
McIntyre, Cashier. The suc-
cessive Presidents and Cashiers were:
Presidents:
"Thomas Waller, 1817 to 1823.
"John R. Turner, 1823 to --
"J. V. Robinson, --
"Cashiers:
"Elijah McIntyre, 1817 to 1820
"Jacob Clingman, 1820 to 1833.
"N. K. Clough, 1833 to
"H. Buchanan,
"The bank made an assignment on
January 13, 1843."
(Scioto County History.)
The Portsmouth Branch of the State Bank
of Ohio;
incorporated in 1846. Capital stock $100,000.
W. Kinney,
President, and E. Kinney, Cashier.
"The Portsmout Branch of the State
Bank of Ohio, was
established in 1846, with an organized
capital of $100,000. Peter
Kinney was the first President and
Samuel Reed the first Cashier.
This bank was in existence until 1865
when it was succeeded by the
Portsmouth National Bank." (Scioto
County History. 1903.)
Ohio Banking Institutions, 1803 to 1866.
317
Putnam-
The Muskingum Bank; this bank in 1837
had a paid
up capital of $123,000 and bills in
circulation to the amount
of $136,876. E. Buckingham, President,
and B. H. Buck-
ingham, Cashier.
Ravenna-
The Franklin Bank.
The Portage County Branch of the State
Bank of
Ohio; R. E. Campbell, President, and
John Ebbert, Cashier.
Ripley-
The Farmers' Branch of the State Bank of
Ohio.
Thomas McCague, President, and Daniel P.
Evans, Cashier.
Salem-
The Farmers' Branch of the State Bank of
Ohio. S.
Jennings, President, and C. H. Cornwell,
Cashier.
Sandusky-
The Bank of Sandusky; incorporated in
1834, charter
expired in 1850. In 1837 this bank had a
paid up capital
of $100,000 and bills in circulation amounting
to $108,217.
The Sandusky City Bank. F. Lane,
President, and H.
S. Flynt, Cashier.
The Union Bank. E. T. Barney, President,
and S. W.
Torrey, Cashier.
Springfield-
The Springfield Bank. Oliver Clarke,
President, and
William McMeen, Cashier.
The Mad River Valley Branch of the State
Bank of
Ohio. Thomas F. McGrew, Cashier.
Steubenville-
The Bank of Steubenville.
The Farmers' & Mechanics' Bank;
incorporated in
1817, charter expired in 1843. In 1837 this
bank had a paid
up capital of $273,000 and bills in
circulation to the amount
of $401,281.
The Jefferson Branch of the State Bank
of Ohio.
William Spencer, Cashier.
318 Ohio Arch. and Hist. Society Publications.
St. Clairsville-
The Belmont Bank of St. Clairsville;
incorporated in
1816, charter expired in 1843. In 1837
this bank had a
paid up capital of $193,790 and bills in
circulation to the
amount of $273,292.
Tiffin-
The Ohio Savings Institute Bank.
The Seneca County Bank. Wm. H. Gibson,
Presi-
dent, and Charles L. Johnson, Cashier.
Toledo-
The Marine Bank. J. C. Hitchcock,
Cashier.
The Toledo Branch of the State Bank of
Ohio. Amasa
Stone, President, and Paul Jones,
Cashier.
The Commercial Branch of the State Bank
of Ohio.
Samuel Young, President, and M. Johnson,
Cashier.
Troy-
The Miami County Branch of the State
Bank of Ohio.
William Barber, President, and H. S.
Mayo, Cashier.
Urbana-
The Champaign County Bank. S. A.
Winslow, Presi-
dent, and H. P. Espy, Cashier.
The State Stock Bank.
The Urbana Bank; this bank in 1837 had a
paid up
capital of $108,866 and bills in
circulation to the amount
of $157,488.
Warren-
The Farmers' & Mechanics' Bank.
The North-Western Bank.
The Western Reserve Bank; incorporated
in 1812,
charter expired in 1843. In 1837 it had
a paid up capital
of $165,837 and bills in circulation to
the amount of $213,-
900. George Parsons, President, and
George Taylor,
Cashier.
"The Western Reserve Bank was chartered
in 1811-12, with
the following names as
corporators:-Simon Perkins, Robert B.
Parkman, Turhand Kirtland, George Tod,
John Ford, C. S. Mygatt,
Calvin Austin, William Rayen, and John
Kinsman. The corporators
soon after organized, and by
subscription secured the required
Ohio Banking Institutions, 1803 to 1866. 319
amount of stock. * * * General Simon
Perkins was the first
President, and continued until April 5,
1836, when he resigned, and
Zalmon Fitch was chosen in his place.
Mr. Fitch, at the organ-
ization of the bank, was elected
Cashier, and continued in that
position until promoted to the
presidency. He resigned January
21, 1838, and George Parsons, who was
elected in his stead, held
the office until the close of the
business existence of the bank;
thus being an officer in the same for
nearly a half century. Ralph
Hickox succeeded Mr. Fitch, and was
Cashier until his decease in
1840. George Taylor succeeded Mr.
Hickox, and served in that
capacity until the closing of the
Western Reserve Bank proper.
* * * The Western Reserve bank started
with a capital of
$100,000 which was increased to
$300,000. * * * In 1816 its
charter was extended to December 31,
1843, when it went into
liquidation; but in July, 1845, it was
reconstructed under the inde-
pendent banking law, which extended it
until 1866. * * * It
was among the first banks chartered in
the State, and was the only
one that continued sound and solvent to
the end of the State Bank
Organization. * * * During the general
suspension of specie
payment in 1814 and in 1836 this bank
suspended for a few months."
(Mahoning Valley Historical
Collections. 1876.)
Washington-
The Guernsey Branch of the State Bank of
Ohio. John
McCurdy, President, and George A. Endly,
Cashier.
West Union-
The Bank of West Union; in 1837 this
bank had a paid
up capital of $20,000 and bills
in circulation to the amount
of $48,301. The bank failed and was
closed in 1841.
Wooster-
The Bank of Wooster; organized in 1834,
and failed in
1848. In 1837 this bank had a paid up
capital of $150,221
and bills in circulation to the amount
of $194,289. J. S.
Lake, President, and Benjamin Bently,
Cashier.
The German Bank of Wooster; organized in
1816. T.
J. Jones, President, and W. Larwill,
Cashier.
"The old German Bank of Wooster was
organized in 1816, with
T. J. Jones, President, and W. Larwill,
Cashier. Its existence was
of brief duration, and for awhile it was
conducted without a charter."
(History of Wayne County. 1878.)
320 Ohio Arch. and Hist.
Society Publications.
The Wayne County Branch of the State
Bank of Ohio;
it was organized in 1848, and
discontinued in 1865. D.
Robinson, Sr., President, and E. Quinby,
Jr., Cashier.
"The Wayne County Branch of the
State Bank of Ohio was
organized in February, 1848. D.
Robinson, Sr., was president until
January, 1858, and Isaac Steese from
1858 to the expiration of
its charter in 1865; E. Quinby, Jr.,
being cashier from the organi-
zation to its close." (Wayne County History. 1878.)
Xenia-
The Bank of Xenia; incorporated in 1834,
charter ex-
pired in 1850. The paid up capital of
this bank in 1837
was $100,000 and bills were in
circulation to the amount of
$69,635.
The Xenia Branch of the State Bank of
Ohio. A.
Hivling, President, and A. Trader,
Cashier.
Youngstown-
The Mahoning County Bank. Wm. Raven,
President,
and R. W. Taylor, Cashier.
Zanesville-
The Bank of Zanesville was incorported
in 1832, and
the charter expired in 1843. In 1837
this bank had a paid
up capital of $258,262 and bills in
circulation to the amount
of $189,626.
The Franklin Bank of Zanesville. D.
Brush, President,
and Charles E. Robins, Cashier.
The Muskingum Bank; this bank was
incorporated in
1812, with a capital stock of $100,000.
It was later re-
chartered, and finally discontinued in
1843.
The Muskingum Branch of the State Bank
of Ohio.
William Tallant, President, and H. J.
Jewett, Cashier.
From the foregoing paper, a record is
given of one hundred
and fifty-two institutions which
exercised banking privileges
within, the State of Ohio during the
first half of the nineteenth
century. Several hundred private and
manufacturing concerns
issued promises to pay in the
semblance of bank bills during
this period, however no cognizance has
been taken of them in
this article.
OHIO BANKING
INSTITUTIONS, 1803 TO 1866.
BY A. B. COOVER.
A bank, as we understand and use the
word, is simply a plan
of organizing capital, by which the full
benefits of the latter are
secured. The separate means of
individuals are united together,
and a large sum thus constituted is
hired out at interest to those
who need it. This combination, and the
manner of its use, may
be compared to a dam across a valley,
and the accumulation in
one body the water of separate springs,
which otherwise would
be of little service; but being united,
they form a propelling
power for extensive machinery.
Without organization of capital in some
form, a community
must remain in comparative barbarism.
The few who possess
wealth above their immediate wants must
either send it away
for investment where it would enrich
other places, or it would
for the most part lie dead, while the
poor would continue in
ignorance and drudgery.
After it is organized, a bank gathers
more capital by saving.
It presents the first practical idea of
economy and increase to
thousands of people.
For several centuries past, banks have
been the successful
medium through which credit has not only
been preserved, but
great wealth acquired.
The first bank of which we have any
authentic history was
established in Genoa, Italy, in
1407-five hundred years ago.
The Bank of Amsterdam was established in
1609, and shortly
after, those of Hamburg and Rotterdam.
The Bank of Eng-
land was established in 1694; the Royal
Bank of Paris in 1718;
the Bank of North America in 1781, and
the Bank of the United
States in 1791.
Under laws passed in 1837 a banking
system known as the
"Wild Cat" system was formed
in the United States; under this
law about all that was needed to start a
bank was an unlimited
(296)