Jasper Co. IAGenWeb
Past and Present of Jasper Co.

Chapter XVII
BANKS AND BANKING OF THE COUNTY

Past and Present of Jasper County Iowa
B.F. Bowden & Company, Indianapolis, IN, 1912


Banking, while not the first business demanded in any given community, is, after the settlement has advanced a few years, a very important adjunct to civilization and commerce. The pioneer had but little if indeed any money to deposit and he had, as a general rule, but little property to put up as security for money should he want to borrow, hence the bankers did not appear on the scenes of pioneer life very early, and then only in a very small way did they profess to carry on banking business, as it is now understood.

Today, the farmer is as much of a bank depositor and is engaged in large trans- actions in stock and realty, by which he needs the assistance of a bank, fully as much as the business men of city and town. The citizens of Jasper County, who came in early and remained here, or their children and grandchildren who came after them, have, by reason of decades of hard work in tilling the fertile soil, and by the advance in land values, become wealthy and prosperous. They ride in carriages and automobiles; they use the modern phone and rural mail service and have to do with the great busy world about them to a large degree, hence they have come to need the banker. Once the bank only loaned short time loans to the farmer, to tide him over a pinched period, till he cou1d thresh or sell his stock, but now the farmer has a plenty and to spare, hence deposits, loans to others and takes certificates of deposits, running six and twelve months in many cases.

PROSPEROUS TIMES OF THE FIFTIES

From 1852 on for a number of years - until the crash of 1857 - the West was in a prosperous condition, financially, at least for those days in the history of our country. Immigrants by the tens of thousands had found their way across the Mississippi River, in quest of new homes on the rich prairies of Iowa. Times were flourishing in the Eastern states, and many well-to-do farmers there, having tired of stony, stumpy fields, sold, and with the cash received, ventured out into this section of the West. Usually they had sold their farms in the East for one-third down, and agreed to wait for the other two-thirds a term of years. Country towns Indian agent Beach of Fort Des Moines, who notified the Indians that in Indiana and Illinois reaped a harvest from the lengthy trains of teams with covered wagons, known as "prairie schooners," which crossed the great river over into the land "beautiful," of which they had heard so much.

No sooner had these pioneers made a selection of land and erected a claim cabin on the same, than it was up to them to purchase machinery, cattle, swine and horses with which to stock and improve their newly bought places. This took much money. Grain had to come from the farmer already in advance of him; plows with which to turn over the virgin soil had to come from the maker and dealer in such implements; lumber had to be sawed from native forests, and this cost money. But fortunately, many received money on deferred payments on farms once owned in some one of older Eastern states, which came due and followed on here to Jasper County in 1855 and 1856, hence everybody seemed for the time to be "well off." As is ever the case when money is plenty, speculation goes rampant and men get in the habit of indulging in luxuries not thought of in more stringent times. It was then towns were laid out and schools and colleges founded. But with these times came the higher rate of interest, and finally it was no uncommon thing to ask and receive twenty-five per cent per annum for the use of cash with which to go into some wild-cat scheme - a paper town site, a milling project or a college. But really, the more fortunate of all was the stout man whose good, paid for team would bring him in three dollars a day at breaking prairie, or hauling height from the market places. Again, another would pay for a threshing machine in one year's threshing season and be ready for the next year all out of debt. But ten years later, the man who owned a machine was the most unfortunate man in the county, for sometimes they lost their all by purchasing a high-priced machine and then trying to thresh in a season when grain did not yield.

So gay and glorious did things look to the newcomer that he went wild over speculation. Frequently, he could make a hundred per cent in one week on a single transaction, such as buying a corner town lot and selling it before Saturday night came around at twice what he had given. Labor did not make the first fortunes in Iowa and Jasper County, but speculation was at the back of those early day fortunes.

SPECIE PAYMENT IN THE COUNTY

The first specie payment in Jasper County was unquestionably in the autumn of 1844, when forty thousand dollars was sent in silver coin to less they called for it immediately he would have to send it back, as he feared robbery. He meant to send this money due (to) the tribe back to Agency City. The untutored savages looked as earnestly for payday as does the workman of today for his payday to come. They frequently held a council for a month before time to be able to not make any errors or to give any chance for the money to be sent back to Washington. In one instance a forty thousand dollar lot of money was guarded day and night at the cabin home of the first settler, Adam Tool, who, it will be remembered, kept a sort of an inn at Tool's Point, near Monroe of today. The specie arrived at the forks of the river, but the Indians, as usual, were not yet ready to receive it, as they had gotten into a dispute over whether it should be paid to the heads of the families, to the chiefs or to the traders from whom goods had been purchased. After a day or two of parleying about the matter, Beach was as good as his word and started the silver back to Agency City, and again stopped over night at Tool's tavern. The Indians feared they might miss the cash entirely if they did not quickly decide, so they notified Beach to have the money turned over to the trader at once, who took out what was coming to him and allowed the balance to be retained by the Indians, so that in all this mix up the forty thousand dollars laid several nights at Tool's place.

This was probably the first large amount of money kept at anyone place within Jasper County, either for public or private use.

THE PANIC OF 1857

Nearly everyone is familiar with the facts, in general, about the great crash of 1857, which almost wrecked the entire country financially. But perhaps not all know of some of the local happenings in this county, in common with other points in Iowa.

It was in the month of August 1857, when the Ohio Life and Trust Company, a corporation doing business as bankers and life insurance activities, produced a panic on Wall Street, New York City. A score of banks suspended payment, and a couple of weeks later bank failures became common from Maine to the South and West. So inflated had been the financial condition of the country that speculators had been allowed to check on banks and give security only on lands yet undiscovered beyond the waters of the Missouri River, in what is now Nebraska and Kansas. When this crash came, gold and silver (as is ever the case) hid itself away and soon followed the choicest of bank bills of Massachusetts, New York and Ohio, leaving nothing but the "wild-cat" bills, "red dog" money. etc. of the Western states whose banking systems had not been noted for their regularity in payment at par. Then came the tumble of prices in land, town property, live stock and general merchandise. It is said that upon an average these commodities fell fully fifty percent.

The farmer could not, and did not, pay his taxes and in many cases lost his land, the same having been sold for taxes. The sheriff of Jasper County was the biggest real estate dealer here. He had good, but unpleasant, deals on hand every day in the week and every month in those never-to-be-forgotten years, remembered best by the fathers and grandfathers of those now owning and occupying the lands of Jasper County. Those were the harvest days for those who had kept their cash well in hand and had the money at the right time, to bid on tax titles.

The limit of time for redemption was short then as compared with the three-year limit of today. So bad was the case in Iowa that the Legislature had to step in and relieve actual settlers from execution, by extending the day of redemption on taxes unpaid by landowners.

The granaries of Jasper County were indeed full to the overflowing. The fertile soil had kept on producing well and the amount of wheat, oats and corn in crib and granary was something wonderful to behold. Good horses stood in the stables and sheds, fat steers and hogs in their wonted places, but there was no cash to be seen or had "for love or high interest," as one pioneer put it. The storekeeper would take such commodities in exchange for his wares at his own price, however. For many weary, anxious months the transactions were all accomplished on this barter plan. Notes were given for so many bushels of wheat or corn, or again for so many pounds of pork. When a farmer wanted a sled or wagon, new or repaired, he first had to consult the mechanic or dealer as to what sort of "truck" he would take and how much he would allow for the same, for such and such articles, or work to be performed.

Yes, indeed, Jasper County suffered immensely during the panic, more so than at any other time during its entire history. But little land in this county escaped the sale for taxation. During the ill-fated winter of 1857-8, it is related for a fact that a load of wheat on the street in Newton could not be exchanged for a pound of coffee. Muscatine and Keokuk (too far to be reached by many) were the only market points where this article could be exchanged for anything of much real value to the producer. This state of affairs kept on until the breaking out of the great civil conflict, 1861. It is true that during 1858-9-the rush days to Pike's Peak-the fanners had a breathing spell while the long caravans of gold with the farmers for the provisions they needed. Then came the Mormon exodus, which left a little more ready cash on which to tide this county over.

As late as 1861 exchange on New York in Newton ruled at thirty per(cent).

NEWTON'S BANKS

The L. D. Clark Banking House, of Newton, was established in 1866, by L. D. Clark. It is a private banking concern with no specified capital. The owner is L. D. Clark and the officers are Jay Clark, manager, and D. L. Clark, cashier. Its building was erected in 1867. It stands well among the reliable banks of Jasper County.

The Jasper County Savings Bank was organized in 1869, by Gen. James Wilson and Albert Lufkin with a capital of $20,000. It now has a paid up capital of $100,000, with officers as follows: J. M. Woodrow, president; F. M. Woodrow, vice-president; A. E. Hindorff, cashier. The bank building was erected in 1892, in which the extensive business is carried on at this date.

When first established this banking concern was known as the Jasper County Bank, but since February 1, 1908, it has operated under a charter as a savings institution, under the same officers and management. This bank does a large business and has the full confidence of all within this section of the state. The management has always been conservative and at all times honorable in its transactions.

The Citizens State Bank was organized in 1896; with a capital of $60.000, which is also its present capital. It was at first formed and known as the Farmers and Merchants State Bank, but its name was changed to the Citizens State Bank in 1905.

The first set of officers were as follows: F. R. Witmer, president; O. H. Witmer, cashier. At this date its officers are: Joe Horn, president; Charles Seeberger, vice-president; Lee E. Brown, cashier. The February 1911, statement published for this banking house, shows the deposits to have been at that date, $305,334.38; total liabilities, $377,543.46; undivided profits, $9,000. In the list of directors appear the names of Joe Horn, C. F. Morgan and F. A. McMurray. The Citizens Bank of Newton has for the last six or seven years published and distributed free to its patrons or others desiring it a small eight-page, double-column paper containing many valuable and highly interesting items concerning banking, as well as general literary items. It is a neat folder printed in modern style and is looked for with the return of each month by hundreds of persons who have read it a number of years.

The First National Bank of Newton was organized in 1882 and was, the first national bank chartered in Jasper County. It first officers were F. T. Campbell, president; C. Griebling. vice-president; C. Glenaker, cashier. The present officers are: W. C. Bergman, president; H. B. Alfree and C. Slonaker, vice-presidents; R. L. Arnold, cashier.

The present surplus and profits are $105,000. The bank was erected in 1886 and is on the northwest corner of the courthouse square. This banking house is the only government depository in Jasper County.

The Newton Savings Bank was organized in 1890, with J. H. Lyday, president; Charles Jasper, vice-president; C. Slonaker, cashier. This is run in connection with the First National, above mentioned, and its present officers are one and the same. The combined resources of the two banks were, in May 1911, $700,000. The combined deposits of both banks was at the date last named $500,000. The surplus and undivided profits are when combined, $122.000. The Newton Savings Bank was also the first to be incorporated in Jasper County.

These two banks have the share of business they justly merit in Jasper County and surrounding vicinity. They have the confidence of the entire community as safe, conservative bankers and businessmen.

BANKING AT MONROE

The Monroe Savings Bank, of this county, which was organized after the Civil War, finally became known as the Bank of Monroe. In 1875 this bank was converted into the First National Bank of Monroe, with Tunis Schenck, president; W. H. Chipps, vice-president; R. C. Anderson, cashier; T. Chadwick, assistant cashier; William White, James H. Loundsbury, Manly Gifford, George J. Dix, directors. Finding the business not remunerative, it surrendered its charter January 1, 1878, and at once re-organized its capital into the State Bank with a paid up capital of $55,000 and it had the same set of officers.

It was conducted in the last named manner until August 10, 1904, when it was organized into the First National Bank, with a capital of $25,000, the same, which it still operates with. Its first officers were: A. J. Porter, president; J. P. Johnson, vice-president; C. T. Schenck, cashier. A bank building was erected on the west side of the square in 1906. The present officers are: A. J. Porter, president: Fred Whitehead, vice-president; F. B. Kingdon, cashier; F. D. Chipps, assistant cashier. The last statement shows this bank had deposits amounting to $157,000 and loans out amounting to $126,000.

In connection with this national bank is the Monroe Savings Bank, organized at the same date as the national. Its capital was, and is still, $10,000. The present officers are: J. W. LeGrand, president; George Lackey, vice-president; F. B. Kingdon, cashier. Deposits, $120,000; loans, $112,000.

The State Savings Bank of Monroe was organized January 30, 1893, with a capital of $17,000, which has been increased to $25,000 since 1908. The first officers of this banking house were: W. H. Shaw, president; T. P. Burchinal, vice-president; Josiah Fisher, cashier; T. P. Burchinal, assistant cashier. The officers in the spring of 1911 are: W. H. Shaw, president; T. P. Burchinal, vice-president; W. M. Livingston, cashier; O. W. Burchinal, assistant cashier; the last named, with W. O. Tice, G. W. Loar and E. W. Henry are the directors. The present capital stock and surplus amounts to $33,000. The bank building now used was built in 1898, at a cost of about $8,000.

BANKING AT REASONER

The Reasoner Savings Bank was organized June 2, 1900, as a private banking house, with a capital of $10,000. Its president and proprietor was Josiah Fisher. In 1905 the bank was incorporated as a State Savings Bank, carrying the same cash capital as when it was established as a private concern. The first officers of the incorporated banking house were: H. B. Allfree, president; B. B. Trout, vice-president; W. A. Williamson, cashier; C. C. Warring, assistant cashier. The above, with Riley Lust, are the bank's directors.

This town being within one of the best stock shipping sections in Jasper County, the banking business is good and has been considered one of the safest of financial institutions, having the confidence of the entire community. In the start the bank was kept in the Edwards Store building, but in 1907 a substantial brick structure was built for banking purposes exclusively.

BANKS OF PRAIRIE CITY

As might be expected in such an enterprising place as Prairie City, situated as it is in the heart of one of the finest farming sections in all Iowa, banking flourishes there. The history of the banks is as follows: (not given)

In 1876 a private banking house was established by L. E. Zachary, who had a capital of $25,000. He erected a handsome brick banking house, and continued as a private bank until May 1893, when it became the First National Bank, with the same capital stock. Under the new bank, the first president was J. D. Whisenand, who is still at the head of the bank; the vice-presidents are B. F. Moore and J. G. Olmsted; cashier, Hugh G. Little; the additional directors are J. H. Little, A. A. Arnold and E. A. Nye. Mr. Little has served as cashier since 1909, when he succeeded W. D. Scott, who had succeeded Fred L. Risser.

The March 1911, statement makes a good showing for the bank, as is to be seen by the following items: Loans, $264,543; United States bonds (five per cent), $13,125; cash and due from banks, $49,532, as resources. The liabilities include: $25,000 capital stock; surplus and profits, $10,276; circulation, $12,500; deposits, $281,924. This gives a total of $329,701, liabilities and resources, including the real estate holdings.

The Prairie City State Bank was organized December 2, 1889, with the same capital it now runs under, $25,000. The officers were: Dr. S. V. Duncan, president; John Ryan, vice-president; B. W. Brown, cashier. This banking house has always been conducted in a safe, conservative manner, hence has always had the good will and confidence of the community. Its officers in the spring of 1911 are: T. E. Johns, president; A. G. Warner, vice-president; John Ryan, vice-president; John R. Buckley, cashier, and Estell Porter, assistant cashier. Its late statements show that the amount of deposits was $250,056, and its total liabilities were, on March 7, 1911, $282,237.

BANKING AT NEWBURG

Being within one of the richest portions of Jasper County, it is not to be wondered at that pioneer John Borroughs saw fit to organize the present Savings Bank of Newburg, in the month of October 1908. Its first and present capital is $ 10,000. Its first officers were John Borroughs (now deceased); P. Y. Fuller, vice-president, and A. K. Murphy, cashier. The brick bank building was erected as the home of the institution in October of the year in which the bank was organized.

The present officers are: John Newcomer, president; P. Y. Fuller, vice-president; A. K. Murphy, cashier. The stockholders were originally about forty-two, many of whom were farmers in the northeast part of this county. The last statement shows deposits amounting to about $50,000. The bank has among items in its last statement, loans to the amount of $45,000. The institution is in the hands of safe, conservative men, including that excellent businessman of many years' commercial training, A. K. Murphy, the efficient cashier.

MINGO BANKING INTERESTS

The Mingo Trust and Savings Bank was established in 1894 and incorporated in 1904. Its founder and president was F. R. Witmer, who started with a capital of $3,000. The present officers are: F. R. Witmer, president; W. J. Gannon, vice-president; A. W. Frey, cashier. The present capital is $15,000; deposits about $70,000; loans about $70,000. The neat brick bank building was constructed in 1905.

BANKING AT LYNNVILLE

Macy Brothers Exchange Bank of Lynnville was established in 1891, by Macy Brothers (E. B. and C. O. Macy), who started on a capital of $5,000. The present officers are: C. O. Macy, president; E. B. Macy, cashier; E. M. Carey, assistant cashier. The present capital is $10,000 with a surplus of $2,000. The bank building was erected in 1900. Prior to this banking house Johnson Brothers operated a private bank at Lynnville a number of years.

BANKING AT BAXTER

What is now known as the State Savings Bank of Baxter was originally established and known as the City Bank of Baxter, the date of its establishment being 1894. George D. and Alexander Wood established the City Bank, were the president and vice-president respectively, and the cashier was R. L. Arnold.

The State Savings Bank was formed and incorporated in 1902 and it then took over the business of the old City Bank and in 1906 it also took over the banking interests of the Farmers State Bank of Baxter.

The present officers are: Fred Hager, president; H. A. Geise, vice-president; Charles Burdick, cashier.

The capital is now $30,000, with a surplus and undivided profits of $12,000. The building was erected in 1895.

At this date the directors are; Fred Hager, H. S Downs, Charles Sanderman, A. C. Meyer. George T. Hager, H. A. Geise, Henry Krampe.

The showing made in the fall of 1910 was loans, $288,000 and deposits amounting to $317,679.

There were at that date about fifty stockholders.

The People's State Bank was organized in 1906, L E. Fowler, with a capital of $ I 5,000. A handsome bank building was erected the same year of the bank's organization. The present officers are: A. D. Berry, president: L E. Fowler, cashier. The present capital is $15,000; surplus and profits, $2,400. This banking house, although new, is gaining a good reputation and a good grade of business.

BANKING AT IRA

At the village of Ira, this county, the Farmers' Savings Bank was established in 1904 by the citizens of Ira and vicinity, with a capital of $10,000. Its first officers were: B. F. Baker, president; W. F. Rippey, vice-president; C. S. Weston, cashier. The officers in 1911 are: B. F: Baker, president; Henry Miller, vice-president: W. I. Price, cashier. Their recent statement shows loans amounting to $112,000; deposits $60.000; net earnings $800.

BANKING AT KELLOGG

At the enterprising town of Kellogg banking was first established by J. B. Burton, a private banking house, in 1881. This continued to serve all demands in the community until 1900, when it became organized into a state bank under the name of the Burton & Company State Bank. Its present capital is $80,000. The present officers are: J. B. Burton, president; C. J. Irish, cashier: R. C. Burton, assistant cashier.

In September 1908, the whole square upon which stood the bank was destroyed by a sweeping fire and the bank was destroyed. Then the same year (1908) the present bank was built. It is a fine structure on the main street.

The last statement of this bank shows they had deposits amounting to $225,764.15, while its undivided profits, etc. amounted to $6,871.60.

COLFAX BANKING

The Citizens State Bank of Colfax was established in 1896. It was the successor to a private banking concern called the Citizens Bank. The present bank was established by M. B. Wheelock and S. G. Ruby, with a paid up capital of $35,000, which, with the surplus funds, now amounts to $50,000. The first officers were: S. G. Ruby, president; W. M. Croft, vice-president; M. B. Wheelock, cashier. The present officials are: C. W. Crissman, president; S. B. Wheelock, vice-president; M. B. Wheelock, cashier. The present deposits amount to about $300,000, with loans amounting to $275,000.

The bank has always had a good growth and is now in a flourishing condition. Suavity of manner on the part of the officers of this bank is a marked feature of their dealing with customers.

After the failure of the Bank of Colfax (which is treated elsewhere in this chapter), which closed its doors and passed into the hands of a receiver appointed by the district court, the building in which that defunct institution had been kept was sold by the receiver at public auction, and purchased by P. E. Johannsen for about $13,000, and he at once established the People's Loan & Trust Company. About the same date Des Moines capitalists came to Colfax and established the First National Bank and the two new concerns run for several years, after which they sold to the People's Loan & Trust Company, the two banks becoming one. This continued until the Johannsen interests were sold to the present owners of the First National Bank.

In 1904 R. A. Crawford and W. W. Lyons, of Des Moines, established the First National Bank. The first officers were W. W. Lyons, president; E. E. Dotson, vice-president; A. S. Marquis, cashier. The present officers are: F. E. Boyd, president; R. D. Atchison, cashier; R. E. Cummings, assistant cashier. The capital has always been $25,000. The present deposits are $115,000, with loans amounting to $85,000. The building in which the bank is kept was erected in I881.

This bank has the confidence of the citizens of Colfax and the new men at the head of the concern are loyal and true to every interest of their newly adopted city.

BANK FAILURES

What was known as the Bank of Newton failed in 1884. It was a private concern and its cashier was J. G. Cotton, who dealt on the Board of Trade in Chicago and went under for fifty thousand dollars. Much might be added to the history of this transaction, but it may be best to let the "dead bury the dead" and keep silent. Suffice to say, that the guilty one paid the penalty for his wrongdoing. But the depositors never received the funds he had squandered in speculation.

Other bank failures have been at Baxter, Lynnville and Colfax. Of the Colfax failure let it be said that the Bank of Colfax was a co-partnership banking house, doing business at the city of Colfax. Its cashier and general manager was one of the two who formed the co-partnership, the other member being an uncle of the cashier. The cashier was named George D. Wood, a fine looking, brainy, businessman, in whom his uncle and all patrons of the bank had the utmost confidence. But in an unguarded moment he thought he saw a short cut - a "get_rich-quick" plan - and dealt in options on the Chicago Board of Trade, which concern has ruined so many hundreds of good businessmen. He turned out to be a "plunger" - he invested in anything and everything from stocks of goods to live stock speculations and finally the grain pit. The capital was supposed to be about $75,000. He was badly involved in December 1903, and on the 4th day of that month he deliberately shot himself through the temple, ending his life instantly. There were over eleven hundred creditors to his bank, and these included bankers in the chief cities and towns in Iowa; widows and orphans in estate forms, and merchants. The total of all claims against the bank was, in round figures $624,000, while the receiver, W. O. McElroy, of Newton (appointed by Judge Preston), after three years and two months' hard, faithful service, including carrying three cases through the supreme court, was only able to payout $235,000, or about thirty-nine and sixty-five hundredths cents on a dollar of the claims in question. The largest claim was over a hundred thousand dollars. Banks at Marshalltown, Des Moines, Council Bluffs, Davenport, Washington, etc., all got fleeced, as well as one bank at Colfax, which suffered many thousand dollars of loss. In fact the business interests of the city of Colfax suffered for a number of years, before full confidence in money institutions could be restored - people were all afraid of banks and bankers for a long time after this failure and sudden tragic ending of their esteemed fellow townsman, Mr. Wood.

LIST OF JASPER COUNTY BANKS

As shown in the Iowa Bank Directory for January, 1911, the following is concerning Jasper county banking interests:

Place Name Organized Capital
Baxter People's State Bank 1906 15,000
Baxter State Savings Bank 1894 30,000
Colfax Citizens' State Bank 1893 35,000
Colfax First National Bank 1904 25,000
Ira Farmers' Savings Bank 1904 10,000
Kellogg Burton & Co. State Bank 1881 80,000
Lynnville Macy Bros.' Exchange Bank 1889 10,000
Mingo Mingo Trust & Savings Bank 1894 15,000
Monroe Monroe National Bank 1870 25,000
Monroe Monroe Savings Bank 1904 10,000
Monroe Monroe State Savings Bank 1893 25,000
Newburg Newburg Savings Bank 1908 10,000
Newton First National Bank 1882 65,000
Newton Citizens' State Bank 1905 60,000
Newton Newton Savings Bank 1890 15,000
Newton Jasper County Savings Bank 1869 100,000
Newton Bank of L.D. Clark 1866  
Prairie City Prairie City State Bank 1890 25,000
Prairie City First National Bank 1893 25,000
Reasoner Reasoner Savings Bank 1900 10,000
Sully Bank of Sully 1889 7,500
Total capital of all banks, aside from the L. D. Clark Private banking house$597,500
The total surplus and profits amounts to$ 182,560

Transcribed by Ernie Braida in July 2003