First Bank in New Castle — National Bank of Lawrence County — First National Bank of New Castle — People's Savings Bank — Farmers' and Mechanics' Bank — Citizens' National Bank — The Lawrence Savings and Trust Company — Home Trust Company — Union National Bank — New Castle Savings and Trust Co.
[p. 136] In the financial world New Castle holds a high position, as might be expected of a city of its extensive business interests. Her bank deposits, loan investments and interest-drawing moneys aggregate a total which, if divided among the entire population, would mean an average of about $277. The per capita circulation of the United States is but $35. The banks and trust companies of New Castle are among the soundest, most substantial and carefully managed of any fiduciary institutions in the country. Two of the national banks are roll of honor institutions, their surplus being in excess of their capital stock. All are institutions of which New Castle is justly proud and in which her citizens have the utmost confidence.
The first banking institution in New Castle was a private bank, opened by William Dickson and William McClymonds, about 1851. It continued in business until December, 1854, when it became so much involved as to be obliged to wind up its affairs.
This institution had its origin in the Bank of New Castle, which was organized in 1855, the act of incorporation being dated March 30th. The original incorporators were A. L. Crawford, R. W. Cunningham, Joseph Kissick, Thomas Wilson Ezekiel Sankey, William Dickson, John N. Euwer, Cyrus Clarke, Charles T. Whippo L. L. McGuffin , Thomas Falls, James A. McClaughey, Hon. John Ferguson, James Leslie, and William H. Reynolds. Its nominal capital was $150,000.
After about two years of varying fortunes, this institution suspended. Being reorganized under the name of the "Bank of Lawrence County," it did business until 1865, when it took up the state circulation and organized as the "National Bank of Lawrence County," with a capital of $150,000. Its circulation is now $150,000; its surplus, $1,000,000. It is doing a successful general banking business. Its present officers are: Edward King, president; Charles Matthews, first vice-president; Rufus C. Patterson and George L. Patterson, vice-presidents; Charles F. Montgomery, cashier; John Elder, Jr., assistant cashier.
A private bank was organized by Dickson, Watson and William Patterson in 1855. Watson sold out and withdrew in 1858, and Mr. Patterson conducted the business in his own name until about 1872, when the name was changed to Patterson's Bank."
A bank under the above title was organized [p. 137] as a stock company about 1858, with William Watson as president, D. H. Wallace as cashier, and Mannaseh Henlein as vice-president. When Colonel Wallace entered the army, in 1861, it was merged into a private banking house by William Watson who continued business about four years, when it was discontinued.
This bank was organized in 1864, with a capital of $150,000. Articles of association were signed October 4, 1864 and the following were the original officers: I. N. Phillips, president; E. I. Agnew, cashier. The surplus fund of the bank is $500,000. The circulation is $200,000.
The record of the First National Bank has been one of unbroken success, due to prudent, conservative methods, liberal dealings and the watchful care exercised over the interests of its patrons. Its officers are all men of high standing in the community and recognized leaders in the commercial and financial world. It has ever been a great reservoir of monetary strength, relieving congestion, restoring the currents of business activity, averting threatened disaster and keeping in motion the wheels of productive energy. Its present officers are William S. Foltz, president; George Greer, vice-president; Samuel Foltz, cashier. Directors: John W. Knox, J. F. Genkinger, E. N. Ohl, J. P. H. Cunningham, S. W. Cunningham, and C. S. Clark.
This institution was chartered in 1868, with a capital of $100,000, and authority to increase to $500,000. It never organized under the charter. It ceased doing business in 1884.
The banking house of Foltz & Sons was organized September 23, 1873. The officers were Samuel Foltz, president; W. S. Foltz, cashier; L. S. Foltz, bookkeeper. The senior partner, Samuel Foltz, was also president of the First National Bank. The firm for some time did a general banking business, but is no longer in existence.
The Citizens' National Bank was incorporated under the national banking laws, in 1891, with a capital of $200,000. Its first officers were Thomas W. Phillips, president; Lewis S. Hoyt, vice-president, and David Jameson, cashier. These officers, together with the following gentlemen, constituted the board of directors: Samuel McCreary, J. Norman Martin, Edward T. Kurtz, John Sword, Joseph K. Pearson, George L. Herr, William W. Eichbaum, and George B. Berger. Their present three-story brick building was purchased at that time and thoroughly remodeled. The bank uses the first floor, while the remainder of the building is rented for office purposes. The bank has earned and paid dividends every year since it was started, and now has undivided earnings of about $250,000. It is conducted on conservative lines, and during all the years of its history has never for a minute been under its legal reserve. It has never borrowed a dollar nor re-discounted a note. The statement of the bank for May 14, 1908, shows, in addition to the capital stock of $200,000, a surplus and profits of $236,985.95. The officers are: Thomas W. Phillips, president; Lewis S. Hoyt, vice-president; David Jameson, cashier; John H. Lamb, assistant cashier. Directors: Thomas W. Phillips, M. H. Henderson, Lewis S. Hoyt, Charles H. Andrews, Samuel McCreary, J. P. H. Cunningham, David Jameson, J. Norman Martin, E. N. Baer, John H. Preston and Edward T. Kurtz.
The Lawrence Savings and Trust Company was incorporated in March, 1901, with a capital stock of $300,000, since which time it has enjoyed a rapid and steady growth. The bank is splendidly equipped in every department and is conducted on strictly business principles. Its financial condition is in the highest degree satisfactory. [p. 138] It is a legal depositary for all court and trust funds, issues savings books and receives deposits in amounts from $1 up. It has a fine safe deposit vault, with fire, burglar and bomb-proof guards against loss. The home of the bank is at No. 125 East Washington Street, in one of the finest structures in Western Pennsylvania, its seven stories being built of polished granite, cut stone and red pressed brick. Its interior is most beautiful in design and finish and it is fitted with every modern contrivance for the accommodation of customers and the transaction of business. Its officers are G. W. Johnson, president; P. L. Craig and H. M. Henderson vice-presidents; E. E. McGill, secretary and treasurer; F. A. Shultz, assistant secretary.
The Home Trust Company is one of the more recent of Lawrence County's financial institutions, as it is also one of the most up-to-date. It was incorporated in 1902, with a paid up capital of $125,000. It has in the present year (1908) undivided profits of $32,000. Its quarters, at 53 Pittsburg Street, are fitted up with every convenience, while its safes and vaults are absolutely fire and burglar-proof. A general banking business is done and it is the authorized depositary for estate funds, and acts in any trust capacity. The officers of the company are men who are prominently identified with the commercial and financial interests of New Castle, and have the full confidence of the business community. They are S. M. Marquis, president; R. A. McKinney, secretary, and W. S. Grove, treasurer.
A still younger institution than the one just mentioned is the Union National Bank, which was organized by W. W. Eichbaum, L. M. Buchanan and L. M. Weber, and opened for business in a rented room on South Mill Street, on January 8, 1907. The bank's present fine structure of brick and terra cotta was completed and opened for business November 1, 1907. The building and lot are worth about $20,000, including the latest equipment. The bank's statement, issued in May, 1908, showed paid-in capital stock, $100,000; undivided profits (less expenses and taxes paid), $1,509.10; individual deposits, subject to check, $51,796.68. The officers are: W. W. Eichbaum, president; L. M. Buchanan, first vice-president; Calvin Smith, second vice-president; J. E. Aiken, cashier (succeeded C. F. Wheeler). The directors are: W. W. Eichbaum, L. M. Buchanan, Calvin Smith, J. E. Aiken, James A. George, Jere Blucher, M. L. Cukerbraum, U. G. Eckles, L. M. Uber, W. S. Reynolds, Samuel Hoffmeister, M. L. Wallace, A. W. Reynolds, J. W. Neff and L. G. Emery. The original board was the same as the present, with the exception of Messrs. Hoffmeister and Wallace, who became members during the present year.
This company was incorporated March 27, 1903, with a capital stock of $300,000, divided into 3,000 shares of $100 each. The plan of organization was a popular one, the original subscription being limited to fifty shares. When the stock had been all subscribed for, it was found that there were 270 stockholders, citizens of almost every township being interested.
The company purchased the Fleckenstein property, at No. 15 East Washington Street, remodeled the building and fitted up the premises for banking purposes. It opened for business on June 1, 1903. William G. Dunn was elected president, and J. S. Taylor, secretary and treasurer. With its large number of stockholders as a basis, the business of the institution increased rapidly and at the close of 1906 it had more than 3,000 depositors. Its total deposits at this time exceeded $600,000.
In January, 1907, the State Banking Commissioner, on information that $175,000 of coal bonds held by it were not good [p. 141] security, cited the officials to appear before him to show cause why the company should not be declared insolvent, in the meantime sending one of his examiners to New Castle. At the hearing, the coal bonds were shown to be secured by a first mortgage on coal property worth at least twice the face of the bonds and the solvency of the trust company otherwise established, but the action of the banking department had become known and, to avoid a run by depositors, the bank was closed and a receiver appointed to wind up its affairs. At this writing the depositors have all been paid in full and there are sufficient assets to give back to the stockholders all their money. All parties now concede that it was a mistake to close the institution, as it was entirely solvent.
20th Century History of New Castle and Lawrence County Pennsylvania and Representative Citizens Hon. Aaron L. Hazen Richmond-Arnold Publishing Company, Chicago, Ill., 1908
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Explanation/Caution | Lawrence Co. Maps | Lawrence Co. Histories
Updated: 4 Mar 2002