History of Dayton, Ohio 1889

(page 363)

CHAPTER XVII.

Banking-Dayton Manufacturing Company-First Loan-New Banking Law-Trials of the Bank-Final Suspension of Specie Payments-Closing up the Business of the Bank-New Banking Law Promised-On National Banks-Various Views-New Banking Law-Dayton Branch of the State Bank-The Dayton Bank-The Crowbar Law-The City Bank-The Farmers' Bank-The Miami Valley Bank-The Exchange Bank-The Dayton National Bank-National Banking Law-First National Bank-Second National Bank-Third National Bank-Merchants' National Bank-Fourth National Bank-Union Safe Deposit and Trust Company-Dayton Savings Bank-Teutonia National Bank-Dayton Building Association, No. I-Concordia Building Association-Franklin Building and Savings Association-New Franklin Building Association-Germania Building Association-Mutual Home and Savings Association-Other Building Associations.

THE first banking company in Dayton was established in 1813. In November of that year a series of meetings was held by the business men of the place for the purpose of organizing a bank, and in December following, the Dayton Manufacturing Company was incorporated by the legislature. This company began business in a stone building standing on the east side of Main Street, at the north corner of the alley south of Water Street. On the 28th of the month, directors were elected as follows: 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 Grifn, and John H. Williams. On May 19, 1814, the board organized by the election of H. G. Phillips, president; George S. Houston, cashier. On July 4, 1814, the board of directors was enlarged by the addition of J. N. C. Schenck, George Grove, Fielding Gosney, and Benjamin Van Cleve. The amount of stock issued was $61,055, and the bank opened for business August 14, 1814. The frst loan recorded is one for $11,120 to the United States to aid in carrying on the war. The salary of the president was one hundred and fifty dollars per annum, and that of

the cashier four hundred dollars. Both were afterward increased. In November, 1814, Mr. Phillips resigned the presidency, and Joseph Peirce was elected his successor. In 1815 the company built a stone house on the east side of. Main Street, north of First.

In June, 1815, a statement was made showing the condition of the bank as follows:

(page 364)

ASSETS.		LIABILITIES.
Gold and silver ...	$34,154 35	Stock paid in ...	$25,633 00
Treasury notes ...	1,000 00	Notes issued ...	61,200 00
Bills discounted ...	56,871 81	United States deposit ...	5,120 00
Paid on banking house ...	880 00	Individual deposits ...	19,171 51
Currency ...	28,340 87	Due Miami Exporting Company..	7,313 91
Expense ...	2,258 18	Due other banks ...	2,728 02
		Discounts ...	2,338 77
Total ...	$123,505 21
		Total...	$123,504 21

The circulation of the bank was afterward increased to $134,671, a part of which circulation was "change tickets," for 61 cents, 122 cents, 25 and 50 cents.

On March 27th, the cashier notified the stockholders that $5 on each share of stock was required to be paid at the bank by the 1st of May. In 1817, Henry Bacon was employed as attorney for the bank, as a professional character of reputable standing. In 1818, William Huffman, Henry Bacon, and George W. Smith were elected directors, and in 1819, Alexander Grimes was elected. In December, 1818, the following statement of the condition of the bank was made, in accordance with a resolution of the legislature, requiring all banking companies in the State to make a statement of their standing:

Capital stock paid in ...	$61,840 00	Notes of other State banks….	14,140 00
Notes in circulation ...	96,128 00	Due from Ohio banks ...	7,083 00
Deposits ...	19,873 00	Due from other banks ...	1,100 00
Bills discounted ...	111,272 00	Real estate ...	680 00
Credit of profit and loss ...	3,099 00
Ohio notes ...	9,810 00	Total ...	$361,198 00

Joseph Peirce, the president, died in September, 1821, and Benjamin Van Cleve was elected to succeed him. President Van Cleve died in November following, and was succeeded by George Newcom. The institution had now come upon hard times for the banking business. Most of the banks in the country found it necessary to suspend specie payments, but the Dayton Bank proved to be one of the strongest institutions of the kind in the State. In February, 1822, James Steele was elected president of the bank, and on March 1st, George S. Houston, the cashier, notified the public that the stockholders had resolved to close the concerns of the institution as soon as possible, and requested all persons holding notes to present the same for payment on or before May 1, 1822. The bank did not, however, close its business, but continued on until 1825, when a new banking law was passed which at first was deemed a favorable one, but oil account of oppressive taxes it became evident that the bank must go down. (page 365) In 1829, Henry Stoddard was elected director, and for a year or two the bank was in a state of suspension. In May, 1831, George S. Houston, the cashier, died, and was succeeded by Charles R. Greene. On the 15th of March, preceding, a committee consisting of H. G. Phillips, James Steele, and Luther Bruen, requested the stockholders to meet at the postoffice on the 27th of April, and vote for or against reviving and putting in operation the institution. In July, 1831, the board was re-organized by the election of nine directors: James Steele, H. G. Phillips, David Stone, Jacob Catterlin, William Eaker, Henry Stoddard, Luther Bruen, Charles G. Swain, and John Rench. James Steele was elected president; Alexander Grimes was elected cashier, and D. Z. Peirce, assistant cashier. In 1833, Henry Stoddard was employed as attorney for the company at a salary of fifty dollars per annum. A meeting of the stockholders was held on Saturday, November 30th, for the purpose of taking into consideration the propriety- of increasing the capital stock of the institution. Shortly afterward the legislature authorized the changing of the name to the Dayton Bank, and thenceforward it was known by that name. J. H. Bowen became assistant cashier, then J. A. Dusang, and in 1839, John Harries. Peter Odlin and James Perrine became directors in 1836, and Mr. Jewett and D. Z. Peirce in 1839.

In the meantime the bank had a difficult task to perform to keep from suspending specie payments. The difficulty was caused by the warfare of President Andrew Jackson on the Bank of the United States. On the 30th of June, 1837, the Muscatine Gazette said that the Bank of Dayton continued to pay specie, and that it was the only bank in the United States that had refused to respect President Jackson's treasury order. But while it was true that the bank continued to pay specie for its notes when they were presented, yet the confidence of the people in its soundness was such that they preferred to hold the notes of the bank, knowing that they were at any moment convertible into specie. Being thus equivalent in value to specie and far more convenient to handle in the transaction of business, it is not strange that the people preferred the bank notes. There was also manifest a strong tendency on the part of the people to hoard the notes of the Dayton Bank, which was in itself a striking proof of the law of business which compels sound money, or that which is the most valuable, to disappear from circulation when there is in use also a depreciated currency. Under such a condition of things, Ohio paper, provided Ohio banks were known to be specie paying banks, would become as scarce throughout the country as did the paper of the Dayton Bank in this community.

On the 29th of June, 1839, a statement of the condition of this (page 366) bank was published, which showed that the capital stock amounted to $174,007.16; the circulation to $118,455, and the deposits to $78,085.18, and the total assets of the bank amounted to $415,354.22. From 1832 to 1840, the dividends paid by the bank averaged 91 per cent. The bank continued to pay specie on demand for its notes up to about the first of April, 1841. At a meeting of the stockholders, held May 15, 1841, it was determined by an almost unanimous vote to issue paper money redeemable in current bank-notes to the amount of $174,000, the amount of its capital stock paid in. This decision was arrived at and made with due regard to the interests of the community at large. It was done for the purpose of affording relief and supplying the community with a good and safe circulation. The following temporary rules and regulations were adopted:

1. That for the present this bank will suspend specie payments upon issues made after this date.

2. That this bank pledges itself to resume specie payments as soon as the banks of this State and of other States will permit.

3. That during the suspension of specie payments the specie balance of the bank shall not be reduced except for the payment of its notes now out, and its specie deposits now or hereafter to be made; but all proper means shall be used to increase its quantity; and the issues of the bank at no time shall exceed the capital stock paid in, and the notes issued shall oil the face of them be payable in current bank-notes and receivable in payment of taxes.

4. That the situation of the bank may be at all times apparent to the public, a monthly statement of its condition shall be published.

Inasmuch as the charter of this bank expired on the 1st of January, 1843, and as the officials did not desire to close up the affairs of the bank, a memorial was forwarded to the legislature of the State on the 21st of December, 1841, making application for a renewal of the charter, or for time to wind up its business without oppression to those who were indebted to it. The legislature, however, failed to grant the prayer of the memorial in either respect, and it became necessary, therefore, to prepare for the winding up of the affairs of the institution. The principal reason for the application for a renewal of the charter was the extremely low prices of produce and real estate, and the embarrassment arising from passing from a redundant currency and high prices to the condition of things as they were at that time. In February, 1842, a statement was published, showing the condition of the bank as follows:

(page 367)

ASSETS.		LIABILITIES.
Bills and notes ...	$157,381 97	Capital stock paid in ...	$174,007 16
Ohio stocks ...	25,000 00	Circulation payable in specie...	12,528 00
Due from Western banks...	4,159 63	Circulation payable in currency...	32 440 00
Due from Eastern banks ...	500 16	Individual deposits ...	54,409 40
Real estate and banking house...	2,970 08	Other liabilities ...	5,204 79
Protests ...	21 37
General expenses ...	866 00	Total	$278,589 35
Western bank notes ...	26,334 00
Gold and silver ...	61,356 10
Total ...	$278,589 35

On March 30, 1842, the cashier issued a notice to the stockholders to the effect that, for the purpose of closing up the business of the bank by the time its charter would expire, the board of directors had 'resolved to commence paying stockholders their stock as fast as the notes due the bank could be collected. By January, 1843, it was desired to have the business of the bank entirely closed. This step was rendered necessary by the refusal of the legislature to re-incorporate the bank or to permit its capital to be invested in a State bank.

At this time the business of the country was at a very low ebb. The state of the market in the whole country-east, west, and south-was so exasperating that dealers in produce concluded to lie still rather than risk their capital by investing in any line of trade, while everything was so uncertain. Flour was selling at three dollars and seventy-five cents per barrel; whiskey had been steadily declining for some time and was selling at ten cents per gallon; wheat was seventy-five cents per bushel and dull at that. All the millers in the neighborhood suspended operations and were waiting for times to improve. Such was the condition of things at that time.

On the 27th of January, 1843, the stockholders of this bank were called together for the purpose of finally closing up its affairs. More than three fourths of its capital stock had been refunded, and there remained some twenty thousand dollars of its notes and bills to be collected. Thus closed the career of one of the soundest banks in the country, for no other reason than that the legislature refused to renew its charter. A promise was made, however, that there should be a better banking law enacted than any the State had yet had. How well this promise was fulfilled will be seen later in these pages. It is now deemed appropriate to take a cursory view of public opinion in Dayton and vicinity with reference to what was one of the most absorbing topics of the time and the principles of which are perhaps yet, in many localities, but imperfectly understood. This is the question as to whether a national bank or a (page 368) system of national banks is of benefit to the country. The veto of the recharter of the United States Bank and the order for the removal of the deposits by President Jackson, caused a great deal of excitement at the time, because of the necessary disturbance of business incident thereto. A public meeting was held on the 5th of April, 1834, at Dayton, to consider the condition of the country in view of the removal of the deposits. Warren Munger was appointed president of the meeting; Joseph Barnett, Elias Matthews, and William J. McKinney, vice-presidents, and James Stover and William Potter, secretaries. A committee was appointed, consisting of David Lamme, Amos Irwin, David Reid, Robert McCanless, Elisha Brabham, William H. Starr, William Dodds, George Farquhar, Henry Stoddard, and John W. Van Cleve, to prepare a series of resolutions expressive of the sense of the meeting. The preamble and resolutions were as follows:

"WHEREAS, The citizens of Montgomery County were lately in the enjoyment of all the prosperity which the bounty of nature and their own industry could afford them, and had nothing to desire but a proper administration of the laws to render that state continual and permanent, and, " WHEREAS, In consequence of an ill-advised measure of the executive department of the government of the United States, that state of prosperity has been within a few months exchanged for one of depression, in which the value and products of labor have depreciated, the currency has become unsettled, and commercial faith and credit have been impaired to a degree unexampled in any like space of time, and,

WHEREAS, While they are willing to bear without complaint the evils which may result from natural and unavoidable causes, they think they owe it to themselves not to remain passive under measures of their government which are calculated to oppress them instead of affording that protection which a free people ought to enjoy; therefore, "Resolved, That this meeting considers the removal of the deposits from the Bank of the United States as a principal cause of the depression which has ensued, and that they regard the measure as directly opposed to the interests or the people of the United States and as a violation of the faith of the nation toward that institution.

"Resolved, That it is the opinion of this meeting that the 'restoration of the deposits of the public money to the Bank of the United States is a measure demanded both by justice and expediency, and would more than any other measure restore confidence, re-establish credit, and insure a return to the recent prosperous situation of the country.

"Resolved, That this meeting believes that the experience of the last sixteen years has shown a National Bank to be indispensable to the (page 369) establishment and preservation of a sound currency; and that they recommend a recharter of the present Bank of the United States, with such modification as the wisdom of congress may deem proper and necessary." The above resolutions were adopted with but one dissenting voice, and a committee was appointed by the meeting to draft a memorial to congress, the committee consisting of William J. McKinney, James Stover, and John W. Van Cleve. A committee, consisting of forty-one persons, was then appointed to circulate the memorial for signatures. The memorial was to be forwarded to the Hon. Joseph U. Crane, member of congress from this district.

On April 9th, another meeting was held to consider this same question, those present at which looked at the matter in a different light from those who took part in the former meeting. At the latter meeting the statement was made that the first meeting was gotten up for party purposes, to strike directly at the President of the United States, and the measures of his administration; that the United States Bank was a dangerous and corrupt institution, hostile to the great cause of American freedom, and at war with the best interests of the people, establishing a powerful moneyed aristocracy which must trample upon- the prospects of the Republic, and crush every hope of the advocates of human liberty throughout the world; therefore all of those who were opposed to the recharter of the United States Bank were requested to meet at the courthouse on the 19th of April, to formulate their sentiments on this question. To this request were signed the names of seventy-five citizens of Dayton and vicinity. With reference to the resolutions adopted on the 5th, the- Dayton Whig said on the 7th, that owing to its being election clay, the committee circulating the memorial had succeeded in securing the names of a large number of unsuspecting persons; that a large committee of Masons and anti-Masons, and anti-Democrats was appointed to cajole the citizens into placing their signatures to the memorial, and that there would doubtless be a few respectable names secured, to which our mis-representatives in Washington, Messrs. Ewing and Crane, would testify, etc. In reply to this, the Journal of the 15th said that the "office-holders" had issued orders to the party to attend an anti-bank meeting, and continued:

" When fees are fixed by law, and the office-holder can save more of his salary when the prices of agricultural products are low, than when they are high, it is clear why the present state of things suits him.

When the farmer has to sell three barrels of flour for as much money as he formerly got for two, he is losing one third of his labor, etc. There was nothing surprising, therefore, in seeing the persons who were engaged (page 370) in the anti-bank movement opposed to the National Bank, because the worst times for the country were the best times for them." The meeting of the 19th was held, however, notwithstanding the motives of those engaged in the movement were impugned, and it was said to be the largest meeting ever held in the county up to that time. A large proportion of those present were farmers and mechanics. The Hon. John Turner was made president of the meeting; David S. Davis, Jacob Neible, James Patterson, Colonel Emanuel Gebhart, and Michael Hildegras, vice-presidents; James Douglas, Jessie Higgins, and Christian Hellrigle, secretaries. A committee was appointed to draft a preamble and resolutions expressive of the sense of the meeting, the committee consisting of William L. Helfenstein, William Sawyer, Captain John Garner, John Shelby, Solomon Price, James Brown, John McDargle, Henry Shideler, John Williams, Philip Slifer, Joseph Wolf, and George Patton.

The meeting then adjourned for a short time, and when it reconvened the committee on resolutions made its report which, when published, filled nearly seven columns of the Whig. The report stated that- the meeting believed that a crisis of deep and solemn importance had arrived when every citizen should boldly and fearlessly express his opinion and raise his voice against the dangers that were threatening his rights by a usurping and lawless bank, which aimed to place itself above the government and the people. In such a crisis to be silent were treason. No construction of the constitution, except the old Federal doctrine which fritters away the constitution to a more nothing, could find a power on which to base a bank; and hence, from the first bank in 1792, up to the present time, the great advocate of human liberty, Thomas Jefferson, and the distinguished members and the great masses of the Democratic party, had hated and opposed this moneyed power as hostile to the constitution, and in direct and palpable variance with the views of the framers of the constitution, who designed this to be a hard-money government.

The first three of the long series of resolutions adopted by this meeting were as follows:

“1. That as no power expressed or implied can be found in the constitution to create a corporation for banking purposes, we believe the Bank of the United States is entirely unconstitutional, and that the violation of the constitution in the grant of its charter cannot justify a second violation of the constitution in its recharter.

"2. That as the framers of the constitution designed ours to be a hard-money government, we most cordially desire a return to constitutional times when gold and silver shall constitute the currency.

“3. That as we believe that paper is the natural enemy of gold and that from the time of Alexander Hamilton to the present, it has ever been the policy of the United States Bank and paper system advocates to discourage the circulation of gold, so as to give success to paper currency, we view the United States Bank as the power that has expelled gold from the country, and, therefore, to restore it to circulation the power that expelled it must be put down."

The other resolutions were generally in a line with these three.

Returning now to the local banking institutions of Dayton, it may be stated that the city was without facilities of this kind from January, 1843, to June, 1845, with the exception that for a part of the time, D. Edwards, a broker, carried on a kind of banking business in Hardeman's row, on Third Street, near Main; though during all this time the question of improved banking facilities was continually being discussed, promised, and hoped for. As early as October, 1841, it was said that a branch of a State bank, with a capital double that of the Dayton Bank, then. in existence, would be of vast importance to the business interests of the city. There were, it was said, a large number of different kinds of important manufacturing establishments which needed facilities of this kind, and the advantages of the position of the city for both manufactures and banking were almost unsurpassed.

On the 27th of February, 1843, a bill was passed by the house of representatives, which had been passed by the senate a week before, incorporating a bank in Dayton. One section of this bill was as follows:

"Be it enacted by the general assembly of the State of Ohio that Edmund Smith, Nathaniel Wilson, Christian Koerner, William Eaker, and their associates and successors, be, and they are hereby, incorporated by the name of the Bank of Dayton for the term of eighteen years from the 1st of May, 1843, to be located at Dayton, Montgomery County, in this State, and to be entitled to all the privileges, and be subject to all the duties, liabilities, restrictions, and requirements of th act entitled, 'An Act Regulating Banking in Ohio,' passed March 7, 1843, and the act amendatory thereto. The capital stock shall consist of one hundred thousand dollars, to be divided into shares of one hundred dollars each, with the privilege of increasing the same to five hundred thousand dollars."

This act was signed March 10, 1843, by John Chaney and William C. Walton. The charter was granted by the legislature, in response to a petition signed by ninety citizens of Dayton and the vicinity, but in the petition the request was made that the capital stock should be fixed at two hundred thousand dollars. After the charter was granted, Dr. (page 372) Thomas O'Kefle was appointed special commissioner to receive subscriptions to the capital stock of this bank. For several months, however, no progress was made in securing subscriptions to the capital stock, either from want of effort on the part of those who had been instrumental in having the bank chartered, or from want of interest or confidence on the part of the people. At length, however, on April 23, 1845, it was reported that the work of securing subscriptions was progressing favorably, and on May 16th, it had reached one hundred thousand dollars.

On the 21st of the month the following board of directors was elected: Alexander Grimes, Charles G. Swain, Robert W. Steele, J. D. Phillips, Peter Odlin, Samuel Shoup, Warren Estabrook, David Stout, and Herman Gebhart. Peter Odlin was elected president, and David Z. Peirce, cashier.

About the same time there was established an "independent bank," by the name of the "Dayton Bank." The stockholders of this bank held a meeting May 1, 1845, at the store of Winters & Shaeffer for the purpose of taking the preliminary steps required by law for the presentation of the application for banking privileges to the board of bank commissioners, which was to meet at Columbus, May 5, 1845. An organization of the bank was also effected at that meeting for the commencement of business, the directors elected being as follows: Jonathan Harshman, Sr., John Rench, Thomas Brown, Daniel Becket, Jonathan Harshman, Jr., Henry Vats Tuyl, and David Davis. Jonathan Harshman, Sr., was elected president, and Valentine Winters, cashier.

The specie capital of this bank was sixty thousand dollars, and the amount of stocks upon which the circulation was based was one hundred and twenty thousand dollars. A room was chosen on Third Street, adjoining Winters & Shaeffer's store, in which to conduct the business of the bank. On May 20th, Commissioner Grimes counted the specie of the new bank and found it correct. It consisted almost entirely of the same specie which was in the vaults of the old Dayton Bank when its charter expired, and had been lying idle there ever since. The State Bank had a room on Second Street, in Phillips' Block, a few doors east of Main Street, for temporary purposes, but it soon moved to a building on Old Market Street, a few doors from Main, and there commenced operations July 7, 1845.

Thus were there established two banks in Dayton, both of which were felt to be in the hands of safe, conservative business men. The Dayton Bank made its first quarterly exhibit on the 4th of August, 1845, showing its condition to be as follows:

(page 373)

ASSETS.			LIABILITIES.
Gold ...	$6,099 50		Capital stock paid in...			$32,360 00
Silver ...	37,744 03		Notes issued ...	. l's	$4,655
Deposits subject to sight draft...	28,921 48		Notes issued ...	3's	4,467
Bank-notes on hand ...	112 52		Notes issued ...	5's	9,990
Bills and notes discounted...	46,427 87		Notes issued ...	10's	590--	19,682 00
Personal property ...	537 47		Due other banks...			11,238 39
Expenses ...	65 27		Due depositors...			64,099 54
			Profits ...			627 21
Total ...	$128,007.14
			Total ...			$128,007.14
On the same day the Dayton branch of the State Bank made the following exhibit of its condition:
ASSETS.			LIABILITIES.
Gold and silver ...		$34,364 45	Capital paid in			$37,178 00
Deposits in New York and Balti-			Due other branch banks.			300 00
more		10,820 69	Due other Ohio banks			4,584 46
Ohio banknotes on band ...		11,364 00	Due depositors			41,363 90
Other State bank-notes ...		17,936 00	Profits, etc.			116 62
Bills and notes on band ...		8,365 03
Due from other branches ...		97 23	Total ...			$83,542 98
Due from other Ohio banks...		404 65
Exchange and expenses ...		190 93
Total ...		$83,542 98

This bank, it will be seen, had no circulation at that time, but by the 20th of the month, notes had been received and put into circulation.

These notes were described as handsome specimens of the engraver's art and of superior paper. Their appearance, it was said, was hailed with delight by the citizens, though this was not on account of their beauty. They were issued under a system which for years the people had been striving to establish-a system entitled to confidence in every way. At the time when the second quarterly statement was made, November 3, 1845, the assets of this bank had become $163,010 and its $60,800. It was divided up into 1's, $3,200; 3’s, $9,600; 5’s, $16,000; and 10's, $32,000.

At the same time the total assets of the Dayton Bank were $281,853.88, and its circulation in 1's, $7,688; 3's, $7,500; 5's, $22,785; 10's, $29,840; 20's, $4,740; total circulation, $72,553.

In reference to this bank, Mr. J. H. Winters, president of Winters' National Bank, in an address on banking in Dayton, delivered February 21, 1888, at the inauguration of the rooms of the Dayton Board of Trade, made the following remarks:

"The Dayton branch of the State Bank made collections, bought (page 374) and sold exchange, received deposits, but paid no interest therefor, and loaned money at six per cent, the charter limit, but frequently received a higher rate by directing its impecunious customers to make their paper payable in New York, instead of here, so that when the note matured the maker would be compelled to pay the same in exchange or its equivalent. This would ordinarily give the bank an additional one per cent on its loan, which, under the high taxes of the ' Crow-bar Law' of that day, was no unimportant item, though it was claimed that such procedure was an indirect violation of the State Bank charter.

“The Dayton branch was not the only bank to assist its profits in this way, and I venture the assertion that there was not a bank in Ohio which did not practice in the same school. Tradition tells us that its discount committee met but once a week, and that on these occasions the lives, characters, and prospects of the borrower and his endorsers and of their immediate friends and relatives underwent a searching examination. Be this as it may, the old bank was a staunch ship, well-manned and ballasted, against which the waves of panic and business prostration beat harmlessly, a credit and help to our city and a marvelous success in days when success meant something more than to succeed. 'The private banks were not so conservative. In the competition for business they were urged on by a generous but dangerous rivalry, and offered and paid to their depositors on daily balances, interest at the rate of six per cent per annum. As a consequence, there was gathered into their keeping a vast sum, for those times, of the idle money of the city and country. This in turn they loaned to their customers at rates varying from ten to twelve per cent, seldom more, seldom less, the difference in the rate indicating the grade of paper offered, and as the loanable money exceeded the legitimate wants of our city, outside paper, that is, paper from. adjacent towns and cities, was in demand.

"As much of the outside paper could not have been first-class, heavy losses followed from the portion still unpaid when the inflation bubble was punctured.

“I remember overhearing a conversation between the heads of our firm and Joel 0. Shoup, a neighboring banker. Mr. Shoup was trying to dispose of the paper of Gregory & Burnet, and Ezekiel Ross, of Cincinnati. As our firm hesitated about taking the paper, Mr. Shoup became somewhat excited, and bringing his fist down on the table with great force, exclaimed: ' Winters, any man, having the money, who would not discount old Zeke Ross' paper, ought to be hung.' To avoid this alternative the paper was taken, and is still held by the purchasers. The ordinary rate for gold and New York exchange was one-half (page 375) of one per cent premium, buying, and one per cent selling; but in times of great monetary excitement, it frequently ran much higher. Foreign collections, and checks and drafts on points outside of New York, Boston, Philadelphia, Baltimore, and Cincinnati, were charged for at rates gauged by difficulties of collection. The New York and Cincinnati banks and bankers paid their correspondents interest on their daily balances at rates ranging from four to six per cent."

Much more might be quoted from this interesting address of President Winters, did space permit, but the above extract will serve to show something of the nature of banking in ante-National Bank days. The high taxes of the " Crow-bar Law " have been referred to above. For some time before its passage the banks refused to pay the taxes imposed upon them by the laws of the State, and the " Crow-bar Law" was passed authorizing county treasurers to open the bank vaults and safes with a crow-bar, if necessary, in order to collect the taxes due the State from the banks. No such proceeding was ever necessary in Dayton, but it was necessary for the county treasurer to collect the taxes in an unusual manner, and he doubtless would have put in force the law in a literal manner, had it been necessary to do so. The banks always knew when the tax would be collected, and left the money in a bag where the treasurer or his deputy could find it upon entering the bank. This course was taken in order to keep up the protest against the operation of the law. G. B. Darman was deputy treasurer at the time the tax was collected the first year in Dayton, and found it necessary only to go into the bank and pick up the bag containing the amount of taxes in gold, which he carried away without opposition or resistance of any kind-this being the understanding with the authorities of the bank. The tax was collected in this way, however, only two years, for the question of the constitutionality of the law under which the high taxes had been levied, was submitted to the supreme court, and by that body declared unconstitutional, and, as a consequence, the State was compelled to refund the amounts collected in violation of the constitution of the State.

In the latter part of December, 1845, this bank moved into Shoup's Building, at the southeast corner of Second and Jefferson streets. Mr. Peirce resigned as cashier in March, 1849, and Charles G. Swain was elected as his successor and served in that capacity with Mr. Odlin as president until April, 1865, when the capital and business were transferred to the Dayton National Bank.

With reference to the Dayton Bank, it may be stated that John Renck was elected president in March, 1850, upon the death of Mr. Harshman, and in November following Mr. Winters resigned as cashier (page 376) and John B. Chapman was appointed in his place. This bank discontinued business in the spring of 1852.

The City Bank was a private bank owned by J. O. Shoup and Samuel Tate, Sr., with Joseph A. Dusang as cashier. It was located on the north side of Third Street, four doors east of Jefferson Street, and was opened for business August 7, 1850. In April, 1852, Mr. Tate withdrew from the firm and the business was continued for several years.

The Farmers' Bank was opened for business November 20, 1850. It .was established by Daniel Beckel, William Dickey, and Joseph Clegg, and was located in the Ohio Block on Third Street west of Kenton Street. Mr. Clegg withdrew from the firm March 29, 1852, and the bank was moved to the northeast corner of Jefferson and Third Streets. Mr. Dickey withdrew October 24th, of the same year, and Mr. Beckel continued alone until the close of the bank in 1854.

The Miami Valley Bank was established in 1851, and opened for business on the 10th of the following September. Daniel Beckel was president of this institution, S. C. Emley, cashier, and the directors were Daniel Beckel, Nathaniel Strong, J. McDaniel, Daniel A. Haynes, and Joseph Clegg. The bank was at first located in room Number 3, of the Ohio Block, but was afterward moved to the Dayton Bank room on Third Street, near Main, where the business was closed.

The Exchange Bank was opened for business at the northeast corner of Main and Third Streets, April 5, 1852. It was owned by Valentine Winters, Jonathan Harshman, R. R. Dickey, and James R. Young. Messrs. Dickey and Young withdrew September 26, 1853, and Messrs. Harshman and Winters continued until 1857, when Mr. Harshman withdrew and John II. Winters became a member of the firm. The firm name was then changed to V. Winters & Son, who continued and largely increased the business, and for many years held rank with the best banks in the country. In the fall of 1861 the business was moved from the northeast corner of Main and Third Streets into a building which was afterward torn down to give place to the handsome structure now occupying the site. January 1, 1882, it was converted into a National Bank, known as Winters' National Bank. Its capital stock was fxed at three hundred thousand dollars, and its first ofcers as a National Bank were J. H. Winters, president; J. D. Platt, vice-president; J. C. Reber, cashier; J. H. Winters, J. D. Platt, Valentine Winters, L. B. Gunckel, J. Decker, J. M. Phelps, James Stockstill, Samuel Craighead, and E. M. Wood, directors. J. H. Winters retained the presidency of the institution until August 8, 1882, when he resigned the position for the purpose of making a tour around the world, and during his absence Valentine Winters served in (page 377) that position. J. H. Winters returned to Dayton and was elected to his old position as president of the bank August 8, 1883, and has served in that capacity ever since. The other officers remain the same as noted above. The capital stock remains at three hundred thousand dollars and a surplus of twenty thousand dollars has accumulated. Regular dividends have been made varying with earnings of the bank. They have been eight per cent until recent years; now they are but six per cent. In previous pages may be found references to, if not a complete history of, the Dayton branch of the State Bank. The last election of directors of this bank was held in January, 1864, resulting as follows:

Peter Odlin, Horace .Pease, J. Ii. Achey, J. Estabrook, T. A. Phillips, Dr. II. Jewett, and II. Gebhart. Peter Odlin was chosen president, and C. G. Swain, cashier. At the close of 1864, the stock of this bank was transferred to the Dayton National Bank. During the twenty years of the existence of the Dayton branch of the State Bank it had paid regular dividends, and at its close divided a handsome surplus, never having suspended payment for a day. The Dayton National Bank held its first election for directors February 7, 1865, with the following result: Peter Odlin, J. II. Achey, Horace Pease, G. W. Rogers, Harvey Conover, Herman Gebhart, Joel Estabrook, Dr. H. Jewett, and T. A. Phillips. Peter Odlin was elected president and C. G. Swain, cashier. The following changes have occurred in the board of directors and officers: H. S. Fowler was elected in the place of Herman Gebhart, deceased, January 14, 1868; William Clarke, in the place of Joel Estabrook, resigned, August 12, 1869; R. P. Dickey, in the place of H. S. Fowler, deceased, August 12, 1869; Josiah Gebhart, in the place of Dr. H. Jewett, deceased, January 10, 1871; Edward W. Davies, in place of Peter Odlin, resigned, November 8, 1871; W. P. Callahan, in place of Edward W. Davies, deceased, January 13,1874; William H. Simms, in place of Horace Pease, deceased, August 12, 1875; George L. Phillips, in place of T. A. Phillips, deceased, January 8, 1878; Isaac Van Ausdal, in place of George L. Phillips, resigned, November 11, 1880; Calvin L. Hawes, in place of Isaac Van Ausdal, resigned, January 10, 1882; S. W. Davies, in place of William Clarke, deceased, June 15, 1882. J. H. Achey became president on the resignation of Peter Odlin, and William H. Simms was made vice-president December 13, 1883. Charles G. Swain died August 7, 1866, and was succeeded as cashier by H. C. Hiestand. Mr. Hiestand resigned January 14, 1869, and was succeeded by W. S. Phelps, who resigned July 31, 1884, and was succeeded by James A. Martin, the present cashier.

At the present time the officers of this bank are William H. Simms, president; S. W. Davies, vice-president, and James (page 378) A. Martin, cashier. The capital, surplus, and undivided profits of the bank are $380,000, and the present board of directors are as follows:

G. W. Rogers, Ii. Conover, R. R. Dickey, Josiah Gebhart, W. II. Simms, S. W. Davies, R. C. Schenck, Jr., John Cramer, and E. E. Hawes. The National Banking Law was passed by congress February 15, 1863. About the 1st of March following, a movement was inaugurated in Dayton for the establishment of a bank here under the new law. In a few hours' canvass of the city, about one fourth of the requisite capital stock was subscribed. The movement was, at the same time, general throughout the State. The entire amount of the capital stock, $125,000, was rapidly taken, and a meeting of the stockholders of the proposed new bank was held April 10th to finally decide as to the propriety of establishing the institution. On the 23d of April, a meeting of the directors was held, and the stockholders were requested to pay in their subscriptions. By the 24th, the stock was all paid up and the bank fully organized. The board of directors elected were as follows: S. Gebhart, Henry Herrman, Thomas Parrott, Caleb Parker, John L. Martin, Daniel E. Mead, Samuel Marshall, George W. Shaw, and Josiah Gebhart. The president of the bank was S. Gebhart, and the cashier, G. B. Harman. The certificate authorizing this bank to commence business was issued by Samuel T. Howard, acting comptroller of the currency, June 22, 1863, and on the 26th of the month the stockholders were notified by the cashier that certificates of stock were ready for delivery to the proper parties.

In this connection, it may not be improper to note the rapidity with which national banks were established in Ohio, as compared with other loyal States. On August 20, 1863, there were in Ohio fifteen national banks with an aggregate capital of $3,043,000, while in all the other States there were but twenty-five national banks with an aggregate capital of $3,710,000. The largest bank in the Union at that time was the First National Bank, of Cincinnati, and the next in size was the Second National Bank, of Cleveland. The former had a capital of $1,000,000 and the latter of $600,000. New York State had five national banks with an aggregate capital of $670,000.

The First National Bank of Dayton, the history of the establishment of which is given above, continued business until 1870, when it went into voluntary liquidation, and was succeeded by the private banking frm, Gebhart, Harman & Co., consisting of Simon Gebhart, G. B. Harman, and W. B. Gebhart. This firm continued business until February, 1883, when it was merged into the City National Bank, which was incorporated with a capital stock of $200,000. The first board of directors of this (page 379) bank were Simon Gebhart, G. B. Harman, W. B. Gebhart, Ezra Bimm, Henry C. Graves, P. M. Harman, and Joseph R. Gebhart. The present board are the same with the exception that W. P. Callahan has taken the place of G. B. Harman. The capital stock of the bank is the same as at first; the surplus is forty thousand dollars, and the undivided profits are twenty-five thousand dollars. The location of the bank is at No. 39 West Third Street.

The Second National Bank was organized about the same time with the First. A meeting of the stockholders of the Second National Bank was held at the courthouse May 14, 1863, at which the following directors were elected : Jonathan Harshman, James Perrine, G. W. Kneisly, T. S. Babbitt, William P. Huffman, Robert Chambers, L. R. Pfouts, N. B. Darst, and D. C. Rench. On the 15th, Jonathan Harshman was elected president, and D. C. Reach, cashier. The certificate of this bank was Number 10, and the bank was authorized to commence business on the 22d of June, by Samuel T. Howard, acting comptroller of the currency. The bank commenced business on the 29th of June, 1863, at Number 48 North Jefferson Street. The charter of this bank expired by limitation on the 25th of May, 1882, the law permitting the extension of bank charters not having then been passed.

The Third National Bank was chartered May 4, 1882, its certificate being Number 2,678, and its capital stock being four hundred thousand dollars, with a surplus of one hundred thousand dollars. This bank commenced business May 10, 1882. There were originally, and are now about one hundred stockholders in this bank. The first board of directors were as follows: William P. Huffman, Daniel Keifer, T. S. Babbitt, E. J. Barney, George W. Kneisly, John K. McIntire, Rufus J. King, George W. Shaw, and Preserved Smith. The first ofcers were: William P. Huffman, president; Daniel Keifer, vice-president, and Charles E. Drury, cashier. The present board of directors are: T. S. Babbitt, Rufus J. King, George W. Shaw, Thomas A. Legler, Daniel Keifer, John K. McIntire, Walter W. Smith, George P. Huffman, and A. Newsalt. John K. McIntire became president of this bank in January, 1888; Rufus J. King is now the vice-president ; Charles E. Drury has always been the cashier, and Charles Rench became assistant cashier February 19, 1884. The Merchants' National Bank was incorporated February 15, 1871, with a capital stock of two hundred thousand dollars. The first directors were: Caleb Parker, Daniel E. Mead, Samuel Marshall, John Powell, J. W. Dietrich, James Applegate, E. D. Payne, N. Ohmer, and J. C. Peirce; John Powell was elected president, and A. S. Estabrook, cashier. For a short time this bank did business on Main Street, while the present (page 380) building on the southwest corner of Third and Jefferson Streets was being erected. Daniel E. Mead was elected president in 1873, and during the same year J. C. Peirce was elected vice-president. Alexander Gebhart became vice-president in 1886, and the officers at the present time are: Daniel E. Mead, president; Alexander Gebhart, vice-president, and A. S. Estabrook, cashier. The capital stock is now three hundred thousand dollars, and the surplus sixty thousand dollars. The present board of directors are: Daniel E. Mead, Alexander Gebhart, J. C. Peirce, E. A. Daniels, John R. Reynolds, D. L. hike, James Applegate, Solomon Rauh, and N. Ohmer. The Fourth National Bank was organized early in January, 1888, and commenced business on the 12th of that month. The number of its certificate is 3,821, and the number of stockholders one hundred and fifty.

The first and only directors were and are E. J. Barney, John W. Stoddard, William E. Crume, Edward Canby, C. J. Ferneding, Torrence Huffman, Houston Lowe, W. J. Shuey, and J. B. Thresher. The first ofcers of the bank, who still retain their positions, were J. B. Thresher, president; Torrence Huffman, vice-president, and Ziba Crawford, cashier. This bank is located on the northeast corner of Third and Jefferson streets, in a new four-story brick building erected for its accommodation. Its rooms are elegant and cheerful, and for the better protection of its funds it has one of the celebrated Corliss safes, of which there are only two in Ohio, the other being in Youngstown.

The Union Safe Deposit and Trust Company was incorporated February 3, 1887. The incorporators were Joseph B. Thresher, James D. Platt, John W. Stoddard, Eugene J. Barney, Torrence Huffman, Edward Canby, Clement J. Ferneding, Edwin 'R. Stilwell, William J. Shuey, and Abram D. Wilt. The company was incorporated with a capital of one hundred thousand dollars. The object of the company is to furnish facilities for the safe keeping of valuables, such as deeds, mortgages, jewelry, insurance policies, bonds, certificates of stock, valuable packages, parcels, etc., to such persons as cannot afford to purchase safes for their own use, and even to those who have such safes, but which they may feel are not absolutely burglar or fire-proof. The facilities of this company consist of a modern safe deposit vault on the main floor of the new bank building, on the northeast corner of Third and Jefferson streets. This safe deposit vault was designed by MacNeale & Urban, of Cincinnati, especially for this company, and no expense has been spared which was necessary to render it strictly burglar and fire-proof. All the latest improvements which mechanical skill has devised for insuring strength and security have been adopted and used in its construction. The very best workmanship has been employed, and the result is an (page 381) impregnable vault, which is believed to have no superior in the country.

The interior is fitted up with a large number of safes and deposit boxes of various sizes, suitable for all requirements. These are rented by the year, at prices varying from five dollars to ffty dollars. No safe-holder can open his own safe without the assistance of a vault attendant, who must partially unlock it, when it can be opened by the keys of the safeholder. The vault itself is twelve feet six inches wide, sixteen feet eight inches long, and seven feet high in the clear inside. In the construction of this vault a combination of metals has been used-malescent steel, Bessemer steel, chrome steel, and homogeneous, each one half inch thick, the quality of resistance lacking in one being supplied by the other. This two-inch thick case of plates is surrounded by a wall of masonry, averaging twenty inches in thickness, filled in between metal and masonry with cement. There is ample space around the vault and between it and the heavy walls of the building itself, which is all the time under the observation of watchmen, so that it would seem to be an impossibility for burglars to make even an attempt to break open the vault, much less succeed in such an attempt.

The massive double doors together are six inches in thickness and weigh several tons. The outside door is secured by twenty-four double acting steel bolts, each bolt one and a half inches in diameter, and all having a purchase on the inside of the jambs. This bolt work operates from a common center, throwing eight bolts front, eight back, four up and four down, thus forming twenty-four distinct fastenings for the door, all operated by an automatic device, having no connection with the exterior of the door. Time-locks are also attached, affording protection after the close of business hours, so that the doors cannot be opened even by those having charge of the locks. In addition to all these precautions in the construction of the vaults, information is received every half-hour during the night at police headquarters of the safety of the premises. Taken altogether, there is no safer or better place for the keeping of valuables than in the vaults of this company, and many of the people of Dayton and vicinity have already become trustees of the company at the present time are Torrence Huffman, J. B. Thresher, John W. Stoddard, Eugene J. Barney, William J. Shuey, Clement J. Ferneding, James D. Platt, John Barlow, George J. Roberts. The oficers are as follows: Torrence Huffman, president; William J. Shuey, vice-president; Ziba Crawford, secretary and treasurer, and D. W. Stewart, custodian.

The Dayton Savings Bank was incorporated February 24, 1874 under an act of the legislature passed February 26,1873. It commenced business (page 382) May 21, 1874. The trustees were C. F. Kneisley, Charles Burroughs, Jost Durst, Daniel Slentz, and J. L. Prugh. The frst offcers were C. F. Kneisley, president; Charles Burroughs, vice-president; Jacob W. Dietrich, cashier. The trustees of this bank, at the beginning, hoped to be able to secure a large line of deposits from the laboring classes of the people, but, owing to the existence of numerous prosperous building associations, the savings department has been but poorly patronized. From the beginning, however, the institution has carried on a regular banking business, and has thus been able to be of use to such as chose to use it for banking purposes. Of late years the officers have been Louis H. Poock, president; Edward Pape, Sr., vice-president, and Ziba Crawford, cashier, until he resigned the position to take the position of cashier in the new Fourth National Bank. At the time of Mr. Crawford's resignation, Mr. Pape was elected cashier, and Daniel Slentz was elected vice-president in the place of Mr. Pape. At the same time Albert H. Poock, since deceased, was elected assistant cashier. About March 1, 1889, arrangements were completed to change the bank from a State bank to a national bank, with the name of the Teutonia National Bank. In the summer of 1889, it removed to the northwest corner of Fifth and .Jefferson streets, a most eligible location. At the time of its incorporation as a national bank, its capital was two hundred thousand dollars, and the directors and officers were as follows: Directors, Louis H. Poock, Edward Pape, Sr., W. S. O'Neill, Harry Coleman, Fred Reibold, John Dodds, Charles E. Swadener, Adam Lessner, and Joseph Wortman. The above directors were chosen on Saturday night, March 16, 1889, and on the 29th of the same' month the following officers were elected: Edward Pape, Sr., president; Frederick Reibold, vice-president, and Louis H. Poock, cashier.

Dayton Building Association, No. 1, was organized March 23, 1867. This was the first organization of the kind established in Dayton. Its business ofce was in the basement of the German Reformed Church, at the corner of Clay and Cass streets. Its first officers were Carl Bremer, president; Albert Geige, vice-president; Friederich Naumann, treasurer, Jacob Decker, secretary, and John H. Stoppelman, attorney. In this association each member had but one vote without any reference to the number of shares he held. The shares were one hundred and twenty-five dollars each, and one of the special features of the association was that all payments had to count back to the date of the organization, no matter when made. The officers of the association were as follows: President- Peter Lenz, 1868 and 1869; John Roder, 1870 to 1873 inclusive. Vice-president- John Schoen, 1868; John Roder, 1869; Augustus C. Meyer, (page 383) 1870; William Stock, 1871; Gottlieb Eberhardt, 1872; Freiderich Horn, 1873. Secretary-Louis H. Poock, 1868 to 1873 inclusive. Treasurer- Philip Walz, 1868; Henry Wetekamp, 1869; Philip Walz, 1870; Henry Beddies, 1871 to 1873 inclusive. Comptroller-Freiderich Steinbruegge, 1869; John Jauch, 1870; Freiderich Steinbruegge, 1871; Joseph Burwinkel, 1872. Assistant secretary-Henry Huefelrnann, 1873. Cashier -Jacob Gruenewald, 1869 and 1870; Freiderich Seeger, 1871 and 1872; John Weissmantel, 1873. Attorney-J. L. H. Frank, 1868 to 1873 inclusive. The affairs of this association were wound up August 26, 1873, at which time there was a dividend of fifty-four cents per share to be made, or in the aggregate $566.23 to be divided among the members after they had received back their original investment.

Concordia Building Association was organized March 23, 1868. Each share in this association was one hundred and fifty dollars. No member could hold more than ten shares, and no member had more than one vote, no matter how many shares he held. The first officers of this association were: President, George Neibert; vice-president, Dr. Henry Weis; secretary, A. Abicht; treasurer, Peter Lenz; assistant secretary, Louis H. Poock, and attorney, J. L. II. Frank. The subsequent officers were: President-George Neibert, 1869 to 1872; Jacob Schmidt, 1873; Peter Lenz, 1874. Vice-president-John Roder, 1869; Christian Schmidt, 1870; Christ. Schmidt, 1871; John Roder, 1872; John Schueble, 1873; Christ. Schoen, 1874. Secretary-Louis H. Poock,

1869 to 1874 inclusive. Treasurer-Peter Lenz, 1869; Constantine Zwisler, 1870; William Leonhard, 1871 and 1872; Christian Schmidt, 1873 and 1874. Cashier-John Roder, 1870 and 1871; Edward Meissner, 1872; John Stroehler, 1873; George Jacob, 1874. Attorney-J. L. H. Frank, 1869 to 1874 inclusive. There were no officers elected for 1875, the affairs of the association being wound up April 22d. of that year, and the members going over to the Germania, a history of which follows. The Germania Building Association was incorporated in April, 1873, with a capital of one million dollars, by the following persons: Louis H. Poock, Frederick Pooch, C. G. Sputh, G. Eberhardt, Philip Lenz, Carl Tredtin, Peter Lenz, Philip Walz, John Schoen, Carl Pauli, Louis Rost, William H. Smith, and. John Roder. A meeting of those interested was held May 1, 1873, at which the following directors were elected: Peter Lenz, Frederick Born, Philip W alz, John Schoen, J. L. H. Frank, Louis H. Poock, Peter Aman, Ernst Mueller, John Roder, Edward Meissner, Gottleib Eberhardt, Louis Rost, and Frederick Poock. On May 2d, the association was organized by the election of John Schoen, president; Peter Aman, vice-president: Louis H. Poock, secretary; Peter Lenz, (page 384) treasurer, and J. H. L. Frank, attorney. In the following list of officers only the changes are indicated: In 1874, John Roder was chosen president; Gottlieb Eberhardt, vice-president; in 1875, Frederick Steinbruegge, vice-president; in 1876, Charles E. Swadener, attorney; in 1877, Freiderich Steinbruegge became president, and has been annually elected ever since; Henry Beddies was elected vice-president; 1878 Henry Weber, vice-president; 1879 John Roder, vice-president; 1880 George Mart, vice-president; 1881 Henry Seeger, vice-president; 1884 H. W. Meyer, vice-president; H. Seeger, treasurer; 1888 Louis H. Poock was chosen both secretary and treasurer, and has served in both capacities ever since. The officers of the association at the present time (1889), are as follows: President, Freiderich Steinbruegge; vice-president, H. W. Meyer; secretary and treasurer, Louis H. Poock; attorney C. E. Swadener. The board of directors, in addition to the first three of the above-named officers are Henry Hueffelmann, F. August Requarth, W. H. Meyer, August G. Pooch, George Dies, and Christ. Schoen.

On August 23, 1886, the charter of this association was amended so as to permit the increase of the capital to two million dollars. The association works on the permanent Philadelphia plan. Business is conducted every day, and on Saturday and Monday evenings. A share in this association is two hundred dollars, and a borrower pays twenty-five cents per week for each two hundred dollars that he borrows, and in addition to this, pays whatever premium he agrees to pay, either weekly or monthly, and also interest at the rate of six per cent on the loan. At the end of the year the interest is rebated on the amounts that have been paid in weekly, and credited to the borrower on the loan, together with dividends, the same as is the case with - non-borrowers. The association also issues full paid up stock certificates in sums from one hundred dollars to five thousand dollars, on which it pays the regular legal rate, six per cent. Franklin Building and Savings Association was established April 20, 1875. The first officers were elected May 25th, following, at which time it was fully organized. These officers were: President, Louis Ritter; vice-president, Christ. Gross; secretary, Louis Faul; treasurer, Edward Pape; attorney, J. L. H. Frank. The subsequent officers were as follows: President-Louis Ritter,1876 to 1880; Christ. Gross,1881. Vice-preseident Christ. Gross, 1876 to 1880; Rudolph Borgneise, 1881. Secretary- Louis H. Polk, 1876 to 1881 inclusive. Treasuer – Edward Pape, 1876 to 1881 inclusive. Attorney-J. L. H. Frank, 1876 to 1881 inclusive. A meeting was held August 2, 1881, at which it was provided that another meeting should be held on August 9th, but no record of this meeting can be found. The members, however, went into the New Franklin Building Association.

(page 385) The New Franklin Building Association was established May 9, 1879, on the permanent plan, and was incorporated with a capital of five hundred thousand dollars. Each share was one hundred and fifty dollars. The incorporators were Louis Ritter, Edward Pape, Louis H. Poock, Adam Weber, Daniel Schroer, John Trangenstein, Christ. Kastner, August Hessler, Adam Hilde, and Jacob Renner. The first officers were as follows : President, L. Ritter; vice-president, John Danner; secretary, Louis H. Poock; treasurer, John H. Trangenstein; attorney, C. L. Bauman. Since then the officers have been as follows: President-Louis Ritter, 1880 and 1881; Edward Pape, 1882 to 1889 inclusive. Vice-president-Edward Pape, 1880 and 1881; John Robert, 1882 to 1889 inclusive. Secretary-Louis H. Pooch, 1880 to 1884 inclusive; Albert H. Poock, 1885 to 1888 inclusive; J. E. Sauer, 1889. Treasurer-John H. Trangenstein, 1880 to 1889 inclusive. Attorney-C., L. Bauman, 1880 to 1889 inclusive.

The Mutual Home and Savings Association was organized in 1873, for the purpose of raising money to be loaned among its members for use in buying lots and houses, in building or repairing houses, and for such other purposes as were authorized by law. The capital stock of the association was at frst one million dollars. In 1881 it was increased to two million dollars, and in 1884 it was raised to five million dollars. The last increase was in 1888, when it was made to ten million dollars. From 1873 to 1880, the association had a continual struggle for existence, but in the latter year it began to prosper, and ever since that time, as may be inferred from the rapid and great increase of its capital, it has made rapid strides of progress. The officers at the time of organization were as follows: William H. Dill, president; Josiah E. Boyer, secretary, and James Anderton, treasurer. This organization continued until 1874, when Mr. Boyer resigned the secretaryship, and after a short interval the present secretary, A. A. Winters, was elected to fll the vacancy. A year or two later, Mr. Dill removed from the city and resigned the presidency, and Josiah E. Boyer was elected to the place. In 1880, James C. Reber, the cashier of Winters' National Bank, succeeded Mr. Anderton as treasurer, and the above-named officers are at the present time the officers of the association.

When the association was first organized it was conducted on the plan usually adopted by such associations. Its want of success, however, led the management to look about for new methods. Changes were adopted as they seemed to promise better results, and by 1880 the methods of the association had been completely revolutionized. Originally shares in this association were one hundred dollars each. (page 386) Afterward five hundred dollar shares were added, still later shares of one thousand dollars, and later still shares of two thousand five hundred dollars.

Since 1880, the association has grown very rapidly in the city, as set forth by the following statistics: Net assets January 1, 1880, $35,968.16; January 1, 1881, $77,525.51; January 1, 1882, $134,201.37; January 1, 1883, $207,043.09; January 1, 1884, $415,352.56; January 1, 1885, $567,365.01; January 1, 1886, $714,628.25; January 1, 1887, $901,174.47; January 1, 1888, $1,154,148.06, and on January 1, 1889, $1,512,756.95. The annual receipts in

1880 amounted to $101,865.18, while in 1888 they reached $1,354,530.30. The association now numbers about seven thousand members, and has about fifty-five thousand shares subscribed. This association has loaned the money to build more than fifteen hundred homes in Dayton, in sums ranging from five hundred dollars to twenty-five thousand dollars, and on business buildings in sums reaching as high as fifty thousand dollars.

The effect of the establishment of building associations on the rate of interest charged in Dayton is worthy of attention. In general terms it may be said that interest has been lowered three per cent.- Formerly interest was as high as ten per cent, whereas now it does not average over seven per cent. Building associations are patronized in Dayton to an extent which is phenomenal. This patronage is not alone from workingmen, but is also from business men, and even women and children. The smallest amount received by this association is twenty-five cents per week, upon which interest is paid according to what the association earns. For the last five years it has averaged over seven per cent, and the interest is compounded every six months. The rooms are open like every other business house, every day in the week, Sundays of course excepted, and also on Monday and Saturday nights. The patrons of the association are coming and going all the time, and constantly keep the officers and clerks at work.

One of the difficulties with which this association has to deal, is that of finding use for the money that constantly flows into its treasury. From the nature of its business the association is compelled to receive book deposits at all times, but the issuance of paid-up stock is optional with the association. And when money comes in too freely the issuance of paid-up stock is for the time being discontinued. Paid-up stock is therefore used as a kind of financial regulator. The association also has the right to call in outstanding stock in case of necessity; that is, in case of money coming in too freely by means of the book deposits. If, however, at any time the demand for money becomes greater than the supply on hand, it is only necessary to permit it to be known (page 387) that the association is ready to issue paid-up stock, that being a favorite investment, and then money pours in until the equilibrium is restored. Were it not for this means of regulating .the supply of money at will, large balances of money would accumulate at certain seasons of the year, and lie idle, while at other times members desiring to borrow money or withdraw their deposits, would be subject to embarrassing delays. By the means thus indicated, the association was enabled during the year 1888, to keep the balance down below fifty thousand dollars, with one exception, and the average balance for the year was $19,298.84.

The advantages to those who desire to borrow money are numerous in dealing with a building association. The money may be drawn in installments, as needed, and interest begins only when the money is actually drawn. Loans are made up to two thirds of the value, of the security, including improvements. The weekly payments amount to only thirteen dollars per year on each one hundred dollars of the loan. This is but six dollars more than the interest, and if the borrower does not wish to pay anything on his loan be will scarcely feel this additional small sum, and at the same time he is paying of his indebtedness in such a way as hardly to be aware of it. The loan is thus paid of so gradually that there is no uneasiness on account of a note of considerable size falling due all at once. Each week takes care of itself, and thus the burden is evenly distributed throughout the whole year. A minimum payment of twenty-five cents on each one hundred dollars is required, while at the same time, all payments in excess of the minimum count as payments ahead, and no one is in arrears until all over-payments are used up. Besides these obvious advantages the entire loan may be paid of at any time, and premium and interest are charged only up to the date of canceling the indebtedness. Thus it will be seen that a borrower from a building association is enabled to utilize at any moment any money that may come into his hands. This is an advantage not easily to be overestimated. And it is only possible for such an association to conduct business in this way, because it has a steady stream of money pouring into and out of its treasury.

Central Building Association was organized in 1875, with a capital of one million dollars. John S. March was its president from the date of organization until 1888, since when the president has been Edward Pape. A. Ebel was secretary until 1887, since when that office has been filled by Joseph Schumacher. M. Schneider and Leonhard have been treasurers since the organization, and C. L. Baumann attorney.

Washington Building Company was organized in 1874, with a (page 388) capital of three hundred thousand dollars. Andrew Ritzert was president until 1877, Frank Bucher until 1882, August Wehner until 1887, and since then J. Joseph Stephan. Herman Soehner has been secretary since the organization, Alexander Mack treasurer, and C. L. Baumann attorney. Permanent Building and Savings Association was organized in 1874, with a capital of one million dollars. The officers, since the organization, have been Conrad Diehl and Louis Fry, presidents; Henry Cellarius, secretary; Henry Fry, treasurer; and C. L. Baumann, attorney. Homestead Aid Company was organized in 1881, with a capital of two million dollars. The officers have been as follows: President, G. W. Kneisley until 1884, E. F. Sample until 1886, and T. B. Hanna until the present time; vice-president, D. L. Rike until 1884, T. B. Hanna until 1886, and H. R. Groneweg until the present time; secretary, O. F. Davisson from the organization until the present time; treasurer, Third National Bank from the beginning until 1885, Charles Rench from 1885 until the present time; attorney, James Linden from the beginning until 1884, 0. F. Davisson from then to the present time.

Montgomery Building Company was organized in 1884, with a capital of nine hundred thousand dollars. The officers have been, president, Joseph Wellmeier,1884 to present time; vice-president, John Aman, 1884 to the present time; treasurer, Martin Popp, 1884 to 1886, George H. Jeckering, 1886 to the present time; and attorney, C. L. Baumann, 1884 to the present time.

American Loan and Savings Association was organized in 1885, with a capital of one million dollars. The officers have been, president, W. F. Gloyd; secretary and attorney, Charles A. Waltmire; treasurer, Frank L. Allen, 1885 to 1888; Charles L. Hubbard, 1888 to the present time.

Centennial Loan and Savings Association was organized in 1885, with a capital of one million dollars. its offcers have been, president, Henry Dornbusch; treasurer, John P. Lutz; secretary and attorney, Sumner T. Smith.

Dayton Loan and Deposit Company was organized in 1885, with a capital of fifty thousand dollars. The ofcers have been president, W. 0. McCabe; secretary, Theodore Meuche until 1887, and since then A. B. Nugent; treasurer, J. A. Romspert; attorney, A. H. Romspert.

Equitable Loan and Savings Association was organized in 1885, with a capital of five million dollars. The officers have been president, Joseph E. Lowes; treasurer, M. A. Nipgen; secretary, J. "C. Turner until 1886, and since then 11. W. Surface; attorney, C. D. Iddings.

Miami Loan and Trust Company was organized in 1887, with a capital of five hundred thousand dollars. The officers have been (page 389) president, William Huffman; vice-president, Philip E. Gilbert; treasurer, Ziba Crawford; and secretary and attorney, C. J. McKee.

Dayton Building Company was organized in 1888, with a capital of two million dollars. The officers have been president, Edward Meissner; secretary, Henry Kley; treasurer, Frederick Kuebler; and attorney, J. L. H. Frank.

Gem City Building and Loan Association was organized in 1888, with a capital of one million dollars. The officers have been, president E. B. Kelly; secretary and attorney, C. W. Dustin; and treasurer C. D. Kidd, Jr. Mechanics' Loan and Savings Association was organized in 1888, with a capital of two million dollars. The officers have been president, B. N. Davis; vice-president, John Kiser, secretary and attorney, J. A. Wortman; and treasurer, C. J. Moore.

The building associations of Dayton formed a league for mutual benefit on March 6, 1889. All associations doing business in the county are eligible to membership. The league is called the "Building Association League." The officers elected at the time of the formation of the league were: A. A. Winters, president; Louis H. Poock, vice-president; 11. F. Cellarius, secretary, and D. Leonhard, treasurer. The associations represented in this league at the time of its organization are as follows: The American Loan and Savings Association, the Central Building Association, the Dayton Building Company, the Equitable Loan and Savings Association, the Gem City Loan and Savings Association, the Germania Building Association, the Homestead Aid Association, the Mechanics' Loan and Savings Association, the Miami Loan and Trust Company, the Mutual Home and Savings Association, the New Franklin Building Association, the Permanent Building Association, the Washington Building Company, and the West Side Building Association. All the associations in the city except two were represented.

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