10314. First National Bank (Kansas City, MO)

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cantile banks. and one year later the FEDERAL RESERVE Merchant's National bank. The Metropolitan National was absorbed by the National Bank of Commerce BANK KING PIN IN in 1897. The private banking house of Lombard Brothers, established in 1885, BUSINESS DEALING was conducted for one year when its interests were merged into the tional bank. First Institution of Commerce Started The Missouri National bank. organized in 1891, continued in busiHere in 1850 by Private Firm, ness until 1896 when it went into the hands of a receiver. The German- American National bank, estabHistory Reveals. lished in 1888, ceased business in 1890 By PAUL E. FLAGG. tional bank. From one private bank with little capital in Westport The Merchants National bank, Landing, Kansas City's "Wall Street" in seventy-five years which had been organized in 1879, closed its doors in 1891 when it volunhas grown to be the financial capital of the Southwest, with tarily retired from business. forty-three banks having combined deposits of more than First National Founded in 1886. $250,000,000. The American National bank, or In addition to the many resident commercial banking ganized in 1886, was reorganized in houses, Kansas City is the home of the Federal Reserve bank 1902 and called the National Bank of for the Tenth Federal Reserve district. the Republic. The government institution, By special permission of the con- established in 1914, occupies a twenty-two story building, northeast corner of Tenth street and Grand avenue. The district is the largest of the twelve governmental areas. It comprises the western half of Missouri, east half of New Mexico, and all of Kansas, Nebraska. Wyoming, Colorado. and Oklahoma. Branches of the Kansas City bank are maintained in Omaha and Oklahoma City. The Federal Reserve bank does not transact a general banking business. It is a depository for and makes loans to more than 1.000 member banks holding membership in the Federal Reserve system in the district. Lexington Then Center. During the early days in Kansas city, the nearest banks were in Lexington, and to that point prospective borrowers and holders of large checks and drafts were compelled to go. In the winter season little business requiring exchange was transacted. Such accommodations could be obtained from the government in Fort Leavenworth. Branches of banks, organized under state laws, were established in the early fifties in Liberty and Independence, and the banking facilities for local pioneers were brought closer home. The first bank established in Kansas City was that of Northrup & Chick, private bankers, in 1850. according to Henry C. Schwitzgebel, vice president of the Commerce Trust company, who has been an active banker here fifty-four years. The bank was at the intersection of Walnut and Levee streets. In 1863 it was sold to the private banking house of J. Q. Watkins and Company. A branch of the Mechanics' bank of St. Louis was established here in 1857. The troubles attending the Civil war reduced profits and caused complications, but the bank continued until 1871, when it was closed. Closed in 1861. In the same year a branch of the Union bank of St. Louis was started in Kansas City. The business of this bank, like the Merchanics' bank, was satisfactory until the Civil war. In 1861 the bank moved its local funds to St. Louis and closed its affairs here. The next bank organized was the Kansas City Savings association. in 1865, with capitalization of $20,000. In 1873 Dr. James Buchanan Bell became president and C. J. White cashier. W. A. Powell bought the holdings of Dr. Bell. He sold his interests in 1881 to W. S. Woods. The statutes regulating banks were changed by the legislature and the stockholders surrendered their charter as a savings bank and organized the Bank of Commerce. The affairs of the old bank were abscrbed by the new and former officers were retained. In 1887 the bank was placed under government control and it became known as the National Bank of Commerce. The old First National bank was organized in 1865 and two years later Howard M. Holden bought a controlling interest in the bank. The bank was prosperous and in 1872 its capital was increased from $225,000 to $500,000. Suspended in 1873. The bank temporarily suspended payment on September 25. 1873, as the result of the national financial panic. A short time later it was reopened. It closed its doors January 1878 and its affairs were closed up three years later. A private banking house operating under the name of John J. Mastin & Co. was organized in 1871. The German Savings association was organized in 1868. In 1871 it was consolidated with the Union German Savings bank under the name of the Union German Savings bank. The bank was closed in the 1873 The Kansas City National bank was opened in 1871 and continued until 1875 when it went into voluntary liquidation. Its affairs were transferred to the Bank of Kansas The Commercial National bank was organized in 1872 and was closed in 1878, when it was placed in the hands of a receiver. The Bank of Kansas City, organized in 1875, which took over the Kansas City National bank, became a national bank in 1878 under the name of the National Bank of Kansas City. Larger Here Then. From 1884 to 1887 it was the largest bank in Kansas City. It was closed in 1893 during the financial panic. It was reorganized and continued until 1896 when it was closed. The Armour Brothers Banking company was organized in 1878. A. W. Armour was president, S. B. Armour, vice president, and C. H. Prescott, cashier. The bank was bought in 1889 by the Midland National bank, which was absorbed eight years later by the National Bank of Commerce. The Citizens National bank. organized in 1882. was sold in 1898 to the Union National bank. The Kansas City Safe Deposit & Savings bank, established in 1883, failed ten years later during a national financial panic. In 1883 the Trader's bank was founded by James T. Thornton. The chief purpose of the organizer was to accommodate cattle dealers and facilitate the handling of cattle paper. It was purchased in 1887 by the Union National bank. The leading Kansas City banks had large interests at the stock yards from the time of the founding of the packing industries here. Before the organization of a bank at the yards, business was transacted by clerks appointed for the purpose. System Not Satisfactory. The system later proved unsatisfactory and in 1884 the Kansas City Stockyards bank was organized with $200,000 capital by C. F. Morse. president of the Kansas City Stockyards company. The bank was reorganized in 1890 under the name of the Inter-State National bank. In 1889 the New England Safe Deposit & Trust company was established. The officers were A. W. Armour. president; J. F. Downing, vice president: and A. W. Childs, treasurer. The banking trust and safe deposit business was profitable. but a supreme court decision requiring Missouri trust companies to pay interest on deposits caused the firm to separate the trust and safe deposit departments from the banking division. This action resulted in the organization of the New England National bank in 1896. The bank of H. S. Mills was organized in 1889 with a capital of $100,000. After conducting successful business for a short time, it was purchased by the newly or ganized Western Exchange bank. The Aetna National bank, organized in 1890, went into voluntary liquidation three years later. Private Bank Last Year. The Metropolitan National bank, established in 1890 absorbed the Gerin man-American National and the Mer- founding of the present First Nawhen it was absorbed with the Mer cantile bank by the Metropolitan Na troller of the currency, the First National bank was organized in 1886. Another bank of the same name had been in existence, but it had gone into receivership and its affairs had been closed. The second First National was new and separate estabishment. E. F. Swinney, who became cashier in 1887, now is president of the institution. In 1887 the Bank of Commerce, which had grown out of the Kansas City Savings association, was organized as a national institution and became the National Bank of Commerce, to 1897 the bank absorbed the Metropolitan National bank. The Midland National bank, which bought the Armour Brothers Banking company in 1889, was consolidated with the National Bank of Commerce in 1897. The Missouri Savings association bank was organized in 1891 with Watt Webb as president and W. S. Webb as cashier. The Fidelity Trust company, established in 1899, was converted into a national bank and is known as the Fidelity National Bank and Trust company. Commerce Trust Largest. The Traders' bank was founded in 1900. The Pioneer Trust company was organized in 1903. The Commerce Trust company was opened for business in 1906. Two years later it absorbed the Union National bank. In 1921 the Commerce Trust company merged with the National Bank of Commerce under the name of Commerce Trust company, making it the largest bank between St. Louis and San Francisco. Other banks founded in the last eighteen years are: Trust company Gate City bank, Jones Bros. bank. Trust company, Westport Avenue bank. Bank National bank, National the Produce Exchange bank. -Drovers' National bank Midland State bank, National bank Savings Trust company Main Street bank National Reserve bank, Park National bank. Security National bank, Southwest Boulevard State bank. National bank. Central Savings Trust ManufacNational and Bank Mechanics' bank, Southwest 1913-Citizens' Savings Trust company. City Center bank, Kansas City Terminal Trust company State bank. Merchant's bank. Midwest National bank, Union State Savings Trust company. American State bank. Liberty Peoples Stock Trust State bank. Mercantile Trust company, Southside bank, bank. Colonial State bank. Columbia Centropolis National bank, bank, Home Trust Independence Avenue bank. Inter City State bank, Metropolitan State bank, Northeast Swope State Park bank, bank, Waldo 1920-Corn Side Exchange bank. State First Mortsage Trust Mutual company, Marlborough State bank 1921-East Side bank. Jackson Avenue State Twelfth -Community Street State bank, bank. Linwood 1923-Federal bank Trust company. Old Systems Gone. Banking was done in a primitive way fifty years ago, according to Mr. Schwitzgebel. "For example the kind of files we use in present day banking were unknown, he said. "The method used in 1870 might be found today in small country postoffice in wooden box, partitioned off in sections with a name pasted above the openings for filing purposes. There were no impression books and typewriters. "The pass books were without unit lines. It was the custom to balance these books by entering both debits and credits and the number of the checks. "That was the day of the older men. The young men could look on only. The present day financial institution with its mechanical devices and modern methods, peopled largely by men and women under 85, would be marvelous revelation to the bankers, who died before the 90's. There are twelve bankers in Kansas City with more than twenty-f years banking experience. The list is headed by Mr. Schwitzgebel, who began his career in May, 1870, when he was thirteen years old, was a messenger boy for the German Savings bank. Others include E. F. Swinney, 1887, First National bank; K. L Browne, 1887, Northrup Banking company W. S. Webb, 1889, New England Loan and Trust company J. R. Dominick, 1893, American National bank: H. T. Abernathy, 1894, First National bank; W. Goebel, 1897, Commercial National bank; J. F. Downing. 1899, New England Safe Deposit and Trust company A. D. Rider, 1899, Fidelity Trust company; C. L. Brokaw, 1892, Wyandotte National bank; C. H. Moore, 1896, National Bank of Commerce: H. C. Flower, 1899, Fidelity Trust company. To facilitate the work of the banks in reaching an adjustment and payment of the daily balances due from each other at one time in one place each day. the Kansas City Clearing House association was founded in 1873. Sixth Oldest in U. S. The local association is the sixth oldest in the United States. The first clearing house was established in 1853 in New York. Others were founded as follows: Boston, 1856: Philadelphia. 1858; Chicago, 1865. and St. Louis, 1868. The records of the Kansas City Clearing house for the first two years destroyed. but records from 1875 have been maintained According to Jerome Thralls of New York, former manager of the local association, clearing houses are of comparative recent origin. He cites the mechanism of credits dates back to the civilization of antiquity and that the Assyrians in the seventh century before Christ used checks in the form of burnt clay tablets. Bank clearings today are accepted as an indication of business activity in cities. For example. clearings today are larger daily than for 1875, when the association was founded. In 1875 the clearings for the year amounted to 0,407,967. The population then was 32,000. It is more than 350,000 today. Clearings of Kansas City banks have doubled each ten years during the last half century. The comparisons: 1924 Kansas City today has forty-three banking houses. Of this number, ten are national banks while the remaining thirty-three are state banks and trust companies.