Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-03-04
NEw-YoRK, March 4th, 1910.
Sketch of Neso. York Financier President of Lss
North Rirer Banking Company.


Sketch Of Neso. York Finaneier President of tss
North Rirer Banking Company.
Mr.. EDIroR:
Perhaps - sketch Of the financial career Of A.
NJ Schermerhorn, the President of the North River
Banking Company, may be interesting TO many of
your readers. Like many other great Gnahciers of
the day, he has done much good and much evil to
the country Let his merits be properly estimated.
A. nj. ScHERMERHoRN, Esq. is native Of Sche-
nectady in this state. His parents Dutch and
the family one of wealth and responsibility. Mr., ;.
Is naturally OF frank and generous dispostion-hs
talents more than ordinary, and his education good.
His first appearance as inancier cashier of
the Central Bank at Cherry Valley. In 1854 he re-
moved to the thriving village of ser and was
chosen Cashier OF the old Bank of Rocheste then
the only bank in the village. He then worth
about S2O, OOO which by certain financial operations
he increased to $40 700 in the of few years.
When the Bank of Monroe was chartered, Mr.. S.
became its President, through the influence of his
friends, Messrs Greig and Gibson, of Canandaigua
and Parson Dwight of Geneva, who owned MAORI
ty of the stock, and who then constituted what was
known as the Western Bank Regency. Mr.. Scher-
merhorn always disposed to push the credit sys
tenn to its utmost limits. Whilst he controlled the
Bank of Monroe, he was known the great finan-
cier. He was indeed the Biddle of Western New
York. He was continually devising schemes to
evade the limits placed by law upon the operations
of the Safety Fund Banks. He gave the Bank Com
missioners great trouble, but always able to out
yentor Of that mode of shaving which caused le-
gslative enquiry, and which consisted in discount
ing drafts on New FORK upon condition that the
toner should buy draft on New-York at a premium
for the proceeds of the one discounted. In this
way he contrived to make his customers pay Ia per
cent for money. He also operated largely on his
own hook, by buying paper at 3 per cent a month,
and getting 1t re-dscouned at one of the affiliated
Banks For several years, in matters of finance, his
word was law, and he ru,ed the borrowers Of Ro-
chester with rod of iron. Had he confined his
operations to cash transactions he would now in all
probability have been a man of wealth. and out of
the clutches of the gang of sharpers with whom he
seems TO be associated. He always warned the Gus
of his bank to keep clear Of real estate spec
uatons, and yet that was the rock on which he
split
The ruling passion of MIR. S. is to make money, and
this led him in 1885, to embark largely in specula
tions in land He first purchased tract of wild land
in Allegheny County, of the Holland Land Company,
at per acre. These lands he sold for So to 50 per
acre, in exchange for farms in Monroe, Orleans and
Niagara counties, valued at from $50 to $50 per
acre. To effect these exchanges, he obliged
to pay considerable proportion in cash, which he
obtained by mertgagng the farms to the Trust Com
panies of this city About this time company of
individuals, of which Mr.. s. was one, purchased an
immense amount of the unsold lands OF the Holland
Land Company. These operations laid the founda-
ton for immense Indebtedness the part of Mr..
5. which is supposed to have ended, no one can tell
how.
Mr.. S. was, whilst a resident of Rochester, very
pnbic spirited, and a friend, active and jealous, Of
all projects designed to advance its interests and
prosperity. The Ionnewanda railroad, extending
from Rochester to Batavia, owes its existence to
the aid of Mr.. s. VIII. loaned the Company funds
from the Bank Of Monroe, for its ton That
bank is yet laborng under embarras sment resulting
from those loans. The railroad from Rochester to
Carthage, the head of navigation on the Genesee
river, projected and mainly executed by his eff
forts. He built steamboat, to run from Rochester
to Genesee. He beautifed the city, by erecting the
Eagle Tavern, Monroe House, and other structures.
In fine no man has done improve Roche
to shave its people than he has But in common with
other large operators, he has sunk under the weight
of debt in the progress Of the great revulson. His
houses and lands covered by mortgages, judg-
nts and assignments, and doubt if Mr.. 5. enter
tains any hope except from general bankrupt law.
Your estimate of his wealth is wholly erroneous
And if the public attach any value TO the post notes
ofthe North River Banking Co. from the supposed
wealth OF its President, they will find themselves
trusting to a rope Of sand. Yours, &c.