The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-07
BANKING 100 YEARS AGO.
EXTRACTS or THE HISTORY Or
THE MERCHANTS NATIONAL.

Beginning Of the Institution Tna' ms
Just Celebrated It's Centenary--ptm'
cuities Of the Early DaSs--Doos'"s
Yellow Feyer-.Taie OF Mixed Accounts
The Merchants National Bank Of this city
celebrated last week the Tooth Anniversary
Of It's existence, and issued Handsomely
bound book giving a history OF the institu-
ton from it's founding to the present day
The early history Of the bank Is partieu-
larly interesting.
Fourteen men met at rs Wall street on
April 7, 1903, and signed articles OF associa-
ton Of the Merchants Bank in New YORK
city. The articles were drawn up ny Alex
ander Hamilton, and set forth that the
capital stock should be 81 $50 900. divided
into shares of $50 each, $3.50 to he paid down
by the subscribers and the remainder al
such time as the directors appointed
On the first board of directors we're such
men as Oliver Woloott, who was also the
first president; Richard Varick, Peter Jay
Munroe, Joshua Sands. Robert GIchrist'
James Roosevelt and Henry A. Coster
Another meeting Of the board OF directors
was held early In June In the same year.
and the bank was opened for business on
June .. The first bills were received Tor
discount the next day. and the prosperity
OF the institution liz shown by statement
issued after six months. which showed
net profit OF $3.50 ,
In November, 1903, a semi annual dvide' q
Of per cent. was declared. the first divl-
dend Of a series that has continued without
interruption for 100 years During that
time the bank has paid to its shareholders
the sum Of .76s. le2. or more than ten times
the or ginal capital OF the institution
In those days the bank president didn't
draw the big salary that is the rule now.
adays. 1t Is estimated that the cost OF
living 100 years ago was about one-tourth
Of what II Ia now and salaries were smaller
in proportion. President Woloott's salary
was 5000. Lynde Catlin, the cashier.
got 81 800 with the privilege Of living over
the banks rooms. The first teller received
sl,2so, the hrst bookkeeper $500 and other
BANKING entailed no end Of difficulties
In those days, There was complicated
currency, differing In various States: An
old almanac gives this method OF tralghten-
ing out money value: ITO reduce ourren-
oies OF New Hampshire. Massachnsetts,
TO those OF New York. to the given sum
add Is part thereof
Counterfeiting was also 50 successfully &C.
complished that many banks throughout
the country were swindled. Well-engraved
plates we're made and from them notes
printed bearing the name Of some lima ginary
bank. These we're vent TO parts OF the ooun-
try far away and many thousands OF dol
lars worth were passed.
Among the Inst minutes Of the bank
may to found the record OF an extra neet-
inv OF the board OF directors when II was
decided to move the institution 10 Green
wich Village because OF the prevalence
OF yellow fever. The hank was moved
in August, 1907. and returned TO it's old
quarters In the following November This
the bank bought $l5.ss7 worth OF property
and the business was transferred almost
every summer.
The banks business ran very smoothly
for the first few years. according TO the
recently published history. There was,
rolled up In spite Of occasional Losses due
to overconfidece in the honesty OF minor
The Cd records Of the instit uiion show
strange state Of affairs In the CONDUCT
Of the business. The minutes Tor 1870
cont ain these entries:
The committee also inspected the balance
sheets OF the books Of the bank as taken by
the bookkeepsrs on the YET inst. round thhem
s" deeiency y Of debit or an sxees- Of credi,
to the amount oi ss,2s7 90. The boekkeepers
state that they have not yet had time since
the taking, on Of the balance thoroughly 20
examine them, which they are now In the
pressure or business will allow.
The committee find. sundry accounts
oyerdrawn. which have so remained for
several years and are bsd the parties; hay.
Why these .overd ra wings were not debited
to pront and loss In tho year 1919, when there
was an order of the board to close all the
ovardrawn accounts which were known 10
be bad, the committee are not informed.
In tie same wear is the entry that the
books had not been balanced for several
years. so the bookkeepers were instructed
10 make every endeavor to find the errors.
II was olso ordered thst thereafter the
books should bo balanced regularly every
ak months.
But in spite Of wha; appears 10 he lax
banking in its early days the institution
passed safely through panics and the
suspension of specie payments. The his.
tory contains much interesting information
regarding barking In this city during the
last hundred wears