The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28
EARLY HISTORY OF
BANKING IN WASH.
INCTON.
(By T. ]. latham


hundred thousand dollars. John Myers
was the president from its organization,
until it ceased to exist. He died about
the close of the war. The first cashier
was Welcome Hoell succeeded respective
ly by Benjamin Runyon, Thomas H.
Hardenbergh and w. r. S. Burbank, the
latter still living near this town
The Bank of Washington was organized
in the year 1851. with a capital stock OF
three hundred thousand dollars. James
e. Hoyt was president and Martin Steven
son, cashier. Both of these gentlemen
died about the end of the war There
are only two persons living who were
connected in any way with the old Bank
OF Washington, either as stockholders, di-
rectors or officers.
This Tank, as well as many others, if
lot all the banks In the State, invested
largely In Confederate States Bonds,
which became valueless by the results OF
the war, and were unable to continue
business.
The banking house erected by the Bank
Of Washington about 1857, at a cost of
about ten thousand dollars, is one OF the
most substantial buildings in the State
The building with its vaults built therein
is practically fire proof, as evidenced by
the burning during the war of large
wood dwelling within twelve feet of the
bank, from which it sustained no damage
When the affairs of the bank We're wound
up after the war the banking house was
sold. and used for many years as a drug
store, and was purchased by the present
Bank OF Washington from the owners,
and has been occupied by the bank since
its organization in 1893. The present
Bank OF Washington has never had any
connection In any manner with the old
bank organization.
The banks were banks of issue before
the war, and were required to keep on
hand in gold an amount equal, / think.
to one third Q-3) of their outstanding
circulation.
Norfolk Va. was the nearest and most
convenient express office to this town,
and when gold was wanted to replenish
the amount on hand, it was ordered sent
by express from New York or Baltimore
to Norfolk and a messenger was sent by
the Bank to Norfolk for it, requiring about
twenty four hours constant travel to
reach Norfolk from this town, namely.
from here to Plymouth by stage coach.
then by steamer to Franklin. Va, and
there connect with the Seaboard Railroad
for Norfolk. The present schedule by
railroad TO Norfolk s nve hours.
The bank in this town previous to the
war opened daily for business at 10 a.
m. and closed at / p m.
Thursday of each week was discount
day, and notes were not discounted at
any other time. No note for less than
800 was discounted. Accommodation
notes were renewable every 81 days, and
an instaiment of % per cent or IA of the
original amount of the note was requir
ed to be paid.
When a note was past due and unpaid.
the names thereon either as principal or
surety would not be considered on appH-
cation for a new loan until the past due
note had been paid
Three directors, including the president,
constituted committee to visit the bank
daily and pass on bills of exchange A
large business in 60 and 80 day bills of
exchange was done by the banks drawn
against shipments to Northern cities of
cotton, naval stores, lumber, etc blu
of exchange returned at maturity dis
honored was subject TO per cent dam
ages.
The banks paid no customers checks
for less amount than So.
A committee OF directors was annu-
ally appointed whose duty 1T was to ex
anime the affairs of the bank at least
four times each year. Checks or drafts
on New York and other Northern cities
were sold at / per cent premium, and /
FER cent was charged for collections, and
no collection was made for less than %
cents, however small the amount. There
being comparatively few banks in the
State previous to the war, they covered Il
large business territory. Besides the bus-
ness Of this town and county the banks
here drew business from Hyde, Fyl rell,
Washington, Martin, Pitt and portions
of Edgecombe counties.
North Carolina Bank Notes prior to the
war were at a discount at the North (as
also were those of other Southern State, /
pr esume) They were bought up by the
brokers who made regular visits to the
banks to demand gold for their notes, and
often the brokers rather than be burden
ed with the gold would take New York
Exchange at " per cent premium, which
was even then a profitable business for
them.
Before the war when there We're no
railroads, in this section, cotton and
othe products were brought down the
river to this place from Edgecombe and
Pitt counties in fiat boats, with car
i ying capacity of about 300 to 400 bales
of cotton each These flats were pro-
PEELED by long poles in the hands of negro
men. The cotton, ETC., was shipped from
this place to the Northern cities by sail
ing vessels, which would appear to US
now, to have been a slow and expensive
means of transportation. compared with
our present methods of transportation, by
barges and steamers through the inland
water routes, also avoiding the danger of
the sea and delays caused by unfayorable
weather conditions.
There are now three banks in Wash
ington as follows
BANK OF WASHINGTON.-C
tered by Legislature of North Carolina in
1898; organized and opened Tor business in
%ol