Daily capital journal. (Salem, Oregon) 1903-1919, 1919-03-29

saturday, March 29th, is the flftleth
anniversary of Ladd & Bush. Bankers
lis doors were first opened for business
on Monday, March -, 1859.
During the early DAYS Of Salem, even
for ten years after Oregon became a
state, there was no bank in the city. Sa-
lem merchants sent their deposits to
Portland or San Francisco in the Wells
Fargo envelopes which were sold for
five cents each, and payments for goods
were all made in gold. faere was no
such thing as exchange.
1t was early in 1863, while engaged in
the mercantile business at the present
location of the Hartman store, that Mr..
John Albert was approached by Mr..
Asahel Bush, with the suggestion that
he become cashier Of a new bank being
built in Salem by Ladd & Bush
When Mr.. Bush decided to open a
bank in Salem, with Mr.. Ladd he looked
over the city for a location, and for a
time was undecided whether to buy the
corner property where is now located
the Hartman jewelry store, Or to buy
the corner on Commercial and State
streets. At that time there was some
doubt as to which Of these two corners
would become the principal corner in
the town. 1t was finally decided to buy
the present location OF the bank, and in
the spring Of 1865 the work Of building
began. The building was not eomplet.
ed until the spring of 1869. 1t extended
% feet on Commercial street with its
present size on State street.
Population 1000 Then.
Salem at that time had a population
Of Gbout 1000 and all business was done
with gold or silver, as greenbacks wero
worth only about 20 cents on the dollar.
The question of the opening date was
considered. Mr.. Ladd objected when
April first was suggested, saying that
1t would never do to begin on All Fools >
day. Mr.. Bush said, "Then open April
second. - Mr.. Ladd replied that that
was worse still, for il wgs hangman 3
day. Mr.. Bush laughed at Mr.. Ladd IS
superstition. but later approached Mr..
Albert to see if they could not be ready
on an earlier date. Mr.. Albert sug.
gested Monday, March Goth, and on that
date the bank began business. The Rev.
q. r. Bonnell, of the Episcopal church,
was the first depositor. The night be.
fore he gave Mr.. Alberts $50 to put to
his credit when the bank opened.
Began With $4,000 Capital.
The bank began with capital Of
$4,000. The legal rate of interest was
II per cent, and no higher rates was
ever charged by the bank, although the
eurbstone brokers were getting as nigh
as 3 per cent a month.
For the first year Mr.. Albert ran the
bank alone; he was cashier, teller and
bookkeeper. At this time ne was ,yvn-
ty-six years old. Today the bank has
thirty-two on its payroll Mr. Albert
remained with the Ladd & Bush bank
for sixteen years.
Of the depositOrs of 1862 besides Mr..
Albert, only nine are living They are.
Thos. Burrows, A. N. Gilbert. G. p.
Litehfield, b. A. Thatcher and J. G.
Wright, (Uzafovage & Wright. all of
Salem, and A. b. Croasman and ]. c.
Thompson, now Of Portland, George p.
Holman, Salt Lake City, and Cyrus Yea.
ton, (Yeaton & Boom, now Of Seattle.
No Formal Opening.
. There was no ceremony in opening the
bank. The doors were opened March
29, 1869, at nine o clock, and as was the
custom in those days, were not closed
until four O'Clock. Salem niv1cnanls
were not familiar with banking, and for
a time preferred to make their pay
mcnts in gold shipped to the wholesale
houses by express. Finally they were
educated to the fact that bank exchange
was just as reliable and a less expensive
way of paying accounts.
Newcomers who came from the east
with greenharks were surprise to learn
that paper was worth only 70 cents on
the dollar ON this coast, and that all
business was done with gold and silver
and that the greenbacks had to be con
verted into gold.