New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-12-30

Santa Fe and the larger towns Of
Rio Abajo. The Bank of New Mex
leo never proceeded any farther in
the financial history of the south
west than the obtaining of the chart
er from the territorial legislature,
which was granted on January 29,
1861. These were war times and
the gold and silver output of the
territory, which amounted to consid-
cradle, was transported across the
plains; the gold came principally from
Santa Fe county-the old and new
placers. With the driving out of
the Texans the year previous, busi-
ness communication with California
was restored and from that state in
exchange for sheep also came some
gold, but this also found its way east
over the plains.
First National Is Organized
Thereafter no effort was made to
establish a banking institution in New
Mexico until 1870, when Lucien B.
Maxwell, the owner OF the famous
Beaubien and Miranda land grant,
having sold the grant, made applica-
ton for a charter for a national bank
which was finally organized at San
ia Fe. Maxwell realized from the
sale of his grant the sum of S65O,OOO.
Some of this money he invested in
bonds OF the Texas & Pacific rail-
road, then in course of construction,
but the entire amount was lost. Some
body suggested to him that a profit
able investment for part OF his money
would be in the establishment OF a
bank in the territorial capital. The
idea appeared to please him, for he
applied for a charter with a capital
OF $l50OO0, putting up all the money
himself and distributing 10 shares 10
a sufficient number OF friends to con-
stitute a directory. In due course,
the bank opened for business, but for
some reason deposits did not flow III
at all literally. 1t was a new exper-
iment in New Mexico, and the people
needed some preliminary education
before they could be brought up to
lodge their funds with bank. The
personnel OF the new bank for some
reason did not inspire confidence.
This was not in anyway due to Max
well. who was well known thorough
out the territory and was looked up
on as an upright and honorable man
OF simple tastes and character. lie
had, however, no banking experience
or knowledge and the gentlemen whom
he had associated with himself in the
enterprise, and who were supposed to
furnish the skill and training essen
tial to the successful conduct of the
business, were not so well known, and
hence did not create the necessary
feeling of confidence in the institu-
ton. so that the bank ran along for
some months without doing much
business.
Maxwell And His Cigar
THE original stock certificates OF
this bank were of remarkable design,
bearing a vignette of Maxwell with
a cigar in his mouth. The trusting
nature OF the promoter OF this ms
titution is we'll illustrated by the fact
that he signed in blank more than
n hundred of the stock certificates,
so that his absence at his home in
Cimarron might not interfere with the
expected activity i'll stock dealings.
Maxwell was fond of horseflesh, and
during his incumbency OF the pre-
sidency he advertised in Kansas City
the racing virtues OF his mare
'Fly,' offering to bet large sums that
he could beat anything in the. way
of racer that could be produced.
Some wag in Kansas City cut out
this advertisement, and, placing IT on
the letterheads of the Santa Fe bank,
and writing over it the legend Bank
ing in New Mexico hung il in the
lobby of Kansas City bank.
Interest Rate High
an the spring of 1871, Stephen b.
Elkins, then a rising political tigure
in New Mexico politics, and after
ward United States Senator from
West Virginia, with Thomas b, Cat
ron of Santa Fe (also later u. >.
Senator) and others were on the
point OF making application for
charter for another bank, but pend
ing the completion OF the necessary
steps, Maxwell, tiring OF his financial
operations in Santa Fe, sold his bank
to these men. At this time il was
the only institution of the kind IN
New Mexico and Arizona. The Unit
ed States maintained a depository at
Santa Fe and at Tucson, and to these,
at stated intervals currency and coin
were sent from St. Louis, under
charge OF an official of the treasury
department and with a military es-
cort. Prior to the advent of the
Santa Fe railroad banking was con-
Quoted under conditions very differ
ent from those which have since pre-
vailed. Currency, supplies and ship
ments had to be brought in and sent
out by mail, by coach, by Barlow *
Sanderson's stage route along the
main line OF travel and star routes.
There was small loss, however. either
by stage robbery or otherwise. In
terest charges were from liz 70 2
per cent per month.
Distinguished Line of Presidents
On May IL. 1871. Mr.. Elkins was
elected president OF the bank and
continued as such until August. 1894,
when he resigned His successors
were William w. Griffin. August ].
1894. to January II, 1890: Delegate
to Congress Pedro Perea, February !,
1890. to June "a, 1894: Major K. J
Palen, June "a. 1894. to March Is,
1916, and L. A. Hughes. elected to
the presidency on March II, 1916, up
on the death of Major Palen. The
chief executives of the bank have
always been men of distinction and
achieved a prominent place in New
Mexico's history. Among them have
been several meu of schoiariv bent
of mind, omnivorous readers and
forceful speakers. Griffin was head
of the Masonic order II the south
west. Most of them have been pro-
minent in political life and held Do
litical office. The present executive
was born in St. Paul. MINI, October
26. 1858: is the son of Presby-
.o-;,~ ,,;,;star aud studied IN the