Burgettstown National Bank, Burgettstown, PA (Charter 2408)
Burgettstown National Bank, Burgettstown, PA (Chartered 1879 - Receivership 1925)
Town History
Burgettstown is a borough in northwestern Washington County, Pennsylvania. It is located 18 miles northwest of Washington, Pennsylvania, and 26 miles west of Pittsburgh. The population was 1,424 according to the 2020 census. It is part of the Pittsburgh metropolitan area. In 1900 the population was 961, peaking at 2,497 by 1940.
Burgettstown was laid out in 1795 by Sebastian Burgett, and named for him. Burgettstown is surrounded entirely by Smith Township, which includes the nearby communities of Joffre, Bulger, Cherry Valley, Atlasburg, Slovan, Langeloth, Eldersville, Florence, Paris, and Studa.
Burgettstown had three National Banks chartered during the Bank Note Era, The Burgettstown National Bank (Charter 2408), The Washington National Bank (Charter 6944), and The Peoples National Bank (Charter 13009) and only the first two of these banks issued National Bank Notes.
Bank History
- Organized January 25, 1879
- Chartered February 4, 1879
- Receivership May 14, 1925
In March 1872, a few of the citizens of Burgettstown and vicinity met and agreed to form a banking company and do business under the name of The Burgettstown Savings Bank. The bank started with a capital stock of $10,000. Among the stockholders were J.L. Proudfit, John P. Wood, Dr. T.W. Bradley, A.S. Berryhill, and J.L. Patterson. J.L. Proudfit was elected president and J.L. Patterson, secretary and treasurer. The secretary and treasurer had a desk behind the front door in the grocery store of A.S. Berryhill on the corner near the railroad station for a year or more. Around 1874, the bank bought a lot on Railroad Street and erected a handsome brick building, keeping the lower, front room for the use of the bank. It occupied the building on Railroad Street until 1891 and in that year moved to the new building on the corner of Washington and Pittsburg Streets.[1]
In February 1879, the Burgettstown Savings Bank was closing out its business preparatory to being turned into a national bank.[2] The comptroller of the currency announced the organization of the Burgettstown National Bank, authorized capital $50,000, paid in capital $30,000, John L. Proudfit, president; James L. Patterson, cashier. The bank was authorized to commence business February 4, 1879.[3]
In May 1890, the Burgettstown National Bank began the construction of a fine three-story brick building near the station. The building would be used for a bank room, hotel and office, costing $10,000 to $12,000.[4]
Burgettstown Bank President Charged with Horse Stealing. A.H. Kerr, a successful hardware dealer of Cross Creek Village and president of the Burgettstown National Bank, sold a binder last spring to Samuel R. Stevenson, of Cross Creek Township, Stevenson giving his note for the machine. In the fall Stevenson went to Kerr and asked him to take back the binder, as he could not pay for it. This Kerr refused to do. In May 1890, Stevenson put up all his property at public sale, in the name of his son. At the sale Kerr bought a horse and rode it home, and locked it in his stable, intending to keep it in payment for his binder. Stevenson, hearing of this, went to Washington, sought legal advice, and entered suit against Kerr, charging him with horse stealing.[5]
In May 1893, the directors were J.L. Patterson, A.H. Kerr, W.V. Riddle, Samuel Scott, Jos. P. Leech, D.M. McCarroll, and Jno. J. Carothers. The officers were A.H. Kerr, president; John J. Carothers, vice president; J.L. Patterson, cashier and J.P. Kelso, assistant cashier. The bank had deposits averaging $100,000.[6]
On July 16, 1895, James P. Kelso died of heart disease in Chicago.[7] He was the son of James and Elizabeth (Linn) Kelso and was born in Cumberland County, Pennsylvania, October 2, 1860. He spent the early years of his life in Burgettstown with his uncle, J.L. Patterson, returning at the organization of the Burgettstown National Bank which he entered as bookkeeper. He served continuously as bookkeeper and assistant cashier in the bank since that time. As an accountant, Mr. Kelso was an expert, there being few better. He was a fine penman and as a businessman was courteous and accommodating to all. Mr. Kelso was also treasurer of the Union Agricultural Association, borough treasurer and secretary.
On October 30, 1905, James L. Patterson, 81, president of the Burgettstown National Bank, died at his home. Mr. He was born in a house that stood on the site of his late residence. Mr. Patterson graduated from Washington College in 1842. He taught school a few years, farmed a little and kept a store from 1849 to 1868. When the Pittsburgh, Cincinnati, Chicago and St., Louis Railroad was built through Burgettstown, Mr. Patterson became its first agent there. Later with other men he organized a savings bank which became the Burgettstown National Bank in 1879. Mr. Patterson was its first cashier, serving the institution in that capacity until 1903, when he became its president.[8] In December 1905, John A. Bell, vice president of the Colonial Trust Co. was elected president of the Burgettstown National Bank, succeeding James L. Patterson.[9]
On April 27, 1925, the First National Bank of Carnegie and the Carnegie Trust Company failed to open their doors for business. Hundreds of residents swarmed around the two institutions when notices announced the closing of the banks. John A. Bell of Carnegie was president of both institutions. Peter G. Cameron, state secretary of banking, issued the following statement: "The reserve fund of the Carnegie Trust Co. has been below legal requirements for some days. Although every effort has been made by the company to build up the reserve to the required amount, it has failed to do so owing to the frozen condition of its assets which in turn is a direct result of the stagnation that has obtained in the bituminous coal industry of Pennsylvania for several months, the Carnegie Trust Company being the holder of obligations of coal companies aggregating a considerable sum." John A. Bell was one of the witnesses in the hearings held at the Capitol into the methods used by former State Treasurer Harmon M. Kephart and it was through his banks that some of the checks figuring in the so-called "revolving fund" passed. The county treasurer of Allegheny paid the money collected for the state into the Carnegie Trust Co. and Bell issued blank checks to the state treasurer. Bell after the case paid to the State $15,049.24, representing interests due the State. State Banking Commissioner Cameron went to Pittsburgh to take personal charge of the two banking institutions.[10]
On April 30th the Burgettstown National Bank announced that John A. Bell of Carnegie had resigned as president and that M.H. Borland, formerly vice president, had been elected by the directors to succeed him.[11]
July 23.-Will Governor Pinchot come to the aid of the poor, individual depositors in the Carnegie Trust Company, the men, women and school children who are without representation upon the creditors' committee, now functioning and without legal advice? This question is being passed from person to person in Carnegie, Burgettstown and the countryside around towns who lost their money in the collapse of John A. Bell's three banks, the Carnegie Trust Company, Burgettstown National Bank and the First National Bank of Carnegie. The Governor will be called upon to decide within a few days a sharp difference of opinion between the State Department of Banking, Special Deputy Attorney General E. Lowry Humes and the creditors' committee on one side and Colonel Charles C. McGovern, the special investigator appointed by the Governor, upon the other. McGovern recommended bankruptcy proceedings and arrests of persons found criminally responsible for the failures. The other side was recommending to the Governor slow, gradual liquidation of Bell's assets and no rude action such as bankruptcy proceedings and arrests.[12]
On Tuesday, December 8, 1925, John A. Bell, former millionaire banker and coal operator, was found guilty of embezzling more than $600,000 from the Carnegie Trust Company. The Jury deliberated only 36 minutes.[13] Bell, who amassed a large fortune in coal operations in Western Pennsylvania went on trial on November 30th, charged with embezzlement, mis-applying funds of the Carnegie Trust Company of which he was president, and making false statements of the bank's condition to the State Banking Department.[14]
In December 1925, the Burgettstown National Bank which closed its doors in the spring when other John A. Bell institutions failed, announced it would pay a dividend of 50% on the afternoon of the 16th according to Benjamin L. Rosenbloom, receiver. The dividend would be the first since the bank closed its doors on May 12th. John A. Bell indicted for embezzlement in Pittsburgh last week was president of the bank at the time. He was succeeded by M.H. Borland. Several weeks after it had been closed the affairs of the bank were found to be in such condition that a 100% assessment was made against all stockholders of the institution. Distribution of the dividend at this time was expected to enliven the Christmas spirit in the community which was hard hit when the bank was placed in the hands of a receiver by the federal banking authorities.[15]
On October 22, 1926, application to organize the Peoples National Bank of Burgettstown, Washington County, Pennsylvania, was received by the Comptroller of the Currency. The capital of the proposed bank was $500,000 according to Thomas B. Brown, Jr., of Burgettstown, the bank's correspondent in the application.[16]
Official Bank Title
1: The Burgettstown National Bank, Burgettstown, PA
Bank Note Types Issued
A total of $1,623,450 in National Bank Notes was issued by this bank between 1879 and 1925. This consisted of a total of 129,876 notes (129,876 large size and No small size notes).
This bank issued the following Types and Denominations of bank notes:
Series/Type Sheet/Denoms Serial#s Sheet Comments Series 1875 3x10-20 1 - 5653 1882 Brown Back 3x10-20 1 - 5750 1882 Date Back 3x10-20 1 - 8500 1882 Value Back 3x10-20 8501 - 10928 1902 Plain Back 3x10-20 1 - 10138
Bank Presidents and Cashiers
Bank Presidents and Cashiers during the National Bank Note Era (1879 - 1925):
Presidents:
- John Lyle Proudfit, 1879-1882
- C. Campbell, 1883-1883
- William Lee Archer, 1884-1886
- Aaron Hervey Kerr, 1887-1902
- James L. Patterson, 1903-1905
- John Arner Bell, 1906-1924
Cashiers:
Other Known Bank Note Signers
- No other known bank note signers for this bank
Bank Note History Links
- Burgettstown National Bank, Burgettstown, PA History (NB Lookup)
- Pennsylvania Bank Note History (BNH Wiki)
Sources
- Burgettstown, PA, on Wikipedia
- Burgettstown Area Banks accessed Sep 29, 2025.
- Don C. Kelly, National Bank Notes, A Guide with Prices. 6th Edition (Oxford, OH: The Paper Money Institute, 2008).
- Dean Oakes and John Hickman, Standard Catalog of National Bank Notes. 2nd Edition (Iola, WI: Krause Publications, 1990).
- Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project
- ↑ The Enterprise, Burgettstown, PA, Oct. 7, 1896.
- ↑ Monongahela Valley Republican, Monongahela, PA, Thu., Feb. 13, 1879.
- ↑ Pittsburgh Post-Gazette, Pittsburgh, PA, Sat., Feb. 15, 1879.
- ↑ The Canonsburg Weekly Notes, Canonsburg, PA, Sat., May 31, 1890.
- ↑ Pittsburg Dispatch, Pittsburgh, PA, Sun., Mar. 23, 1890.
- ↑ The Canonsburg Weekly Notes, Canonsburg, PA, Fri., May 12, 1893.
- ↑ Pittsburgh Post-Gazette, Pittsburgh, PA, Wed., July 17, 1895.
- ↑ The Daily Notes, Canonsburg, PA, Tue., Oct. 31, 1905.
- ↑ The Pittsburgh Press, Pittsburgh, PA, Tue., Dec. 5, 1905.
- ↑ The Evening News, Harrisburg, PA, Mon., Apr. 27, 1925.
- ↑ The Times-Tribune, Scranton, PA, Thu., Apr. 30, 1925.
- ↑ The Philadelphia Inquirer, Philadelphia, PA, Fri., July 24, 1925.
- ↑ The Morning Press, Bloomsburg, PA, Wed., Dec. 16, 1925.
- ↑ The Franklin Repository, Chambersburg, PA, Sat., Dec. 12, 1925.
- ↑ The Daily Notes, Canonsburg, PA, Mon., Dec. 14, 1925.
- ↑ The Morning Herald, Uniontown, PA, Sat., Oct. 23, 1926.