First NB of Union Mills, Union Mills, PA (Charter 110)

A map from ~1865 showing the location with an asterisk of the First National Bank in Union Mills, Erie County, Pennsylvania. The street was High Street and the town was later renamed Union City.

First NB of Union Mills, Union Mills, PA (Chartered 1863 - Receivership 1883)

Town History

Needed: Any bank-related material such as a sketch, note, or check.

In the 1860s, Union Mills was the name of the post office and busy manufacturing site on the French Creek in Erie County. The postal location would change from Union Mills to Union City, effective July 1, 1871. Union City is a borough in Erie County, Pennsylvania, located 22 miles southeast of Erie in scenic Northwest Pennsylvania. It is just a short distance from I-79, I-90, and Erie, PA, at the junction of US Route 6 and State Highway 8. In the twentieth century, there were three large chair factories, planing and grist mills, a powdered milk plant, and several furniture factories. Founded in 1800, the community has managed to retain many of its traditional qualities while expanding to offer many services found in larger cities. The population was 2,934 at the 2020 census.

Miles Mills, a community started on the South Branch of French Creek in Union Township, Erie County, was named after William Miles. In 1785, David Watts, William Miles, and crew set out to survey the 10th Donation District. The land was the last to be surveyed north of Franklin, PA, along the Erie triangle to the New York State line. It was land with virgin timber, swamps, and general paths made by the Indians in the region. After the District was surveyed, taking approximately two years to complete, David Watts, William Miles' brother-in-law, returned to Carlisle, PA to become a well established lawyer. When the land came up for sale, Watts and another lawyer started the Watts, Scott, & Company. This was a small land development company and William Miles was their agent. They bought up the land now known as Union Township and one-half of Amity Township.

By 1796, William Miles was engaged in land surveying, building, and stocking a trading post at the forks of French Creek. This was the start of Wattsburg, named after William Miles’ in-laws, the Watts. William Miles soon came to this area and bought up a large portion of land and picked out a place along French Creek for a home for his family and a much needed sawmill. In 1800 a sawmill was in the plans to be built. The need was so great since the task of any building or framing all had to be done by hand and with hand tools. In 1801, Abel Thompson and family, which consisted of five sons, bought 40 acres from William Miles. He set up a blacksmith shop within a half a mile of the mill site. The fact that the family was also stone cutters enabled them to make the grinders for the new mill. Now a sawmill and grist mill (which was located on Main Street and Hogan’s Alley) was ready to meet the needs of the new settlers that would come to help make Union City “The Chair Center of the World” at one time. Names of some of the factories and lumber mills that made this once possible were: Union City Chair Co., Cheney Chair Works, Standard Chair Co. – Ethan Allen, Enterprise Chair Works, Blanchard & Hanson Furniture Co., Novelty Wood Works, Globe Furniture, Keystone Chair Works, Eastman Furniture Co., and Shreve Furniture Co.

Union City had four National Banks chartered during the Bank Note Era, and all four issued National Bank Notes. The First National Bank of Union Mills is counted among the four banks and was the first to receive a charter, No. 110, in 1863.

Bank History

Chartered October 23, 1863
Receivership March 24, 1883

On October 29, 1863, a dispatch from New York reported that the national bank at Union Mills, Pennsylvania received authority to commence banking operations. The bank had capital of $50,000.

In February 1883, the First National Bank of Union City, Erie county, closed its doors. Its charter expired on Saturday, February 23, 1883 and it was said the bank was closed on that account. Others said that the Bank Examiner found some crookedness, advised against an extension and told the cashier not to pay out any money until he was heard from. The capital was $50,000; deposits, $150,000. The president was Edwin W. Hatch, and the cashier Joseph Sill. Considerable excitement prevailed in Erie business circles.

From the 1883 Report of the Comptroller of the Currency: Two national banks were placed in the hands of receivers during the year ending November 1, 1883, namely The First National Bank of Union Mills, of Union City, Pa, with a capital of $50,000, on March 24, 1883, and the Vermont National Bank of Saint Albans, Vt., with a capital of $200,000, on August 9, 1883. The receiver of the Union City bank had paid a dividend of 20% to the depositors. The cause was listed as fraudulent management, injudicious banking, investments in real estate and mortgages, and depreciation of securities. At the time, 89 banks had been placed in the hands of receivers since commencement of the national banking system.

In 1884, a 30% dividend was returned to the depositors for a total of 50%. Another 10% dividend would be paid in 1885 and 5% in 1886 and by 1891, the total paid was 70%. In 1887, the Comptroller of the Currency listed the First National Bank of Union Mills in an inactive receivership. Inactive receiverships were kept open due to matters pending in the courts. In these cases the expenses of the receivership were reduced to a minimum and compensation of the receiver was made dependent as far as practicable upon services rendered and results obtained. Of a circulation of $43,000, $1,895 remained outstanding in 1890. In 1893, the affairs were finally closed by the comptroller of the currency. In the end, depositors only received 70% of their principal.

Edwin W. Hatch, a prominent and highly esteemed citizen of Union City, was a man connected with the pioneer days of Erie County. He was born at Hatch Hollow, Amity Township, Erie County, Nov. 16, 1835, and was the son of Jason C. and Elizabeth (King) Hatch.  Edwin W. Hatch was educated in a log school house in Hatch Hollow and was graduated from Waterford Academy in 1851. He began life as a farmer and in 1864 removed to Union City where he engaged in the manufacture of staves for several years. He then became interested in the real estate business. He allotted 25 acres which he sold as what was known as Hatch Hill subdivision. In 1872, he and his brother George began the manufacture of brooms and operated the first broom factory in the state of Pennsylvania. The partnership continued for three years when Edwin W. purchased his brother's interest in the business, which had since been known as E.W. Hatch & Sons. Mr. Hatch was prominent in the business affairs of his city and for many years served as president of the First National Bank of Union City.

Official Bank Title(s)

1: The First National Bank of Union Mills, PA

Bank Note Types Issued

Series of 1875 $5 Proof from the bottom, D position for The First National Bank of Union Mills. John Allison and John C. New signatures, current from June 30, 1875 to July 1, 1876 were used. Courtesy of the Smithsonian Institution Archives

A total of $167,300 in National Bank Notes was issued by this bank between 1863 and 1883. This consisted of a total of 33,460 notes (33,460 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
Original Series	4x5	1 - 4750
Series 1875	4x5	1 - 3615

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1863 - 1883):

Presidents:

Cashiers:

Edwin D. Sunderlin, 1863-1867
Joseph Sill, 1868-1882

Other Bank Note Signers

There are currently no known Vice President or Assistant Cashier bank note signers for this bank.

Wiki Links

Sources

Union Mills, PA, Wikipedia, https://en.wikipedia.org/wiki/Union_Mills,_Pennsylvania
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 Pittsburgh Daily Commercial, Pittsburgh, PA, Fri., Oct. 30, 1863.
The New York Times, New York, NY, Sat., Nov. 14, 1863.
The Philadelphia Inquirer, Philadelphia, PA, Sat., Apr. 15, 1871.
The Democratic Age, York, PA, Sat., Mar. 3, 1883.