First National Bank, Cannelton, IN (Charter 9401)

NEEDED: a contemporary postcard or photo of the bank.

First National Bank, Cannelton, IN (Chartered 1909 - Liquidated 1932)

Town History

Cannelton is a city in Troy Township, Perry County, Indiana, located along the Ohio River and just three miles from Tell City. Cannelton, which was the smallest incorporated city in the state until 2010, was formerly the county seat of Perry County until the seat was relocated to Tell City. The population was 1,563 at the 2010 census. In 1900 the population was 2,188 peaking in 1930 at 2,265.

The name Cannelton was adopted in 1844, and is derived from the cannel coal that was once mined in the area. A post office has been in operation at Cannelton since 1844.

On October 17, 1850, James Young, of Glasgow, Scotland, patented a method for the extraction of paraffin (kerosene) from cannel coal. It was widely used from 1850 to 1860 in the manufacture of coal oil, which today would be called shale oil. The principal consumer product was the illuminating oil kerosene. In 1860, there were 55 companies in the United States making coal oil from cannel coal, most of them near the cannel coal mines, in New York, Pennsylvania, Ohio, Kentucky, and western Virginia (now West Virginia). The discovery of petroleum deposits in the US, starting with the Drake Oil Well in 1859, made petroleum a cheaper raw material for making kerosene and drove the American oil shale industry out of business.

Cannelton had two National Banks chartered during the Bank Note Era, and both of those banks issued National Bank Notes. Cannelton also had two Obsolete Banks that issued Obsolete Bank Notes during the Obsolete Bank Note Era (1782-1866).

Bank History

Organized April 2, 1909
Chartered May 5, 1909
Opened for business May 6, 1909
Liquidated January 13, 1932
Absorbed by 9682 (Cannelton National Bank, Cannelton, IN)
Circulation assumed by 9682 (Cannelton National Bank, Cannelton, IN)

In March 1909, Charles Powell, formerly cashier of the Lynnville National Bank, assumed his duties as cashier of the First National Bank of Cannelton.

On May 5, 1909, the Comptroller of the Currency approved the application of the First National Bank of Cannelton with capital of $25,000. Albert A. May was president; A.J. Kirst, vice president; and Charles E. Powell, cashier. In June, Mr. Willis of Willis & Ingle, architects, reported that ground had been broken for the new bank building for the First National. The Cannelton State bank with William Minor as cashier also was completing a new banking house. In September the First National bank building was completed as well as the new home of the Cannelton Telephone, a breezy newspaper.

On October 29, 1931, the directors of the First National Bank and Cannelton National Bank announced the merger of the two banks, subject to approval of stockholders and the comptroller of the currency. Total assets of the new institution, named First-Cannelton National Bank, would approximate $875,000.

On January 12, 1932, at a joint meeting of the stockholders of the Cannelton National bank and First National bank, the proposed merger of the two banks was ratified, and the action of the directors in effecting the consolidation of the two national banks was approved. The new institution opened the next day as the First-Cannelton National Bank, and business was conducted in the building of the old Cannelton National bank. Henry Heck, formerly president of the Cannelton National bank, was elected to serve as president of the new organization. Charles F. Gerber, formerly president of to First National Bank, was elected to serve as first vice president; Norman E. Hafele, as vice president; and cashier; Joseph M. Hirsch, as vice president and auditor; and John Conway, as assistant cashier. The following nine men composed the board of directors of the First-Cannelton National Bank: Charles F. Gerber, Henry Heck, Joseph M. Hirsch, Edward F. Clemens, Norman E. Hafele, August Heck, T.W. Irvin. W.C. Lehman, and Wm. G. Minor. The capital stock of the First National bank, $25,000, was added to the stock of the Cannelton National Bank, making a total capitalization for the new organization of $75,000, and the total aggregate assets of the combined banks was $834,244.03, as shown by the last report made to the comptroller of currency.

On October 14, 1941, Norman Hafele, 45, cashier for 20 years, was under sentence of 18 months in Terre Haute Federal Prison for making unauthorized loans totaling $15,000 to run a bakery he owned. Judge Robert C. Baltzell handed down the sentence on a plea of guilty to violating national banking law.

Official Bank Title

1: The First National Bank of Cannelton, IN

Bank Note Types Issued

1902 Date Back $20 bank note with pen signatures of Tom H. May, Cashier and A.J. Kirst, Vice President This is a Replacement note. Courtesy of Lyn Knight Auctions, www.lynknight.com

1929 Type 1 $20 bank note with printed signatures of Norman Hafele, Cashier and C.F. Gerber, President. Courtesy of Heritage Auctions, www.ha.com

A total of $311,070 in National Bank Notes was issued by this bank between 1909 and 1932. This consisted of a total of 24,966 notes (21,708 large size and 3,258 small size notes).

This bank issued the following Types and Denominations of bank notes:

Series/Type	Sheet/Denoms	Serial#s	Sheet Comments
1902 Date Back	3x10-20	1 - 2030
1902 Plain Back	3x10-20	2031 - 5427
1929 Type 1	6x10	1 - 424
1929 Type 1	6x20	1 - 119

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1909 - 1932):

Presidents:

Cashiers:

Other Bank Note Signers

Anthony J. Kirst, Vice President 1909...1912
There are currently no known Assistant Cashier bank note signers for this bank.

Wiki Links

Sources

Cannelton, IN, on Wikipedia
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
Evansville Journal News, Evansville, IN, Fri., Mar. 5, 1909.
Evansville Journal News, Evansville, IN, Thu., May 6, 1909.
Evansville Courier and Press, Evansville, IN, Sun., June 20, 1909.
The Owensboro Messenger, Owensboro, KY, Sun., Aug. 1, 1909.
Evansville Courier and Press, Evansville, IN, Sun., Sep. 5, 1909.
The Owensboro Messenger, Owensboro, KY, Fri., Oct. 30, 1931.
The Owensboro Messenger, Owensboro, KY, Wed., Jan. 13, 1932.
The Kokomo Tribune, Kokoma, IN, Tue., Oct. 14, 1941.