First National Bank, Herndon, PA (Charter 6049)
First National Bank, Herndon, PA (Chartered 1901 - Liquidated 1934)
Town History
Herndon, formerly Trevorton Junction, is a borough along the Susquehanna River in Northumberland County, Pennsylvania. Herndon was first founded by Robert A. Parrish in 1840. The town was later named for Naval Commander William Lewis Herndon, who died in 1857 while trying to rescue passengers from his sinking ship. The population was 324 at the 2010 census.
Herndon had two National Banks chartered during the Bank Note Era, and both of those banks issued National Bank Notes.
Bank History
- Organized November 23, 1901
- Chartered December 16, 1901
- Conservatorship March 27, 1933
- Liquidated March 9, 1934
- Succeeded by 13982 (Herndon National Bank, Herndon, PA)
- Circulation assumed by 13982 (Herndon National Bank, Herndon, PA)
In August, 1901, the comptroller of the currency approved the application of J.S. Krebs, J.G. Hoover, H.D. Bower, George E. Zeigler and W.F. Bower for authority to organize the First National Bank of Herndon with a capital of $25,000.
In June 1918, Adam S. Hepner, cashier, and E.S. Straub were away to Plainfield, New Jersey. The returned with a new American touring car which Mr. Hepner purchased.
On July 2, 1929, John D. Bogar, 78, president of the First National Bank at Herndon, died suddenly of paralysis at his home. He was a Republican and was once a candidate for the State Senate in the twenty-seventh district. He was president of the Herndon Manufacturing Company, and was interested in numerous other corporations. Mr. Bogar was born in Liverpool, Pennsylvania on February 18, 1853.
In January 1933, A.S. Hepner was re-elected president; E.S. Straub, vice president; and J.W. Newman, cashier. The directors were John A. Byerly, John A. Adams, J.W. Newman, Lloyd Tressler, E.S. Straub, and A.S. Hepner.
At the end of March 1933, hopes were high for the reopening in a short time of the First National Bank of Herndon, which had not yet received its license from the federal reserve, following the general bank holiday between March 6 and 15. Officers of the bank were at Philadelphia interviewing officers of the federal reserve. The very prosperity of Herndon and vicinity and the general confidence of the people of that section in the bank is the basic cause of the present situation. The bank was organized and did business as other banks have done under national bank charters. Deposits came in year by year, increasing in volume until they reached more than a million dollars, no mean sum for a small community. Eventually the deposits became too great in proportion to the bank capital and surplus. It was not fully realized that the proper ratio was exceeded until after the nation-wide banking situation reached its crisis March 4. To restore the correct ratio required the issuance of more stock. This required time, and was not an easy proposition at present, due to the general financial condition. The situation was well understood by the federal reserve, however, and its co-operation was hoped for. If the bank reopens it will be with government approval as a sound bank, and with government backing in case of need. Efforts were made to have the people of the community and the depositors especially, understand the situation, and not to fear for the safety of their funds entrusted to the institution. In the meantime the bank several days ago reopened to receive special deposits, kept segregated in an entirely liquid fund, for the convenience of patrons. These new accounts will be merged with the old with the reopening of the bank. Many people of the lower end were in need of their money were greatly inconvenienced at the time. By April a plan was developed whereby depositors would subordinate a certain amount of the deposits until such time as the comptroller of the currency approved the bank as sound and licensed to perform normal banking functions. Then application would be made to increase the capital stock.
In December 1933, nearly unanimous approval of the re-organization plan of the First National Bank of Herndon was given at a meeting of the depositors in the Masonic temple at Herndon. The plan included a 25% waiver of deposits and the new $75,000 capitalization. There were 300 present and the crowd was too big to be accommodated in the hall. Lloyd Tressler presided for part of the evening and Attorney W.H. Unger, of Shamokin, also was in charge. After the proposition had been explained at great length and numerous questions asked, the depositors were practically unanimous in acceptance. Under the plan 75% of the deposits would be freed, and 25% held, backed by assets frozen at the time, but with the possibility of becoming more liquid at a later date. There was more than $800,000 on deposit at the bank. When persons having $600,000 on deposit signed waivers, the program could proceed. Three trustees were elected: John A. Byerly, John A. Straub and C.W. Rieger.
On February 1, 1934, a charter was granted and the conservatorship of the bank in effect since the bank holiday dissolved. Carlos Wiest was the president of the new bank with A.S. Hepner, cashier, and Lee Hepner and Samuel Allison, assistant cashiers. The Herndon National Bank opened for a general banking business on Monday, February 5, in the same banking house occupied by its predecessor, the First National Bank of Herndon. There were only a few withdrawals of deposits along with persons making deposits. The conservatorship of A.S. Hepner was terminated at noon on Saturday the 3rd. The immediate effect on the community at large was the availability of $600,000 in deposits to nearly 1,800 depositors.
Official Bank Title(s)
1: The First National Bank of Herndon, PA
Bank Note Types Issued
A total of $480,830 in National Bank Notes was issued by this bank between 1901 and 1934. This consisted of a total of 38,758 notes (32,576 large size and 6,182 small size notes).
This bank issued the following Types and Denominations of bank notes:
Series/Type Sheet/Denoms Serial#s Sheet Comments 1882 Brown Back 3x10-20 1 - 1760 1882 Date Back 3x10-20 1 - 2100 1882 Value Back 3x10-20 2101 - 3644 1902 Plain Back 3x10-20 1 - 2740 1929 Type 1 6x10 1 - 792 1929 Type 1 6x20 1 - 192 1929 Type 2 10 1 - 249 1929 Type 2 20 1 - 29
Bank Presidents and Cashiers
Bank Presidents and Cashiers during the National Bank Note Era (1901 - 1934):
Presidents:
- Henry D. Bower, 1902-1904
- John Daniel Bogar, 1905-1929
- Edward Samuel Stroub, 1929-1929
- Adam S. Hepner, 1930-1932
Cashiers:
Other Bank Note Signers
- Edward S. Stroub signed notes as Vice President
- There are currently no known Assistant Cashier bank note signers for this bank.
Wiki Links
- Pennsylvania Bank Note History
- General information on Herndon (Wikipedia)
- General information on Northumberland County (Wikipedia)
- General information on Pennsylvania (Wikipedia)
Sources
- Herndon, PA, Wikipedia, https://en.wikipedia.org/wiki/Herndon,_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 Press, Pittsburgh, PA, Fri., Aug. 30, 1901.
- The Daily Item, Sunbury, PA, Tue., June 25, 1918.
- The Evening News, Harrisburg, PA, Wed., July 3, 1929.
- Shamokin Daily News, Shamokin, PA, Sat., Jan. 14, 1933.
- Shamokin Daily News, Shamokin, PA, Mon., Mar. 27, 1933.
- Republican and Herald, Pottsville, PA, Thu., Apr. 13, 1933.
- The Daily Item, Sunbury, PA, Fri., Feb. 2, 1934.
- The Daily Item, Sunbury, PA, Mon. Feb. 5, 1934.