First and Old Detroit NB/First NB/First Wayne NB/First NB, Detroit, MI (Charter 10527)

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The First and Old National Bank building located at the corner of Griswold and Congress Streets, Detroit.
The First and Old National Bank building located at the corner of Griswold and Congress Streets, Detroit. Courtesy of Google Maps ca2023

First and Old Detroit NB/First NB/First Wayne NB/First NB, Detroit, MI (Chartered 1914 - Receivership 1933)

Town History

A 1914 advertisement for the First and Old National Bank of Detroit. a sketch of the bank is shown.
A 1914 advertisement for the First and Old National Bank of Detroit.

Detroit is the most populous city in the state of Michigan. It is the seat of government of Wayne County. Detroit had a population of 639,111 at the 2020 census, making it the 27th-most populous city in the United States. The Metro Detroit area, home to 4.3 million people, is the second-largest in the Midwest after the Chicago metropolitan area, and the 14th-largest in the United States. A significant cultural center, Detroit is known for its contributions to music, art, architecture and design, in addition to its historical automotive background.

In 1701, Antoine de la Mothe Cadillac and Alphonse de Tonty founded Fort Pontchartrain du Détroit. During the late nineteenth and early twentieth century, it became an important industrial hub at the center of the Great Lakes region. The city's population rose to be the fourth-largest in the nation by 1920, after only New York City, Chicago and Philadelphia, with the expansion of the automotive industry in the early 20th century.[10] The Detroit River became the busiest commercial hub in the world as it carried over 65 million tons of shipping commerce each year. Due to industrial restructuring, the loss of jobs in the auto industry, and rapid suburbanization, Detroit entered a state of urban decay and lost considerable population from the late 20th century to the present. Since reaching a peak of 1.85 million at the 1950 census, Detroit's population has declined by more than 65 percent. In 2013, Detroit became the largest U.S. city to file for bankruptcy, which it successfully exited in December 2014.

Detroit is named after the Detroit River, connecting Lake Huron with Lake Erie. The city's name comes from the French word détroit meaning 'strait' as the city was situated on a narrow passage of water linking two lakes.

Detroit had 19 National Banks chartered during the Bank Note Era, and 17 of those banks issued National Bank Notes.

Bank History

Interior, First National Bank in Detroit, ca1922
Interior, First National Bank in Detroit, ca1922
Entrance to the Safe Deposit Vault ca1922.
Entrance to the Safe Deposit Vault ca1922.
A 1923 advertisement for the First National Bank in Detroit from a series of ads promoting Michigan's agricultural products, in this case, beans.  The First National Bank, the Central Savings Bank and the First National Company were all under the same ownership. The First National's headquarters were located on Woodward Avenue at Cadillac Square.
A 1923 advertisement for the First National Bank in Detroit from a series of ads promoting Michigan's agricultural products, in this case, beans.  The First National Bank, the Central Savings Bank and the First National Company were all under the same ownership. The First National's headquarters were located on Woodward Avenue at Cadillac Square.
  • Organized April 22, 1914
  • Chartered May 1, 1914
  • 1: Succeeded 2707 (First National Bank of Detroit, MI)
  • 1: Succeeded 6492 (Old Detroit National Bank, Detroit, MI)
  • 2: Assumed Central Savings Bank of January 31, 1928
  • 2: Assumed Redford State Savings Bank of May 5, 1931
  • 2: Assumed Peoples State Bank May 29, 1931
  • 2: Assumed Peoples Wayne County Bank December 31, 1931 with title change
  • 4: Conservatorship March 13, 1933
  • 4: Receivership May 12, 1933

The original First National Bank of Detroit was organized by Philo Parsons in 1863 as a successor of the private banking business started in 1857 by Philo Parsons and in 1862 continued by Parsons & Fisher. It was the third bank in Michigan to take out a federal charter. The charter, dated October 5, 1863, was the 97th issued. The two earlier national banks in Michigan were the First National of Ann Arbor which received charter 22 on July 1, 1863 and went out of business in 1882, and the First National Bank of Fenton which received charter 81, issued September 10, 1863.[1]

In 1912, two additional vice president were elected by the directors of the Old Detroit National Bank. John Ballantyne, manager of the bank's credit department for two years and Charles A. Dean, were selected for the positions. As manager of the credit department, Mr. Ballantyne had wide acquaintance with the industrial, mercantile and commercial interests of Detroit. He entered the banking business in Great Britain and before joining the Old Detroit National was manager of the Detroit branch of the Wilbur Mercantile agency and still earlier was connected with R.G. Dun & Co. Charles A. Dean had been a director for many years. He was president of the Pittmans & Dean Co., vice president of the Detroit Savings Bank, and a director of the Highland Park State Bank.[2]

On Tuesday, February 24, 1914, an official statement was released detailing the negotiations which had been in progress for about three months to effect the consolidation of the Old Detroit National Bank and the First National Bank. Committees representing the banks determined the consolidation was in the best interests of the community and that the business interests would be better served by a larger bank able to afford adequate banking facilities to the many commercial and industrial institutions of Detroit. The Comptroller of the Currency had expressed its favorable view towards the plan. Directors of the two banks approved the plan without dissent and a stockholders' meeting would be called early in April for a vote. The consolidated bank would have approximately $5,000,000 capital, a surplus of $2,500,000 and undivided profits of $210,000.[3] Stockholders of the Old Detroit National Bank met at the banking office at No. 99 Griswold Street at 2:30 o'clock the afternoon of April 7, 1914 to ratify the merger. Alexander McPherson was president and William T. DeGraff, cashier.[4] Both banks were established in 1863, the First National with capital of $100,000, the Old Detroit with $500,000. Each had a capital stock of $2,000,000. Alexander McPherson had been president of the Old Detroit since 1891 and Emory W. Clark headed First National since 1911. Officers of both banks would be retained.[5] The officers of First and Old National were Alex. McPherson, chairman of the board; Emory W. Clark, president; William J. Gray, W.T. DeGraff, Frank G. Smith, John W. Staley, and Edward C. Mahler, vice presidents; Ben G. Vernor, assistant to president; Walter G. Nicholson, cashier; Merle B. Moon, W.A. McWhinney, Elmer E. Ford, Fred H. Talbot, F.F. Christie, Russell E. Smith, and James A. Wilson, assistant cashiers; John H. Hart, manager of credits; and L.F. Merz, manager, foreign exchange department.[6] 

On July 23, 1917, Alexander McPherson, one of the best-known bankers in Michigan, died of pneumonia in his home, No. 989 Cass Avenue. At the time of his death he was chairman of the board of the First and Old Detroit National Bank, vice president of the Malleable Co., a director of the National Can Co., the Scotten-Dillon Co., and the State Bank of Fowlerville, Michigan.  He was one of the organizers and a former president of the Detroit Trust Company.  Mr. McPherson was 3 years old when his parents brought him to the United Stated from Daviat, Scotland, where he was born June 7, 1836.His father, William McPherson settled in Livingston Center, later called Howell.  In 1865, Alexander McPherson established a bank in Howell under the name of Alexander McPherson & Company in which he retained an interest up to his death.  In 1891 he came to Detroit to accept the presidency of the Detroit National Bank, later known as the Old Detroit. In addition to his local interests, he owned large pine tracts in northern Michigan, Mississippi, and Louisiana, and a model stock farm near Howell.[7]

On Tuesday, March 25, 1919, the purchase of the Pontchartrain Hotel property by the First and Old Detroit National Bank was announced at the close of a meeting of the bank directors. Plans were long under discussion for remodeling and practically rebuilding the hotel into a 15-story bank and office building. The deal involving between $4 and $5 million would mean the removal of the great financial institution from historic Griswold Street, the Wall Street of Detroit. The new property had a frontage of 160.32 feet on Woodward Ave. and 187.02 feet on Cadillac Square. Albert Kahn was chosen as the architect. The Hotel Pontchartrain, first of the modern-type of hotels to be erected in Detroit, took the place of the historic old Russell House which was torn down in 1905 to make room for the new hotel. It was erected by the Detroit Hotel Co. of which Philip H. McMillan was president and James T. McMillan secretary Only the steel framework would be kept for the bank and office building.[8]

A 1921 advertisement to rent space in the new First and Old Detroit National Bank building by calling Cadillac 2138.
A 1921 advertisement to rent space in the new First and Old Detroit National Bank building by calling Cadillac 2138.

In January 1921, in his annual report to holders of the unified stock of the First and Old Detroit National Bank, Central Savings Bank, and First National Company, president Emory W. Clark said, "Viewed from the standpoint of service to our depositors and earnings for our shareholders, the year 1920 has been very satisfactory. We have not hesitated to use our credit with the Federal Reserve Bank, whenever necessary, to extend credit to our customers for commercial purposes, always with due regard to the credit risk. By so doing, we have lived up to our tradition of meeting our full responsibility to the community, thereby, we believe, retaining the good will of the public to a greater extent than ever before."[9]

In 1922, the new building was located on Woodward Avenue and Cadillac Square in Detroit. Without including the basements, the building was 24-stories high. There were three doorways opening from Woodward and another entrance on the Cadillac Square side. A fifth entrance was in the rear of the building. The main entrance lobby was 40X85 feet, running back to the Central Savings Bank. It was finished in Alabama, Tennessee, and buff Botticino Italian marble. The ceiling of the lobby and ground floor bank was finished in Venetian Renaissance design. The second mezzanine or fourth floor was given over to the women of the affiliated companies where they were provided a rest room, locker room, wash room and infirmary. The fifth floor was the workshop for hundreds of people and machines to handle the records of the great financial institution. Here, all the mail was sorted, books kept, statements prepared, audits made, checks handled and the bank's clearing house operated. The directors' room was in the southeast corner of the sixth floor. American walnut paneling, parqueted oak flooring, a beautiful fireplace and distinctive chandeliers made this one of the most beautiful rooms in the bank. On the same floor was the officers' private dining room. The seventh floor was devoted to a general dining room for the employees, including a complete kitchen. The First National Company was located on the eighth floor.[10]

On January 10, 1928, two bank consolidations in Detroit were ratified at the annual stockholders' meetings. Shareholders of the Peoples State Bank and the Wayne County and Home Bank voted to merge as the Peoples Wayne County Bank and stockholders of the First National Bank and Central Savings Bank approved the consolidation recommended by their boards of directors. The consolidation of the First National and Central Savings was made possible by the passage of the McFadden bill, giving First National a capital of $7,500,000, surplus of $9,500,000 and undivided profits of $2,436,203. The resources would exceed $175 million. No changes were made in officers or directors.[11]

On December 31, 1931, announcement of the consolidation of The Peoples Wayne County Bank and The First National Bank in Detroit was made. The resulting bank would be called First Wayne National Bank. The two banks had been under the same ownership and virtually the same management since the formation of Detroit Bankers Company on January 8, 1930.[12] Wilson W. Mils was chairman of the Peoples Wayne County Bank and John Ballantyne was chairman of the First National. The new bank, fourth largest in the United States outside of New York, had combined resources of $623,393,789.[13]

In 1931 the newcomer to the list of the "Big Ten" banks in the United States was First Wayne National Bank of Detroit, bumping Irving Trust Co. of New York from the list.[14]

Ten Largest Banks in the U.S. as of December 31, 1931
City Bank Capital Surplus & Profits Deposits Resources
New York Chase National 148,000,000 143,075,093 1,459,114,886 1,988,669,180
New York National City 124,000,000 101,347,466 1,418,702,860 1,857,975,421
New York Guaranty Trust 90,000,000 194,959,038 1,070,021,916 1,494,040,052
Chicago Continental Illinois 75,000,000 69,811,241 773,437,525 1,008,463,768
San Francisco Bank of America 50,000,000 54,290,312 749,796,772 925,150,152
New York Central Hanover 21,000,000 79,103,248 608,191,909 756,295,690
New York Bankers Trust Co. 25,000,000 75,020,371 558,086,407 745,372,400
Detroit First Wayne National 25,000,000 32,465,481 483,910,639 582,348,258
Los Angeles Security First National 30,000,000 23,052,834 479,012,864 542,259,302
Boston First National 44,500,000 33,419,184 476,989,412 603,285,872
City Bank 632,500,000 806,544,268 8,077,265,190 10,503,860,095

On October 8, 1932, First Wayne National Bank of Detroit changed its name to First National Bank Detroit. The new name was adopted because it was simpler and easier to remember, reflecting the position of the bank in the financial life of the city and emphasizing the bank was a Detroit institution. The original First National Bank founded in 1863 was the oldest constituent bank of a large number which combined to make the present organization and so was considered fitting the the original "First National" name should be used.[15]

In January 1933, the First National Bank, principal unit of the Bankers Co., reported for 1932 net operating income before recoveries and charges of $7,212,116.91, a reduction of about 11% from the 1931 figure. The bank during the year paid to the holding company dividends lower by $2,295,000. This reduction in payments recovered for the bank the net loss in operating income of $891,828 and retained $1,403,171.84 of operating profits. Besides provisions for depreciation, more than $11 million was set aside for other reserves. Payroll reductions effective Jan. 1, 1933 would result in a saving of approximately $1 million. During the year 34 branches with over-lapping territories were consolidated.[16]

In November 1934, hope that $70,400,000 in dividend checks would begin to flow to First National depositors was voiced by William J. McAneeny, chairman of the depositors committee. The goal was to have large depositors waive sufficient dividends to permit payment in full of 560,000 depositors whose original accounts were $300 or less. Mr. B.C. Schram, receiver of the First National, said the first checks might reach the mails within 24 hours after receipt of consent from the Comptroller and that 25,000 a day could be sent. Payoff plans received their first real impetus when Chairman Jesse H. Jones of the Reconstruction Finance Committee announced a $91,000,000 conditional loan contingent on large depositors pledging approximately half of their dividends to retire the claims of small depositors. The loan would permit a 22% payoff of all depositors, bringing the total disbursement to 72%.[17]

Official Bank Title(s)

1: First and Old Detroit National Bank, Detroit, MI

2: First National Bank in (1/19/1922), Detroit, MI

3: First Wayne National Bank of (12/31/1931), Detroit, MI

4: First National Bank (10/8/1932), Detroit, MI

Bank Note Types Issued

1902 Date Back $100 bank note with printed signatures of Walter G. Nicholson, Cashier and Emory W. Clark, President
1902 Date Back $100 bank note with printed signatures of Walter G. Nicholson, Cashier and Emory W. Clark, President. Courtesy of Heritage Auctions, www.ha.com
1902 Plain Back $20 bank note with pen signatures of Edward E. Dean, Assistant Cashier and James T. Shaw, Assistant Vice President.
1902 Plain Back $20 bank note with pen signatures of Edward E. Dean, Assistant Cashier and James T. Shaw, Assistant Vice President. Courtesy of Heritage Auctions, www.ha.com
1929 Type 1 $10 bank note with the bank's second title, SN 1, and printed signatures of George S. Hoppin, Jr., Cashier and D. Dwight Douglas, President. The Government Printing Office (GPO) made the overprinting plate used to produce this note.
1929 Type 1 $10 bank note with the bank's second title, SN 1, and printed signatures of George S. Hoppin, Jr., Cashier and D. Dwight Douglas, President. The Government Printing Office (GPO) made the overprinting plate used to produce this note. Courtesy of Heritage Auctions, www.ha.com
1929 Type 1 $5 bank note with the bank's third title, SN 1, and printed signatures of George S. Hoppin, Jr., Cashier and Donald N. Sweeny, President.
1929 Type 1 $5 bank note with the bank's third title, SN 1, and printed signatures of George S. Hoppin, Jr., Cashier and Donald N. Sweeny, President. Courtesy of Heritage Auctions, www.ha.com
1929 Type 1 $20 bank note with the bank's fourth title, SN 1, and printed signatures of George S. Hoppin, Jr., Cashier and Donald N. Sweeny, President.
1929 Type 1 $20 bank note with the bank's fourth title, SN 1, and printed signatures of George S. Hoppin, Jr., Cashier and Donald N. Sweeny, President. Courtesy of Heritage Auctions, www.ha.com

A total of $38,573,600 in National Bank Notes was issued by this bank between 1914 and 1933. This consisted of a total of 3,847,448 notes (2,321,336 large size and 1,526,112 small size notes).

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

Series/Type Sheet/Denoms Serial#s Sheet Comments
1: 1902 Date Back 4x5 1 - 52750
1: 1902 Date Back 3x10-20 1 - 37000
1: 1902 Date Back 3x50-100 1 - 6000
1: 1902 Plain Back 4x5 52751 - 128200
1: 1902 Plain Back 3x10-20 37001 - 81300
2: 1902 Plain Back 4x5 1 - 208931
2: 1902 Plain Back 3x10-20 1 - 146601
2: 1902 Plain Back 3x50-100 1 - 9302
2: 1929 Type 1 6x5 1 - 82286
2: 1929 Type 1 6x10 1 - 41364
2: 1929 Type 1 6x20 1 - 13178
2: 1929 Type 1 6x50 1 - 3652
2: 1929 Type 1 6x100 1 - 1002
3: 1929 Type 1 6x5 1 - 48754
3: 1929 Type 1 6x10 1 - 37514
3: 1929 Type 1 6x20 1 - 17360
3: 1929 Type 1 6x50 1 - 4340
3: 1929 Type 1 6x100 1 - 1654
4: 1929 Type 1 6x5 1 - 55
4: 1929 Type 1 6x10 1 - 2267
4: 1929 Type 1 6x20 1 - 776
4: 1929 Type 1 6x50 1 - 100
4: 1929 Type 1 6x100 1 - 50

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1914 - 1933):

Presidents:

Cashiers:

Other Known Bank Note Signers

Bank Note History Links

Sources

  • Detroit, MI, 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
  1. ↑ Detroit Free Press, Detroit, MI, Wed., Mar. 26, 1919.
  2. ↑ The Bankers' Magazine, Vol. 85, July 1912-Dec. 1912, p. 773.
  3. ↑ Detroit Free Press, Detroit, MI, Wed., Feb. 25, 1914.
  4. ↑ Detroit Free Press, Detroit, MI, Sun., Mar. 15, 1914.
  5. ↑ Detroit Evening News, Detroit, MI, Wed., Apr. 8, 1914.
  6. ↑ Detroit Evening Times, Detroit, MI, Thu., Apr. 30, 1914.
  7. ↑ Detroit Evening Times, Detroit, MI, Tue., July 24, 1917.
  8. ↑ Detroit Free Press, Detroit, MI, Wed., Mar. 26, 1919.
  9. ↑ Detroit Free Press, Detroit, MI, Sun., Jan. 9, 1921.
  10. ↑ The Bankers' Magazine, Vol. 105, July 1922-Dec. 1922. pp 137-150.
  11. ↑ Detroit Free Press, Detroit, MI, Wed., Jan. 11, 1928.
  12. ↑ Detroit Free Press, Detroit, MI, Thu., Dec. 31, 1931.
  13. ↑ The Herald-Palladium, Benton Harbor, MI, Thu., Dec. 31, 1931.
  14. ↑ Detroit Free Press, Detroit, MI, Sun., Jan. 17, 1932.
  15. ↑ Detroit Free Press, Detroit, MI, Sun., Oct. 9, 1932.
  16. ↑ Detroit Free Press, Detroit, MI, Sun., Jan. 22, 1933.
  17. ↑ Detroit Free Press, Detroit, MI, Sun., Nov. 18, 1934.
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