John Geiser McHenry (Benton, PA)

Photo of the Hon. John G. McHenry from the 1906 Pennsylvania Congressional race. The paper, Bloomsburg Daily, noted he was "a careful student of the science of government and especially well informed on the subject of taxation...".

John Geiser McHenry (April 26, 1868 – December 27, 1912)

Biography

• Name: John Geiser McHenry
• Birth: April 26, 1868 Benton, PA
• Death: December 27, 1912 Benton, PA (and is buried there)
• US Congressman 1907-1912
• Organizer of the Grange NBs throughout Pennsylvania

Early life and family

John Geiser McHenry of Benton was born in Benton Township in 1868, a son of Rohr and Caroline Geiser McHenry. He was educated in Orangeville Academy. He had the distinction of being at the head of one of the largest distilleries in the State and was associated with the distilling plant after his graduation from the academy. This particular distillery had been in continuous business since 1812 and was founded by his grandfather John H. McHenry. It was better known as the Rohr McHenry distillery after his father who managed it until his son took over in 1898. The following account gives an idea of the size and importance of the distillery.

    In July 1906, an additional gauger had just been sent to Benton by the Internal Revenue Department of the Government to keep tab on the bonded stock of the McHenry distillery at that place. This was made necessary by the much larger volume of business being done by the distillery now than ever in its past history.  By the use of different shifts of workmen, the distillery was being run day and night continuously and about 1,400 gallons of whiskey was produced daily. Whiskey from the distillery was placed into barrels of 45 gallons capacity, about 81 barrels a day, and then the barrels were placed in a bonded warehouse under lock and key in the hands of the government "storekeeper." Here it remained until sufficiently aged, solely in charge of the revenue department men. These officials kept account of every gallon that went in and out of the warehouse and revenue fees were collected on the same by the government. In one warehouse alone there was 9,000 barrels; and the entire quantity of distilled product in store in 1906 represented a revenue to the government of about a half million dollars. Two gaugers and a storekeeper were required to look after the government's interests.

John G. McHenry was the sole owner of the McHenry Distilling Company from 1898 until 1903, when in an effort to enlarge the plant he issued stock and had it incorporated. He served as president of the firm, making the product known throughout the nation.

Banking career

McHenry was president of the Columbia County National Bank of Benton, vice president of The Grange National Bank of Tioga, and a director of The Grange National Bank of McKean County at Smethport, The Grange National Bank of Potter County at Ulysses, The Grange National Bank of Bradford County at Troy, and The Grange Trust Company, Huntingdon. He was an organizer of grange national banks throughout Pennsylvania and served as the state superintendent of the Grange National banks of Pennsylvania. He was a 3-term Congressman for Pennsylvania and served from March 4, 1907 until his death December 27, 1912. While in Congress he was a member of the appropriations committee and the committee on banking and currency. Important legislation introduced by Congressman McHenry included:

• In 1908 a bill to establish a bureau of mines and mining as a result of a 25% increase in coal mine accidents between 1907 and 1908. Four big disasters had occurred in Pennsylvania in which nearly 700 lives were lost.

The vision of farmers organizing banks under the sponsorship of the State Grange, laid out in Atlantic City at the 1905 convention of the National Grange, received the energies and organizational skill of McHenry.

    While the movement was started by the grange, and the banks are controlled by the grangers, the stockholders were not limited to farmers, but local businessmen in the towns where the banks were established, laboring men, miners, and all classes were invited to take stock.  However, members of the subordinate granges were given preference in the allotment of stock.  The stock is so divided that every granger can have a share, but no one family can buy more than 10 shares, and the allotment is made so that fractional parts of shares may be bought, thus enabling the farmer boy or man of small means to purchase a half or quarter of a share.  The idea was to encourage as many individuals as possible to become personally interested in the enterprise, for in union of interest there is strength.

While more is to be written on his contributions as the bank histories of the Grange National Banks are developed, it is of interest to collectors today as bank notes with Grange National Bank in their titles are aggressively sought. The small town names contribute to this interest, no doubt, as does the small circulations of these banks. It is notable that no other states have Grange National banks; Georgia and Illinois do have towns named La Grange and Texas has a Granger County. The Grange National Banks were consistent in preparing their titles, every one using "The Grange National Bank" whereas statistically you would expect one or two to have forgotten the article "The" or placed National in front of Grange!

The Farmers and Traders National Bank of Clearfield organized October 29, 1906 was listed as a bank sponsored by the Grange as was the Farmers National Bank of Exchange. Along with state chartered banks, it is expected that more will be found that were assisted by the Grange and McHenry.

The large, central Grange National Bank proposed for Philadelphia, through which exchanges and clearances with all the state's grange banks as correspondents, never was realized. The number of 15 Grange National banks laid out in the 1905 proposal essentially was reached if the national banks adopting a Farmers title are included. At the time, centralized banking in the U.S. was about to come under the Federal Reserve System. Perhaps if McHenry had lived another decade the Philadelphia Grange National Bank could have been realized.

Later life and death

Hon. John G. McHenry, Pennsylvania Congressman, banker, promoter of Grange national banks.

In 1910, Sixty buildings were in ruins and thirty families were homeless at Benton, Columbia County as a result of someone's carelessness in throwing a fire cracker on the Fourth of July. The blaze broke out at 2:30 at the Crossley barn where some boys had been discharging fire crackers. The flames spread rapidly to other buildings, fanned by a stiff north wind. A call was made to Bloomsburg for aid, but the blaze had burned itself out by the time the local fire company reached the scene. The loss was estimated at $300,000. Among the prominent buildings destroyed were the Columbia County National Bank, The Exchange Hotel, the People's store and post office. The vaults of the ruined bank contained $200,000 in currency that was salvageable. The fire was the worst in Columbia County's history. Very little insurance was carried. There were no fire fighting facilities in Benton and only slight resistance could be offered against the flames. A few years earlier an attempt was made to install a water system for fire protection, but citizens got an injunction restraining the promoters from establishing a system, their concern being that it would make the taxes too high. The thirty homeless families were cared for by neighbors during the night and the burgess issued a call for a meeting of all citizens. Only one person was injured during the disaster, Mrs. Ross Hess, an aged woman, being burned while making an attempt to rescue some furnishings.

In November 1912, the Hon. John G. McHenry resigned as president of the Columbia County National Bank of Benton due to ill health and financial troubles. A.R. Pennington of Benton was elected president to fill Mr. McHenry's unexpired term as the Columbia County National Bank president. The Rohr McHenry Distilling company in which Mr. McHenry was heavily invested asked for and received a receivership. The financial difficulties stemmed from the costly Fourth of July fire that destroyed its bonding house and much product. The bank sent a letter to depositors not to be alarmed by the distilling company going into bankruptcy claiming ample security was available to cover all loans.

On December 30, 1912, Hon. John G. McHenry, aged 44, Congressman of the Sixteenth district, died at his home in Benton about 5 o'clock as a result of a stroke of apoplexy. It was said that his first failing in health was noticed by a nervous breakdown in February and was caused by business troubles that he experienced recently as president of the McHenry Distilling Company. While at the winter session of Congress in 1911 he suffered a nervous breakdown and had been in danger ever since that time.

The estate of the former Congressman showed liabilities of $406,609.17 while the assets were only $20,156.47. The J. Henry Cochran estate of Williamsport was the heaviest loser among the creditors to the amount of $119,687. Sixty banks suffered by the insolvency of the McHenry estate with the Grange banks which he helped to establish especially affected, some to the extent of $20,000. The congressman lost heavily through bad investments as shown by worthless stocks, much of it in the distillery, but also mining stocks, 10-$500 gold bonds of the Eastern Motor Car Co., and 2000 shares of the Northwestern Lumber Co.

For more information on the Grange National Banks in Pennsylvania, this article provides a brief history of those twelve banks, why they were formed, and the men and women behind them.

• A Brief History of the Grange National Banks in Pennsylvania

Bank Officer Summary

During his banking career, John G. McHenry was involved with the following bank(s):

• Columbia County NB, Benton, PA (Charter 6328): President 1902-1912
• Grange NB of McKean County, Smethport, PA (Charter 8591): Director 1907
• Grange National Bank, Tioga, PA (Charter 8092): VP 1908
• The Grange National Bank of Potter County at Ulysses (Charter 8739): Director
• The Grange National Bank of Bradford County at Troy (Charter 8849): Director 1910
• Penbrook National Bank, Penbrook, PA (Charter 9344): Director 1910
• The Grange Trust Company, Huntingdon: Director

There are currently no known notes signed by Hon. John G. McHenry. Depicted is a Series of 1902 Plain Back from The Columbia County National Bank of Benton with printed signatures of Robert J. McHenry, Cashier and A.R. Pennington, President. J.G. McHenry was president of this bank from its beginning in 1902 until his resignation in November 1912, just before his untimely death. Courtesy of Heritage Auctions, www.ha.com

Sources

ANS-12/14/2021

• Biographical Directory of the United States Congress, John G. McHenry.
• Findagrave.com, John Geiser McHenry
• Banks & Bankers Historical Database (1782-1935), https://bbdata.banknotehistory.com
• Republican News Item, Laporte, PA, Thu., May 3, 1906.
• People's Register, Chambersburg, PA, Fri., July 27, 1906.
• Mount Carmel Item, Mount Carmel, PA, Tue., Sep. 11, 1906.
• The Daily News, Mount Carmel, PA, 24 Jul 1906.
• McKean County Miner, Smethport, PA, Thu., July 11, 1907.
• The Scranton Truth, Scranton, PA, Tue., July 5, 1910.
• Wilkes-Barre Semi-Weekly Record, Wilkes-Barre, PA, Tue., July 26, 1910.
• The Danville Morning News, Danville, PA, Fri. Nov. 8, 1912.
• Carbondale Daily News, Carbondale, PA, Tue., Nov. 5, 1912.
• The Danville Morning News, Danville, PA, Sat., Mar. 21, 1914.