Lebanon National Bank, Lebanon, IN (Charter 2660)

1902 Red Seal $20 proof, approved March 17, 1902. Courtesy of the Smithsonian Institution Archives.

Lebanon National Bank, Lebanon, IN (Chartered 1882 - Liquidated 1910)

Town History

Lebanon is a city in and the county seat of Boone County, Indiana. Lebanon is located in central Indiana, approximately 29 miles northwest of downtown Indianapolis and 36 miles southeast of Lafayette. The population was 16,662 at the 2020 census. In 1870 the population was 1,572 growing to 6,445 by 1930.

Lebanon was founded in 1832. It was named by a pioneer settler who saw a stand of hickory trees on the site and was reminded of the Biblical cedars of Lebanon. The first post office at Lebanon was established in 1832.

Lebanon had two National Banks chartered during the Bank Note Era, and both of those banks issued National Bank Notes.

Bank History

• Organized April 6, 1882
• Chartered April 12, 1882
• Succeeded A.C. Daily & Co. (Lebanon Bank)
• Liquidated October 26, 1910
• Depositors liability assumed by 2057

On April 12, 1882, the comptroller of the currency authorized the Lebanon National Bank of Indiana with a capital of $60,000, to begin business.

In May 1899, the American Trust Company of Lebanon with a capital stock of $50,000, filed articles of incorporation with the Secretary of State. Americus C. Daily, ex-Auditor of the State, was at the head of the trust company.

On Wednesday, June 5, 1907, Americus C. Daily died at his home in Lebanon, Indiana. He was born in New Carlisle, Ohio and moved to Boone County in 1885. After serving as deputy to several county officers he was finally elected county auditor on the Republican ticket. He became state auditor in 1894 and was re-elected in 1896. He was president of the Lebanon National Bank and a stockholder in the First National Bank at the time of his death.

On July 29, 1907, the comptroller of the currency announced the following changes in the list of officers of the Lebanon National Bank: E.T. Lane, president, in place of A.C. Daily; Jesse S. Reagan, vice president, in place of O.R. Daily; O.R. Daily, cashier in place of E.T. Lane.

In November 1910, national bank examiner Oscar L. Telling announced that depositors of the Lebanon National Bank would be paid in full. The announcement was made at the First National Bank. The National Bank of Lebanon went into voluntary liquidation on the recommendation of Mr. Telling who examined the books the previous week. Mr. Telling found it was either a case of voluntary liquidation or the closing of the institution by the examiner. The cause was due to notes of the bank that were not properly secured. Since taking charge of the bank's affairs, Examiner Telling had either obtained additional surety that would make good the notes or obtained a settlement from the endorsers. It was said that directors of the bank would have to pay about $10,000 each to make good for the bad paper of the bank.

When Oscar L. Telling, special national bank examiner, decided to close the doors of the Lebanon National Bank at Lebanon, he found he was confronted with a peculiar situation. The American Trust Company was controlled by the same board of directors, and for the most part the stock was owned by the same men as the Lebanon National Bank. O.R. Daily was president of the bank and of the trust company. Both the trust company and the bank conducted business in the same room and through the same window. Mr. Telling could not close the doors of the bank without closing the doors of the trust company which Mr. Telling had no legal right to do. Officials of the office of the auditor of state were called into conference and the auditor agreed to close the doors of the trust company, which, although not insolvent, had no cash with which to continue business. The trust company had only $1,200 cash on hand and this was on deposit in the Lebanon National Bank. Arrangements were made for the sale of the assets of the American Trust Company to the Citizens' Loan and Trust Company of Lebanon. The directors of the latter company imposed certain conditions upon the purchase. The Daily estate was indebted to the American Trust Company amounting to $35,000 on money advanced. The trust company was solvent and it was expected that stockholders would receive above par for their holdings based on the proposed sale.

It was announced that the Citizens Loan and Trust Company, controlled by the same officers as the First National Bank where Mr. Telling moved the books of the Lebanon National Bank, rented the building formerly occupied by the latter bank and the American Trust. The fixtures were also purchased by the Citizens trust company although it had not been decided if the Citizens would occupy the building. At a meeting of the American Trust Company directors, O.R. Daily resigned as president and Frank Daily resigned as secretary and also as a director. Judge S.S. Artman was chosen as a director to fill the vacancy. J.M. Martin was chosen president, B.P. Staley, secretary, and O.R. Daily assistant secretary. It was stated unless the receivership prevented it, the American Trust Company would open for business on Wednesday when all depositors and all claims would be paid in full. Mr. Martin, the new president and Mr. Staley, the new secretary, were president and cashier respectively of the Farmers' State Bank and claims would be paid through this bank.

In September 1911, A.W.L. Newcomer was elected secretary of the American Trust Company in place of O.R. Daily who resigned to accept a position with the H.C. Ulen Bonding Co. of Chicago. Mr. Newcomer served on term as recorder of Boone County and was assistant cashier of the Farmers National Bank of Sheridan for three years.

Official Bank Title

1: The Lebanon National Bank, Lebanon, IN

Bank Note Types Issued

Series of 1875 $20 bank note with pen signatures of E.T. Lane, Cashier and A.C. Daily, President. Courtesy of Heritage Auctions, www.ha.com

Series of 1875 $10 bank note with pen signatures of E.T. Lane, Cashier and J.N. Ritchie, Vice President. Courtesy of Heritage Auctions, www.ha.com

A total of $482,350 in National Bank Notes was issued by this bank between 1882 and 1910. This consisted of a total of 38,588 notes (38,588 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
Series 1875	3x10-20	1 - 4720
1902 Red Seal	3x10-20	1 - 4200
1902 Date Back	3x10-20	1 - 727

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1882 - 1910):

Presidents:

• Americus Calvin Daily, 1882-1906
• Empson Tilghman Lane, 1907-1907
• George William Norwood, 1908-1908
• Empson Tilghman Lane, 1909-1909
• Oliver Rush Daily, 1910-1910

Cashiers:

• Samuel S. Daily, 1882-1891
• Empson Tilghman Lane, 1892-1906
• Oliver Rush Daily, 1907-1909
• J. Frank Daily, 1910-1910

Other Known Bank Note Signers

• J.N. Ritchie, Vice President

Bank Note History Links

• Lebanon National Bank, Lebanon, IN History (NB Lookup)
• Indiana Bank Note History (BNH Wiki)

Sources

• Lebanon, 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