Merchandise National Bank/Winthrop NB, Boston, MA (Charter 2304)

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The Ames Building on State Street, Boston.
The Ames Building on State Street, Boston. Courtesy of Google Maps ca2023

Merchandise National Bank/Winthrop NB, Boston, MA (Chartered 1875 - Liquidated 1915)

Town History

Needed: a contemporary postcard or photo of the bank
Needed: a contemporary postcard or photo of the bank

Boston is the capital and most populous city of the Commonwealth of Massachusetts. The city proper covers about 48.4 square miles with a population of 675,647 in 2020, also making it the most populous city in New England. It is the seat of Suffolk County (although the county government was disbanded on July 1, 1999).

Boston is one of the oldest municipalities in the United States, founded on the Shawmut Peninsula in 1630 by Puritan settlers from the English town of the same name. It was the scene of several key events of the American Revolution, such as the Boston Massacre, the Boston Tea Party, the Battle of Bunker Hill, and the siege of Boston. Upon American independence from Great Britain, the city continued to be an important port and manufacturing hub as well as a center for education and culture. The city has expanded beyond the original peninsula through land reclamation and municipal annexation. Its rich history attracts many tourists, with Faneuil Hall alone drawing more than 20 million visitors per year. Boston's many firsts include the United States' first public park (Boston Common, 1634), first public or state school (Boston Latin School, 1635), first subway system (Tremont Street subway, 1897), and first large public library (Boston Public Library, 1848).

Today, Boston is a thriving center of scientific research. The Boston area's many colleges and universities make it a world leader in higher education, including law, medicine, engineering and business, and the city is considered to be a global pioneer in innovation and entrepreneurship, with nearly 5,000 startups. Boston's economic base also includes finance, professional and business services, biotechnology, information technology and government activities.

Boston had 84 National Banks chartered during the Bank Note Era, and 75 of those banks issued National Bank Notes. Boston also had 63 Obsolete Banks that issued Obsolete Bank Notes during the Obsolete Bank Note Era (1782-1866).

Bank History

On Wednesday, September 15, 1875, a new national bank was organized under the title of the Merchandise National Bank of Boston with a capital of $500,000. One of the main features of the bank was to loan money on merchandise as security. The following is a list of the officers forming this association: Israel G. Whitney & Co., and Edward O. Rockwood, cashier and late treasurer of Home Savings Bank. The directors were John Hitchcock, president Commonwealth Insurance Company; Alonzo H. Evans, president, Five Cents Savings Bank of Boston; Nathaniel F. Tenney of Tenney, Aldrich & Co.; Silas Potter of Silas Potter & Co.; Stephen Bowen of Horatio Harris & Co.; Nathaniel P. Hamlen of Willett, Hamlen & Co.; George S. Bullens of Bullens & Mixter; Edward Spaulding of Spaulding & Bumstead; Thomas Appleton of Appleton & Sweet; Andrew M. Howland of Howland & Luce; Joseph H. Locke of Goodwin, Locke & Co.[1] In October the bank secured rooms in the New England Mutual Life Insurance Company's new building on Post Office Square, corner of Milk and Congress Streets.[2]

On January 18, 1890, at a meeting of the Winthrop bank directors (formerly the Merchandise), Nathaniel F. Tenney was chosen president and Wilmot R. Evans, vice president. Mr. Tenney was a merchant at 53 Tremont Street. Mr. Evans had been paying teller of the Commonwealth National Bank.[3] In March, each holder of 5 shares would be entitled to three shares of Winthrop National stock, a practical cutting down of capital from $500,000 to $300,000. The new South End National Bank commenced business February 1st, making 61 banks within the limits of Boston.[4]

In January 1891, the Winthrop National Bank moved into its new quarters in the Ames building, corner of Court and Washington Streets. At the bank's entrance was a remarkably rich, circular counter. The woodwork was of solid mahogany and the brass work surmounting it was very elaborate. The floor was a mosaic in pattern, and the walls were tinted cream. A.H. Davenport furnished all of the fittings. A private lavatory was furnished by the landlord fitted up in marble, even the feed tank being marble. The officers were N.F. Tenney, president; W.R. Evans, vice president; C.H. Ramsay, cashier; Albert H. Davenport, Silas Potter, William E. Russell, Alonzo H. Evans, Col. Albert A. Pope, James H. Eaton, Arthur Hobart, A. Pierce Green, Thomas Appleton, Phineas W. Sprague, Nathaniel E. Tiffany, and Wilmot R. Evans, directors. The bank had capital of $300,000, surplus and undivided profits $80,000.[5] On Friday, May 1, 1891, Mr. Nathaniel F. Tenney died at his residence in Milton, aged 71 years. Mr. Tenney was a native of Dunbarton, New Hampshire, but spent nearly all his life in Boston in the boot and shoe business. For many years he was in business under the firm name of Tenney, Aldrich & Co., retiring a number of years ago. He was elected president of the bank about a year ago and had been a director prior to that time.[6]

In January 1900, the following were elected directors: A.H. Davenport, J.H. Eaton, A.H. Evans, Arthur Hobart, A.P. Green, P.W. Sprague, W.R. Evans, and E.W. Pope.[7]

In June 1906, the City Trust Company purchased control of the Winthrop National Bank, paying $325 per share. The Winthrop was regarded as one of the strongest of the smaller banking institutions, and for ten years averaged dividends of 16% on its capital stock. The last sale of Winthrop National stock was $150 against a book value of $264. Additionally, the Mercantile Trust Company’s affairs would be liquidated Into the City Trust Company at once. The Mercantile had over $4,000,000 of deposits. There were about 1000 shares out of the 5000 shares of Mercantile stock outstanding, and to such minority the City Trust offered one share of new City Trust Company stock for two shares of Mercantile, or $200 per share cash. The offering of stock was contingent upon the Increase of stock yet to be authorized by the City Trust stockholders. Charles B. Jopp. now treasurer of the Mercantile, would become assistant treasurer of the City Trust, and S. Parkman Shaw, Jr., secretary of the Mercantile, would become assistant secretary. The following directors of the Mercantile would become directors of the City: Andrew W. Preston, Livingston Cushing, Robert F. Herrick, Henry C. Jackson, Richard S. Russell, Philip Stockton, and Henry O. Underwood. President Evans of the Winthrop National Bank said, “While the City Trust Company has agreed to pay $325 per share for a majority of the stock of the Winthrop National Bank, it should not be understood that there will be any change in the management of the bank's affairs essentially different from that which has prevailed for many years. Mr. Davenport and myself still retain a large holding in the bank's stock and the same can be said of our friends. I was averse to selling out the bank and seeing it completely absorbed by any other institution. The officers have surrounded themselves with faithful men, and we desire to have them continue in their present positions.” In March 1905, the City Trust Co. secured control of the Bunker Hill National Bank at a price of $215 per share. That same year, the Bunker Hill Bank took over the Monument Bank of Charlestown. By the absorption of the Mercantile Trust, deposits of the City Trust Co. would increase to above $20 million.[8][9]

On Tuesday, January 10, 1911, Gordon Abbott who resigned from the board of the National Bank of Commerce was added to the board of the Winthrop National Bank. The directors elected were Wilmot R. Evans, Jr., Wilmot R. Evans, C.H. Ramsay, Robert F. Herrick, A. Willis Small, Philip Stockton and Gordon Abbott.[10] Mr. Abbott was elected president of the Old Colony Trust Co. in 1900 and became chairman of its board of directors in 1910.[11] 

In August 1911, the Old Colony Trust Company had capital stock of $2,500,000, surplus of $10,000,000 and undivided profits of $942,860. The last price quoted for its stock was $700 a share compared with a par value of $100 and recent private sales were reported at $750. The directors proposed to declare a cash dividend of $100 per share which stockholders could apply to the purchase of additional stock at par equal to that which they held to increase the capital to $5,000,000 and later on apply the same process to increase the capital to $7,500,000. The action proposed was one step in the merger which for most purposes took effect on Feb. 19th, 1910, when Old Colony Trust assumed the deposit liabilities of the City Trust Company, having issued $900,000 of its stock in exchange for the $1,500,000 of stock of the City Trust Company.  The City Trust Company prior to the merger had a surplus of $2,500,000 and undivided profits of approximately $725,000, all of which went to the Old Colony. The City Trust Company had previously acquired control of the Mercantile and with it the Massachusetts Trust Company, but the three retained their corporate existences under the old names.  The last Legislature authorized a change in the names of all the merged companies to the Old Colony Trust Co. for greater convenience in handling their affairs.  Stockholders would meet on August 25th to vote on the recommendations.[12]

On May 4, 1915, another acquisition was effected by the Merchants National Bank of State Street which took over the well-known Winthrop National Bank, for many years situated in the Sears Building. By so doing, the Merchants increased its deposits by $3,307,159 giving total deposits of about $49,000,000. This was the third consolidation by the Merchants in a little more than 3 years. With total resources of about $50 million, this would place the institution well up on the list of the 20 most important banks in the United States. The Merchants would pay $50 a share for the Winthrop's good will and at liquidation about $270 per share, making the purchase price around $320 for 3,000 shares outstanding. According to reports made May 1, the condition of the two banks was as follows: Merchants National--deposits, $49,910,864; capital, $3,000,000; surplus, $2,000,000; undivided profits, $1,293,630. Winthrop National--deposits $3,307,159; capital $300,000; surplus $500,000; undivided profits, $25,021.[13] The Old Colony Trust Company ratified the plan as it held about two-thirds of the stock of the Winthrop and wanted to dispose of its holding in advance of the law regarding trust companies' holdings in other banks passed by the previous years' Legislature. Charles H. Ramsey, the cashier of the Winthrop would go to the Merchants as an assistant cashier. Several other of the Winthrop's employees would go to the Merchants, some to the Old Colony Trust Company and the rest to other banks.[14]

Official Bank Titles

1: The Merchandise National Bank of Boston, MA

2: The Winthrop National Bank of Boston, MA (1/23/1890)

Bank Note Types Issued

Series of 1875 $5 bank note with the bank's first title and pen signatures of J.F.R. Foss, Cashier and I.G. Whitney, President.
Series of 1875 $5 bank note with the bank's first title and pen signatures of J.F.R. Foss, Cashier and I.G. Whitney, President. Courtesy of Heritage Auctions, www.ha.com
Series of 1875 $5 bank note with SN 1D, the bank's second title, and pen signatures of Charles H. Kilham, Cashier and N.F. Tenney, President.
Series of 1875 $5 bank note with SN 1D, the bank's second title, and pen signatures of Charles H. Kilham, Cashier and N.F. Tenney, President. Courtesy of Heritage Auctions, www.ha.com
1882 Brown Back $10 bank note with pen signatures of C.H. Ramsay, Cashier and W.R. Evans, President.
1882 Brown Back $10 bank note with pen signatures of C.H. Ramsay, Cashier and W.R. Evans, President. Courtesy of Heritage Auctions, www.ha.com
1882 Date Back $5 bank note with pen signatures of 1882 Date Back $5 bank note with pen signatures of C.H. Ramsay, Cashier and Robert F. Herrick, President
1882 Date Back $5 bank note with pen signatures of 1882 Date Back $5 bank note with pen signatures of C.H. Ramsay, Cashier and Robert F. Herrick, President. Courtesy of Heritage Auctions, www.ha.com

A total of $4,515,780 in National Bank Notes was issued by this bank between 1875 and 1915. This consisted of a total of 680,854 notes (680,854 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
1: Series 1875 3x1-2 1 - 11000
1: Series 1875 4x5 1 - 36374
1: Series 1875 3x10-20 1 - 3799
1: Series 1875 50-100 1 - 167
2: Series 1875 4x5 1 - 5024
2: 1882 Brown Back 4x5 1 - 42500
2: 1882 Brown Back 3x10-20 1 - 16900
2: 1882 Date Back 4x5 1 - 33461
2: 1882 Date Back 3x10-20 1 - 21072

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1875 - 1915):

Presidents:

Cashiers:

Other Known Bank Note Signers

  • No other known bank note signers for this bank

Bank Note History Links

Sources

  • Boston, MA, 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. ↑ The Boston Globe, Boston, MA, Thu., Sep. 16, 1875.
  2. ↑ Boston Post, Boston, MA, Wed., Oct. 6, 1875.
  3. ↑ Boston Evening Transcript, Boston, MA, Sat., Jan. 18, 1890.
  4. ↑ Boston Evening Transcript, Boston, MA, Sat., Mar. 29, 1890.
  5. ↑ The Boston Globe, Boston, MA, Fri., Jan. 23, 1891.
  6. ↑ Boston Evening Transcript, Boston, MA, Sat., May 2, 1891.
  7. ↑ Boston Evening Transcript, Boston, MA, Tue., Jan. 9, 1900.
  8. ↑ Boston Evening Transcript, Boston, MA, Sat., June 9, 1906.
  9. ↑ Boston Evening Transcript, Boston, MA, Mon., June 11, 1906.
  10. ↑ Boston Evening Transcript, Boston, MA, Tue., Jan. 10, 1911.
  11. ↑ Transcript-Telegram, Holyoke, MA, Mon., Jan. 25, 1937.
  12. ↑ Boston Evening Transcript, Boston, MA, Sat., Aug. 12, 1911.
  13. ↑ The Boston Globe, Boston, MA, Tue., May 4, 1915.
  14. ↑ Boston Evening Transcript, Boston, MA, Tue., May 4, 1915.
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