Navesink National Bank, Red Bank, NJ (Charter 4535)
Navesink National Bank, Red Bank, NJ (Chartered 1891 - Receivership 1903)
Town History
Red Bank is a borough in Monmouth County, New Jersey. Incorporated in 1908, the community is on the Navesink River, the area's original transportation route to the ocean and other ports. Red Bank is in the New York Metropolitan Area and is a commuter town of New York. As of the 2020 United States Census, it had a population of 12,936. Red Bank is the 5th most densely populated town in Monmouth County. In 1870, the population was 2,086.
Red Bank was formed as a town on March 17, 1870, from parts of Shrewsbury Township. On February 14, 1879, Red Bank became Shrewsbury City; this lasted until May 15, 1879, when Red Bank regained its independence. On March 10, 1908, Red Bank was formed as a borough by an act of the New Jersey Legislature and was set off from Shrewsbury Township. The borough was named for the red soil along the Navesink River.
Red Bank had five National Banks chartered during the Bank Note Era, and four of those banks issued National Bank Notes.
Bank History
- Organized February 3, 1891
- Chartered March 19, 1891
- Receivership August 14, 1903
In August 1903, Capt. James S. Throckmorton resigned as president of the Navesink National Bank and Capt. Charles B. Parsons was elected to fill the vacancy. The resignation was caused by ill-health and a desire to spend remaining years free from business cares. Capt. Throckmorton remained a director of the bank.
A rumor was started in town that the Navesink was in bad shape. It was said that Capt. Throckmorton had sold all of his stock when he retired, which was not the case. When officials heard of this they immediately sent for a bank examiner to thoroughly investigate the bank's affairs and also made provision to meet any run on the bank. W.A. Mason, the bank examiner made a thorough investigation of the bank and found nothing but a bright future for the bank. Cashier Cowart went to New York for money and brought back about $100,000 in a dress-suit case. The run, however, failed to materialize. At a meeting of the board of directors, Edward E. Roberts, the president of the Robert's Boiler Company which had on deposit about $60,000 in the bank, was elected president, and his son E. Gerry Roberts was expected to be elected a director.
On August 14, 1903, some hours after the close of business, a notice was posted on the front door stating that by direction of the Comptroller of the Currency, the bank had been taken in charge by W.A. Mason, a national bank examiner, appointed as receiver. The bank was organized 12 years ago with capital of $60,000. The bank was examined in regular order on July 27 and a discrepancy of $10,000 between the individual and general ledgers was found, a falsification of the last report of condition, as well as numerous false entries and erasures on the books. A re-examination was ordered and Mason discovered more shortages and irregularities to an extent to render the bank insolvent. A new president, cashier and board of directors were elected and an effort made by the latter to put sufficient cash into the bank to restore its capital and solvency, with the assistance of a corresponding bank. The last report of the condition of the bank of June 9, 1903, which was stated as being falsified, showed resources included loans and discounts of $343,576, U.S. bonds $13,125, against liabilities of capital stock $50,000, Surplus and undivided profits $27,133, Circulation of $12,500 balancing at $489,914.
On August 15, Enoch L. Cowart, cashier of the suspended Navesink National Bank, surrendered himself the the United States Marshal and admitted that he had embezzled $40,000 of the bank's funds. Mr. Cowart said he had taken the money in order to pay dividends on the stock in order to keep up its price, and later took more money to conduct an extravagant establishment which he had at Asbury Park.
On October 20, Enoch L. Cowart was sentenced in the United States Court by Judge Kirkpatrick to seven years in New Jersey's State Prison for embezzlement and falsification of the bank's accounts. Henry C. Terhune, the assistant cashier, was charged with complicity in wrecking the bank--it appears the charges were dropped as no trial or conviction of Mr. Terhune can be found.
In February 1904, John W. Schofield, Receiver, talked with reporters about the defunct bank. Depositors were paid 50%, but Schofield thought that not more than 25% more would be realized from the assets. The comptroller had approximately $16,000 on hand but $78,000 was required to make up a 25% dividend and that was Mr. Schofield's goal before the next dividend would be declared. The third dividend was paid in August 1904 and amounted to just 10%, bringing the total to 60%. It was hoped another 15% could be paid before the matter was closed up.
James S. Throckmorton, Jr., previously employed in the Navesink National Bank was appointed cashier of the new bank starting in Caldwell, The Caldwell National Bank. He would become president of the Citizens National Bank of Caldwell, New Jersey.
Official Bank Title(s)
1: The Navesink National Bank of Red Bank, NJ
Bank Note Types Issued
A total of $76,970 in National Bank Notes was issued by this bank between 1891 and 1903. This consisted of a total of 11,894 notes (11,894 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 1882 Brown Back 4x5 1 - 2911 1882 Brown Back 50-100 1 - 125
Bank Presidents and Cashiers
Bank Presidents and Cashiers during the National Bank Note Era (1891 - 1903):
Presidents:
Cashiers:
Other Bank Note Signers
- There are currently no known Vice President or Assistant Cashier bank note signers for this bank.
Wiki Links
- New Jersey Bank Note History
- General information on Red Bank (Wikipedia)
- General information on Monmouth County (Wikipedia)
- General information on New Jersey (Wikipedia)
Sources
- Red Bank, NJ, 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
- The Washington Times, Washington, DC, Sun., Aug. 16, 1903.