Peoples National Bank, Wellsville, OH (Charter 6345)

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Postcard depicting the Peoples National Bank of Wellsville, OH circa 1909.

The Peoples National Bank of Wellsville, OH (1902 - 1932) was the only national bank operating in Wellsville for the majority of its 30 year operating period. It was also the largest institution in Wellsville during most of this time. The bank went into receivership in 1932 when the cashier and assistant cashier were caught embezzling the bank's money. The bank's headquarters building later became the Wellsville branch of the Potters Bank And Trust Co., formerly the Potters National Bank of East Liverpool, OH (Charter 2544).

Early History

The Peoples National Bank of Wellsville was organized in 1902 in the Snowden building on Main Street.[1] In the year following its formation, it absorbed the First National Bank of Wellsville, the only other national bank in the city. The primary factor in the consolidation appears to have been the departure of W. P. Sharer, cashier of the First National Bank of Wellsville who left to serve as cashier for a larger bank in Zanesville, OH.[2]

Bank History

The former Peoples National Bank of Wellsville, OH building as it appeared on March 29, 2019.

In May 1904, construction began on a new bank building[3] which would not be occupied until the following June.[4] Bronze signs were installed on the bank building in May, 1907 for a cost of $250-$275.[5] The building would remain unchanged until May, 1924 when the lobby was remodeled to provide more space. Cashier T. A. Scheets desk was moved from the rear of the bank to the front entrance as part of this remodel.[6]

In January 1905, the American Sheet Steel and Tin Plate Co. became the first employer to issue its employees payroll in checks drawn against the Peoples National Bank instead of cash.[7]

A 1907 ad listed the bank's resources at $1,000,000.[8]

The Peoples National Bank handled funds for both city and county government business. In August 1909, it renewed its contract that had begun three years prior with the county by agreeing to pay 3.125% interest on county funds. This offer beat out two larger banks in East Liverpool, OH, The First National Bank and the Citizens National Bank which offered lower rates.[9] By 1912, it was reported that the Peoples National Bank would hold the largest amount of county funds for any single institution at $125,000.[10] Three other banks combined to hold $115,000 additional county funds. That same month, the Peoples National Bank became the official repository of the city of Wellsville by providing a $15,000 bond.[11]

When the Cleveland, OH branch of the Federal Reserve Bank opened in November, 1914 the Peoples National Bank sent its cashier and vice president to the opening ceremonies.[12]

As the use of electricity became commonplace, the bank requested that the city install a streetlight at 4th Street and Riverside Avenue in the rear of the bank.[13]

Bank Closure

The end of the Peoples National Bank came suddenly and unexpectedly, though the wrap-up of its affairs would drag out for years. Cashier Thomas A. Scheets was reelected to his position on January 15, 1932.[14] However, on January 26, 1932 the bank would fail to open and Scheets would be arrested on a federal warrant charging falsification of records.[15] Federal officials would later find that the Peoples National Bank was a "one man institution" under Scheets full control, who had been buying securities with the bank's funds since 1929.[16]

An indictment was issued in May, 1932 charging Scheets with making false entries in the accounts of the bank while Assistant Cashier Ralph C. Merriam was also ordered to respond to a warrant charging him with misapplication of $9,000 of the bank's funds.[17] A reindictment would be returned against the pair in September 1932, increasing the offenses to a misrepresentation of $17,000 in funds to the comptroller of the currency and a misapplication of funds totaling $12,835 for Scheets. Merriman was indicted on one count of embezzling $9,000, four counts of misapplication of funds totaling $17,800 and two counts of alleging false entries amounting to $10,800. The US assistant district attorney alleged that both men "had been using the bank's funds to dabble in the stock market."[18]

Sentencing of the pair was announced on November 29, 1932. Scheets received a sentence of five years and Merriman received a sentence of two and a half years, both served at the federal penitentiary in Atlanta, GA.[19]

The Peoples National Bank went into receivership under W. T. Marfield in March, 1932 who quickly asked all depositors to present their passbooks to receive a chance at recovery of funds.[20] Beginning April 16, 1932 depositors were given 90 days to make claims on funds.[21] However, as late as February 1935, Marfield reported that many people had yet to file claims.[22]

Liquidation found $2,500 in liberty bonds to be missing from the deposit box of Charles H. Horner, which had been stored there since 1920. The court was asked to certify these bonds as a preferred claim.[23]

All of the banks assets were liquidated to make reparations to the bank's depositors. In February 1933, the bank was ordered to sell off its furniture and equipment, which included two revolvers[24]. The bank building itself was finally sold in July 1938, to the Potters Bank and Trust Co., formerly the Potters National Bank (Charter 2544).[25]

In all, six dividends were paid out to the bank's depositors with the final one being issued in December, 1940. Depositors received a total of 69.3% of their funds back after dissolution.[26]

Bank Notes Issued

1929-T1 $5 note signed by T. A. Scheets, Cashier and J. S. McCullogh, President.

A total of $1,957,040 in National Bank Notes was issued by this bank between 1902 and 1932. This consisted of a total of 243,958 notes (215,056 large size and 28,902 small size notes).

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

Series/Type Sheet/Denoms Serial#s Sheet Comments
1902 Red Seal 4x5 1 - 5550
1902 Red Seal 3x10-20 1 - 4440
1902 Date Back 4x5 1 - 6950
1902 DB/PB 4x5 6951 - 7350 Type uncertain
1902 Plain Back 4x5 7351 - 26113
1902 Date Back 3x10-20 1 - 5320
1902 Plain Back 3x10-20 5321 - 17661
1929 Type 1 6x5 1 - 2995
1929 Type 1 6x10 1 - 1496
1929 Type 1 6x20 1 - 326

Official Bank Title(s)

  • The Peoples National Bank of Wellsville, OH

Bank Presidents and Cashiers

First National Bank Presidents and Cashiers during the National Bank Note Era (1889 - 1935):

Presidents:

Cashiers:

Other Bank Note Signers

  • There are currently no known Vice President or Assistant Cashier bank note signers for this bank.

Wiki Links

References

  • 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://bbdata.banknotehistory.com