Second National Bank, Erie, PA (Charter 606)
Second National Bank, Erie, PA (Chartered 1864 - Receivership 1934)
Town History
Erie is a city on the south shore of Lake Erie and the county seat of Erie County, Pennsylvania. Erie is the fifth-largest city in Pennsylvania after Philadelphia, Pittsburgh, Allentown and Reading, and the largest city in Northwestern Pennsylvania, with a population of 94,831 at the 2020 census. The Erie metropolitan area, equivalent to all of Erie County, consists of 266,096 residents.
Erie is within 100 miles distance of the cities of Buffalo, Cleveland, and Pittsburgh. Erie's manufacturing sector remains prominent in the local economy, although healthcare, higher education, technology, service industries, and tourism are emerging as significant economic drivers. Over four million people visit Erie each summer for recreation at Presque Isle State Park and attractions such as Waldameer Park and the Erie Zoo.
The city was named for the Native American Erie people who lived in the area until the mid-17th century. It is known as the "Flagship City" because of its status as the home port of Oliver Hazard Perry's flagship, Niagara. It is also known as the "Gem City" because of the water's gem like appearance when the Sun is out. In 2012, Erie hosted the Perry 200, a commemoration celebrating 200 years of peace between Britain, America, and Canada following the War of 1812 and Battle of Lake Erie.
Erie had five National Banks chartered during the Bank Note Era, and all five of those banks issued National Bank Notes.
Bank History
- Organized November 14, 1864
- Chartered December 6, 1864
- Succeeded W.C. Curry & Co.
- Conservatorship March 21, 1933
- Receivership August 18, 1934
In January 1871, a suit was decided in the Supreme Court of Pennsylvania involving the sum of $50,000, loaned by the Second National Bank of Erie to the banking firm of Smith, Randolph & Co., of New York City. The money was borrowed upon government securities, which the Second National Bank deposited with its agent, the Ocean National Bank of New York City. A short time after, the Ocean Bank was robbed, and these securities were among the valuables taken. The Second National Bank brought suit for the recovery of the money loaned, against Smith, Randolph & Co., who set up in defense that they had deposited securities therefore more than covering the amount, and claiming judgment for the excess of the value of the stolen bonds, as well as the interest which had accrued. This position the Supreme Court affirmed, and a verdict was given against the Second National Bank accordingly. The suit involved the question of a bank's responsibility for the safe custody of articles committed to its care, and has been watched with great interest in all parts of the country.[1]
On Monday, February 6, 1871, Mr. Wm. C. Curry, cashier of the Second National Bank, died in the frightful disaster at New Hamburg on the Hudson River Railroad. He was returning from New York to Erie. He had been for a number of weeks in Philadelphia prosecuting the claims of the Second National to a large sum of money involved in a bank robbery. The case was decided against him; plans for another effort were to be made. Monday night he left his hotel in New York for the trip homeward on the fated train. Few men in Western Pennsylvania were more widely known than Mr. Curry. He was a native of the region, his father one of the earliest settlers. Mr. Curry came to Erie a boy and was employed in the ill-fated Bank of the United States, rapidly winning promotion by industry, integrity, ability and rare energy of character. When the bank failed, although comparatively a young man, he was appointed to settle its business. Subsequently, he was a partner in the firm of Hill & Curry of Pittsburgh. Returning to Erie, he established a private banking house. When the national system was instituted, he organized the Second National Bank where he had ever since served. In financial knowledge, understanding of the laws of trade and finance and the principles, facts and details of our monetary system, Mr. Curry had few superiors in the country. He was quick in the sense of honor, always direct, upright and downright in his dealings.[2]
On November 15, 1873, in the suit brought in the United States Circuit Court by the Second National Bank of Erie against the Ocean National Bank of New York to recover $77,728, which amount the plaintiff alleged it lost on account of the robbery of the Ocean Bank, charging negligence of the latter bank, Judge Shipman gave a decision in favor of the defendants with costs holding that the negligence charged had not been proven.[3] The Ocean National Bank of New York City (Charter 1232) entered into receivership on December 13, 1871.
On July 2, 1891, ex-Congressman William L. Scott of Erie died suddenly at Michael Cottage, Newport, Rhode Island. Since he moved from his home in Erie to Newport three weeks earlier, he was greatly benefitted by the change of climate. William L. Scott was born in Washington, DC, July 2, 1828. His parents were residents of Virginia. He received a common school education and served as a page in the House of Representatives from 1840 to 1846. He settled in Erie in 1848 and was employed as a clerk in the shipping business. In 1850 he engaged in the coal and shipping business, owning and running several vessels on the lakes. He subsequently became largely interested in the manufacture of iron and the mining of coal, as well as in the construction and operation of railroads, either as president or director of various lines, aggregating over 22,000 miles of completed roads. He was president of the Erie & Pittsburgh Railroad at the time of his death He was a District Delegate to the National Democratic Convention held in the city of New York in 1868 and a Delegate at-large from the State to the Democratic National Convention, held in Cincinnati, Ohio, in 1880, and also represented the State on the Democratic National Committee from 1876 to 1884. He, was elected mayor of Erie in 1866, and again in 1871, and represented the counties of Erie, Venango and Warren in the Forty-ninth and Fiftieth Congresses. Mr. Scott was an extensive owner of racing horses, but had recently confined his interests in the turf largely to the breeding of racing stock. His large stock farm near Erie was stocked with the most fashionably bred animals that money could buy. He purchased at a fabulous price the French horse Rayon d'Or, and placed him at the head of his stud, and his breed mares were selected from the most fashionable strains. Some of the best thoroughbreds now on the turf were bred by him at his immerse establishment. The News-Journal, Lancaster, PA, Mon., Sep. 21, 1891.
On February 8, 1897, the comptroller of the currency announced the following selections of bank officers: The Second National Bank of Erie, C.F. Allis, vice president; W.M. Wallace, cashier, vice Allis; and H.J. Leslie, assistant cashier, vice Wallace.[4]
In April 1921, C.F. Wallace, vice president of the Second National Bank of Erie was chosen chairman of Group Seven, Pennsylvania Bankers' Association at a meeting and banquet held in the Sharon Country Club. He succeeded Harry B. McDowell, vice president of the McDowell National Bank.[5]
On Friday, March 17, 1933, the long banking holiday in Erie was virtually at an end. The four unopened state banks in the city and Wesleyville received word that they could resume restricted business. The Marine National Bank opened in the morning with unlimited functions. Only two national banks, the Second and Lawrence Park National Bank, remained closed. The Erie Trust Company, Bank of Erie Trust, Bank of Wesleyville and American state Bank were the four state-controlled institutions which planned to open either Sunday or Monday.[6]
On Tuesday, July 25, 1933, Anthony E. Keim, for the past 12 years cashier of the Second National Bank, was appointed conservator of the bank by the comptroller of the currency. He succeeded Frank M. Wallace, former president of the bank, who was named conservator at its reopening following the national banking holiday. Keim had been connected with the bank for more than 26 years, serving in practically all departments of the institution.[7]
On September 20, 1933, a plan for the creation of a new bank by merging the resources of the Erie Trust Company and the Second National Bank then operating on a restricted basis was advanced by depositors' committees of both institutions.[8]
On Saturday, November 25, 1933, the banking situation in Erie reached the most normal plane when three banks announced plans for forming two new ones. The Bank of Erie Trust Company announced it would become the Bank of Erie, while the Second National Bank and the Erie Trust Company announced they would become the National Bank and Trust Company. The Second National had been operating under restrictions since the bank holiday, while the Erie Trust Company was placed in receivership[9] WHEN
In January 1934, the state banking department filled a petition in court for liquidation of the closed Erie Trust Company. In the petition deputy receiver C.E. Hill of Pittsburgh listed the book value of the bank's assets at $8,779,570.19 and the appraisers' valuation at $4,592,253.53. Hill estimated that if liquidation was approved by the court, the bank could pay immediately 50 cents on the dollar. The Erie Trust Co. building was the largest in the city. The bank listed the value of the structure at $1,647,135, but the appraisers' report fixed it at $500,000.[10]
On May 15, 1934, it was announced the Second National Bank would pay in two weeks 30 cents on the dollar to its depositors whose funds were frozen since the March 1933 bank holiday. Meanwhile subscription of $15,000 at the eleventh hour completed the necessary $500,000 needed to form the National Bank & Trust Company of Erie as successor to the closed Second National and Erie Trust Company.[11] On Wednesday, May 16, 1934, A.G. Postlethwait of Corry was elected president of Erie's new bank, the National Bank and Trust Company (Charter 14219), at a meeting of officials. The bank was expected to open on June 1st.[12] The bank opened on Thursday, July 12, for regular business at Tenth and State Streets in the former banking rooms of the Erie Trust Company.[13] With the opening, $2,000,000 could be paid to 7,200 Second National depositors. The Second National, according to officials, was the largest bank under conservatorship in the country. The National Bank and Trust Company, headed by F.H. Payne, Erie, had a capital stock of $500,000.[14]
On Thursday, August 23, 1934, John R. Haughney was appointed as legal counsel for Thomas S. Shannon, receiver for the Second National Bank. Haughney's appointment was made by J.F.T. O'Connor, Comptroller of the Currency. Haughney replaced Attorney S.Y. Rossiter who had been counsel for A.E. Keim, former conservator of the bank. Shannon's appointment to the receivership automatically discontinued Keim as conservator.[15]
On September 20, 1934, Fred Hill, 30, former employee of the defunct Second National Bank of Erie, was sentenced to two years in a Federal penitentiary after pleading guilty to embezzling $15,594 during a period of eight years. He told Federal Judge F.P. Schoonmaker that he took the money "to keep up with other bank fellows who made more than I did." Later he started to play the horses to recoup his spendings. The embezzlement was discovered when the bank made its first payment to depositors in July. Hill had misapplied credits in dormant savings accounts, it was charged.[16]
Official Bank Title
1: The Second National Bank of Erie, PA
Bank Note Types Issued
A total of $5,937,420 in National Bank Notes was issued by this bank between 1864 and 1934. This consisted of a total of 602,333 notes (546,288 large size and 56,045 small size notes).
This bank issued the following Types and Denominations of bank notes:
Series/Type Sheet/Denoms Serial#s Sheet Comments Original Series 3x1-2 1 - 10000 Original Series 4x5 1 - 10250 Original Series 3x10-20 1 - 7100 Series 1875 3x10-20 1 - 6988 1882 Brown Back 3x10-20 1 - 9418 1902 Red Seal 4x5 1 - 2500 1902 Red Seal 3x10-20 1 - 4900 1902 Date Back 4x5 1 - 25000 1902 Date Back 3x10-20 1 - 17700 1902 Plain Back 3x10-20 17701 - 60416 1929 Type 1 6x10 1 - 6830 1929 Type 1 6x20 1 - 2072 1929 Type 2 10 1 - 1978 1929 Type 2 20 1 - 655
Bank Presidents and Cashiers
Bank Presidents and Cashiers during the National Bank Note Era (1864 - 1934):
Presidents:
- Hon. William Lawrence Scott, 1865-1881
- Joseph McCarter, 1882-1895
- Daniel D. Tracy, 1896-1901
- Frank Musgrave Wallace, 1902-1932
Cashiers:
- William C. Curry, 1865-1870
- Charles Frederick Allis, 1871-1896
- William M. Wallace, 1897-1902
- H. J. Leslie, 1903-1916
- Charles F. Wallace, 1917-1920
- Anthony Edward Keim, 1921-1932
Other Known Bank Note Signers
- No other known bank note signers for this bank
Bank Note History Links
Sources
- Erie, PA, 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
- ↑ Wyoming Democrat, Tunkhannock, PA, Wed., Feb. 1, 1871.
- ↑ The Titusville Herald, Titusville, PA, Thu., Feb. 9, 1871.
- ↑ The Pittsburgh Commercial, Pittsburgh, PA, Sat., Nov. 15, 1873.
- ↑ Pittsburgh Post-Gazette, Pittsburgh, PA, Tue., Feb. 9, 1897.
- ↑ The Record-Argus, Greenville, PA, Sat., Apr. 30, 1921.
- ↑ Buffalo Courier Express, Buffalo, NY, Sat., Mar. 18, 1933.
- ↑ The Kane Republican, Kane, PA, Thu., July 27, 1933.
- ↑ The Record-Argus, Greenville, PA, Wed., Sep. 20, 1933.
- ↑ Bradford Evening Star and The Bradford Daily Record, Bradford, PA, Tue., Nov. 28, 1933.
- ↑ The Record-Argus, Greenville, PA, Thu., Jan. 11, 1934.
- ↑ Bradford Evening Star and The Bradford Daily Record, Bradford, PA, Tue., May 15, 1934.
- ↑ The Kane Republican, Kane, PA, Fri., May 18, 1934.
- ↑ Warren Times Mirror, Warren, PA, Fri., July 13, 1934.
- ↑ The Indiana Gazette, Indiana, PA, Wed., July 11, 1934.
- ↑ Warren Times Mirror, Warren, PA, Sat., Aug. 25, 1934.
- ↑ The News-Herald, Franklin, PA, Thu., Sep. 20, 1934.