Farmers & Mechanics Bank of Michigan (Detroit, MI)

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Banking Has High Romance (Continued from Page One) Michigan was chartered with capital of $100,000 By order of the directors, Solomon Sibley, on May 12. 1819. asked for subscriptions to be turned in at the brick store of Messrs Lecuyer & Wesson The subscribers in cluded the well known names of John R. Williams, Alexander Ma comb. William Woodbridge Stephen Mack. Peter J. Desnoyers. Eben ezer S. Sibley. Degarmo Jones. Henry J. Hunt. Barnabas Campau. Joseph Campau, Henry B. Brevoort. Catharine Navarre. and Sarah Ma comb It is to be noted that even at that early day women were en tering John R. Williams was elected president and James McCloskey, cashier. The following note is of interest: "The deposits varied from $38 up. except for five days when the cashier was away with sleighing and the doors were parties locked." week in which the In the same bank opened. it issued its first bills. Early in 1824. Edmund Dwight. of Boston, Janathan Dwight. William Dwight, of Springfield, Mass., Dwight. of N. and Henry as "The Bank of the Dwights." ier and soon after his entry into street. the bank discovered that former cashier had been accustomed to himself to the bank's funds. help concealing the theft by taking money from the special deposits of the land office. The loss, about three-fourths of the original capital. was made up by wealthy stock holders. At its outset the bank occupied the former building of the Detroit Bank (Jefferson avenue at Randolph street). but February 25, 1831. erected its own building. structure of stone, on the south side of Jefferson Five years later. during the flush times of 1836, it ventured upon second building. at the southerly head of Griswold street. This building was built of shell limestone and the stones showed many beautiful petrifactions, particularly after the stones had been oiled, a practice yearly in vogue at the time. The Bank of Michigan became in volved during the panic of 1837. The stockholders added $400,000 to their original investment of $300.000, but it proved to be unavailing and on January 10. 1842, the directors voted to go into liquidation. C. C. Trowbridge. Robert Stuart and John Owen were named as liquidating trustees Mr. Trow bridge became acting trustee, and in 1844. the business was finally wound up by Shubel Conant as receiver THE FARMERS & MECHANICS BANK. This bank was chartered on No. vember 5, 1829, with a capital of $100,000 Among its directors were John R. Williams, Tunis S. Wendell. J. Biddle and Orville Cook. During the panic of all of the banks in Detroit suspended, including the Farmers & Mechanics bank. In the meantime its author ized capital had been increased sev. eral hundred thousand dollars. The control of the bank soon passed into New York hands. and branch bank was authorized by the legislature to be established in the western part of the Until 1837 the bank prospered greatly. then it fell into evil days On October 1839, the bank sus pended, but in July, 1845. was revived and call of $150,000 made upon the stockholders. This seemed at first to suffice but soon it was evident that the attempt to maintain the bank must fail. curious commentary on the banking methods of the time is the fact that in those days the directors discounted by the cashier with the occasional assistance of one that the cashier had to for the bank as possible, conciliate the brokers and be ready for any and all emergencies During the winter of 1847-8 the banks did more discounting after closing than during the whole day At that there were neither boats nor railroads in the winter time Its list of presidents include John Biddle, Levi Cook. Charles Sey. mour, Charles Howard. S. Barstow, E. C. Litchfield. Guy Foote, Levi Mason. In 1865, the bank began to retire its notes, preparatory to going out of business and a few years later its affairs were wound up. MICHIGAN INSURANCE COM. PANY. NATIONAL INSURANCE BANK. This company was chartered on March 7. 1834. but with powers however. which were deemed sufficient to authorize a banking business In fact it never did engage in any insurance business On January 15. 1838. its organization was completed and on January 24. 1838. opened its doors for business but doubt having been expressed upon the right of the company to do banking. favorable opinion was given by Governor Woodbridge James Abbott was its first president and was succeeded by Douglas Houghton, and he in turn by John Owen. who continued to serve as long as the company lasted Among its cashiers were H. H. L. H. K. Sanger and Walter The company first occupied quar ters in the Sheldon north1855 to the southwest corner of In the panic of 1857 it gave con siderable help to the Peninsular bank and the Farmers & Mechanics but were unable to save them from suspension By inducing its customers to accept drafts instead of gold, by the aid of depositors and on account of the great personal confidence all had in John Owen. the bank passed through the panic without suspension In June 25. 1865, having been reorganized as National bank. it opened for business as the "Michigan Insurance bank but four years later it was discontinued. some of the directors taking stock in the newly organized First Na tional bank MICHIGAN STATE BANK THE STATE BANK OF MICHIGAN The Michigan State bank was incorporated March 26, 1835, with capital of $100,000 which soon after was increased to $500,000. Among its directors John R. Williams. Robert McMillan. Ellis Doty, Barnabas Campau. Cullen Brown, John Hale nad John Truax It first was located on the north side of Jefferson avenue. between Woodward avenue and Bates street. F. H. Stevens president, and John Norton. Jr. cashier One day in the week, Wednesday, was designated as "discount day In 1837 the bank purchased the build. ing on the south side of Jefferson avenue, formerly occupied by the Bank of Michigan On April 2, 1839, the bank suspended and George F. Porter was appointed assignee. On the same day the legislature authorized the organization of bank to be called "The State Bank Michigan.' with a capital of $2,000,000. with power to increase it to $5,000,000. half of which should belong to the state. This combination was practically merger of Bank of Michigan and the Farmers & Mechanics bank The plan contemplated big central bank with seven branches Business, however, was not brisk and as the merger was required by the statute to be completed by given date and this failed to be done, the interested parties gave up the undertaking However, in 1845, H. P. Baldwin, Zachariah Chandler, Moore. Henry Ledyard C. H. Buhl. C.C. Trowbridge James F. Joy and George F. Porter formed a corpora tion to buy up the stock of the anew Its capital was $150,000. Its president was C. C. and its cashier A. H. Adams The