Other People's Money and How the Bankers Use It

A History of the Federal Reserve

The Holyoke National Bank.

Interior of the Holyoke National Bank
Interior of the Holyoke National Bank.

        The Holyoke National Bank opened for business in February, 1872, and quickly acquired a fair portion of the custom and good will of the community, which for many years before had lost one bank of discount to supply the local needs. No other National bank entered the local field until the fall of 1879.
        The Holyoke National, then well established in public favor, had for several years been paying six per cent. A year in dividends and had on the first of October, 1879, a surplus of $22,500 and about $5,000 in other profits. The history of a live bank can best be given in a few facts and figures. In the thirteen years since October 1, 1879, the bank has, out of current net earnings, cleared off all losses, over $29,000 premium on United States bonds and made improvements in furniture, fixtures, etc., and added over $62,000 to its surplus (which is now $85,000) and besides that has paid from the net earnings of this same thirteen years, now just ended, $218,000 in regular dividends on its $200,000 capital.

Front of the Holyoke National and Savings Banks
Front of the Holyoke National and Savings Banks.

        Beginning in October, 1880, it paid 7 per cent., in October 1882, 8 per cent., and in October 1885, and every year since, 9 per cent., 1.e., $18,000 per annum from net earnings. These figures clearly attest that it has maintained a popular, progressive and strong position in the active competition the past dozen or more years.
        The aim of the management is to give the patrons of the bank liberal treatment and the stockholders good returns upon their capital. The officers are: C.H. Heywood, president; R.B. Johnson, vice-president; Wm. G. Twing, cashier.

The last statement (September 30, 1892) makes the following exhibit:
Loans $662,774.91 Capital Stock $200,000.00
United States Bonds $100,000.00 Surplus $85,000.00
Other Bonds $3,450.00 Other Profits $3,497.91
Overdrafts $1,891.69 Dividend $10,000.00
Banking House, Furn. And Fix’ts. $20,000.00 Circulation $87,050.00
Premium on United States Bonds $13,000.00 Deposits $530,506.90
Cash $57,353.65 Due Banks $19,355.00
Due from Res. Banks, N.Y. & B. $63,505.69    
Due from other Banks $383.87    
Due United States Treasurer $5,500.00    

The statement for July 1, 1892, is as follows:
Liabilities Assets
Deposits $2,665,997.10 Ln’s R’l Est. $1,273,396.00
Interest $64,450.94 Ln’s Per. $392,400.00
Gurantee Fd. $75,000.00. Ln’s Pub. Fds. $600.00
    Ln’s Bl. S’k. $6,400.00
    State Bonds $13,000.00
    City, Co. Bds. $90,500.00
    R.R. Bonds $501,800.00
    B’k. Stock $252,700.00
    Fur. And Fix. $2,000.00
    Premium $6,445.00
    Expense $3,504.40
    Cash $202,805,448.04

        The rate of interest paid to depositors since the organization is as follows:
        April 1856, to April, 1867, 5 per cent.; April 1867, to October, 1868, 6 per cent.; October, 1868, to July, 1877, 6.5 per cent.; July, 1877, to January, 1880, 5 per cent.; January, 1880, to January, 1881, 4.5 per cent.; January, 1881, to date, 4 per cent.
        The amount of the first year’s dividend was $51.48, and that of last year was $96,761.01.
        The total amount of dividends paid to depositors since organization is $1,380,136.52.
        The present officers are:

        President—George W. Prentiss.
        Vice Presidents—Wm. Whiting, J.F. Allyn, C.H. Heywood.
        Trustees—M.H. Whitcomb, Levi Perkins, W.B. Loomis, L.A. Taber, W.A. Prentiss, L.M. Tuttle, C.H. Prentiss, Robert Russell, James E. Delaney, F.E. Nourse, A.L. Shumway, F.A. Whiting, A. Higginbottom, Thomas Dillon, J.F. Sullivan.
        Secretary—C.W. Johnson.
        Treasurer—R.B. Johnson.

Holyoke Savings Bank.

Interior of the Holyoke  Savings Bank

Interior of the Holyoke Savings Bank.

        The Holyoke Savings Bank was incorporated February, 1885, and began business May 1, of the same year, with cyrus Frink president and S.A. Boothby secretary. The first treasurer was Gustavus Snow.
The trustees were Jonas Kendall, Warren Chapin, J.C. Parsons, Joseph Carew, Joel Russell, A.O. Colby, E.H. Ball, T.D. Somes, R.G. Marsh, William Melcher, A. Bardwell, E.H. Flagg, J.D. Emerson. The first place of business was at the store of Gustavus Snow at the corner of High and Dwight streets. Mr. Frink held the presidency until 1859, being succeeded by D.D. Crombie, who resigned after one year’s service; his successor, Joel Russell, was elected in 1866 and held the office until his death in 1884.
The present president, Geo. W. Prentiss, was elected in 1884. Mr. Snow resigned the position of treasurer in January, 1866, at which time the present treasurer, R.B. Johnson, was elected. At this time the bank was moved to the office of R.B. Johnson, on the second floor of the Carter block at 205 High street. The bank was again moved, to its present location, in 1870. The present quarters were enlarged and entirely refitted in 1888-89.
        The statement at the end of ten years, viz., September 30, 1865, was as follows:

Liabilities. Assets.
Deposits $65,893.28 Bills receivable $38,165.00
Interest $3,831.38 Government Bonds & Stocks $21,517.17
    Expense $305.18
    Cash on Hand $9,730.77
  $69,724.66   $69,724.66

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