Merchants National Bank, New Albany, IN (Charter 965)

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The old Merchants National Bank of New Albany, Indiana, ca2022. The Second National Bank of New Albany occupied these quarters after the December 1909 merger. Courtesy of Google Maps

Merchants National Bank, New Albany, IN (Chartered 1865 - Liquidated 1909)

Town History

New Albany is a city in Floyd County, Indiana, situated along the Ohio River, opposite Louisville, Kentucky. The city is the county seat of Floyd County. It is bounded by I-265 to the north and the Ohio River to the south, and is considered part of the Louisville, Kentucky Metropolitan Statistical Area. The population was 37,841 as of the 2020 census. In 1870 the population was 15,396, growing to 25,819 by 1930.

The land of New Albany was officially granted to the United States after the American Revolutionary War. The territory had been captured by George Rogers Clark in 1779. For his services Clark was awarded large tracts of land in Southern Indiana including most of Floyd County. After the war, Clark sold and distributed some of his land to his fellow soldiers. The area of New Albany ended up in the possession of Col. John Paul.

New Albany was founded in July 1813 when three brothers from New York, Joel, Abner, and Nathaniel Scribner, arrived at the Falls of the Ohio and named the site after the city of Albany, New York. They purchased the land from Col. John Paul. New Albany was platted by John Graham on land owned by the Scribner brothers. In 1814, Joel and Mary Scribner built their home in New Albany; the Scribner House still stands today. New Albany was incorporated as a town in 1817 as part of Clark County. In 1819, three years after Indiana was admitted as a state, New Albany became the seat of government for newly established Floyd County. A courthouse was finally built in 1824.

New Albany grew rapidly and was the largest city in Indiana from 1816 until 1860, when it was overtaken by Indianapolis. Before the Civil War, over half of Hoosiers worth over $100,000 (~$1.7 million in 2023) lived in New Albany, making it by far the wealthiest part of the state. The steamboat industry was the engine of the city's economy during the mid-19th century. Fueled by abundant forests for lumber, at least a half-dozen shipbuilders were in operation and turned out a multitude of steamboats and packet boats, including the Robert E. Lee, Eliza Battle, the Eclipse, and the A.A. Shotwell. Shipbuilding was accompanied by a wide range of ancillary business including machine shops, foundries, cabinet and furniture factories, and silversmith shops. Its second largest business was the American Plate Glass Works.

New Albany had five National Banks chartered during the Bank Note Era, and four of those banks issued National Bank Notes. New Albany also had six Obsolete Banks that issued Obsolete Bank Notes during the Obsolete Bank Note Era (1782-1866).

Bank History

The State Bank of Indiana - New Albany Branch opened in 1834 and closed in 1857.

In December 1834, the State Bank of Indiana with nine branches went into operation. The mother bank was located at Indianapolis with branches at Richmond, Lawrenceburg, Madison, Vincennes, Terre Haute, Lafayette, Evansville, New Albany and Bedford. The presidents and cashiers of the different branches were as follows: Richmond president-unknown and Elijah Coffin, cashier; Lawrenceburgh Omer Tousey, president and Enoch D. John, cashier; Madison, J.F.D. Lanier, president and Wilton Stapp, cashier; Vincennes president-unknown and D.S. Bonner, cashier; Terre Haute James Deming, president and James Ferrington, cashier; Lafayette-not known; Evansville John Mitchell, president and John Douglass, cashier; New Albany Mason C. Fitch, president and James Shields, cashier; Bedford Col. M'Lane, president and Daniel R. Dunihue, cashier.[1]

On Wednesday, November 29, 1848, Major Mason C. Fitch, president of the Branch Bank at New Albany died at Louisville.[2]

On March 2, 1854, the directors of the Branch Bank at New Albany elected the following officers: Gen. A.S. Burnett, president; James R. Shields, cashier; Wm. A. Scribner, teller; and T.D. Dow, clerk.[3] In November 1854, the following individuals were elected directors: Gen. A.S. Burnett, James R. Shields, P.S. Shields, J.B. Winstandley, Walter Mann, C.A. Reineking, and G. Garretson. The directors on the part of the State were Thos. L. Smith, Daniel Seabrook, and F. Warren. Gen. A.S. Burnett was unanimously re-elected president.[4]

In 1857, the brokers of Louisville managed to keep up running accounts with some of the Indiana banks. On Saturday December 5th, the Branch Bank at New Albany shelled out $5,000 in gold on their notes. A heavy run was also made upon the Bank of Salem by two brokers, one having $54 and the other $11! The bank didn't suspend.[5]

In January 1865, the preliminary organization of the Merchants National Bank of New Albany with a capital stock of $200,000 was effected. Gen. A.S. Burnett was president and James R. Shields, cashier. Both gentlemen had for many years been successful managers of the old State Bank of that city.[6]

On Wednesday, September 2, 1874, Mr. James R. Shields, after 40 years of consecutive banking, severed his connection as cashier with the Merchants National Bank. Mr. Shield retired at his own option with honor and credit. He was succeeded as cashier by Mr. Seth Woodruff, a gentlemen in every way qualified for the position.[7]

On Tuesday, January 12, 1875, the stockholders of the different national banks in New Albany elected their directors and officers. The directors of the Merchants National Bank were Jacob Hangary, W.C. De Pauw, Lawrence Bradley, J.R. Shields, and J.B. Winstandley. The officers were Jacob Hangary, president; Seth Woodruff, cashier; and Edward Hangary, clerk. The directors of the Second National Bank were Lawrence Bradley, R.P. Main, J.H. Butler, R.G. McCord, and M.A. Weir. The officers were L. Bradley, president; J.H. Butler, vice president; M.A. Weir, secretary; Charles Butler, teller.[8] Lawrence Bradley was president of the woolen mills and J.B. Winstandley, treasurer of the glass works. W.C. De Pauw was chief owner of the foundry.[9]

Seth Woodruff, cashier of the Merchants National Bank, went to bed Saturday night complaining of a slight illness and was found dead in bed at 1 o'clock Sunday morning, May 16, 1875.[10] 

In March 1883, the movement prompted by the munificent offer of Mr. W.C. De Pauw for the endowment of Asbury University was being pushed with renewed vigor. Citizens of Greencastle and the vicinity would meet the conditions required of them in the purchase of real estate. To recount briefly: Mr. DePauw proposed that if Putnam County secured the needed sites costing about $60,000, and other friends gave $150,000 on the endowment, he would at once give $300,000, and provide so liberally in his will for the university that it would probably realize over one million dollars from his benefactions. Consummation of this agreement would give Asbury one of the best endowed colleges in the West.[11] Asbury University would take the name DePauw University.

On November 11, 1909, J. Harry Fawcett, cashier of the Merchants National Bank in New Albany, Indiana, was shot and killed and President J.K. Woodward seriously injured by an unidentified man who entered the bank before noon and began shooting. The assailant, a man of about 21 years, ran to the Ohio River and started for the Kentucky side in a skiff. The New Albany police pursued in a motor boat, succeeding in capturing the man near the Kentucky and Indiana bridge, placing him behind bars in the New Albany Jail.[12] On November 13th, George A. Newhouse was appointed cashier of the Merchants National Bank. Thomas J. Hoal, the 17-year-old who killed J.H. Fawcett and seriously wounded John K. Woodward, president, was said to be half flippant, half contrite. In an interview with Superintendent Peyton of the Jeffersonville Reformatory, he said he pulled the trigger of one revolver three times pointing it at George A. Newhouse, bank teller, but the chambers were empty.[13]

On November 29, 1909, a deal was closed to merge the Second National Bank and the Merchants National Bank, both of New Albany, the former with capital of $200,000 and the latter with $100,000. The capital stock of the new concern would be $300,000 and the bank would do business at the Merchants' banking house at Pearl and Main Streets, the scene of the recent deadly bank robbery. Earl S. Gwin, president of the Second National would be president and George A. Newhouse, the newly elected cashier of the Merchants, cashier.[14]

Official Bank Title

1: The Merchants National Bank of New Albany, IN

Bank Note Types Issued

Original Series $1 bank note with pen signatures of J.R. Shields, Cashier and J. Hangary, President. Courtesy of Heritage Auctions, www.ha.com

A total of $885,970 in National Bank Notes was issued by this bank between 1865 and 1909. This consisted of a total of 116,312 notes (116,312 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
Original Series 3x1-2 1 - 2700
Original Series 4x5 1 - 9400
Original Series 3x10-20 1 - 2900
Series 1875 4x5 1 - 1946
Series 1875 3x10-20 1 - 1730
1882 Brown Back 3x10-20 1 - 4433
1902 Red Seal 4x5 1 - 3535
1902 Red Seal 3x10-20 1 - 2200
1902 Date Back 3x10-20 1 - 234

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1865 - 1909):

Presidents:

Cashiers:

Other Known Bank Note Signers

  • No other known bank note signers for this bank

Bank Note History Links

Sources

  • New Albany, IN, 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
  1. ↑ The Evening Post, New York, NY, Thu., Dec. 4, 1834.
  2. ↑ Indiana State Sentinel, Indianapolis, IN, Tue., Dec. 5, 1848.
  3. ↑ The Washington Democrat, Salem, IN, Fri., Mar. 10, 1854.
  4. ↑ The Louisville Daily Courier, Louisville, KY, Thu., Nov. 9, 1854.
  5. ↑ Journal and Courier, Lafayette, IN, Fri., Dec. 11, 1857.
  6. ↑ The Courier-Journal, Louisville, KY, Wed., Jan. 11, 1865.
  7. ↑ The Courier-Journal, Louisville, KY, Fri., Sep. 4, 1874.
  8. ↑ The Courier-Journal, Louisville, KY, Wed., Jan. 13, 1875.
  9. ↑ Evansville Courier and Press, Evansville, IN, Tue., Nov. 7, 1876.
  10. ↑ The Cincinnati Enquirer, Cincinnati, OH, Tue., May 18, 1875.
  11. ↑ The Indianapolis Journal, Indianapolis, IN, Wed., Mar. 28, 1883.
  12. ↑ Springfield News-Sun, Springfield, OH, Thu., Nov. 11, 1909.
  13. ↑ The Indianapolis Star, Indianapolis, IN, Sat., Nov. 13, 1909.
  14. ↑ The Indianapolis Star, Indianapolis, IN, Tue., Nov. 30, 1909.
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