in 1915.
January’s article discussed Shinnston’s first banking institution, Farmers Bank, while February’s article discussed the second, First National Bank. This month’s article will discuss the formation of Shinnston’s third bank, which will complete the series. Shown is a 1915 advertising postcard, representing the Peoples Bank of Shinnston. Historically speaking, the Peoples Bank is the least often mentioned banking institution in Shinnston. It was the third formed, but the only one that was chartered and organized in an act of retaliation. The formation of the Peoples Bank of Shinnston was the result of an ensuing battle between the president of the Farmers Bank and its cashier.
The conflict began in 1914 when the President of the Farmers Bank, who was one of Shinnston’s leading businessmen in the early 1900’s, kept borrowing money from that bank which far exceeded the legal amount that could be loaned to him. In fact, he borrowed a total of more than fifty percent of the bank’s entire capital stock.
The cashier of the bank felt compelled to inform the president that he was breaking the law by borrowing such a large amount and also suggested to him that the people of Shinnston and other account holders wouldn’t look too kindly toward him with his position as president. The president was insulted that the cashier was pointing out his wrongdoing, so he went to every employee of the bank and set out to undermine every act made by the cashier.
The president reminded the other employees of his position and encouraged them to sabotage the cashier. In return, the president was hopeful of the cashier resigning his position and he promised to promote the assistant cashier as the former’s replacement. It wasn’t long before the fight was too much for the cashier and he resigned his position.
As promised, the president appointed the assistant cashier to head cashier of the bank. When the Board of Directors learned of the interior chaos, they immediately fired the newly appointed cashier for his role in the sabotage.
Word soon reached the streets of the turmoil that erupted within the walls of the Farmers Bank, so a large group of local businessmen (many of whom were also large stockholders) banned together and held a meeting to pull their money out of the institution and form another bank in town. A charter for a Peoples Bank of Shinnston was granted in December 1914. The incorporators were Jacob Shaffer, Albert Martin (land developer), Ben Anderson (businessman and farmer), Napoleon B. Cox (physician), Marion Riley (contractor), George Wisser (mgr coal fields), and Ralph Johnson (pharmacist).
In January 1915, the first official stockholders meeting was held at the opera house on lower Walnut Street.
The group elected fifteen local businessmen and fellow stockholders to serve as the directors of the new bank.
Those elected were: George Ferguson, H.T. Klingensmith, George Wisser, Lee Boggess, George Brent, Dr. Napoleon Cox, Lawrence Hawkins, S.L. Vincent, Basil Lucas, Ben Anderson, Albert Martin, Charles Short, Ralph Johnson, Marion Riley, and Frank Abruzzino.
The new directors then immediately elected officers to represent the Peoples Bank of Shinnston and they were: George Ferguson, President; Lee Boggess and Benjamin Anderson, Vice Presidents; and Lawrence Hawkins, Cashier. Robert Finlayson was chosen as bookkeeper for the new institution. It is interesting to note that cashier Hawkins was the same cashier from the Farmers Bank who was in the initial quarrel which caused that bank’s capital stock to divide with the formation of this new bank.
The new directors proudly elected him to be cashier of the new institution. Initially, the capital stock of Peoples Bank was $45,000, with reserves that it may need to increase soon after opening the institution.
The Hartley-Swiger building (the left half of the former Shinnston Family Eye Care and currently housing Ahead of Style salon) was leased and the bank opened for business on February 1 st , 1915.
I have a ledger from 1919 that mentions several entries from the Peoples Bank. Within the first two years after its formation, there were nearly a quarter of a million dollars in deposits.
The local population did not really warrant having three separate banking institutions in Shinnston, especially during the eruption of, and eventual U.S. involvement in, the Great War.
However, determination and pride for the formation of Shinnston’s newest bank helped it to remain in town for nearly five years. In January 1920, the Peoples Bank consolidated with First National Bank, which was located in the building currently occupied by the Bice-Ferguson Memorial Museum. This move doubled the capital stock of First National and still provided separation from, and competition for, Farmers Bank.
Though the life of Peoples Bank was short-lived, its creation helped set a standard for honesty and trust, and the consequences for those who choose to operate without those qualities.
As stocks collapsed in October 1929 with the onset of the Great Depression, Shinnston’s two remaining banks, Farmers and First National, both struggled to remain in town. First National was the first to close their doors. Farmers Bank held on for a couple years longer. In an effort for revitalization, Bank of Shinnston was formed in February 1932. After being purchased by FirstBank and eventually WesBanco, that same institution remains in Shinnston today. And that has been the story behind this month’s photo.