No. 14.

FIRE AND LIFE INSURANCE.1

FIRE INSURANCE.

The caution and care of the citizens of our city and county are fairly exemplified in the many Companies for protection from fire, both in the city and the county. In the county we have the "Lancaster County Mutual," the "Farmers' Mutual,” "Northern Mutual," and one in the northern part of the county, without a Charter, the members being joined together agreeing to pay their respective shares of losses sustained by their neighbors (belonging to the association.)

This form of Mutual Insurance, dates its origin from about the year 1609. It is said that about that year a proposition was made to Count Anthony Günther von Oldenburg, in Germany, that as a new species of finance, he should insure the houses of his subjects against fire, each paying for $100 valuation, $1 yearly. The Count would not accede to this scheme although he thought it might be well if a company of individuals could be formed to insure each others' houses, but he doubted whether it could by him be "honorably, justly and irreproachably instituted without tempting Providence, without incurring the censure of neighbors, and without disgracing his name and dignity."

The New Mennonites do not insure their property, it being contrary to the discipline of their Church, but when any of their members sustain a loss by fire, it is made up by contributions from the members.

The first Stock Company, the "Lancaster City and County," was chartered in the year 1838, with $200,000 capital, and located in Lan-. caster, of which the late James Evans was President, and John Zimmerman, Secretary. After a few years of prosperity, financial troubles overtook the country, and the Company having lost a large amount by the old Girard Bank, it was deemed advisable to wind up its affairs, which was done in 1846. During the year 1868, it was resuscitated and is now apparently doing a good business.

In 1854, the "Inland Insurance and Deposit Company," was chartered with the addition of an Insurance Department, and is still continued.

In 1861, the "Lancaster Home Mutual," was chartered, and has been brought to its present prosperous condition, mainly by its first and only Secretary, C. H. Lefevre, Esq. In our neighboring town of Columbia, we have the "Columbia Insurance Company," Stock and Mutual, and

1 Contributed by Hugh S. Gara, Esq.

the National, which is to be purely Mutual, although not yet gone into active operation.

In the City we have Agencies for many Companies, viz: The "Insurance Company of North America," Philadelphia, (the oldest Stock Company in the United States;) "Phoenix," Philadelphia; "Lycoming County Mutual," of Muncy; "Yonkers and Lorrillard," of New York; "Girard and Enterprise," Philadelphia; "Continental and Home," of New York; "Home," of New Haven; "Etna," "Hartford," and other Companies of Connecticut; "Franklin," Philadelphia, and "Delaware Mutual." These Companies have efficient Agents in Hugh S. Gara, A. B. Kauffman, Herr & Rife, Edw. Brown, H. Baumgardner and John Zimmerman.

LIFE INSUBANCE.

Has no local Home Company in our City or County, but is well represented by the "American and Penn Mutual" of Philadelphia; "Connec ticut Mutual," of Hartford; "Mutual Life," "Continental," "North America" and "Brooklyn," of New York; and appears to be doing a large and profitable business in our midst. We cannot therefore, give any special history of Life Insurance as applicable to our County, but its already extensive and rapidly increasing "literature," the number of books and periodicals being continually put forth in its interest, explaining it and advocating it, and advertising it by explaining it, plainly indicate the great strides that this branch of enterprise is now making in the favor of our people.

No. 15.

BANKS AND BANKING.1

Banking is a system established for the convenience of the business community. It is a recognized agent between borrower and lender; a general agent to make collections throughout the commercial world; and the medium through which the Government authorizes the circulation of paper money, based on the security of the National debt, or the credit of the Government. The sixteen hundred National Banks in the United States are so well distributed, that it is an easy matter to make collec tions in any part of the country; or, through their correspondence with foreign institutions, with any commercial country on the globe. The utility of the system has been constantly growing in favor, and more extended usefulness. The Jew, who stood at his Banco, or bench, in the streets of Italy or Germany, to change coins, or make small loans, little

1 Contributed by D. G. Swartz, Esq.

dreamed that he was starting and giving a name to a system that should become as extensive as the mercantile community. The system has become so complete, that it may safely be said that not one-tenth of the money paid in trade, need ever be counted. The clearing house of the New York Associated Banks, shows that of thirty or forty millions of clearings, representing business to that amount, the balances are frequently not more than one or two millions. For convenience and safety, the system is indispensable.

We annex a statement of the Ten National Banks of Lancaster County, showing their Capital, Loans, Deposits, Circulation, and Government Securities held by them. Of these four are designated as United States Depositaries, which held, on the 17th of April, 1869, $103,234, to the credit of the United States:

$2,040,000 $2,464,879 $1,850,618 $3,208,172 $2,581,700

In addition to the ten National Banks of Lancaster county, there are seven other Banks, or Banking firms in the city and county, none of which are incorporated except the Inland Insurance and Deposit Company. Their returns to the Revenue officers for the month of March, 1869, give the following statement of their Capital and Deposits. Their Discounts or Loans are not ascertained, but may be estimated at a million and a quarter.

By combining the two statements it will be seen that the Banking Capital of the county is, in round numbers, two and a quarter millions,

Loans.

Gov.

Securities.

the Deposits nearly four millions, loans four and a half millions. The National Banks hold over two and a half millions of Government securities; but these are only a small part of the amount owned in the county, many of which are lodged in the vaults of the Banks for safe keeping.

Annexed is an account of all the National Banks in the county, with a brief history of some of them.

The Farmers Bank of Lancaster, was chartered in January 17th, 1810, with a capital of $300,000. The following persons were named Directors in articles of association, published in the early history of the Bank, viz: John F. Steinman, Benjamin Schaum, Conrad Schwartz, Albert Dufresne, Samuel White, Christian Hoover, Robert Patten, John Brenneman, Jacob Charles, Charles Montilius, John Neff, Peter Diller. In 1814 the capital authorized was increased to $600,000, which was subsequently again reduced. It was organized under the National Currency Act, in December, 1864, under the name of the Farmers' National Bank, with a capital paid in of $450,000. It is a government depository. The first President of the Farmers' Bank in 1810 was Conrad Schwartz, who was followed by George Græff, William Jenkins, F.JA. Muhlenberg, George Louis Mayer, George H. Krug, C. Hager, and Jacob Bausman. The Cashiers were, successively, Samuel Clendenin, John Eberman, Girardus Clarkson, Henry R. Reed, and Ed. H. Brown.

The present Board of Directors are Jacob Bausman, President; Thos. E. Franklin, John Beck, Daniel Heitshu, Henry Musselman, Geo. M. Kline, Lewis Haines, Chas. A. Heinitsh, Jacob S. Shirk, N. Ellmaker, A. K. Witmer, C. R. Baer and Chas. F. Hager.

The Lancaster County Bank, previous to 1841, was in operation under the name of Lancaster County Loan Company, with Henry Bushong, President, and Robert D. Carson, Cashier.

On August 14th, 1841, it was chartered by the State with the following incoporators: Henry Bushong, Dr. John Witmer, Philip Reitzel, John Landis, (farmer,) Jacob Kreider, Francis Kendig, Jr., Geo. Withers, Jacob Shenk, Benjamin B. Herr, Isaac Bressler, J. Landis, J. Witmer, George Blattenberger, James Smith.

Under this charter each stockholder had to give a first mortgage on ample real estate in this county, to the amount of his stock, as security for the liabilities of the Bank. It only required four years experience to show that this plan was not satisfactory. It was found inconvenient when stockholders sold their real estate, and almost impracticable in case of decedents' estates. So also it embarrassed the sale of stock, which could only be made to parties who could give first mortgages approved by the Bank. The stock was only partly paid in, and subject to calling instalments; and for the reasons indicated it largely depreciated in the

market value, some sales having been made as low as five dollars per share. In 1845, an Act of Assembly repealed the real estate security clause, still however, holding stockholders liable, but exacting no security.

It was organized as a National Bank January 5th, 1865, with a capital of $300,000, all paid in. John Landis (farmer) was the first President, who served until his death, when he was succeeded by Christian B. Herr, the present President. The first Cashier was Robert D. Carson, who served until his death, when he was succeeded by William L. Peiper, the present Cashier. The present Board of Directors is as follows: Christian B. Herr, President, Emanuel Swope, Benj. B. Herr, John McCartney, Abraham Howry, Henry B. Resh, Adam Lefever, Jacob Bachman, Levi G. Getz, George G. Brush, David Landis, (miller,) Abraham Buchwalter, Benjamin Long, jr.

The First National Bank of Lancaster, was organized and commence d business in May, 1864. It is a Government Depository. President--John Gyger. Cashier-Horace Rathvon. Directors-Henry Baumgardner, C. B. Grubb, T. Scott Woods, A. Herr Smith, Peter S. Reist, John H. Moore, A. S. Bard, David G. Swartz.

The First National Bank of Marietta, was organized May 11th, 1863, and commenced business July 2d, of same year. It was the First National Bank in the County. It is a Government Depository, and has the largest surplus relative to its capital of any Bank in the County. Its officers are: President-Abraham Collins. Vice President-Benj. F. Hiestand. Cashier--Amos Bowman. Directors-A. Collins, Benj. F. Hiestand, B. Spangler, A. H. Musselman, John Hollinger, Paris Haldeman, John Musser, S. F. Eagle, Henry Hiestand.

Columbia National Bank: An Act of Assembly was approved March 28th, 1809, entitled "An Act authorizing the Governor of this Commonwealth to incorporate a company for the purpose of making and erecting a bridge over the Susquehanna river in the County of Lancaster, at or near the town of Columbia." The Act gives the following incorporators: Stephen Girard, William Samson, James Vanunem, John Perot, Henry Pratt, Thomas McEwen, Martin Dubbs, and Joseph L. Lewis, of Philadelphia; John Hubley, Abraham Witmer, Casper Shafner, Jr., Jacob Strickler, James Wright and Samuel Miller, of the county of Lancaster, and William Barber, John Stewart and Godfrey Lenhart, of the county of York.

The capital was to be $400,000, in shares of $100 each. The State of Pennsylvania subscribed and paid for 900 shares, or $90,000. The balance of $310,000 was to be raised by individual subscription. The Company organized by electing William Wright, President; W. P. Beatty, Treasurer, and twelve other directors.