Group banks on the future

BY KIM LUTTRELL

BISMARCK October 22, 2007 11:00 am

— In June of this year, the Newell Township Historical Society acquired the building at the corner of Holloway and Chicago streets.
The building was the site of the Farmers and Merchants Bank of Bismarck for many years in the early part of the 1900s.
“We had been trying to acquire the building for several years to restore it,” said Janet Moss, president of the historical society.
The former bank building and an adjacent house eventually were put up for sale.
“We were able to persuade the current owner of the property to sell us the bank building separately,” Moss said.
According to John Brain, vice president of the historical society, members of the historical society plan to restore the bank to as close to its original condition as possible with the exception of the teller windows and counter.
“We want to use it as a museum to display some of the history of Bismarck and the surrounding area,” Brain said.
The Farmers and Merchants Bank of Bismarck was formed in 1905. At that time the closest banks were in Danville, which required an all-day buggy or wagon ride. The original capital stock of the bank was $25,000.
Moss relates this history: “Ernie and Bud Brown, owners of Brown Bros. Hardware Store, were the contractors for the bank. The design of the bank included stained glass windows, which the historical society hopes to replace and install back in the building, and a concrete vault. It is even thought that the bricks used in building the bank were made right in Bismarck.”
The new bank opened for business on Aug. 1, 1905. The bank was quite successful. In 1920, the law changed and required all banks to be state-chartered banks.
The stockholders of the newly named Farmers and Merchants State Bank of Bismarck were Raymond Wood, Bud Brown, Ernie Brown, Euard Chenowith, F.M. Horner, Eriville Henderson, Charles Campbell, Jim Young, William Hagley, Bill Justice, Bill Acton, J.F. Shoemaker, Ora Johnson and A.G. Seyfert.
The men put up $30,000 to form the new state-chartered bank. Hagley would serve as president of the bank. Many descendants of these original stockholders still reside in the Bismarck area today.
The bank continued to be successful and on Oct. 3, 1931, acquired the assets of the State Bank of Alvin in an outright purchase.
The bank was robbed twice in its history. The first robbery occurred in the summer of 1925. The lone robber locked the cashier, W.W. Hagley, and the bookkeeper, Helen Brown, in the vault and made off with $1,200. The robber was never caught.
In 1927 the bank was robbed again. It is believed the same two employees were once again locked in the vault. There were three robbers this time and they made off with $175. The trio made it to Iowa before the money ran out. They returned to Vermilion County and were arrested nine days after the robbery.
It is believed the bank business was moved to a new building located in the center of town sometime in late 1927 or early 1928.
The demise of the bank is somewhat unclear. According to the book “Century of a Town” a history of Bismarck published for its centennial, the bank closed its doors in 1932.
“According to documents from the Vermilion County Courthouse, it is indicated the bank’s assets were divided up between the First National Bank of Danville, the Second National Bank of Danville and the Palmer-American Bank of Danville on Nov. 26, 1941,” Brain said.
It may simply be a case that it took the three competing banks nine years to reach an agreement on the dispersal of the assets of the bank.
Brain said, “The historical society is accepting donations to help in this restoration project.”
They will accept cash donations, as well as labor and material donations toward the restoration.
To make a donation, contact Janet Moss, president of the historical society, or John Brain, vice president of the historical society.
Contributions may be mailed to them at Newell Township Historical Society, P.O. 114, Bismarck, IL 61814.
The yearly dues to become a member of the historical society are $3 for a single or $5 for a family.

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