OHIO STATEWIDE FILES OH-FOOTSTEPS Mailing List *********************************************************************** USGENWEB NOTICE: These electronic pages may NOT be reproduced in any format for profit or presentation by other organization or persons. Persons or organizations desiring to use this material, must obtain the written consent of the contributor, or the legal representative of the submitter, and contact the listed USGenWeb archivist with proof of this consent. The submitter has given permission to the USGenWeb Archives to store the file permanently for free access. http://www.usgwarchives.net/ *********************************************************************** OH-FOOTSTEPS-D Digest Volume 99 : Issue 874 Today's Topics: #1 Fw: Bio History -- Know your Ohio- ["Maggie Stewart" that contains in the body of the message the command unsubscribe and no other text. No subject line is necessary, but if your software requires one, just use unsubscribe in the subject, too. ______________________________ ------------------------------ X-Message: #1 Date: Fri, 31 Dec 1999 17:07:55 -0500 From: "Maggie Stewart" > To: OH-FOOTSTEPS-L@rootsweb.com Message-ID: <0e3901bf53db$7dc578e0$0300a8c0@local.net > Subject: Fw: Bio History -- Know your Ohio-- Money at Home --Pt 2 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit ----- Original Message ----- From: kathi kelley > To: > Sent: Monday, December 20, 1999 7:35 PM Subject: Bio History -- Know your Ohio-- Money at Home --Pt 2 ********************************************** Historical Collections of Ohio Know Your Ohio by Darlene E. Kelley ********************************************** Money at Home -- Banking in Ohio-- Creation of National Currancy -- Pt 2 Continuation of Canals-- In 1819 commenced the struggle for a canal to connect Lake Erie with the Ohio river. The resources of the state were yet undeveloped, and most of its six hundred thousand inhabitants were poor. The project had a few supporters, and the foresight, courage and perserverance required for such an undertaking, under the conditions then exisiting, is hard to be realized. Alfred Kelley had earlier been an enthusiastic believer in the importance and practically of the canal from the Hudson river to Lake Erie, and now he threw himself heart and soul into the proposition to construct a waterway, which should do for Ohio what the Erie Canal had done for New York. In 1822, after his retirement from the Presidency of the Commercial Bank of Lake Erie, he was appointed as one of the canal commisioners. He presented his report to the Senate and in the Spring of 1823, together with Macajah T. Williams of Cincinnati, he went to New York to inspect the New York canals and investigate their operation. When the project was finally authorized by the legislation, he was recognized as its responsible head. The Ohio Canal is a monument to the enterprise, energy, integrity and sagacity of Alfred Kelley. He was at all times its foremost advocate, and, from the inception of the work to its completion, was the leading member of the board of commissioners. During the construction of the canal, every part of the work was subjected to his supervision. Contractors soon learned that no fraud or artifice could escape his vigilence. He was inflexibly true to the interests of the state, and sacrificed both his health and his private interests in his untiring devotion to the public. The dimensions of the Ohio canal were the same as those of the Erie canal in New York, but the number of locks was nearly twice as great. No canal in this country, or Europe, of equal length, had been constructed at as small a cost per mile, or at so small an advance on the original estimate. In the meantime it was left to Alfred Kelley to decide upon the terminal location for the central canal. That is , whether the Lake Erie end of the canal would be at the end at the Cuyahoga or the Black River. It became beneficial to the state if land owned by General Simon Perkins, could be donated or loaned to the state along certain routes along the canals route to be decided upon. Upon investigation and trips attended by both parties, General Perkins gave a share or plots of ground as a gift to the state, with the only condition was that lock number 1 & basins should be located in a certain way. This was agreed upon and the canal was to be finished. The canal was practically finished in 1832 and Mr. Kelley remained at the head of the Commission until 1834, when the entire system was in sucessful operation. While the canal openings improved the distribution of produce and expanded trade, a severe panic in 1837 and a subsequent drepression tested the soundness of Cleveland's infant banking system. During the panic, commodity prices sank, and the two local banks were unable to collect on their outstanding loans.The Bank of Cleveland ( the second bank ) and The Commercial Bank of Lake Erie ( first bank ) was forced to suspend specie payments for a year, before losing its charter in 1843. The small amount of specie circulating in Cleveland consisted mainly of foreign coins--English, Spanish, and Mexican. The fragility of local banking systems was due to the imbalance between the large amount of paper bank notes in circulation, which had no intrinsic value, and the shortage of specie, which did-- a circumstance that fostered public distrust of paper money as a medium of exchange for goods and services. Exchange Brokers, Fireman's Insurance Company, Cleveland Clearinghouse Assn. The commercial depression and the chaotic money system showed Cleveland's economic development, and between 1842 and 1845 the city had no bank to provide a safe place for savings or to provide the capital necessary to make temporary loans. Exchange brokers and insurance companies, such as the Fireman's Insurance Co. of Cleveland, which had banking and note issuing priviledges, were the only fiscal agents offering banking services. The vagaries of early banking in Cleveland reflected the state of banking in Ohio. Still dependant on the agrcultural economy, many Ohio banks suspended spiecie redemption during the panic of 1837. 9 banks failed and 15 more did not have their charters renewed in 1843, including the two in Cleveland. The Ohio Legislature provided some relief from the finacial disorder with the Ohio Banking Act of 1845, which eliminated note-issuing authority for Ohio corporations other then banks, causing Fireman's Insurance Co. of Cleveland to reoorganize itself as the City Bank of Cleveland. The act also sought to compromise the differnces between those that wanted a strong state banking system and those that favored a system of independant banks. As a result, Ohio had two kinds of banks, state branch and independant banks. A State Board of Control made up representatives from each of the 63 state banks supervised Ohio's banking systems and furnished bank notes to the branches--two of which were in Cleveland. In order to stabilize the currency in circulation, all banks were required to maintain a specie reserve amounting to 30% of the total face value of the bank notes they issued. Ohio's banking system received its final form in 1851 when separate chartering legislation for each bank was no longer required, provided the bank met certain conditions. With these changes, Cleveland's banking facilities grew at a pace commensurate with ts expanding economy, and to expedite the increased exhange of checks among member banks, the Cleveland Clearinghouse Assn. was organized in 1858. With its banking system stabilized, the city made the transition from a commercial to an industrial economy, fueled by the growth of railroad transportation, and in 1850's the railroad boom initiated the city's metropolitan growth. New banks with stronger capitalization succeeded those that were defunct as banking and finance became more complex. The resources available in state banks, however, were insufficient to finance the North's Civil War effort and maintain specie redemption of notes at the same time. As a result the National Bank Acts of 1863 and 1864 established a national currency, secured by U.S. government bonds, to finance the war, and formed a system of nationally chartered commercial banks to distribute U.S. bank notes. Issurance of state banks notes ended in 1885 when congress taxed them out of existence. Without note-issuing priviledges. state and national banks continued to exist side by side as banks of deposit. With the creation of a National Currency, the value of paper money was stablized. *********************************************** To be continued in part 3. ______________________________ ------------------------------ X-Message: #2 Date: Fri, 31 Dec 1999 17:09:56 -0500 From: "Maggie Stewart" > To: OH-FOOTSTEPS-L@rootsweb.com Message-ID: <0e4001bf53db$c54d8b80$0300a8c0@local.net > Subject: Fw: Bio History -- Know Your Ohio-- Money at Home --Pt 3 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit ----- Original Message ----- From: kathi kelley > To: > Sent: Tuesday, December 21, 1999 1:16 AM Subject: Bio History -- Know Your Ohio-- Money at Home --Pt 3 *********************************************** Historical Collections of Ohio Know Your Ohio by Darlene E. Kelley ********************************************** Money at Home -- Banking in Ohio Creation of National Currency -- pt 3. In 1840 Alfred Kelley was appointed State Fund Commissioner. In 1841 and 1842 a formidale party arose in the legislature and state, which advocated the non-payment of the maturing interest on the State debt, and the repudiation of the debt itself. The finances of the State had become so badly deranged, that fears were entertained that its obligations could not be met. Mr. Kelley went to New York and was able to raise nearly a quarter of a million of dollars on his own personal security, by which means the interest was paid at maturity and the State of Ohio saved from repudiation. He was esteemed by all as the savior of the honor of the state. Judge Swan bore testimony to Alfred Kelley's services in this crisis as follows; " Great as the debt undoubtedly is, which the citizens of the State owe to Mr. Kelley for his long and faithful legislative labors, it is small, even insignificiant, in comparison to that due him for other services, services of which no evidence is preserved in the public archives, and which are only known, in their full extent, to a limted number of his survivors. It is a fact, however, still susceptible of proof by living witnesses, that his exertions and personal sacrifices, with but little aid from others, saved the State from repudiation." In May, 1842, Mr Kelley, went to Europe for the purpose of floating securities, necessary to relieve the still embarressed finances of the State, and continued to serve as a member of the Fund Commission until March, 1843, when the board was re-organized by a law then passed. In 1844 he was elected to the State Senate from Franklin Co., and was re-elected again in 1845. It was during this time that he organized the bill to organize the State Bank of Ohio and other banking companies, which was generally admitted by bankers and financiers to be the best banking law afterwards passed, of which many portions are most literally copied from Ohio law. National Currency-- The First National Bank of Washington, D.C. ( charter # 20 ) was the first bank to receive and circulate Nationals. The first shipment consisted of 1000 sheets of four $5 notes, and was made by the U.S. Comptroller of the Currency, Washington, D.C. on December 21,1863. Other notable "Firsts" were : The First National Bank of Davenport, Iowa. the first national bank to open for business ( June 29, 1863); and the First National Bank of Philadelpia, Pennsylvannia, which received its charter # 1 on June 20,1863. Between 1864 and 1935, national bank notes constituated an important part of the U.S. paper currency. Like demand notes, United States Notes and Interest Bearing Notes, nationals were issued initially to increase the nation's money supply during the Civil War years and, like the U.S. Notes, they continued to remain in circulatuion for many decades after the conflict ended. Until the early years of the 20th century the amount of National bank notes in circulation approximated that of the U.S. Notes. During the next three decades significantly more Nationals were sent into circulation. These two series were joined by other types of currency such as Gold Certificates, Silver Certificates and Federal Reserve notes. The physical size of National notes changed over time, providing an obvious way to distinquish between " groups." Prior to July 1929 National Bank notes and other forms of paper money were large size, with dimensions approximately 7.5 inches by 3 inches. In July 1929 the dimension of United States paper money were reduced to the current size of approximately 6.3 inches by 2.6 inches and are referred to small size notes. The total face value of all NBN's issued was abot $17 billion. Of this total, about $14.2 billion was in large size notes issued up to the summer of 1929, while small size NBN.s ( all series 1929 ) were issued for a total face value of about $ 2.8 billion between 1929 and the summer of 1935. In the meantime , State chartered bank notes, whose quality was often dubious, were taxed out of existance by the act of March 3, 1865, which levied a annual tax of 10% on all state bank noes in circulation after July 1, 1866. They ceased to be a factor in the nation's currency supply after 1866. Many state-chartered banks, however, chose to continue in business, but in order to remain their state charters they had to forfeit their right to issue notes. The creation of national banks did in fact, allow for a substantial expansion of the currency supply, but this legislation also contained a number of flaws. No provision was made either for branch banking or for interstate banking, and the capital requirements for establishing a national bank was for only $ 50,000. In 1900, this capitol requirement was reduced to only $25,000 for banks in small towns with populations under 3,000. This virtually guaranteed failure of many smaller institutions when times of adverse economic conditions arrived. The National Currency Act of 1863 gave birth to a strong banking system and to a secure National Currancy. The importance of National Bank Notes reached its zenith in 1913 when a record 1.1 billion dollars worth of Nationals were in circulation. In 1913 the United States was fast becoming a industrial giant. The explosive growth of the American economy demanded a more a more flexible banking system. and they proved they could do it. ********************************************** ______________________________ ------------------------------ X-Message: #3 Date: Fri, 31 Dec 1999 18:26:53 -0500 From: "Maggie Stewart" > To: OH-FOOTSTEPS-L@rootsweb.com Message-ID: <0e9801bf53e6$85b246e0$0300a8c0@local.net > Subject: Fw: Bio History-- Know Your Ohio-- George Washington Pt 1 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit ----- Original Message ----- From: kathi kelley > To: > Sent: Saturday, December 25, 1999 1:56 AM Subject: Bio History-- Know Your Ohio-- George Washington Pt 1 ********************************************** Historical Collections of Ohio Know your Ohio by Darlene E. Kelley. ********************************************** George Washington's mission to the Ohio. Part 1-- England and France were locked in a world-wide cold war in 1753, each trying to gain advantage over the other. In North America, they both wanted the Ohio River Valley, an area where few Europeans had ventured at the time. The French reached the Ohio River Valley first, following a route that led from their Canadian colonies, across Lake Erie and then south by river. The English had not yet gotten there, but had claimed some of its lands the " Ohio Company," a business venture formed by powerful Englishmen, including the highest royal official in Virginia, Governor Robert Dinwiddie. When Dinwiddie learned that the French were moving into the Ohio River Valley, he sought help from the King. King George ll's response was strong: first. he ordered, send an envoy to tell the French to leave, then build a fort in the area and if necessary, use force to drive the French out. Choosing the envoy to carry the message to the French was a problem: the person had to be abl to handle a diplomatic mission, and be able to make his way through hundreds of miles of Indian-occupied wilderness. George Washington, only 21 at the time, rode to Williamsburg and volunteered for the mission, using contacts with the Fairfax family ( who were shareholders in the Ohio Company ) and citing his surveying experience in the Blue Ridge Mountains and the Shenandoah Valley, Washington was appointed to the job on October 31, 1753. The information he brought back, set the English in action. Three months later Washington was to lead a force of 160 men back into the area, where he fought what were to be the opening battles of the French and Indian War. General Washington kept a journel of his trip into the Ohio River Valley--and in 1754, " The Maryland Gazette " printed and transcribed the journel in two issues, ( March 21 and March 28,1754 ), the first American printing of a journel in a newspaper. The first paragraph of the article that follows is the editors preface to the March 21, 1754 issue of the Maryland Gazette.. It is well to include it, along with Washington's " advertisement," so called, as they both set the stage for the Journel itself. ********************************************** The Storm arising in the West, being the present Topic of Conversation, we think that we can not oblige our Readers, at this Juncture, with anything more entertaining than Major Washington's Journel, Journey to Ohio, who was sent last Fall, by the Governor of Virginia, to the Commandant of the French Forces there. ( Major Washington introduces his Journel with an Advertisement, with which we likewise present our Readers ). From a Copy just Printed in Williamsburg. ADVERTISEMENT As it was thought advisable by his Honour the Governor to have the following Account of my Proceedings to and from the French on Ohio, committed to Print. I think I can do no less than apologize, in some Measure, for the numberless Imperfections of it There interspersed but one Day between my Arrival in Williamsburg and the Time for the Council's Meeting, for me to prepare and transcribe, from the rough Minutes I had taken in my Travels, this Journel: The writing of which only was sufficient to emply me closely the Whole Time, consquently admited of no Leisure to consult of a new and proper Form to offer it in, or to correct or amend the Diction of the old; neither was I aprised, or did in the least conceive, when I wrote this for his Honour's perusal, that it ever would be published or even have more than a cursory Reading; till I was informed, at the Meeting of the present General Assembly, that it was aready in the Press. There is nothing can recommend it to the Public, but this. Those Things which came under the Notice of my own Observation, I have been explicit and just in a Recital of:--- Those which I have gathered from Report, I have been particularly cautious not to augment, but Collected the Opinions of the several Intelliegencers, and selected from the whole, the most probable and consistent Account. G. Washington. ***********************************************Major GEORGE WASHINGTON'S Journal to the Ohio. Wednesday, October 31, 1753. I was commissioned and appointed by the Honourable Robert Dinwiddie, Esq. Governor, Etc. of Virginia, to visit and deliver a Letter to the Commandant of the French Forces on the Ohio, and set out on the intended Journey the same Day; the next, I arrived Fredericksburg, and engaged Mr. Jacob Van Braam, to be my French interpreter; and proceeded with him to Alexandria, where we provided Necessaries; from whence we went to Winchester, and got luggage, Horse, Etc. and from thence we pursued the new Road to Wills Creek, where we arrived the 14th of November. Here I engaged Mr.Gist to pilot us out, and also hired four others as Servitors, Barnaby Currin, and John MacQuire, Indian Traders, Henry Steward, and William Jenkins, and in Company with those Persons, left the Inhabitants the Day following. The excessive Rains and vast Quantity of Snow that had fallen, prevented our reaching Mr. Frazier's, an Indian Trader, at the Mouth of Turtle rock, on Monongahela, till Thursday, the 22nd. We were informed here, that Expresses were sent a few days ago to the Traders down the River, to acquaint them with the French General's Death, and the Return of the major Part of the French army into Winter Quarters. The Waters were quite Impassable, without swimming our Horses; which obliged us to get the loan of a Canoe from Frazier, and to send Barnaby Currin, and Henry Steward, down Monongahela with our Baggage, to meet us at the Forks at Ohio, about 10 miles, to cross Allegany. As I got down before the Canoe, I spent some time in viewing the Rivers. The Land in this fork, as it has the absolute Command of Both Rivers.The Land at this Point is 20 or 25 Feet above the common Surface of the water, and a considerable Bottom of flat, well-timbered Land all around it, very convenient for Building; the Rivers are each a Quarter of a Mile, or more, across, and run here very near at right Angles; Allegany bearing N.E. and Monongahela S.E. the former of these two is a rapid and swift running Water, the other deep and still, without any perceptible Fall. About two Miles from this , on the South East Side of the River, at the place where the Ohio Company intended to erect a Fort, lives Shingiss, King of the Delawares; we call'd upon him, to invite him to Council at the Loggs Town. As I had taken a good deal of Notice Yesterday of the Situation of the Forks, my Curiousity led me to examine this more particularly, and I think it greatly inferior, either for Defence or Advantages; esecially the latter, for a Fort at the Forks would be equally well situated on the Ohio, and have the entire command of Monongahela, which runs up to our Settlements and is extremely well designed for Water Carriage, as it is of a deep still Nature; besides, a Fort at the Fork might be at a much less Expense, then at the other Places.----- Nature has well contrived the Lower Place, for Water Defence; and then Descending gradually on the Land side, will render it difficult and very expensive, making a sufficient Fortification there.--- The whole Flat upon the Hill must be taken in, or the Side next the Desent made extremely high; or else the Hill cut away; Otherwise, the Enemy may raise Batteries within that Distance without being expos'd to a single shot from the Fort. *********************************************** Journel to be continued in Pt 2-- -------------------------------- End of OH-FOOTSTEPS-D Digest V99 Issue #874 *******************************************