Consolidated National Bank facts for kids

The Consolidated National Bank of New York was a bank that operated in New York City. It was also known as Consolidated National Bank in the news. The bank officially started on July 1, 1902, with a capital of $1 million.

According to The New York Times, the bank was created to handle business for the Consolidated Exchange and its stockbrokers. It opened for business on September 22, 1902, at 57 Broadway. A year later, the bank moved to the Exchange Court Building. In 1906, the Consolidated Stock Exchange took its money out of the bank. In 1909, Consolidated National Bank merged with Oriental Bank to form the National Reserve Bank. The Consolidated name was used for a short time after the merger.

The Bank's Story: A Brief History

Getting Started: 1902

In February 1902, The New York Times reported that about $600,000 had been raised for the new Consolidated National Bank. Mortimer H. Wagar, who used to be the president of the Consolidated Stock Exchange of New York, was organizing the bank. He retired from the Exchange around 1902 to join the bank.

The bank planned to lease space in the Pinkerton Building at 57 Broadway in Manhattan. They expected to open in about three months. The Consolidated National Bank was officially organized on July 1, 1902. It had fourteen directors and its main office was at 51 Broadway. The bank started with $1 million in capital.

In late August 1902, three new directors were chosen for the bank. On September 12, 1902, The New York Times announced that the bank's organization was complete. This happened after they filed papers with the Controller of the Currency. The first directors' meeting was held the next week. The bank's office was set for 37 Broadway. It officially opened at 57 Broadway on Monday, September 22, 1902. It had $1,000,000 in capital and another $1,000,000 in surplus funds. Willis S. Paine was the first president.

Early Years and Changes: 1902-1905

On October 23, 1902, the bank received its first delivery of new five-dollar bank notes. These notes featured Benjamin Harrison. The rest of the $250,000 in notes came in ten and twenty-dollar bills. The New York Times noted these were "new national banknotes" with a green back, unlike the brown backs of most other banks' notes.

By November 25, 1902, the bank had made profits of $1,012,995. It also had deposits of $2,607,946 and loans totaling $2,529,810. The bank's total resources were $4,930,742. In September 1903, the bank, still at 57 Broadway, leased about 2,500 square feet of space. This new location was on the ground floor of the Exchange Court Building, at the corner of Broadway and Exchange Place. This lease was for five years.

On April 16, 1904, it was reported that Consolidated National Bank would start clearing its checks through the Fourth National Bank. Willis Paine was still the president. By November 16, 1904, Willis S. Paine was president, and Mortimer H. Wagar was vice president.

In January 1905, bank president Willis S. Paine wrote an article in The New York Times. He argued that banks should have their finances checked often. The annual directors' meeting was held in January 1905. During this meeting, some directors resigned or were voted out. The bank's stock was first sold for $200. By September 20, 1905, it was selling for about $175 and had not paid any dividends. President Paine explained that banks were not making much money. He said, "With money at 2.5 per cent, or 3 per cent., there is no chance to make money." Around November 1905, Willis S. Paine resigned as president. He announced plans to travel the world.

New Leaders and Challenges: 1905-1907

Just before November 1, 1905, the bank's board chose O.F. Thomas as the new president. He replaced Willis S. Paine. At that time, The New York Times reported that the bank "has not been doing well in the matter of earnings." Mr. Thomas was brought in to help improve the bank's business.

M.H. Wagar, the bank's original organizer, said that their first idea of serving only Consolidated Exchange customers had not worked well. The Times reported that the bank would now try to get business from everyone. They would no longer focus only on the Consolidated Exchange.

On February 9, 1906, the Consolidated Stock Exchange took its money out of Consolidated National Bank. They moved their deposits to the National Bank of North America. The Times explained that Consolidated National Bank was founded to get all the business from the Consolidated Exchange. However, after the bank came under E.R. Thomas's control, other Exchange officers left its board.

By July 1907, the bank's shares were selling for $180 each. E.R. Thomas sold his share in the bank in October 1907. He also resigned from his positions. On December 14, 1907, the Times reported that Consolidated National Bank was planning to buy the National Bank of North America. However, this deal was stopped on December 17, 1907, by the National Bank's president.

Becoming National Reserve Bank: 1909

On February 2, 1909, Consolidated National Bank approved a plan to buy Oriental Bank. Oriental Bank had closed the year before but had paid back all its depositors. The new bank would be called the National Reserve Bank. It would combine parts of both banks. A special meeting was set for February 18 for stockholders to give their final approval.

On February 18, 1909, the bank's stockholders voted to approve the merger. They agreed to take over Oriental Bank's assets and combine them with Consolidated. This created the National Reserve Bank of the City of New York. The plan increased the bank's capital from $1,000,000 to $1,200,000. At the same meeting, 23 directors were chosen for the new board. These included E. A. Fisher and Mortimer H. Wagar. The bank planned to keep using the Consolidated name until March 1, 1909.

On March 2, 1909, Will-tarn O. Allison, who was president of Consolidated National Bank, was voted president of the new National Reserve Bank. This new bank was formed by Consolidated taking over Oriental Bank's assets. Thomas J. Lewis and R. W. Jones Jr. became vice presidents, and George W. Adams became cashier. With the merger, the capital of the new bank increased from $1,000,000 to $2,000,000.

The National Reserve Bank of the City of New York officially opened on March 8, 1909. It was located at the old banking offices of the Oriental Bank, at 182 Broadway, near John Street in Manhattan. They planned to move to new facilities at the City Investing Building at 165 Broadway later. In late April 1909, the National Reserve Bank, which used to be Consolidated National Bank, opened for business in the City Investing Building.

Key People: Directors

When Consolidated National Bank was formed on July 1, 1902, it had fourteen directors. Some of these important people included Jonathan B. Currey, Mortimer H. Wagar, Willis S. Paine, and Perry Belmont. In late August 1902, three more directors were chosen: Amzi L. Barber, Lyman G. Bloomingdale (from Bloomingdale Brothers), and James G. Newcomb. The first meeting for the directors was held in late September 1902.

On April 16, 1904, four new directors joined the bank while Willis Paine was still president. These new directors included Alonzo Burbank and Thomas F. Manville. By November 16, 1904, Willis S. Paine was president, and Mortimer H. Wagar was vice president.

Around November 1905, John W. Griggs retired as a director. On October 31, 1905, new people joined the board. These included E.R. Thomas and O.F. Thomas. Four spots on the board were still empty after Willis S. Paine and others retired.