National Reserve Bank facts for kids

The National Reserve Bank of the City of New York was a bank located in New York City. It was created in 1909 when two other banks, Consolidated National Bank and Oriental Bank, joined together. By January 1914, the National Reserve Bank had about $4.3 million in deposits. It was known for working with many smaller banks, especially in the western and southwestern parts of the United States. The bank also handled a lot of business related to cotton trading. On January 27, 1914, the National Reserve Bank was taken over by the Mutual Alliance Trust Company. For a while, it continued to operate as a branch of the trust company.

History

How the Bank Started

On February 2, 1909, the Consolidated National Bank decided to take over Oriental Bank. Oriental Bank had closed the year before, but it had successfully paid back all its customers. The plan was to create a new bank called the National Reserve Bank. This new bank would combine parts of both the old banks.

A special meeting was held on February 18, 1909, for the shareholders to give their final approval. At this meeting, the bank's owners voted to go ahead with the merger. They agreed to combine Oriental Bank's assets (what it owned) with Consolidated National Bank. This created the National Reserve Bank of the City of New York.

The merger also increased the bank's capital (the money it had to operate) from $1 million to $1.2 million. At the same meeting, 23 directors were chosen for the new bank's board. These included E. A. Fisher and Mortimer H. Wagar. The bank planned to keep the Consolidated name until March 1, 1909.

On March 2, 1909, Will-tarn O. Allison (W.O. Allison), who was the president of Consolidated National Bank, became the president of the new National Reserve Bank. Thomas J. Lewis and R. W. Jones Jr. were chosen as vice presidents, and George W. Adams became the cashier. With the merger, the bank's capital was further increased to $2 million.

The National Reserve Bank of the City of New York officially opened for business on March 8, 1909. It first opened at the old Oriental Bank location at 182 Broadway, near John Street in Manhattan. Later, in late April 1909, the bank moved to its new offices in the City Investing Building at 165 Broadway.

What Happened Next

By January 13, 1914, the National Reserve Bank had about $4,352,561 in deposits. Just two weeks later, on January 27, 1914, the bank was taken over by the Mutual Alliance Trust Company. This trust company was located at 35 Wall Street. The two companies had actually worked together before and even shared some directors.

At the time of the merger, the New York Times newspaper reported that both banks had many accounts from smaller banks. These smaller banks were mainly located in the West and Southwest of the country. Both banks also handled a lot of business related to the cotton trade.

When the National Reserve Bank was closed down, its shareholders received money. They got the value of the bank's assets that were left after all the deposits were paid back. They also received a good payment for the bank's "good will," which means its reputation and customer relationships. After the two companies merged, their combined deposits reached about $12 million. For a while, the National Reserve Bank's office at 165 Broadway continued to operate as the "Reserve Branch" of the Mutual Alliance Trust Company.

Directors

On February 18, 1909, several people were chosen to be directors on the board of the new National Reserve Bank of the City of New York. The board included Mortimer H. Wagar, Nelson G. Ayres, Charles K. Beekman, Samuel Bettle, Eugene Britton, R. W. Jones Jr., George E. Keeney, Ludwig Nissen, William O. Allison, James G. Newcomb, E. A. Fisher, E.R. Chapman, E. Burton Hart, George V. Hagerty, Thomas J. Lewis, A. M. Probst, Robert E. Dowling, George L. Gillon, Harry J. Schnell, H. Louderbough, J.H. Parker, Thomas N. Jones, and Erskine Hewitt. On March 2, 1909, Erskine Hewitt was elected as the chairman of the board.