Gilmer’s Banks
In the story of the growth and development of Gilmer’s banks, is a living history of the growth and development of Gilmer and Upshur County. Gilmer’s first bank was a small private bank, opened up in the early 1890’s, located on the west side of the square near the northern corner, and was known as the Sasser’s Bank. Mr. Walter Boyd was president of this bank and Mr. Sasser cashier. Prior to this time the citizens of Gilmer did their banking from a distance. Many of them at that time banked at Tyler. But a bank failure in that city, in which a number of Gilmer residents lost their savings, was a discouraging factor. These things, added to the increasing need and demands for the service of a substantial bank in Gilmer, led to the establishing on April 13, 1900, of the First National Bank. On organization the bank was capitalized at $25,000. Capital stock is now $100,000. Of much interest is the first statement of condition which was published April 26 of the same year, less than two months after the bank was founded. It shows that deposits were less than $40,000.00. (They are now two or three million), and since the slack summer season was approaching, the next two statements showed decreases in deposits. September showing the lowest deposits of $24,000.00. Then in August, 1901, three months after Mr. C. T. Crosby had organized the Farmers & Merchants National Bank, the combined deposits of both banks were less than $54,000.00. On December 31, 1940, they were $2,718,464.24. At the close of business, June 30, 1945, the combined deposits of the two banks were $5,240,864.01. Contrast that with the figures, $82,264.21 of April 26, 1900, and you have in a nutshell, the story of the banking growth in Gilmer. But to go back to some more of the history of the banks and the men in them. The next significant date in Gilmer’s banking history is May 1, 1901. On this date the Farmers & Merchants National Bank was organized by W. B. Womack of Whitewright, W. C. Barnwell, J. L. Croley, T. H. Briggs, W. O. Boyd and N. M. Harrison, in the office of T. H. Briggs, in the southeast corner of the courthouse yard.
The above named men were elected as directors and in turn the directors elected the following officers:
W. B. Womack, president; N. M. Harrison, vice-president; W. O. Boyd, cashier-bookkeeper; H. P. McGaughy, assistant cashier. W. O. Boyd served as cashier the first year and resigned because of other business interests at the first annual meeting in January, 1902, and W. C. Barnwell was elected in his place and served a number of years.
The bank opened for business in the tax collector’s office in the courthouse and in about two months was moved from there to the present location. Briggs & Warren served as the bank’s attorneys.
May 1, 1901, marks several significant events in Gilmer’s meeting which took place in the courthouse, and for several weeks the bank conducted its business in the courthouse in the office of Joe Martin, then tax collector, while the new quarters were being built. May 1, 1901 marks several significant events in Gilmer’s banking life. On that date C. T. Crosby, who is now cashier at the Farmers & Merchants National Bank, began his banking career, at the First National Bank, and paradoxically, H. P. McGaughy, who is now president of the First National Bank, started out that day as a banker in Gilmer, as assistant cashier and bookkeeper with the newly organized Farmers & Merchants. Mr. McGaughy’s connection with the First National Bank dates from 1906, and he gained the presidency following the death of the late Dr. T. S. Ragland. Vice-presidents of the First National are L. G. Martin, who has been with the institution over thirty years, and V. E. Todd, who became connected with the First National at the time that institution took over the defunct State Bank. Mr. C. T. Crosby, meanwhile severed his connection with the First National Bank about 1908 and moved to Glenwood, Arkansas, where he conducted a mercantile business for three years. Returning to Gilmer in the fall of 1911, he joined the staff of the F. & M. Bank in January, 1912. The late J. P. Ray, who was acting vice-president of the F. & M. Bank when he died, had been with the bank since 1923.
And that’s a brief history of banking in Gilmer. Now, just one more backward glance to the names on that first called financial statement in Gilmer’s history, of April 13, 1900. They were: L. R. Hall, cashier; W. Boyd Sr., S. D. Futrell and J. W. Saunders, directors, and the documents were duly notarized by J. B. Oliver, notary public.