CHAPTER XXVI

hampton's financial institutions—banking a business of great antiquity—early banks in the county seat—deposits in hampton banks over two million dollars—industrial

hampton.

The business of banking is of great antiquity and in its simpler forms no doubt was understood and practiced by the Assyrians, Babylonians and Athenians. As the taking of interest for money lies at the root of all banking and furnishes the chief motive for it, whereever a people were sufficiently advanced to loan money for hire there would naturally spring up many of the practices and methods of modern banking. The transfer of credits was undoubtedly known among the ancients. They used checks and bills of exchange, but for all that they were very far from having the confidence in credit business that has since been fostered by modern banking methods. They used gold and silver coin and other commodities then in use as standards of value and media of exchange and had not invented representative money. It is more fanciful than correct to ascribe to the Romans the invention of modern banking. The business carried on by their money lenders and dealers was similar to that of the Jews of the Middle Ages and the Lombards.

When gold and silver were deposited, it was more in the nature of a special deposit to be kept until called for. There have always been money lenders but banks for lending money are of comparatively modern origin. The Bank of Venice, which originated in 1171, may be pronounced the forerunner of modern banking. It was followed by the Bank of Genoa, 1320; Bank of Amsterdam, 1609; Bank of England, 1694; Bank of France, 1716; and others at later dates. In the United States there have been private banks and chartered banks and of the latter some have derived their powers from State Legislatures and some from the Federal Congress.

The National Bank Act, which became a law early in 1863, was modelled largely after the free banking laws of New York, Ohio

and other states; and the distinctive principles which underlie it are government supervision of the operations of the banks and a circulation based directly upon the securities and guarantee of the Government. The original act has undergone many modifications, some of them of considerable importance, and while in its operations it has proved of great value to the commerce of the country, it is undoubtedly capable of improvement and further changes may be expected in it in the not distant future.

franklin county state bank

The first attempt at banking in Franklin county was by J. F. Latimer and A. G. Kellam, who pooled their interests and established a private concern in 1871, under the firm name of Latimer & Kellam. Their place of business was on the east side of the courthouse square in a frame building, where they continued to remain for some years. At a period during the Latimer-Kellam regime, Capt. R. S. Benson and G. C. Hayes, both since gone to their last reward, became actively interested in the institution. Sometime thereafter, Latimer sold out his interests and the firm name was changed to Kellam, Benson & Hayes. This continued for a period, then Kellam disposed of his interest to the remaining partners. Benson finally withdrew and D. B. Parks was taken into the firm.

It was while Benson and Hayes were connected with the institution that they erected the two-story brick building on the northwest corner of Reeve and Fourth streets, where the headquarters of the bank was maintained for a number of years.

In 1891, A. W., G. F. and B. C. Beed secured full control of the bank and conducted the institution until 1905, when they became possessed of the equities and appurtenances of the Bank of Hampton, successor to the First National Bank of Hampton, and incorporated the two concerns under the banking law of Iowa as the Franklin County State Bank, with a capital of $75,000. The first officials selected by the directors of the Franklin County State Bank were: President, A. W. Beed; vice president, G. F. Beed; cashier, H. L. Harrison; assistant cashier, N. A. Inglis.

Previous to this, however, the bank had moved into the Empire block on the northwest corner of Reeve and Fifth streets, where it remained until about 1880, and then occupied its own home.

VIEWS OF HAMPTON