Banking History

Keithsburg's first bank was opened in the second story of the old Gayle building, corner of Main and Second streets, about 1866, by a man named Bruce. He was one of a syndicate that inaugurated banks in several towns in Western Illinois. Being unknown to financial men. the banks with an established reputation refused to do business with him; but the desire for a safer place of deposit than their homes, induced many to give it their support, and the impression given that it was doing a good business brought it more deposits

. One night while playing billiards, Bruce was handed a telegram, and informed those with him he had to go to Chicago that night. A team was ordered to take him to Gladstone and, with a well filled satchel, he vanished from the town. His long absence alarmed the depositors, but no trace of him could be obtained. The "Bank" was opened and everything of value was gone. Bruce was afterwards located in Michigan by W. J. Pepper, who had him brought to Keithsburg in irons. Although indicted by the grand jury, he was never prosecuted, and, through some process of law never explained, he was turned loose.

 

Farmers National Bank

The next financial institution established here was the Farmers' National Bank, organized in 1871, with a capital of $50,000, with William Drury as president anu C. S. Orth cashier. Mr. Orth was succeeded by F. P. Burgett. In 1880. the National Bank charter having been surrendered, it became a private corporation. After conducting a successful business for many years, on the death ol Mr. Drury it was placed in the hands of a receiver and went into liquidation. The good will and fixtures were bought by Olcott, Whitham & Co., who are now conducting the banking business of the town.

 

 

Historical Encyclopedia of Illinois

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