In Commemorative Historical and Biographical Record of Wood County, written in 1897, a critic stated that "The civil history of a town is but the biography of its founders and their successors in which every incident, sometimes the most trivial, has an interest to the dwellers therein" (213). The critic could not have been more truthful about Bowling Green, a town that successfully developed from being a simple village in the 1830s to being an incorporated city in the 1855. In the 1890s, Bowling Green became a perfect example of an economically successful American town. During the 1890s, new banks were formed in an attempt to consolidate and develop the financial establishments in Bowling Green. This paper explores the glorious economic and social functions that banks played in Bowling Green in the 1890s. The case of the corporation then known as The Equitable Building and Loan Company will be used as a major example.

The gas boom in Bowling Green in 1884 followed by an oil boom in 1885 brought about remarkable development in the economic and social conditions of the city. As many people became wealthy after the discovery of oil in the area, the present Wood County Courthouse was built in 1894 to replace the old one that was built in 1868 (Deters 19; 21). In addition, a $20,000 school house, four church buildings costing at least $20,000, fair grounds, a park and a town hall, two main sewers, and a railroad to Tontogany were built to reflect the newfound wealth of Bowling Green (Commemorative 220). Moreover, the discovery of gas and oil created glass manufactures and industries in Bowling Green, thereby, giving the town the nickname of "Crystal City." However, on August 4, 1887 and on October 31, 1888, the manufacturing and business districts of Bowling Green were almost devastated by two great fires (Tassel, Historical Highlights, 12). At the end of the 1880s, the ruins of the old fires on Main Street were used as sites for new banks and manufactures. In 1885, A.E. Royce erected the Commercial Bank Building. Likewise, the First National Bank block was built in 1889 (Tassel, The First Hundred Years, 62; 63).

In 1889, a group of ten Business men in Bowling Green attempted to create a bank that aimed at helping Wood County residents to invest, save money, and earn interest. On February 4, 1889, The Equitable Building and Loan Company, later known as the State Home Savings, was founded by Julius D. Bolles, Charles Brudewald, Robert Dunn, Sr., Wallace H. Smith, N.R. Harrington, Myron L. Case, A.W. Rudolph, F.H. Boughton, Robert Parker and Frank Baldwin (State Home Savings, 2). The company had an initial authorized capital of $500,000 and was Julius D. Bolles as president from February 1889 to March 1891 (Bowling Green Sesquicentennial Commission 85).

The Equitable Building and Loan Company had immediate success in its ambition to provide loans to Wood County residents. Its affordable mortgage loans helped many people in Bowling Green have a home, thus helping the community to grow and prosper. One success case was the family of Mr. and Mrs. W. Amos Brough. They borrowed $400 mortgage loan from the Equitable Company for a three bedroom property which they later paid for at a rate of 50 cents per week. "The property was near the old cemetery where Ridge Street School now stands in Bowling Green" (State Home Saving 3). Families such as the Broughs had to abide by certain rules when they borrowed money from the Equitable Company to buy a home. "Liquor was not allowed on the premises, nor could they operate a brothel at that location" (3). It was certainly not difficult to pay for such a loan because prices had changed dramatically in 1889 due to the tight money supply. In 1889, a loaf of bread cost only 5c and a gallon of milk was only 26c (3). Tight money supply also helped many people earn money from stocks and savings. "W.S. Eberly was the first subscriber to a free running stock and held passbook number one. He and others earned a whopping 8% interest during the first years of operation due to a tight money supply" (3).

There were two factors that might have caused the success of the Equitable Building and Loan Company in the 1890s. First, the oil and gas boom of the mid 1880s had increased the value of land in Bowling Green, thus making the purchase and speculation of land a profitable business that enriched both citizens and private bankers. In "Bowling Green Honors First 100 Years of Successful Growth," an article written in 1933 in Wood County Republican, a critic suggested the immediate effect that the gas boom had on the price of real estate in Bowling Green:

 

Within two more years more than three hundred business houses and homes were built and filled with incoming residents and merchants, while school buildings were taxed to their capacity. Outside real estate speculators crowded the hotels and property within the city limits and adjoining districts changed hands many times every twenty-four hours. A sixty acre farm just north of the corporation line, which was a short time previous on the
market for $3,500, as an example, sold for $24,000, while main street frontage went for three times its former price (3/16/1933)

 

Such a boom in real estate and land purchase and speculation opportunities significantly raised the investment, loan, and savings opportunities of citizens and Bankers of Bowling Green. Moreover, as citizens and businessesmen became wealthier, the competition between the banks of Bowling Green became more fierce, thereby creating an atmosphere of "laisser-faire" and increasing the financial profits of The Equitable Company. As a critic wrote in "State Savings now 90," an article written in 1979 in The Sentinel, during the early 1890s, The Equitable Building and Loan Company raised its assets to about $18,000. Sixty years later, the bank raised its assets to $1.5. million (2/5/1979).

Furthermore, the effectiveness and good reputation of the Equitable Company during the 1890s is visible in the testimonies that late citizens of Bowling Green gave. In 1933, Charles S.Van Tassel noted: "The Equitable Savings and Loan Company and the Mutual Savings and Loan Company . . . hold a strong and valuable position in the financial field and are held in high regard for efficiency and service" (Wood County Republican 3/16/1933). Alva Bachman, another longtime resident of Bowling Green, suggested the very factor that may have caused the success of The Equitable Building and Loan Company. In "BG financial institutions help town through many rough times," an article written in 1983 in the Sentinel Tribune by Harold A. Brown, "Bachman said [that] State Home's success has been due to conservative and wise investment and community awareness of needs and problems" (10/01/1983). This statement is significant because it suggests the strong ties that existed between businessmen and community in Bowling Green in the 1890s. Moreover, Bachman's statement hints at the hardworking spirit and intelligence that characterized Bowling Green bankers such as Julius D. Bolles and A.E. Royce. The biography of A.E. Royce suggests how the man successfully moved from "rags to riches."

Born in Huron County, Ohio, Royce spent most of his childhood in his grandfather's farm. At the death of his grandfather, Royce headed for Toledo with the few dollars he had inherited. He worked as plank carrier, common laborer and carpenter and later ended up in the grain business. Finding success in shipment of grains, Royce disposed of his grocery stores and resettled in Bowling Green where he installed a mill and two elevators for the processing and shipment of his grain business (Commemorative 440-441). In 1885, Royce, Wallace H. Smith and J.J. Coon formed a private bank in Bowling Green. On February 11, 1890, the business was incorporated with a capital of $100,000 and named The Commercial Bank Company. The Company sold its shares for $100 each. The Commercial Bank was one of the soundest financial institutions of Ohio during the 1890s and Mr. Royce was its first and only president during his lifetime (Commemorative 441).

The Equitable Building and Loan Company and the Commercial Banks and Savings Company played significant roles in the economic and social development of Bowling Green in the 1890s. In the 1890, these banks served as social connectors and regulators. They stimulated financial development in the city by giving citizens opportunities to deposit, invest, and earn money. The Equitable Building and Loan Company gave citizens and businessmen opportunities to buy land and real estate and own decent homes. In other words, bankers such as Julius D. Bolles and A.E. Royce helped Bowling Green develop. As Charles Sumner pointed out in "Bowling Green banks," written in 1933:

Among the unsung heroes of a community are the people, who quietly, but effectively watch over its financial welfare. As bankers or associates of bankers, such folks perform monumental work which from its very nature cannot be disclosed in detail. Throughout the years of prosperity they endeavor so to guide the destinies of their community that, when the storm of depression comes, it will not be swamped in the turbulent sea of distrust (149-150). 

Works Cited