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True Tales
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Banking
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| First National Bank, Whitney, advertisement, June 16, 1911 |
With his brother-in-law George Sturgis, Jo Abbott established the first bank in Hill County in 1875, naming it Abbott & Sturgis.
Five years later, the town of Whitney was incorporated and its first bank opened. The bank was renamed to A. G. McMahan & Co in 1894 when Albert George McMahan assumed ownership.
The National Banking Act of 1863 [more] established national banks that could issue notes which were backed by the United States Treasury and printed by the government. The quantity of notes that a bank was allowed to issue was proportional to the bank’s level of capital deposited with the Comptroller of the Currency at the Treasury, and banks would emphasize their Capital Stock in their advertising.
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| First National Bank, Hubbard |
Joseph Bonner McDaniel organized the First National Bank of Hubbard and opened its doors in 1895. He also organized other banks in Mt. Calm, Dawson and Penelope, but he primarily devoted his attention to the one at Hubbard, which earned first place on the Texas "Roll of Honor."
Mr. McDaniel was a progressive and modern banker for his times, and made many friends. While he was always glad to make new friends, he was known to never forget his old ones.
In 1904, A. G. McMahan & Co was reorganized under the name The First National Bank of Whitney. With A. G. as President and his oldest son Emmet Kyle (E. K.) as Cashier, they were then able to issue their own currency to be used by the citizens of Whitney and elsewhere. Notes such as these were withdrawn from circulation when the Federal Reserve Bank [more] began issuing its own money about 10 years later, but currency from the Whitney bank continued to be legal tender for some time after that. |  |
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| First National Bank, Whitney, E. K. McMahan & daughter Abbie behind teller window, early 1900's |
At the same time that the new bank was organized, a new building was constructed at the southeast corner of Brazos Street and First Street (now Washington Avenue). The second floor was occupied by doctors, accountants, and other professionals. The bank remained in this location for forty years, after which it was converted into a hospital for Whitney.
A.G. McMahan was buried in Bethlehem Cemetery, where his headstone is engraved with some of his parting words to his sons.
Other national banks such as the Citizens National Bank of Whitney and Farmers National Bank of Hillsboro, which later became Colonial Trust Company, also issued their own currency. In 1905 Luther White helped to organize the Bank of Irene. The bank's original interior, which is pictured in the top photo on this page, is on display at the Cell Block Museum in Hillsboro. |  |
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| Citizens National Bank, Hillsboro |
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| Citizens National Bank, Hillsboro | |
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| First State Bank of Covington greetings card |
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| Colonial Trust Co, Hillsboro | |