Banking on the Eastern Shore
An interesting article entitled "Banking on the Eastern Shore" appears in the December issue of the "Richchap," the official magazine of the Richmond Chapter American Institute of Banking. It is written by M. E. Bristow, formerly Trust Officer with the Farmers Trust Bank, Cape Charles, now Chief Bank examiner connected with the Banking Division of the State Corporation Commission. The article follows:
"As this section constitutes one of the trade fields undeveloped by Richmond, meriting its attention, readers of the Richchap may be interested in it. The counties of Accomac and Northampton, lying between the Atlantic Ocean and the Chesapeake, compose the peninsula know as the Eastern Shore. While disconnected territorially from the rest of Virginia, their people are among the most devoted citizens of the State to its traditions.
"Due to the loyalty to its king Virginia won the title of "Old Dominion" but these counties merit it thrice over. Just as true to the king, they stood by and became an asylum for Governor Berkley during Bacon's Rebellion, and in the dark days of the Civil War they had an opportunity to leave the old State as her western counties did, but remained loyal.
"Many authorities claim for the mountaineers of our Southern States the purest strain of our colonial ancestors, but others accord it to the Eastern Shore of Virginia. It is certain that for more than two hundred and fifty years that there was little intermingling with outsiders and few immigrants from foreign countries. Northampton boasts the oldest set of continuous records possessed by any county or city in English-speaking North America. They begin with 1634. Saltmakers from Jamestown were the first settlers, reaching there about 1612.
"The climatic and agricultural conditions of this section are most attractive. The time is sure to come when it will draw settlers much as Florida has recently done. It is nearly surrounded by salt water and is of little elevation so that its climate is comparable to inland sections much farther South, the salt air having a disintegrating effect on ice, snow and frost. Capeville in lower Northampton has the record of the most equable climate in the State. Two crops, one of potatoes, one of corn are grown on the same land during the year. These facts, their proximity to the Northern centers and the facility of travel to them has caused the Eastern Shore to lead the State in the productivity of its lands. They led the country in 1920; in 1924 leading the State, the total value of their crops was $18,690,000. In 1923, in relation of total value of all crops to farm acreage, Accomac led the State with $137.05 per acre and Northampton followed with $122.92 per acre, while the next county reached only 57.57 per acre. For the year 1920 Northampton led the nation with 125.37 per acre, with other counties in the order given Accomac County, $121.74; Los Angeles County, Cal., $70.14; Aroostock Co., Me., $53.76; Fresno County, Cal., $39.29.
"At present their crops are rushed to market. There is little manufacturing. Towns are small, Cape Charles with about 2,500 being the largest one. Onancock and Parksley following in order, with Chincoteague, a thriving town next, whose people are greatly interested in the production of sea food. The greatest boon to the section now would be to introduce the manufacturing or further handling of their crops so as to provide labor for a larger population, and especially a market for excess crops, culls, etc., at home.
"They were late in establishing banks on the "Shore." This was due, doubtless, to the absence of cities or large towns and the convenience in former days, of water travel to the centers where they traded. The first bank to be organized was the First National Bank at Onancock, in 1893. The next was a private bank at Cape Charles, by L. E. Mumford, in 1896. He incorporated this as the L. E. Mumford Banking Co., in 1900 and inaugurated the largest chain of banks ever established in this State, having a home bank and two branches on the Eastern Shore, with nine branches and five allied banks across the bay. The two Eastern Shore branches were at Exmore and Eastville, and organized around 1901-03 and since chartered as separate banks as the People's Bank at Exmore in 1916, and the Eastville Bank in 1920. The parent bank sold off all its branches finally and in 1912 its name was changed to the Cape Charles Bank and in 1923 was merged with the Farmers and Merchants Trust Bank.
"Other banks were established as follows: That of L. L. Dirickson, Jr., in 1899, at Parksley, third, converted into the Parksley National Bank in 1904; the private bank of Thomas W. Blackstone, banker, at Accomac in 1899; the Farmers Merchants National Bank at Onley in 1904; the Hallwood National Bank and the Temperanceville Bank in 1905. The latter was a private bank until 1925, and was organized by W. L. Nock.
"In 1906 The Accomac Banking Co., Parksley; the Cheriton Banking Co., at Cheriton; the Belle Haven Bank, Belle Haven; the Bank of Northampton, at Nassawadox; the Bank of Keller. The Accomac Banking Co., organized a branch simultaneously at Bloxom, and one at Onancock in 1924. The Cheriton Banking Co., started a branch at Machipongo in 1908 which became an independent bank in 1916 as the Planters Bank of Machipongo. The Bank of Keller changed its name to the Eastern Shore Banking Co., in 1909 and started a branch at Painter.
"In 1907 the Farmers and Merchants Trust Bank, Cape Charles; the Townsend Banking Co., at Townsend. In 1908 the Bank of Chincoteague, Chincoteague Farmers and Merchants Bank, New Church, and the Melfa Banking Co., at Melfa. In 1910 the only Negro bank, the Brickhouse Banking Co., Hare Valley, which lasted until 1917, when it went into the hands of a receiver.
"In 1914 the Farmers Bank, Bird's Nest and the Marine Bank at Chincoteague in 1918. The Capeville Bank, Capeville, and the Wachapreague Banking Co., at Wachapreague in 1920.
"The baby bank of the Eastern Shore is the People's Bank, Bloxom begun in 1923. The roster therefore stands as follows: Accomac has eleven parent or independent state banks, three branches, four national banks and one private bank; and Northampton has nine state banks.
"On December 31, 1924, Virginia had about 525 banks of all kinds, or one to every 4,400 of population. The Eastern Shore had twenty-seven, counting branches as banks, or one to every 1,900 of population."