Page 9 - The History of Watertown Savings Bank_Neat

Mr. Sherman was born in Newport, N.Y., but
moved with his family to Watertown in 1810 “Few men of his advanced years are as
during the early stages of the industrial expansion.

Along with working as a merchant clerk and in well preserved or as capable of correct
a law office, Mr. Sherman had managed to hold methods of banking. He is a gentleman of
various county and court clerk positions, and the old school, faithfully devoted to the best
completed law school.
He married Wealthy S. Dickinson of intentions of the savings institutions he so
Northampton, Mass, in 1932 and the couple had ably represents”
nine children.
John Haddock, The Growth of a Century 1898
He got his start in the banking industry as a
Wooster Sherman cashier for the former Bank of Watertown. But of uniformity among states. This resulted in

Watertown Savings Bank Mr. Sherman soon developed plans of his own, banks circulating notes nationwide with varying
and in 1841, he resigned to start his own banking
Founder, Organizer, business. discount rates.
Mr. Sherman had continued for several years
and First Treasurer Mr. Sherman had ambition and tenacity, and running a successful one-man banking operation,
1893 - 1896 earned the distinction of being the first person while building a great amount of trust and respect
to open a private bank with circulating notes in
New York State. His bank was called, simply, in the community.
the Wooster Sherman Bank, and his name was But the National Banking Act of 1863 forced
stamped on all of his bank notes. Mr. Sherman to eventually discontinue his
He set up his bank operation in 1842 inside a banking operation. It called for the creation of a
building on Public Square. In 1849, that building system of national banks, with uniform federal
was extensively damaged by a fire that swept bank notes, thereby eliminating the operation of
through downtown Watertown and caused private banks within individual states. The act was
significant damage to the downtown. passed by the federal government to initiate a tax

A historical description of the fire had noted that to help cover the cost of the Civil War.
Mr. Sherman “succeeded in escaping with the bank’s Although several other banks had been
assets in a wheelbarrow, but lost his hat and singed his established in Watertown by this time, Mr.
whiskers in the process.” But he persevered, rebuilt at Sherman was still frustrated because he could
the same location, continuing to operate his own no longer operate his own individual bank. The
personal financial institution. experienced banker remained determined to
establish a new mutual savings bank in the city,
At that time, “free banking” laws in the country
allowed anyone to operate a bank, provided they and worked tirelessly for nearly two decades
could back their notes with proper security. There to accomplish this goal with the opening of
were several flaws in the system including a lack Watertown Savings Bank.

7