A LITTLE PIECE OF HISTORY
By Joan Frances | Photos courtesy of the Fort Bend Museum Collection.
Judge John H. Pickens Davis.
One of the first counties created by the Texas Congress, Fort Bend began development in 1822. A one-room log cabin was built near Richmond and named Fort Settlement and later, Fort Bend. As settlers began living in the area, city growth emerged. Post offices, general merchandise stores and churches were constructed. People discovered this area had rich soil for farming and grazing livestock with easy access to the Brazos River.
Money was needed to continue growth, and banks were established. The government did not print paper money but minted gold and silver coins called specie. The volume of metal in these coins warranted the value. Customers would deposit their gold and silver coins to keep them safely stored in a large vault. The bank, in turn, issued banknotes as payment to be circulated throughout the town. This allowed banks to perform the primary function to make loans and to protect depositors’ money.
The banking industry was a challenge in the early days of Fort Bend County and in Texas. When the Constitution for the Republic was written, there was no provision for banks. President Mirabeau B. Lamar encouraged the formation of the National Bank of Texas in his message to Congress on December 31st, 1838, but instead of establishing the bank, Congress authorized additional issues of paper money in the form of redback, a non-interest bearing Treasury note, that greatly depreciated by the end of President Lamar’s administration.
The Rosenberg State Bank in 1910.
In 1861 and 1866, the Texas Constitution prohibited the incorporation of state chartered banks and the private issuance of paper money. Despite this declaration, private financial agents opened institutions for issuing notes, underwriting deposit currency and various types of lending. Several bankers obtained special permission from the Texas Congress to issue and circulate paper money to improve the economy. A private firm by the name of McKinney, Williams and Company, based in Galveston, conducted banking activities issuing paper money for the government and businessmen. Finally in 1904, the state amended the Constitution, permitting Texas to establish a duel system of state and national banks.
As Fort Bend County grew, farmers and cattlemen became engaged in implementing city growth. Judge John H. Pickens Davis was born and educated in Richmond. He was a cowboy on his father’s land until 1892 when he went into the banking business. Judge Davis opened a privately owned bank in October under the firm name J.H.P. Davis and Co. He worked with the residents of Richmond and Rosenberg to secure their money and to issue loans with interest.
People began to trust Judge Davis as he became an important asset to the expansion of both cities. He became President of the Richmond Cotton Gin Co., Richmond Electric Co., Rosenberg Gin Co., Richmond Development Co., a democratic member of the Executive Committee Cattle Raisers Association and President of the School Board for the Richmond Independent School District. Judge Davis was a man of integrity and enterprise, always looking to improve the town and county. As agriculture flourished, he was instrumental in giving financial assistance to farmers in need of machinery and farm equipment, as well as commercial and industrial needs of the cities.
Today, the Texas Banking industry is one of the strongest in the country. With well over 14,000 offices to serve public needs, the economic benefits entice people from all over the world. With drive and initiative, the trailblazers from the past set in motion the path to success, and our city leaders of today continue that tradition.