July 27, 1907: With No Prior Notice Farmers’ National Bank of Boyertown Closes Doors

By Margaret Leidy Harner from her book One Day at a Time: A Social History of Boyertown, PA.

July 27, 1907: “Like a thunder clap out of a clear sky” came the news that the Farmers’ National Bank of Boyertown has closed its doors, coming as a total surprise to the directors and depositors alike. The bank has been put in the hands of a receiver, who is working in harmony with the directors to go over the accounts and affairs, to reopen the ban at the earliest date.

The problem started with a Philadelphia investor Dewitt C. Hillegass borrowed $130,000 from the bank, using worthless collateral. He could not repay the loan, and the bank ran out of money.

The founder and president of the bank is Dr. Thomas J. B. Rhoads, a grandson of the founder of Boyertown, Henry Boyer. He had a building constructed to house the bank office, popularly known as the Rhoads Opera House. Dr. Rhoads takes great pride in his bank, and he suffered terribly from the disaster. He worked night and day to make sure that the depositors were secured against the loss.

It reopened a month later, when the directors contributed $30,000 of their personal assets to the cash flow. During that ordeal, Dr. Rhoads’ health was greatly undermined, and after the bank reopened, he rejoiced that he could now settle down and enjoy the remainder of his days in contentment (for less than six months, until January 13, 1908, when this building was gutted by fire, with the loss of 170 lives).

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