The massive vault of the First National Bank of Spring Lake on Third. Below is a sample banknote. The bank printed notes from its opening in 1901 to 1933 exchangeable for gold. Mayor OH Brown was the first President and hotelier Fred Schock was the Head Cashier.
The town was earnestly rebuilding after a devastating fire in 1900 destroyed most of the First Avenue business district and many of its signature hotels. The placement of the bank building on Third would anchor the new business district. It had a modern director’s room, and this massive vault with a double door, thought to be burglarproof.
The bank was robbed in its first year and its vault was cracked with nitro-glycerine and tools stolen from the town’s water department. The hinges were blown off in 24 seconds.
These federal bank notes could be exchanged for gold until 1933
The thieves only got $5,000 in cash and securities and missed $7,000 in bearer bonds belonging to O.H. Brown. A large amount of money had been removed a few days earlier, and burglary insurance covered the loss.
In 1931, as the depression deepened, depositors nationwide panicked as loans went unpaid. There was no deposit insurance. The bank runs would cause 9,000 bank failures, and a total loss of deposits for savers, The Ocean Grove and Asbury Park Banks both failed in Dec 1931.
The following ad appeared in the Spring Lake Gazette:
"The First National Bank of Spring Lake, a financial institution that has been a bulwark of strength and safety ever since its organization in March '01, has always advocated thrift and saving and has also practiced it. Because of intelligent, economical management, the bank has attained its present enviable position in the financial world of Monmouth County. Adhere to the teachings of wise men. Save when you can for the time when you can't. Heavy burdens light when you have a bank account."
"Start a small account today and someday it will be some account. A dollar bill is sure surcease for many ailments, and a mighty wedge for any rut. You'll never get anywhere staying in a rut. Come in now and let the First National Bank prepare you for the future. Look ahead. Not behind. See further and clearer. A steady growing bank balance assures a sale harbor in times of financial storm. Use the lighthouse and the beacon. Grab a lifeline before your craft is scuttled."
"Bank in and on The First National Bank of Spring Lake"
In March 1933 all US banks were closed by FDR’s executive order for a weeklong bank holiday. The Spring Lake Bank, along with hundreds of others was not permitted to reopen. About $777,000 of its assets (loans) were impaired, most were slow-paying loans.
The bank was placed with a conservator. It could take new deposits, but old depositors were not able to access their money. Business in town was crippled. Real estate prices fell. After nine months, on December 23, 1933, the bank was granted permission to reopen under the same name.
Those with frozen funds had to agree to getting only 60% of their deposits, forfeiting the remaining 40% unless the bad debt could be collected.
Louis Carberry Ritchie the son-in-law of Martin Maloney was named the bank president as the bank reopened. Ten years later in 1944, the original depositors were finally settled out for 80% of their original assets. The bank operated through the second world war and the 1950s and 60s were a renaissance for the area. The bank was strong and accumulated $19 million in assets.
In 1970 the Bank and its Sea Girt branch were merged into the First National State Bankcorp of NJ and in 1972 operated 11 branches under the name First National State Bank of the Jersey Coast with main offices in Spring Lake. It was migrated to a branch of First Fidelity in the '80s, then First Union, then Wachovia. During the financial crisis of 2008 Wells Fargo took over Wachovia.
Wells closed the branch in 2022. The town has acquired the building and it is undergoing renovation to make the ground floor a fine dining restaurant, with affordable apartments on the upper floors. The vault should make an impressive feature.