Bion Barnett
Encyclopedia
Bion Hall Barnett was an American banker. In 1877 he co-founded Barnett Bank
, known as "Florida's Bank", the largest in the U.S. state
of Florida
at the time of its acquisition by NationsBank
in 1997.
, the son of William Boyd Barnett and the former Sarah Jane Blue.
His father was a merchant and a banker in northeast Kansas.
Bion was the younger of two children who lived to adulthood. His older brother Will was five years older than he, and moved from Kansas to Jacksonville, Florida to start a furniture business in 1874, just as Bion enrolled at the University of Kansas
. Will spoke highly of Florida's moderate winter, so the following year, his parents journeyed to Jacksonville to visit their oldest son. Sarah Barnett suffered from neuralgia
, but her health improved during their time in Florida, so the Barnetts returned to Kansas, liquidated their assets, and relocated to Jacksonville in March, 1877. Bion, who was a college senior, withdrew from school to join his parents three months before graduation.
, Barnett and the new institution slowly gained the people's trust, but at the end of their first year, and deposits only amounted to $11,000. Undeterred, William invited Bion to be partner.
deposited their funds in the Bank of Jacksonville. L'Engle agreed, and the BoJ began to prosper. Within a year, L'Engle was appointed Treasurer for the State of Florida, and the state's accounts were transferred to BoJ. Within a few years, operating capital exceeded $150,000, and in 1888, the Barnetts applied for and received a National Charter, pursuant to the National Bank Act. This allowed them to become the National Bank of Jacksonville. The institution's deposits exceeded $1 million in 1893. Florida's first Burroughs Adding Machine was installed at the bank during this time.
mining enterprise that promised a return of $100,000 in three months time. When he lost the entire amount, he never again speculated, and applied that same principle at Barnett Bank. He was fond of telling people, "It is not the things you don't know that get you in trouble. It is the things you think you know for sure that get you in trouble."
On Barnett Banks 50th anniversary in 1927, Bion repeated his father's Five Rules of Business:
destroyed most of the city, and the National Bank of Jacksonville was the only bank still standing. When Bion's father died on October 21, 1903, Bion became president and resolved to rename the institution in his father's honor. The bank was rechartered as the Barnett National Bank of Jacksonville in 1908.
For their 50th anniversary, the bank built and moved into the 18-story Barnett National Bank Building
, the tallest structure in Jacksonville from 1926 to 1954. Bion Barnett commented "that the family-owned institution had endured epidemics, fire, freezes, and financial panics".
and Barnett tried unsuccessfully to merge with Florida National Bank
.
Baker, Fentress & Company owned Consolidated Naval Stores in Jacksonville and purchased a sizable quantity of Barnett stock. The infusion of capital left the bank stronger, but ended complete family control of the institution.
A bank holding company was begun after the stock market crash in 1929
, and Barnett National Securities Corporation purchased and reopened several failed banks. The day before a bank holiday on March 5, 1933, Barnett expected a bank run
. To prevent this, Bion directed the bank's personnel to pull all small denomination bills from the vault, and leave the $50s, $100s, $500s and $1,000 bills. Tellers were instructed to slowly count each withdrawal. Those at the end of the line saw their friends and neighbors leave the bank carrying large stacks of bills, which prompted many customers to regain confidence and leave without their money.
The bank continued to grow with the acquisition of many more Florida banks over the next two decades.
Barnett kept a home in France, and stayed there for extended visits. He also enjoyed golfing in Scotland.
He was the grandfather of author Madeleine L'Engle
.
He was a prominent Mason
; treasurer of Damascus Commandry, Knights Templar
; a member of the Seminole Club, the Florida Yacht Club
, the Florida Country Club and the Benevolent and Protective Order of Elks
.
Barnett Bank
Barnett Bank, founded in 1877, eventually became the largest commercial bank in Florida with over 600 offices and $41.2 billion in deposits. The purchase by NationsBank was announced August 29, 1997, but even before signs on Barnett's branches were changed, NationsBank merged with BankAmerica in...
, known as "Florida's Bank", the largest in the U.S. state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
at the time of its acquisition by NationsBank
NationsBank
NationsBank was one of the largest banking corporations in the United States, based in Charlotte, North Carolina. In 1998, it acquired BankAmerica to become Bank of America.-Corporate history:...
in 1997.
Early years
He was born in Hiawatha, KansasHiawatha, Kansas
Hiawatha is the largest city and county seat of Brown County, Kansas, United States. As of the 2010 census, the city population was 3,172. It is the largest city on U.S. Route 36 between St. Joseph, Missouri, and Denver, Colorado.Hiawatha is named after a poem by Henry Wadsworth Longfellow...
, the son of William Boyd Barnett and the former Sarah Jane Blue.
His father was a merchant and a banker in northeast Kansas.
Bion was the younger of two children who lived to adulthood. His older brother Will was five years older than he, and moved from Kansas to Jacksonville, Florida to start a furniture business in 1874, just as Bion enrolled at the University of Kansas
University of Kansas
The University of Kansas is a public research university and the largest university in the state of Kansas. KU campuses are located in Lawrence, Wichita, Overland Park, and Kansas City, Kansas with the main campus being located in Lawrence on Mount Oread, the highest point in Lawrence. The...
. Will spoke highly of Florida's moderate winter, so the following year, his parents journeyed to Jacksonville to visit their oldest son. Sarah Barnett suffered from neuralgia
Neuralgia
Neuralgia is pain in one or more nerves that occurs without stimulation of pain receptor cells. Neuralgia pain is produced by a change in neurological structure or function rather than by the excitation of pain receptors that causes nociceptive pain. Neuralgia falls into two categories: central...
, but her health improved during their time in Florida, so the Barnetts returned to Kansas, liquidated their assets, and relocated to Jacksonville in March, 1877. Bion, who was a college senior, withdrew from school to join his parents three months before graduation.
Bank of Jacksonville
On May 7, 1877, Barnett opened the Bank of Jacksonville on the corner of Main and Forsyth with $43,000 in capital. William was president, Bion acted as bookkeeper, and one other person was hired as teller/clerk. Most Florida banks at the time were private and unregulated. In spite of being a newcomer and a YankeeYankee
The term Yankee has several interrelated and often pejorative meanings, usually referring to people originating in the northeastern United States, or still more narrowly New England, where application of the term is largely restricted to descendants of the English settlers of the region.The...
, Barnett and the new institution slowly gained the people's trust, but at the end of their first year, and deposits only amounted to $11,000. Undeterred, William invited Bion to be partner.
Fate
A conversation between Bion Barnett and Henry L’Engle changed the bank's fortunes. L'Engle, the Duval County Tax Collector, was annoyed because the bank holding the county's funds charged $6.25 for each transfer to New York City banks. Bion offered to waive the fee if Duval CountyDuval County, Florida
Duval County is a county located in the U.S. state of Florida. As of 2010, the population was 864,263. Its county seat is Jacksonville, with which the Duval County government has been consolidated since 1968...
deposited their funds in the Bank of Jacksonville. L'Engle agreed, and the BoJ began to prosper. Within a year, L'Engle was appointed Treasurer for the State of Florida, and the state's accounts were transferred to BoJ. Within a few years, operating capital exceeded $150,000, and in 1888, the Barnetts applied for and received a National Charter, pursuant to the National Bank Act. This allowed them to become the National Bank of Jacksonville. The institution's deposits exceeded $1 million in 1893. Florida's first Burroughs Adding Machine was installed at the bank during this time.
Experience
Around 1890, Bion invested $3,000 in a phosphatePhosphate
A phosphate, an inorganic chemical, is a salt of phosphoric acid. In organic chemistry, a phosphate, or organophosphate, is an ester of phosphoric acid. Organic phosphates are important in biochemistry and biogeochemistry or ecology. Inorganic phosphates are mined to obtain phosphorus for use in...
mining enterprise that promised a return of $100,000 in three months time. When he lost the entire amount, he never again speculated, and applied that same principle at Barnett Bank. He was fond of telling people, "It is not the things you don't know that get you in trouble. It is the things you think you know for sure that get you in trouble."
On Barnett Banks 50th anniversary in 1927, Bion repeated his father's Five Rules of Business:
1. Follow the Golden Rule. You cannot go wrong treating the other man as you would be treated.
2. Give a man 50 cents if you can make a dollar out of him. In other words, be liberal in your dealings but always have a net profit. Do not do business at a loss.
3. If a young man is of good habits—honest, capable, saving, giving close attention to his business and making progress but lacking in capital—help him. The young man of today is the businessman of tomorrow.
4. Never make a promise you cannot and do not fulfill. Investigate carefully before granting a line of credit; once granted, there being no adverse change in your client's financial condition, fulfill your promise. Your word must be as good as your bond.
5. Watch your expense account and your losses; your profits will take care of themselves.
20th Century
The Great Fire of 1901Great Fire of 1901
The Great Fire of 1901 in Jacksonville, Florida was one of the worst disasters in Florida history and the largest urban fire in the Southeast. It was similar in scale and destruction to the 1871 Great Chicago Fire.-Origin:...
destroyed most of the city, and the National Bank of Jacksonville was the only bank still standing. When Bion's father died on October 21, 1903, Bion became president and resolved to rename the institution in his father's honor. The bank was rechartered as the Barnett National Bank of Jacksonville in 1908.
For their 50th anniversary, the bank built and moved into the 18-story Barnett National Bank Building
Barnett National Bank Building
The Barnett National Bank Building is a skyscraper in Downtown Jacksonville, Florida.The building was erected in 1926, and was Jacksonville's tallest building at the time, surpassing the Heard National Bank Building. It was designed by architecture firm Mowbray & Uffinger for Barnett Bank...
, the tallest structure in Jacksonville from 1926 to 1954. Bion Barnett commented "that the family-owned institution had endured epidemics, fire, freezes, and financial panics".
Depression
Just two years later, the bank experienced the Great DepressionGreat Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
and Barnett tried unsuccessfully to merge with Florida National Bank
Florida National Bank
Florida National Bank , founded in 1905, grew to became the second largest commercial bank in Florida. Florida National Group was acquired in 1990 by First Union Corporation, which was renamed Wachovia in 2001.-Early years:...
.
Baker, Fentress & Company owned Consolidated Naval Stores in Jacksonville and purchased a sizable quantity of Barnett stock. The infusion of capital left the bank stronger, but ended complete family control of the institution.
A bank holding company was begun after the stock market crash in 1929
Wall Street Crash of 1929
The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...
, and Barnett National Securities Corporation purchased and reopened several failed banks. The day before a bank holiday on March 5, 1933, Barnett expected a bank run
Bank run
A bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent...
. To prevent this, Bion directed the bank's personnel to pull all small denomination bills from the vault, and leave the $50s, $100s, $500s and $1,000 bills. Tellers were instructed to slowly count each withdrawal. Those at the end of the line saw their friends and neighbors leave the bank carrying large stacks of bills, which prompted many customers to regain confidence and leave without their money.
The bank continued to grow with the acquisition of many more Florida banks over the next two decades.
Personal
Barnett married Carolina Hallowes L'Engle on April 8, 1880 and the union produced four children: Madeline, William L'Engle, Bion Hall, Jr., and Donald Murray.Barnett kept a home in France, and stayed there for extended visits. He also enjoyed golfing in Scotland.
He was the grandfather of author Madeleine L'Engle
Madeleine L'Engle
Madeleine L'Engle was an American writer best known for her young-adult fiction, particularly the Newbery Medal-winning A Wrinkle in Time and its sequels A Wind in the Door, A Swiftly Tilting Planet, Many Waters, and An Acceptable Time...
.
Public service
Beginning in the late 1800s, Jacksonville's Board of Bond Trustees controlled most government operations, including the municipal electric plant, the city water and sewer departments, the fire and police departments, and hired all city employees except elected officials. Barnett was a member or chairman of the board from October 1896 to March 1911 when he resigned.He was a prominent Mason
Freemasonry
Freemasonry is a fraternal organisation that arose from obscure origins in the late 16th to early 17th century. Freemasonry now exists in various forms all over the world, with a membership estimated at around six million, including approximately 150,000 under the jurisdictions of the Grand Lodge...
; treasurer of Damascus Commandry, Knights Templar
Knights Templar
The Poor Fellow-Soldiers of Christ and of the Temple of Solomon , commonly known as the Knights Templar, the Order of the Temple or simply as Templars, were among the most famous of the Western Christian military orders...
; a member of the Seminole Club, the Florida Yacht Club
Florida Yacht Club
The Florida Yacht Club is a private country and yacht club in Jacksonville, Florida, U.S. It is the oldest social club in Jacksonville, and is the fourth oldest surviving yacht club in the U.S...
, the Florida Country Club and the Benevolent and Protective Order of Elks
Benevolent and Protective Order of Elks
The Benevolent and Protective Order of Elks is an American fraternal order and social club founded in 1868...
.