PROLOGUE The Bank of Berryville The end of the Civil War had left the southern United States with significant economic challenges. The entire banking system of Virginia was swept away, and none of the old banks attempted to reorganize after the close of the War. No incorporated Virginia bank had failed and no customer had lost one dollar until the outbreak of war in 1861. Virginia’s economy became based on the future value of confederate currency, which was rendered worthless. In fact, a statute of the Acts of Virginia’s General Assembly, 1865-1866, enacted on February 12, 1866 required that all Virginia banks go into liquidation. Reconstruction pressures continued for years after fighting in the northern Shenandoah Valley had ceased. Fortunately, the local economy was somewhat insulatedandconditionsrapidlyfellbackintoaregularroutine. InClarkeCounty, Virginia, a sumac and bark mill, operated by Mr. Pulliam, gave employment to a number of people. Mr. George C. Thomas reopened a large carriage shop that was previously run by Mr. Strother H. Bowen before the War. The restoring of the local economy also required that a bank be formed to take deposits, encourage savings and lend to local citizens eager to put the war behind them and begin to build back their financial health. A group of local investors began to pool resources and started the process of organizing a bank to be headquartered in Berryville, Virginia. The bank’s charter was applied for through the State Legislature and took many months to be granted. The Clarke Courier reported in February 1, 1872 that the town was still waiting for news of charter approval, but in the meantime had raised over $6,000 in capital with which to fund the operations of this new bank, to be called the Bank of Berryville. Between February 1 and March 13, 1872, the charter to form the bank was granted and a stockholders’ meeting was held on March 13, 1872 in the Clarke County Courthouse for the purpose of launching the new bank. Major S. J. C. Moore was elected as its first President. The Board of Directors consisted of Messrs. S. J. C. Moore, A. W. McDonald, F. W. Wheat, W. B. Harris, I. N. Laws, P. McCormick, Jr., George C. Blakemore and J. William Russell. The Bank of Berryville opened its doors on April 1, 1872 as shareholders made their first payment on the capital raised, funding the day-to-day operating needs. The Bank rented a room on East Main Street in Berryville (the Masonic building), belonging to Mrs. Crow and adjoining R. R. Smith’s Dry Goods Store. Renovations were done to convert the space into a proper area for the transacting of local banking business. Six months later, the Bank of Berryville had experienced enough success in its earnings to trigger a dividend of 5%. The Clarke Courier, in its October 24, 1872 issue, commented that the dividend announcement “spoke well for the management of its affairs, as the bank has been in operation only six months.” TheBankcontinuedinoperationwiththemanagementvirtuallyunchanged from year to year. Mr. M. Pulliam and Mr. T. M. Eddy were added as directors during this time.