The 1920s was a period of prosperity in the United States when the production of goods by industry rose to record levels. The presidents during the 1920s were Warren Harding, Calvin Coolidge and Herbert Hoover. There was a familiar quotation during President Coolidge’s administration: “The business of America is business!”
The banking industry saw large increases in their balance sheets during this time. The residents of the Northampton area were served by the Cement National Bank of Siegfried. The name of the bank recognizes the cement industry which employed thousands of people in the cement belt. The Cement National Bank of Siegfried opened its doors in 1899 on Main Street with $50,000 in capital.
In 1925, Northampton business leaders met to consider establishing a new bank. The bank was named the Allen Trust Company. A beautiful stone structure was constructed at the southeast corner of Main Street and Laubach Avenue.
The building had a gala opening on Oct. 13, 1929. Unfortunately, 17 days later, on Oct. 29, the stock market crashed. A “Great Depression” faced the nation and the world.
This writer saw a deposit book from the Allen Trust Company; the family savings was $800. When the family went to the bank to withdraw their money, the bank was closed. All their savings were lost.
Our new president, Franklin D. Roosevelt, communicated with the country through radio broadcasts called “fireside chats.” These “chats” explained the “New Deal” policies of the government during the Depression. In one of these broadcasts, the president told the nation that all the banks would be closed and only the solvent banks would reopen. The government quickly passed the Federal Deposit Insurance Act which would guarantee the first $2,500 in bank deposits. Many banks never reopened!
The Allen Trust Company could not pass the government audit. The bank was taken over by the Cement National Bank in 1932. Later the building was used by several governmental agencies during World War II. After the War, Post 4714 Veterans of Foreign Wars organized a post in the building.
Today the building is an apartment complex owned by Mr. Nat L. Hyman, of Allentown. We thank Mr. Hyman for placing a beautiful plaque on the building, a permanent reminder of our rich historical past.
