In lieu of an abstract, here is a brief excerpt of the content:

C h a p t e r s i x t h e F i n a n C i e r s New Frontiers in Banking Merchants performed the first banking services in Texas inasmuch as banking was usually an adjunct to other business pursuits. The financial history of Texas follows the demographic patterns, with the embryo of banking beginning with the buccaneers on Galveston island. in all probability, the de la Porta brothers became the first Texas bankers when Morin de la Porta financed the first buccaneer camp on Galveston island in 1816 and his brother, Jao de la Porta, exchanged captured spanish goods for Karankawa indian produce and crafts or american money.1 doubloons and buried treasure in 1833 a few small businesses began along the Galveston bay front, combining the exchange of money with trading and selling merchandise and catering to sailors and mariners. Street scene in Victoria, 1873. Third building from left is the A. Levi and Co. Bank. Joseph osterman was one of Galveston’s first financiers, often helping the infant city of Galveston meet its debts.2 he built the first strongbox or vault in Texas to safeguard customers’ valuables and papers and was one of three early southern bankers to make loans on cotton and growing crops.3 A. Levi and Co. Bank. 88 the financiers the viCtorious levis: abraham levi (1822–1902) and godCheaux levi (1852–1914) Many stores on the Texas frontier had two standard fixtures. one was a barrel of whisky with a tin cup for thirsty customers. The other was a big iron safe in which cattlemen could place their cash in shot bags branded with their names. This practice led some merchants into lending money and discounting notes, thus edging themselves into the banking business. Certainly the story of abraham Levi, who worked his way up from a peddler to become the first banker in the Texas town of Victoria, illustrates the origin of frontier Texas banks. abraham Levi was born in the village of hatte, alsace, France, on June 24, 1822, to Getchell and rachel Levi.4 his father died when abraham was eight, and at age thirteen abraham peddled ribbons and notions. at age twenty-four abraham boarded a boat for new orleans, arriving in america in 1846. Knowing no one, he became a menial laborer, working his way up the Mississippi river to natchez. after working for a butcher, he became a foot peddler. he had a melodious voice, and, playing up his French accent, he prospered. he then took a job with a. schwartz, a merchant in Liberty, Mississippi. The year 1848 became a turning point for both Levi and Texas. with the Mexican war ending in 1848, Texas’s southern border was defined. That year Levi’s employer arranged for him to open a business in Texas. in addition, a. schwartz had a brother-in-law in new orleans, Jacob halfin, who advanced $3,000 for the business in Texas.5 Jacob and his younger brother henry hired abraham to investigate Victoria, one of the first three Texas towns granted a charter of incorporation. Levi reached Victoria with the goods in 1849, selling “dry goods, groceries, liquors, and pecans in the west wing of the Globe house, a hotel at 116 west Forest street.”6 That same year, abraham married henry’s sister, Mina halfin. The union produced seven children.7 By 1861, shortly before the Civil war began, the business had become the largest dry goods establishment in southwest Texas. at the business’s height, a fire totally destroyed halfin, Levi, & Co. The two men dissolved the partnership, and abraham spent the Civil war years in France. in 1865 abraham set up a business in Matamoros, Mexico.8 when losses mounted, he returned to Victoria . There he found his stately prairie house occupied by federal troops. eventually he regained possession of his home. in 1866 he opened another store, a. Levi & Co., a wholesale grocery business, with his cousin, henry Levy, as a partner.9 abraham developed a reputation as a friend of the farmer and cattleman because he carried them through droughts and other hard times. he began to sell banknotes. soon the banking business grew bigger than the grocery. abraham and henry decided to formally organize a private banking business and set aside part of their two-story structure for the bank. That was the beginning of a financial institution that was to grow with Texas and the Gulf Coast area...

Share