The Antelope Valley’s first bank

As ATMs and financial institutions are located everywhere today, banking matters can be conducted with ease. Of course, this was not the case in the old Antelope Valley. As the area grew, smart businessmen realized that banking opportunities were ready to be established here.

The valley’s first bank, the Antelope Valley Bank, opened in Lancaster on Dec. 15, 1891. (Note: this early bank is in no way associated with the present-day AV Bank). It was located within Jacob Scherer’s (1831-1916) new large brick general merchandise store, which was located on the busy southwest corner of Sierra Highway and Lancaster Boulevard.

This brick building replaced Thomas Devereaux’s earlier wooden structure, which was moved to the northeast corner of Beech Avenue and Lancaster Boulevard. This former general store and saloon then served as Mom Evert’s hospital and boarding house for many years.

The new bank was operated by two “lively and energetic brothers — John Fowler Andrews (president) and Edward (Eddie) Childs Andrews (vice president and cashier) — who have the confidence of the entire population” (Los Angeles Herald Feb. 8, 1892). One local resident who soon acquired a position here was Robert M. Dugan Jr.

What drew the brothers to the AV? In Southern California, the 1880s were known as the wet years with extreme rain that encouraged many pioneers to settle here for affordable property. At this time, the closest banks were located in Los Angeles and Bakersfield and busy little Lancaster seemed like the perfect spot to open a new bank.

The brothers had been involved in the Santa Monica banking business for several years, so they had experience in knowing how to operate a bank. When the bank held its grand opening, the brothers spent a hefty $2,000 — almost $58,000 in today’s dollars — on the premises and furniture.

Articles of Incorporation noted that it had capital stock of $100,000. Other directors included H.B. Andrews (another brother), James P. Ward (Lancaster’s second town site owner) and Jacob Scherer.

Eddie rented Scherer’s house

next to the bank while John and his family moved to Lt. George Chase’s (1853-1916) lovely residence about one-half mile north of town. An interesting side note regarding John’s wife who was named Jessie Benton Carpenter. Jessie Benton Frémont (1824-1902) was the wife of early AV explorer John C. Frémont. Famous for being a writer, political activist and the daughter of a senator, most likely she was named after her.

The bank operated from 7 a.m. to 5:30 p.m. and performed a variety of banking activities including insurance, selling real estate, stenographic work, notary tasks and typing legal papers, etc.

One of its more specific functions, however, was buying coyote skins from local residents. One may think that only saloons served as meeting places for pioneer men, but the bank building (which also contained a jewelry and optician’s store) additionally served as a popular gathering spot. However, the participants were not always the nicest, as they liked sitting in the store’s doorway and would then shoot at On Lee, the Chinese laundry merchant located across the street and then, sadly, laugh about it.

I have not located any stories regarding bank robberies at this institution. Nevertheless, it had its share of smaller banking problems beginning with Sylvester (Alfist/ Alpheus) Drummond, a Spanish American War veteran, Methodist minister and the editor of the Lancaster Gazette, who was arrested for passing bad checks, swindling area merchants.

After the earlier prosperous rainy years, the Valley’s weather conditions changed with the horrible drought years throughout the state.

The drought severely impacted the dry farmers and cattlemen. They attempted to borrow money, but the bank refused to help them, which resulted in many families leaving the

AV. It also started many foreclosures and suing on promissory notes; one notable case involved the ownership

of a large number of hogs.

In 1895, the AV Bank sued Joshua and Fanny Constable, the owners of the well-known Western Hotel for $195 on a mortgage foreclosure and soon after, for $330 on a promissory note. Fortunately, the hotel survived this difficult situation. The bank would also be sued several times.

So many residents felt helpless that they began to despise the bank. The AV Bank did not last much longer, as it and neighboring businesses went up in flames during 1895, although the actual structure survived, but with some damage. The Andrew Brothers — John (b. 1859) and Eddie (1862-1942) — returned to Los Angeles where they once again became involved with the banking industr y in that metropolis.

The Antelope Valley would be without a bank until 1912. In a future issue, I will discuss the second generation of banks that included the Lancaster Bank, the second AV Bank and the Farmers’ and Merchants’ Bank.

The AV Bank was located at the far right (c. 1894/95).

This was the former AV Bank building (above), which later became Beckwith and Luca’s General Store (c. 1905-1908). Right, an 1891 AV Bank ad.