The Lincoln Building: A Journey Through Time and Financial Evolution
The Lincoln Building stands as a testament to the evolution of the financial industry, particularly the savings and loan associations that played a pivotal role during the Great Depression. This narrative delves into the history of the Lincoln Building, exploring its transformation from a small savings and loan association to a prominent financial institution, and ultimately its demise in the wake of the savings and loan crisis of the 1980s.
A Historical Context
In the 1930s, the Federal Home Loan Bank Act revolutionized the financial landscape by providing federal underwriting and direct loans to small banks known as savings and loan associations. These institutions, often referred to as thrifts or mutual savings banks, emerged across the nation, offering limited services such as passbook savings, home loans, and a few other financial products. The film "It's a Wonderful Life" vividly portrayed the impact of these small banks on local communities, highlighting the run on the local bank in 1933 and the subsequent restoration of faith in banking through federal underwriting.
The Lindsay Family's Legacy
In Spokane, the National Saving and Loan Association was founded by prominent business figures, including A.W. Lindsay, around 1920. After A.W. Lindsay's passing, his sons, Roderick and Donald, took the reins and established the First Federal Savings and Loan Association in 1934. This new institution quickly gained traction, securing mortgages on 20 homes within three months of its opening. The Lindsay brothers' vision extended beyond traditional banking, as they merged with another thrift in 1950, renaming it Lincoln First Federal. This name change was strategic, aiming to convey the bank's friendly service and avoid confusion with other organizations of similar names.
A Symbol of Financial Stability
The Lincoln Building became an iconic symbol of financial stability and community trust. The 16th president's likeness adorned letterheads, advertising materials, and even promotional items like piggy banks and calendars. The building itself underwent a significant transformation in 1964 when the company moved from 120 N. Wall St. to an eight-story tower at Riverside Avenue and Lincoln Street. This new location not only provided more space but also became a landmark in the city.
The Norman Rockwell Connection
In 1965, Donald Lindsay, then the CEO of Lincoln, commissioned a masterpiece from renowned illustrator Norman Rockwell. Rockwell created a giant portrait of Abraham Lincoln, which graced the lobby of the bank for two decades. This artistic endeavor further solidified the Lincoln Building's place in the community's heart and mind.
Challenges and Decline
The 1970s brought challenges to the savings and loan industry, with high interest rates squeezing thrifts. As a result, the name was changed to Lincoln Mutual Savings in 1976. However, the industry's struggles intensified in the 1980s, and Lincoln Mutual Savings succumbed to the savings and loan crisis. In 1988, it was taken over by Washington Mutual, the largest savings and loan in the U.S. at the time.
Legacy and Reflection
The Lincoln Building's story is a reflection of the rise and fall of the savings and loan industry. It highlights the importance of community trust, the power of branding, and the challenges posed by economic shifts. As the Lindsay family's legacy fades, the building continues to stand as a reminder of the industry's past, inviting us to reflect on the lessons learned and the impact of financial institutions on our communities.
In my opinion, the Lincoln Building's journey is a fascinating exploration of the human side of finance, where personal stories and community values intertwine with economic forces. It serves as a reminder that the financial world is not just about numbers and transactions but also about the people and communities it serves.
