03/15/2026
On a business trip to San Antonio, Temple Smith heard of a prosperous village in the Hill Country that had no bank. Smith visited Fredericksburg, liked what he saw and decided to stay.
In 1887 Temple Smith founded the Bank of Fredericksburg, located on the first floor in the Maier Building at the corner of Main and Adams (today Hudson and Taylor).
Frontier banking could be an adventure.
On July 2, 1888, two strangers entered the bank, guns drawn. One stranger got the drop on Banker Smith and his assistant Mr. Wahrmund, The other bandit scooped up $250 in cash from the teller's drawer.
They wanted more but the timed vault was locked and couldn't be opened until the next morning. The bandits ran out into the street, leaped into the saddle and galloped to the west across the public square. Smith and Wahrmund ran upstairs to the law office of Judge A. O. Cooley. They took shots at the bandits from a second floor window until the outlaws made the brush and vanished.
In 1889 Smith commissioned renowned San Antonio architect Alfred Giles to build a new bank building at 210 E. Main Street. The bank was on the first floor. Smith and his family lived on the second floor.
Quite a few banks defaulted during the Panic of 1907, but the Bank of Fredericksburg, along with two other East Texas banks run by Banker Smith, weathered the crisis without closing doors or limiting withdrawals.
The San Antonio Light called Banker Smith's amazing work during the Panic "a unique feat."
"It is probable," the Light reported, "that this performance was not duplicated by any other individual banker in the United States."
Banker Smith is best remembered as the driving force behind the Fredericksburg Railroad. He spent years of his life and a considerable part of his wealth, bringing the railroad to town.
The railroad honored Banker Smith by naming a stop after him.
The town of Bankersmith, two miles south of Grapetown, once had a depot, post office, store, lumberyard, garage and dancehall.
Temple Smith died on April 24, 1926.
The Bank of Fredericksburg did not survive the Depression. In February 1932 both Fredericksburg banks failed on the same day.
Credit: Michael Barr