Coalton and the Cash Register

 

The cash register, which can be found in nearly every business and store worldwide today, is the result of an idea that had its roots in Coalton, Ohio, USA. As one writer put it, "It came from an idea that grew in Coalton."

The main factor of the National Cash Register Company is located in Dayton, Ohio. The Company of today (1953) is a reflection of its founder's belief in the universal need for its products. John H. Patterson did not invent the cash register but he was one of the first to use it. More importantly, he visualized its ultimate use throughout the world.

Mr. Patterson's first contact with the cash register was here in Coalton. He operated a general store in connection with his coal mines. The store was in the building now owned by Enoch Wood and Sons. In an effort to stop losses which were eating up his profits, Mr. Patterson installed three cash registers. He was so impressed with the results that he bought the patents and manufacturing rights and founded The National Cash Register Company.

Today (1953), there are 33,000 National Cash Register employees throughout the world. National products have grown from the simple machine of the 1880s to a complete line of cash registers, accounting machines, and adding machines. These products are used in more than 90 countries. When Mr. Patterson started in the business he said, "What is good for a little store in Coalton is good for every store in the world." He proved the truth of that statement, lived to see a worldwide business grow from that early experience here in Coalton.

 

A BRIEF HISTORY OF THE CASH REGISTER AS TOLD IN 1953:


"Go into almost any country in the world today and one thing familiar you are sure to hear… the ring of a cash register bell. For years the cash register has been accepted as standard equipment in retail stores. Yet, just three quarters of a century ago it was looked up on as a "new fangled" and largely unwanted device.

The chain of events which led to the development of the cash register and its worldwide use began to a considerable extent right here in Coalton. In 1878 James Ritty, a café owner in Dayton, took a trip to Europe. He was troubled by the shortages in cash which plagued his business. Watching the device which counted revolutions of the ship's propeller shaft, he wondered why a machine could not be built which would count and protect the money taken in. Returning to Dayton he and his brother designed a crude cash register. The first model, a dial machine, was never sold. It was followed by a "paper roll machine" which found a limited market.

One of its purchasers was John H. Patterson who had begun mining coal in the Coalton-Wellston area just about the time Ritty was thinking of a cash register. In connection with his coal mines, Mr. Patterson operated a general store which sold goods to the miners. The store was in the building where the Wood Brothers now have their hardware and building supply store.

In two years of operation the store showed a loss of $3,000 despite a good volume of business. In an effort to stop this loss, Mr. Patterson installed three of the new cash registers which he had heard of in Dayton. Crude though these machines were, they did provide some check on cash and transactions and the loss was turned into a profit. Mr. Patterson was so impressed with the possibilities of the machines that he and his brother bought 50 shares of stock in the company which made them.

By 1884 the business of manufacturing cash registers had already passed through several hands and was showing a loss. In the meantime Mr. Patterson had withdrawn from the coal business and was looking about for something to do. He went west with the idea of raising cattle. However, a chance meeting with a New England merchant vacationing in Denver helped to renew his interest in the cash register and sent him back to Dayton to buy the Company. This merchant praised the cash register as a tool of business and said that he could take a vacation with a free mind because he used these machines in his store.

Mr. Patterson bought the stock of the National Manufacturing Company for $6,500 and immediately regretted his purchase. His friends told him he had bought a company that was losing money and a product that nobody wanted. He tried to sell the stock back, even at $2,000 less than he had paid for it. The seller refused to buy back, said he would not take it as a gift.

From that day on, Mr. Patterson's faith in the cash register never wavered. He often said and firmly believed that "The more we sell, the more good we do." Although he was always handicapped by lack of money in the early days, he embarked upon a program of product development, selling and advertising that not only built the cash register business but marked the man himself as at rue industrial pioneer.

Mr. Patterson did more than build cash registers. He set new standards for working conditions, landscaped the ground around the factory, and built the first "daylight" factory with 80 percent of its wall space glass. He gave much thought to the development of good employee relations, started restaurants for employees, originated the suggestion system and pioneered in many other directions.

When Mr. Patterson bought the company, the "factory" consisted of one room, 40x80 feet with 13 employees. Today the main factory at Dayton consists of 28 buildings and employs 12,500 men and women. There are other factories in overseas countries and sales and service organizations operating through the world.

The little paper roll cash register used by Mr. Patterson here in Coalton has been supplanted by a series of successors. As a matter of fact the term "Cash register" no longer accurately describes the company's products for accounting machines and adding machines, as well as cash registers have borne the National trademark for a good many years.

The Company's products are used today not only in every type of retail store but in banks, factories, hospitals, hotels, government offices, and public utilities… wherever money is handled or records are kept. The bell which rang out on John H. Patterson's cash registers here in Coalton years ago when miners bought lamps or clothing or food has truly become "The Bell Heard Round the World."


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By Jack Rhea, Historian

Writer's Note: This material was taken from "The History of Coalton and Coal Township, 1953.

 

 

 

 

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