Matthews, founded in 1895, was named in honor of Governor Claude Matthews. The Town was Incorporated in 1902. At the height of the natural gas boom, Matthews was home to 15 glass factories, 4 churches, 4 drug stores, 7 restaurants, 2 newspapers, 2 banks, 7 blacksmiths, 1 dentist, 4 doctors, 24 general stores, 2 laundries, 1 bakery, 2 furniture stores, 2 morticians, 2 real estates, 2 insurance men, 3 barbers, 3 attorneys, 1 jeweler, 1 photographer, 1 telegraph office, 2 ladies hat shops, 3 hardware stores, 2 candy stores, 4 sawmills, 6 livery stables, 2 saloons and a justice of the peace.
Anyone who has been to Matthews, would find it hard to believe that Matthews had the world's largest natural gas well and was seriously considered to be in the running for the capital of Indiana, both of which is true. That may be why Matthews is best known as the Wonder City. Many "wonder" what happened. After the gas failed, most businesses and residents moved away and Matthews started to rebuild itself.
Matthews is now known for having the only covered bridge in Grant County. Each year the annual Covered Bridge Festival is held the second weekend in September. The festival features steam and old gasoline engines, craft exhibits and local talent. For the last eight years the Town also hosts a Car Show at the Community Center with ALL proceeds going to the Matthews Volunteer Fire Dept.