1. Bank of North America.

This is the oldest bank in the United States, and its establishment is connected with circumstances in the political history of the country, which every American ought to be acquainted with, and never forget.

Every one knows, that to carry on the war for independence, Congress were obliged to supply the want of a solid circulating medium, by the emission of paper money, and no funds having been provided for its redemption, it met with a natural fate, a gradual depreciation. The enthusiasm of liberty that fired the minds of many in that day, to a degree not surpassed by any nation; supported the credit of this substitute for the precious metals for a time, but at length it became of so little value, as to be inadequate to the wants of our citizens, and in 1781, public credit was so low, that supplies could not be obtained to defray the necessary expenses of the government. The idea of a bank had been sometime before suggested by an American* then in England, and on the proposition of the minister of finance, R. Morris, a plan was adopted by a resolution of congress on the 26th of May, 1781. It was to be composed of a thousand shares, at four hundred dollars each; but either from want of confidence in the project among the monied men, or from ignorance of the nature of the institution, only two hundred shares were subscribed for, and it was some time after the bank was fairly in operation, that the sum received upon all subscriptions, amounted to seventy thousand dollars. In November 1782, the President and Directors were elected; and in January 1783, the bank was opened for business. At this time there remained in the treasury, about 300,000 dollars, being part of

*Dr. Ruston.

the money loaned by France to the United States. A considerable sum was due for past transactions, and congress had not required the States to pay any thing for the service of the coming year, before the first of April. The treasury was $1,600,000 in arrears. Under these circumstances, about $250,000 of the public money were invested by Mr. Morris, in the stock of the bank. It was principally upon this fund, that the operations of the institution were commenced; and before the end of March, a loan from it of 300,000 dollars was obtained, being the total amount of their specie or capital. This loan was shortly af ter increased to 400,000, for such was the state of the revenue, that no more than 30,000 dollars had been paid into the public chest by the last of June. Considerable facilities were also obtained by discounting notes of individuals, and thereby anticipating the receipt of public money, and the army contractors for rations, were also aided with discounts upon public credit. The whole amount directly and indirectly obtained, exceeded one million of dollars: and Mr. Morris asserts that without this establishment, the business of the department of finance, could not have been performed.* A charter had been obtained from congress in the month of December 1781, and in April 1782, an additional act of incorporation was passed by the legislature of Pennsylvania. This however after a hard struggle was repealed in 1785, owing to the prejudices of many country members against the institution. Mr. Morris, who knew the incalculable benefit derived to the country, from the pecuniary loans of the bank, spoke feelingly and ably in its defence. A new charter was granted in 1787, and in the year 1799, it was continued for fourteen years after the 17th of March 1801.

* Statement of the accounts of the United States of North America, from 1781 to 1784. Philadelphia 1784 by R. Morris

The capital is $800,000. Dividends in January and July; and since 1804, have been at the rate of nine per cent. There are twelve directors. Banking house, No. 99, Chesnut street. Discount days, Mondays and Thursdays. Shut on Christmas, first of January, fourth of July, and Good-friday.

President, John Morton. Cashier, Henry Drinker, jun.

2. Bank of Pennsylvania,

Was incorporated March 30th, 1793, until 1813. The original capital consisted of two millions of dollars, divided into five thousand shares of 400 dollars each: permission was granted to increase them to 7500. The state was permitted to subscribe for 2500 shares. In February 1810, the charter was extended for the term of twenty one years from the fourth of March 1810, upon condition, that the governor shall be allowed to subscribe at par on behalf of the Commonwealth for one thousand two hundred and fifty shares of the reserved shares of the Bank, and also for the same number all at par at any time after the expiration of ten years from the fourth of March 1813. The stock of the bank is not to be transferrable to any person except citizens of the United States.

The State of Pennsylvania has now $1,509,000 vested in this bank. Branches have been established at Lancaster, Pittsburg and Easton.

There are twenty-five directors including the president; Three are annually appointed by each

*

By this purchase the state gained $110,000, and may gain an equal sum when they use the privilege of the second invest

ment.

house of the legislature; the rest by the stockholders, on the first Monday in February.

President, Joseph Parker Norris. Cashier, Jonathan Smith.

Discount days, Wednesday and Saturday.

Dividends, January and July. These have never been under eight per cent.

Bank, in Second street, near Walnut. Shut, Christmas and fourth of July.

3. Bank of Philadelphia,

Was formed in 1803, with a capital of one million of dollars; and was incorporated in 1804, upon the following conditions. 1. Paying 135,000 dollars in cash. 2. Permitting the governor on the part of the state, to subscribe for three thousand shares, and to receive in payment $300,000 of six per cent stock of the United States at par. * 3. To loan to the State when required, 100,000 dollars at five per cent for ten years. 4. The privilege of subscribing 200, 000 dollars at the end of four years, and, at the end of eight years to subscribe other $200,000, on the part of the State,both sums to be at par.t

The capital was increased six hundred thousand dollars by the act of incorporation. The capital is now 2,000,000 dollars. The original charter was to last ten years, but in 1806 it was extended to 1824.

*It was then ten per cent. below par.

As the practice of paying for charters to banking companies marks an æra in legislation, it is proper to mention, that the enormous bonus paid by the bank of Philadelphia, and the other privileges granted to the state, became necessary, in consequence of the violent opposition to the institution by the bank of Pennsylvania, and the offer on the part of that bank of $200,000 to the state, provided no new bank should be incorporated.

The state now holds $523,000 of stock in this bank. Sixteen directors are appointed by the stockholders, on the second Monday of February, and three by each house of the legislature at every session. Stockholders must reside in the United States. Branches of this bank have been established at Washington, Wilkesbarre, Columbia, and Harrisburg. Shares $100.

Discount days, Monday, Wednesday, and Fri

day.

Dividends, March and September. These have been uniformly eight per cent.

President, George Clymer. Cashier, Quintin Campbell.

Bank, corner of Fourth and Chesnut streets.

4. Farmers and Mechanics Bank,

Was formed in the year 1807, and incorporated in 1809, until 1824. The capital was originally $750,000. It is now nine hundred thousand, and by the charter may be increased to 1,250,000. Seventy-five thousand dollars in stock, were paid for the charter. The debts of the corporation must not exceed double the amount of the capital; one tenth part of the capital for a year, shall be loaned to the farmers of this state if applied for, on sufficient security by bond, mortgage, or note. There are thirteen directors, a majority of whom shall be farmers, mechanics or manufacturers. No bill for less than five dollars may be issued by this or any other bank in Philadelphia. Shares fifty dollars.

Dividends, January and July. These have been, the first year, eight per cent; and in 1810, were nine

per cent.

Discount days, Tuesday and Friday.

President, Joseph Tagert. Cashier, Joseph Clay.