Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1832-01-18
From The Banner Of the Constitution.
STEPHEN GIRARD.

from me Banner Of the Constitution.
STEPHEN GIRARD.
Mr. Girard was native of Bordeaux, but
came to this country about fifty years ago. He
commenced mercantile business in PhiadeI phia
with very small capital, which he had saved from
his earnings as "a master Of vessel. HIS habits of
living were the most economical; and by the time
the period had arrived. at which our neutral po-
sition gave tine shipping Of the States superior
advantages IN commerce. he had accumulated a
suffiriency to enable him 10 enter the field as
ship owner. Taking advantage then, of the &C.
casion thus presented, he adopted the principles
of good faith in his navigation operations, acted
most truly the part of neutral. and. to avoid in
curing the risks which attached. to those belli-
serent days. to vessels suspected of covering enc
mics property under the American flag, refused
to carry on board his ships, property belonging to
any body bu, himself. The rigid observance Of
this rule, acquired for him hugh reputation
amongst the officers of the British navy; and it
was rare thing for vessel belonging to Mr.. Gil
rard to be detained on the hish seas. Whilst other
merchants were interrupted in their voyages, and
had their vessels captured. sent in for adjudica.
iion, and sometimes condemned, rightfully or
wrongfuiy-lhe ships of Mr.. Girard sailed un-
moiested He was not even in the habit of max
great was his good fortune in this particular. that
he very seldom, in his long career. lost vessel.
Soon after the expiration Of the Charter of the
old Bank Of the United States, in 1871. Mr.. Gil
rard purchased their Banking House in Third
Street, and commenced the operations OF Bank.
err The capital which he placed in his banking
establishment was understood to have been
81. 200, 900, which he not long afterwards vest
eI in hak an IS nf trus in r.artb at in
of his disease, no interruption should take place
in the fuitiment of his engagements as banker.
and that no arrangement in the affairs of the
mercial community should result from sudden
withdrawal of his capital. The management of
the bank was. however, reserved to himself; and,
from its first formation to the period Of his last
illness, the discounts were entirely regulated by
himself aud cashier OF this capital. and Oft
&C, umula tons, it is understood that no more than
$500, 600 have ever been withdrawn from the in
stitutOn, and that at late period. and when
state the fact, derived from respectable source.
that the total capital at this time is but $4,000.
600, 1t will show that Mr. GIrard's banking 0pp.
ratons were always conducted within safe and
prudent limits; for il is not known that he eype-
rienced manv heavy losses. AT compound int
rest OF eight per cent money doubles in nine years
and two days; and as Mr.. Girard commenced
his bank in March, 1912, his capital should have
been more than quadrup!ed. had his income, clear
of expenses been equal to eight per cent. per
annum.
But thrust not5e passed BY, in noticing the trans.
actions of this first private banker in the United
States, as we'll in regard to tine - to the extent
of capital that Mr.. Girard was sound theorst
upon questions of banking. He understood the
matter instinctively. He knew that banks were
only serviceabe to a community, by enabling per.
sons possessing capitals to anticipate them by get
tins their bills receivable discounted. and not by
lending capitals; and, hence he set his face from
the commencement, against lending money upon
permanent accommodation notes, and confined
himself so exclusively to the distribution of real
paper. that he was often enabled to lend money,
whilst other banks were calling in. At the time
Of the suspension OF specie payments. which CON-
menced in August, 8l4. and continued TO Janua-
ry. 1917, Mr. Girard foresaw that the public
might not have the same spirit of forbearance to.
wards private individual banker, as they would.
towards corporation, and he accordingly took
legal advice on the subject, which led him to with
draw his notes, and to make loans and accent de.
postes payable only in the notes of the incorpo.
rated banks. Had he not done this. the proba.
bility IS that all who had claims upon him in the
form of deposites, would have drawn out their
funds in coin: and he would not only have been
driven down. IN his discounts, to the amount of
his capital, but would not have been able to get
payment from those who had borrowed his coin,
10 any other money than the deprecated paper of
the incorporated banks.
During the whole period of his banking opera.
tons, Mr.. Girard carried on foreign commerce
more or less. His operations were generally di.