The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-10-19
BANK OF THE UNITED STATES.
jackson Destroyed IL. and
Stockholders Lost S2S,000,0O0.

W. T.. Curtis, in Chicago Record.
In reply 10 inquiries. l would say that the
first bank in the United States was pro-
posed by Alexander Hamilton, secretary
of the treasury. in 1890. and the act of in
corporation was approved by Washington
in 1884, with capital of 100000. s2,OooOoO
to be subscribed by the government. and
the bills and notes receivable in payment
of all debts. 1t was opposed by James
Madison. Thomas jefferson. then secretary
of state, and Edmund Randolph, then at
torney general who questioned the consti-
tutional authority of Congress to incor-
porate n bank.
The average dividends Of the bank to
March, 1902 were So per cent. year. The
. 900 shares of 800 each owned by the
United States, with the additional interest,
cost s., $50. Ell, while the government re-
ceived in dividends and from its sale So
1850 profit of ST. %. or nearly 81
per cent
The cnarter of the bank expired by limi-
tation in 1911. In 1893 an application for its
renewal was defeated in the Senate by the
vote of Vice President Clinton and I'm he
House by the narrow majority of one. Then
followed a period OF state banks until 1916.
when President Madison approved second
charter for twenty years for a bank of the
United States, which was a monopoly, and
did not differ materially from the first. The
capital was fixed at $35 600 900, one-fifth sub
scribed by the government, and the Presi-
dent appointed five directors. The amount
of Indebtedness was not TO exceed the cap
ital, and it's notes. which could not be
smaller than So, payable on demand, were
receivable In all payments to the United
States. The bank was a government de-
pository and was required TO transfer gov
eminent funds as directed and negotiate
public loans. The transactions were con-
fined to bills of exchange, gold and silver
bullion and goods pledged for money lent.
The new bank started in 1Si7, during the
troublesome period caused by the suspen-
sion Of specie payments In 1914. and con-
tlnued until the general crash in 1880.
With the return of prosperity in 1870 the
stock rose TO premium. but President
Jackson assailed the management and con-
tinued his hostility, Notwithstanding Con-
gress, by a three-fourths vote, sustained 1t.
He made frequent changes in his Cabinet 10
secure secretary of the treasury who
would withdraw the government deposits
from the bank. and finally succeeded when
be transferred Attorney General fancy to
that office. The records show that the gov
eminent realized profit of s6.093l6l upon
its investment in the stock. In 1892 Presi-
dent Jackson vetoed Dill Tor an extension
or the charter. and the United states Bank
went out of existence in March. 1886.
The liquidation of its affairs is briefly re-
ported I'm letter on file In the controllers
office from Thomas Robins, of Philadel-
phia, who was probably the only survivor
of the numerous assignees. He says:
"All the circulating notes of the Bank of
| Of the United States, together with the de-
posits, were paid in full, principal and in
| terest and the accounts of the assignees
| were finally settled in 1856. There were no
| funds, and no dividend was paid to the
| stockholders of the bank. Their whole $685.
| 00G, 900 was a total loss to them. The $780,
| 600 of stock held by the United States pre-
vious to the institution becoming a State
| bank was paid in full to the government
| SO that the United States lost nothing by
| the bank"