Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-02-19
HISTORY OF BANKING
THEME OF PAPER READ By MIR.
CHAs. E. HOWE.
Meeting of Washington Bank Clerks
Debate Between Representatives
of Two institutions.

The future bankers of the District Of Co
lumbia, known officially as Washington
chapter, American Institute of Bank Clerks,
discussed matters of grave financial interest
last night-matters that have caused many
gray hairs to grow on the heads of the
worlds leading financiers The occasion was
the monthly meeting of the institute, which
is an offshoot and protege of the American
Bankers Association. The occasion was
the regular debate instituted by the Wash
ington chapter. and the subject, which was
discussed in the banquet hall of the Hotel
Barton, affirmed that "a reserve require
ment of 10 per cent is ample for conserva-
tive banking" Messrs A. H. Bedford and
r. q. Claughton of the Citizens National
Bank were the speakers for the affirmative.
They undertook to show that Is per cent re-
serve was ample for all necessary require
ments, and admitted of more money being
put into circulation for the benefit of the
customers of the bank. They were so sue
cesSfuliy combated by Messrs S. ]. Henry
and F. r. Dooly of the National Safe De-
post, Savings and Trust Company that the
judges, Messrs. Henry H. Mckee, cashier of
the National Capital Bank; ]. Gales Moore
cashler OF the National Metropolitan Bank,
and John b. Sleman, jr., treasurer of the
Union Savings Bank, decided that they had
the best of the argument.
Early History of Banking.
The feature of the evening was a histori-
cal paper on 1.-The Early History of Bank
ing in the District of Columbia prepared
and delivered by Mr. Charles E. Howe as
sistant secretary of the American Security
and Trust Company.
Mr.. Howe introduced his paper by refer
ring to the fact that in the first banking
days of the District of Columbia Washing
ton had little or no physical existence Alex
an dr1a and Georgetown being the financial
centers. Continuing, Mr.. Howe said, in
part:
When the charter of the Bank of A1exan-
dr1a was granted in 1892 the population OF
the United States was less than 1000, CO.,
and the banking history of the country was
in its infancy; there were but five banking
institutions in the country. The monetary
history at that time had little to commend
1t and much to condemn it. Various none
ts.ry devices had been resorted to with little
success. The paper currency fuctuated vio-
lently, and stable money was hard to get.
The Bank Of Alexandria was the first to I'M
dortake to maintain stable currency. The
legal currency at that time was gold and
silver. With the organization of the Bank
of the United States the Bank of Alexandria
made an unsuccessful effort to be chosen as
oae of the branch banks.
Finding this impossible the Bank of
Alexandria worked on a charter given by
the general assembly of the state of Vir-
ginia, this being the first bank charter
granted by that body
THE second bank to receive a charter
south of the city of Philadelphia was the
Bank of Alexandria; in fact there was no
other chartered bank in the entire south.
1t is fact of more than ordinary moment
that subscriptions to the stock of the
Bank of Alexandria were required to be
paid in specie, the gold being weighed and
the silver counted. The entire capital
stock was subscribed to and paid for with
in two hours after the opening of the
books. The Bank of Alexandria opened for
discounts on April o. 1893 The capital
stock was $4,000 when the bank was
first organized, but in 1875 it was increased
to $35O,OGO
ct is a matter of interest that the cur
rency of the Bank of Alexandria was in
general circulation, going as far north as
Philadelphia.
Bank Of the Potomac.
"The second bank established within the
District of Columbia was the Bank of the
Potomac which was chartered by the gem
eral assembly of the state of Maryland,
December %. 1893. The bank was located
on what is now the north side of NJ street,
near oath street, in Georgetown in the
Lang Hotel building. The first president of
the bank was Mr. Samuel Blodgett of
Georgetown, and under his management
II was very prosperous. For many years
this bank wos called The White Cow
and it is an old saying In banking circles
that She was MIXED so hard by her own
ers that she died. This bank suspended
in 1926
During the business session resolutions
of sympathy for the Baltimore chapter of
the institute were passed by a rising vote.
and they will be sent to the stricken CITY,
joint debate arranged by the local chap
ter with team from the Baltimore chap
tel will be called off until fall After the
exercises of the evening a buffet supper
was served.