Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1904-06-21

When the war of the revolution
broke out in America the colonists had
no bank. Paper money had on several
occasions been issued by the colonial
treasuries-the first case being in 1880
TO aid a Massachusetts expedition
against Canada-and there had been
several banks for this purpose, in
which the subscribers stood as securi-
ty, either in person or as represented
by the paper certificates. But this pa
per money. like many earlier expert
ments in finance. obtained little. gen
eral confidence and rapidly depreciat-
ed, until in 1740 parliament forbade
the existence of any banks whatever
in the colonies.
AT the commencement OF the revo-
luton, therefore, congress had no
money. Millions of dollars of paper
money was issued with no other Sc
curity than taxes that might be i'm
posed, but which it was fairly obvious
that the country would be unable to
pay; and the depreciation of this cur
rency was SO great, and yet so grad
ual as il passed from one man to an
other, that the final holders lost com.
paratively little, and the whole coun-
try breathed a sigh of relief when it
finally. some years after the war, be-
came admittedly worthless
Such a currency was obviously of
small value in paying the expenses of
the war. and in 1880, when the Amer
lean army was almost on the point of
mutiny for back pay. the Pennsylvania
bank came into existence, founded by
hn CgUNFG r-fFnfi f,,fv, 4v;xxN
Philadelphia citizens This bank, how.
ever. important as it was in forward
ing supplies and money at a time
when they were greatly needed, was
rather a patriotic association than a
banking institution.
In 1872 it was followed by the Bank
of North America, the first perma-
nenIly organized bank in the United
States and the first to have dealings
with the national government. This
bank rose directly from the govern
ments need of money, and the plan
was drawn up by Robert Morris. then
superintendent of finance, whose own
future was largely devoted to main.
tanning it's credit in the trying days
of its earlier history. The bank, how
ever, was not rechartered when the
time came, and in 1871 Alexander
Hamilton established the first bank of
the United States. which exercised ex
elusive banking privileges and furnish
ed a safe and uniform currency until
its end, 1911. when congress refused tc
renew it's charter. chiefly because OF
popular distrust based upon its mono
pOlistic character.
The second bank of the United
States was not so successful as an
institution, and it's final discontinue
ance was followed. after a period of
confusion that many Americans still
remember, by the present national
system, under which the banks eStab-
lished in the different states received
loans of government money and the
United States treasury stands behind
the credit of all paper money.
The financial tables of the report
of the department of commerce and
labor covering the first quarter of
1904 shows 5.240 national banks in
the United states on April l, with
total authorized capital of $76S.750,S15
which is something like $150,000,O00
more than the aggregate capital of
JUe O.ONJ lHSIiIublOllo III OpNi d'iOh J"o'
five years before.
Within comparatively recent years
the trust company has entered the
banking field. and one of the most
notable of the last developments in
banking circles is the extension OF
this idea by the foundation of trust
company composed exclusively of ma
tiona1 banks and banking houses. This
is the Bankers Trust company or
ganized in New York about year ago
largely with a view to systematizine