Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-24
BANKS OF EARLY DAYS
THEME OF ADDRESS BY CHARLES
E. HOWE.
MI. Samuel Stratton Describes Methods
of Bureau of Standards-Bank
Clerks Entertained.

Before the Washington Chapter of the
American Institute of Bank Clerks last
evening the director of the national ou-
reau of standards. Mr.. Samuel w. STRAIT
ton gave an account of some of the meth
DDS followed in the bureau and also
general statement of the STANDARDS or
measurements, his address being largely
technical, but of great interest to his hear
ers.
Some account Of banking In this city a
few years prior to 1919 was given by Mr..
Charles E. Howe, assistant secretary Of
the American Security and Trust Company.
Mr.. Howes address opened with a re-
view of the banking history of this coun-
try and Europe prior to 1911, and he
showed that even at that early date politi-
cal and commercial disturbances, such as
the Napoleonic wars on the continent and
the organization of the Bank of France and
the wild speculationS incident thereto, were
keenly recognized in this country even
prior TO the second war with England.
When 1t became evident that Congress
would not grant renewal OF the charler
of the Bank of the United States, MIR.
Howe stated, there was a wild scramble
throughout the country to organize state
banks. with the expectation that vast earn
ings would ensue to the stockholders There
was organized within the District of Co.
lumbia during the year 1911 no less than
seven banks, all of which were chartered
by special act of Congress.
The first effort to organize bank in
Washington in 1912 failed. 1t was that of a
bank to be called THE Produce Bank of
Potomac
When ii became evident that the gov
eminent was compelled to obtain loan to
carry the war with England and to pay
the current expenses of the year, Congress
passed an act on March IA, 1912. authorizing
the President of the United States to bor-
row on the credit of the United States SILL
0O0, 900 at 6 per cent. Subscription books
were opened in ten different cities, includ-
Ing Washington, and the subscriptions were
payable at certain designated banks. The
institution designated for the District of
Columbia was the Bank of Columbia.
Form of United States Bonds.
These shares of funded capital stock. now
called United States bonds, were made pay
able at the several loan offices located
in the several states and also at the treas
ury of the United States.
BY a subsequent letter of Secretary Gal
latin number of other banks were invited
to receive subscriptions to the loan. Among
the District banks were the Union Bank of
Georgetown, the Bank of Potomac of Alex
andria the Farmers Bank of Alexandra
and the Bank of Alexandria. In a report to
Congress of the amount obtained Mr.. Howe
discovered that the Bank of Columbia sub
scrbed toward this loan $20O 900; the Bank
of Alexandria, 100000; the Farmers Bank
of Alexandria, 500 600; the Union Bank of
Georgetown. $4,000, and the Bank of
Was hingtOn. $J0,O0Q-a total bank subScrip-
tio1 OF $-2J. 800. From individuals in Wash
ington the subscriptions aggregated over
s6'.c21 a total subscription for two days
of SJGl coo.
TIE Secretary of the Treasury in his an
nual report TO Congress for the year 1877
shows that Washington was the fifth larg
est money lender to the government during
h3 hain only a[N Cd nv
New York, Philadelphia and Baltimore.
War Tax on Banks.
The first war act ever passed by Con-
gress taxing banks and bankers was that
of August 2. 1913. The several stamp du-
ties were on a sliding scale and the stamps
were to be affixed on notes, bonds and obli-
cations discounted by banks and also on
bills of exchange of certain descriptions
Tire stamps had for their legend the duty
for which they were specified, with the
device of an eagle bearing shield.
Another effort 10 establish a new bank
in Washington was made November 20
1873. when a number of citizens convened
at Davis Hotel for the purpose of APP
pointing a committee to prepare articles
of association. Gen. John p Van Ness pre-
sided al the meeting and Mr.. Macdaniel
acted as secretary. The name of the new
bank was known as THE President and
Directors of the Bank of the Metropolis
II was a COpdftnershlp institution and was
to continue for twenty-one years, unless
charter should be sooner obtained. The
authorized capital was 100000. divided
into shares of $40 each. to be paid in in
stailmenls covering a period OF nine years
after the time of opening the subscrip
lions
The day the books were opened, January
3, 1914 the entire stock was largely over
subscribed. "A, 661 shares more than the
requisite number-in other words, an ex-
cess subscription of 100000 Even today
such an Over-subscription will be consid-
cred most complimentary and gratifying.
An election was held January 10, when
board of directors was chosen and the fol-
lowing day the board met and elected Gen
John =. Van Ness, president, and Mr.. AL
eXander Kerr, cashier.
Farmers and Mechanics Bank.
In the November Intelligencer of Janu-
airy II, 1914. is to be found a copy of the
articles of association for the Farmers and
Mechanics Bank of Georgetown. It too
was q copartnership concern, to be con-
tinued for twenty-one years unless a char
ter was sooner obtained. The capital was
$4,000 divided into shares of So each
payable in thirty, sixty and ninety days
and six months thereafter. The final In
stallmeut of SO per share was to be paid
TtVA coll - .