The Republican. [volume] (Oakland, Md.) 1877-current, 1908-03-19
MONEY SYSTEMS
OF THE COUNTRY
Brief History of the Old United States
Banks.
WAS OPPOSED BY JACKSON
Who Vetoed Renewal OF Its Charter
The First Appearance of the
Green Back Local Currency of
the Past Regarding Finances.

An idea has come to my mind
that a comprehensive statement OF
a historic character, in regard to
the paper systems, and banking
institutions of olden times would
be interesting and useful informa-
ton, and reading to many persons
of practical minds. TO formulate
that idea this paper has been care
fully prepared avoiding length or
prolixity.
Even in our colonial condition
and in revolutionary times there
was such a thing as continental
money or notes. 1t had an uncer-
tain basis but it served for urgent
purposes and in after years was re-
deemed.
Nearly all persons know that
the government under which we
live and prosper went into life in
1880, with Washington as presi-
dent and TAleNander Hamilton as
Secretary of the Treasury. He
was by instinct a hnancier. 1t
was easy for him to see the people
of the new government of IS states
as consolidated needed a national
uniform paper currency.
Thesneed was found in a United
States..b bank, which was chartered
by Congress in 1871 for a term OF
20 years with capital of $40, 900,
900. This charter by its own pro
visions, expired in 1871. One
year before the war with England
Attempts were made to have it re-
chartered, but the opposition wa,
too strong an the part of those
holding the old state rights doc
trines. The efforts were continu-
ed, and in 1916 in the last year oil
President Madison administration
the second [. S. bank was charter
ed for another 20 years, with a
capital stock Of SIS, ooo,o GOO. This
the last charter expired in 1886.
However, in 1882, Congress by a
clever majority granted a third L.
S. Bank charter with a capital
of $50, 900, 900 for the like term OF
20 years. The bill thus passed
was laid before President Jackson
on the 18th of July that year. Six
days later he returned it to Con.
gress with a full veto message with
all the facts and arguments he
knew Of. The two hodses made
strenuous efforts to pass the bill
over his veto. but he was then oil
almost supreme power.
So the old bank met almost a
violent death.
The old l. S. Bank always had
its strong friends and bitter ene-
mics. II did not, however, have
difficulty in having its stock taken.
In 1916 when the stock was beng
taken under the second charter, at
prOpitious time Gerard subscrib-
ed for all the remaining stock S.
100000. He was the money king
for many years. In 1912 he start
ed his Gerard Bank in Philadel-
phia with capital of 81, 200, 900.
At his death in 1881, it had reach
ed the great sum of s., 900, 900.
His estate was estimated at SIP
900, 900. He was the first million
aire in this country. The next
was John Jacob Astor, who died in
1910, the richest man up to his
death in the country.
Our great country had no paper
national money or currency after
the decease of the second bank OF
the L, S. in 1896, till 1862 when
the L. S, notes, commonly called
green backs" were issued by the
authority Of an act of Congress
passed at that time.
This was really a war measure
or necessity. 1t served that pur-
pose well; not only that, but civil
affairs also. II was a favorite
money, far more acceptable than
the notes Of the local or State
banks. The following year, 1868,
4. /