The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1908-01-10


being raised by the present agitation
in congress looking to some kind of
currency reform which will prevent a
money stringency in the future similar
to that which has but recently affected
the whole country recalls the fact
that the United States has had two
federal banks in its history. although
they are buried in the long past out
of the recollection of all but the old
est of the older generations.
But the buildings where the govern
ment did its own banking still stand
as mon Iments to the system which it
is prop osed to resurrect. They form
two of the interesting landmarks of
Philadelphia, the Quaker City, which
is known as the Cradle of Liberty"
and is perhaps the richest spot in
point OF historical interest in the coun-
try.
1t was in 1871 that congress, chiefly
through the efforts of Alexander Ham
ilton, first secretary OF the treasury,
authorized the establishment of the
first bank in the United States.
Hamilton's original idea was to in
clude the Bank of North America,
which Robert Morris founded, in the
federal constitution, but the lawmak-
ers thought otherwise, and they char
tered e new institution with capital
of $40 100000 to run for 20 years.
Thomas Willing, one time partner of
Morris. was chosen president of the
bank, and the institution fulfilled its
functions for the allotted time in the
face of an agitation against it. Albert
Gallatin, who was secretary of the
treasury at the time of the war of
1912, was strongly in favor of congress
renewing it's charter, but his advice
was not needed and the bank passed
into the hands Of Stephen Girard, the
great philanthro?ist and financier.
Girard renamed it THE Bank of Ste
phen Girard," and operated it as a
private enterprise. 1t is still in exist
ence under the same name.
Need for a revival of the federal
bank was felt in 1916, and congress
was prevailed upon to authorize a
charter for the Second Bank of the
United States in that same year. 1t
was around this institution that the
great Bank War" ragged for many
years, and in which those two remark
able men. Nicholas Biddle and Andrew
Jackson, were the striking figures.
The second bank was capitalized at
$35 100000, and was to run 20 years.
AS in the case of the first bank,
Philadelphia was chosen for its home,
as the City of Brotherly Love was the
financial center of the country in
those days.
The new bank occupied magnifi-
cent marble building in Chestnut
street, above Fourth, now used as a
custom house and the subtreasury. In
its vaults were S6,0O0,000 or $1,000, 900
of public money. Private depositf
amounted to about $6,OO0,O00 more.
1t had outstanding about s12,000,000
of notes, which were as good as gold
from Maine to Georgia. Indeed, they
were worth their face in specie in any
foreign exchange house in London,
Paris, Calcutta or st. Petersburg. The
annual profits of the institution were
more than 100000. In the bank in
Philadelphia 100 clerks were EN-
ployed, and it had % branches in vari-
GUS towns and cities of the union, en-
ploying 400 or 500 more. Through it's
agencies all. the revenues of the ma
tional government were received and
disbursed.
Nicholas Biddle, who bore at once
the reputation of being one of the
handsomest men in America. aae of
the best scholars and one of the
shrewdest financiers of his time, sue
ceeded to the presidency of the second
bank upon the retirement of Langdon
Cheves, leader in congress and a
South Carolina man, who was first
president of the institution. This was
in 1923. Biddle had been director of
the bank since 1919.
Andrew Jackson represented an Gle
ment in the country opposed to the
federal bank plan, and he had not
been long in the White House before
Biddle, whose heart and soul were
burned up in The institution, realized
that b, would have to do battle with