The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-04-01
NEW NEWS OF YESTERDAY.
How the First National Rank Wa.
Organized.

John Thompson, to whose sugges-
ton in considerable measure. the pres
ent national banking system is due.
was in his old 81 q very quaint and
denghtrul companion for an after
noon's chat. Although he had anlassed
a good ~fortunte, ne was singularly
modest in his dress. frank in his con
Versaton and loyal to many of the
customs which were prevalent IN his
younger days. In his office before the
counters OF the Chase National Bank
he was wholly unconventional. He
wore horne knitted wooden stockings,
even IN summer. In d pocket of his
vaistcoat he carried dry tobacco
leaves. These he used instead of pre-
pared tobacco, skiifully rolling a leaf
into a little pellet which he deposited
ia some mysterious corner Of his
mouth.
MI. Thomas had a rich fund of hu-
NOR and an unusual capacity for de
scrihing a man by a single word. l
asked him one day how he was able
TO get financial; support for the organ
jzation Of a bank for which he hoped
to take out the first charter under the
national banking act.
You mean, of curse, the First Ma
tional Bank Of New York replied Mr.,
Thompson. Then he paused q mo-
ment and chuckled.
s'Well," he continued. II didn't have
to 90 much soliciting in order 10 gel
the capital necessary TO organize the
First National Bank. T knew that there
was a good deal Of opposition on the
part Of the state bankers to the 4
tional banking Jaw. Well. they hai
some reason for being opposed to thu
innovation. The national banking Law
would not have been worth a cope
had it not contained a clause WHICH
Imposed q tax Of ten per cent on Stat
) bank notes. OF course Secretary Chas'
; knew that not a penny Of that ia,
would ever be paid. The State bank
could not afford to pay it. The tax wa
really meant to Hll State hank not
: circulation, aIo it did,
"Weli, Of course. there was a goo
deaf Of resentment by those who he'll
, stock in State banks. | used to tel
: them that they could get all the pan
: note circulation they wanted il the
: surrendered their State charters an
: r~eorganized az National banks. Som
. ct them thought ] was poking fun q
: them, bnt in the course of four or fv
years almost all Of them did chang
from State 10 National banks.
= Nov, in view Of this feeling, / kne'
;, that il would be very difficult TO pei
suade anybody TO invest in stock {
q a bank which was to be the first ol
= gained under the national bankln
law. so / said to myself that | woul
make il a family affair. And J. did
. ''That bank was organized with Tn
|. smallest list OF stockholders that eve
e stood behind q bank Organi2auol
/ There were only three and they WEI
/ all members of my family.
y 1.-The capital Of y bank did NJ
give me any anxiety, but | was q goo
deal worried over the attitude OF tf
re State banks in the clearing house a
n. sociation. I ineW that they would n
s admit nv bank 10 membership OF III
q association at least for a good While.
s. "'rhey did refuse to admit the bar
and we had TO navigate the new inst
n tuition ae we'll as We could.
My. how swiftly things change:
pit wasn't long before the clearing hou
Is was urging my bank to make appiic
id ton for membership. Within a fe
n years we became the fiscal agents
er the Federal government. Out of tn
I'd small beginning grew one ec the gree
est of American financia! institution
although after 1877 my owE fanii
was MOI identified with that bank. y
ry started the little bank and We call
re it the Chase out OF grateful resnef
Of brance Of the service Secretary Cha
is had done In creating me natior
n n ( - III, ,-otaH