Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1913-03-18
NEW MEMS OF YESTERDAY
HOw the First National
Bank Was Organized
BY Holland

John Thompson, TO whose sugges.
ton in considerable measure the pres
ent national banking system is due,
was in his old age a very quaint and
delightful companion for an after
moons chat Although he had
amassed a good fortune. he was sn-
gularly modest in his dress. frank in
his conversation 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 home knitted wooden stock
ings. even in summer. In a pocket
Of his waistcoat he carried dry to-
bacco leaves. These he used instead
of prepared tobacco, slSillfully rolling
a leaf into a little pellet which he
deposited In some mysterious cor
ner Of his mouth.
Mr. Thompson had a rich fund OF
humor and an unusual capacity for
describing a man by a single word.
| asked him one day how he was able
to get financial support for the organ
ization Of a bank for which he hoped
to take out the first charter under
the national banking act
You mean, of course, the First
National Bank of New York" replied
Mr. Thompson. Then he paused a
moment and chuckled.
WELL" be continued. ~ didn't
have to do much soliciting in order
TO get the capital necessary to Or
ganize the First National Bank.
knew that there was a good deal OF
opposition on the part of the State
bankers to the national banking law.
Well they had some reason for being
opposed to the inovation The ma
tional banking law would not have
been worth a copper had it not con-
tanned a clause which imposed q tax
Of ten per cent. on State bank notes.
or course, Secretary Chase knew
that not a penny of that tax would
ever be paid The State banks could
not afford to pay t. The tax was
really meant to kill State bank note
circulation and it did.
well. OF course, there was a good
deal OF resentment expressed by those
who held stock in State banks.
used 10 tell them that they could get
Oh the hank note circulation they
wanted II they surrendered their
State charters and reorganized as
National banks. Some OF them
thought was poking fun at them, but
in The course OF four or FIVE years
almost all OF them did change from
state 10 National banks.
Nov in view Of this feeling,
know that II would be very difficult
10 persuade ANYBODY TO invest in the
stock Of hank which was to be the
first organized under tho national
banking law, so I said to myself that
I would make II a family affair. And
! I did
THAT bank was organized with the
smallest list Of stockholders that ever
stood behind a bank organization
There were oply three, and they were
all members Of my family
"The capital OF the bank did not
give me any anxiety. butT was a good
deal worried over the attitude of the
State banks in the clearing house as
ISOLATION 7 knew that they would
not admit my bank TO membership OF
that association at least for q good
while
They did refuse to admit the bank
aud We had to navigate the new insti-
tuition as Well as we could.
MY, how swiftly things change. Il
wasn't long before the clearing house
was urging nv bank to make applica.
ton for membership. Within a few
years we became the fiscal agents OF
the federal government Out Of that
small beginning grew one OF the
greatest Of American financial inst
tutlons, although after 1877 my own
family was not identified with that
bank We started the little bank and
we called it the Chase out OF grateful
remembrance Of the service Secretary
Chase had done in creating the ma
tional banking system.
Copyright 1913. by e. J. Edwards
All rights reserved.)