The Washington herald., 1913-10-12
HISTORY OF THE CHEMICAL BANK

attained the firmness which twenty
years later enabled it to stand alone as
| a cash payer during a similar catas-
trophe."
Under the presidency Of Isaac Jones
arrangements were made in 1874 to pro-
cure a bank charter under the free
banking law Ito terminate January !.
1899" under which the bank operated
for twenty-one years There were 5000
shares OF stock OF 800 each.
/ The subscribers to that stock included
Peter GoeIet. 4. T Stewart, and many
others. John Quentin Jones. nephew OF
John Mason. became the president of
the new bank at a salary of 5000. The
first dividend was paid on January ..
1919. the total for that year being l.
per cent In 1855 the dividends were in
creased to Is per cent, and the next
year to "a per cent
Title of cold RuIIion."
In the panic OF 81 the Chemicacl
earned its nickname of "Old Bullion"
being the only bank in New York, and
the only one in the United States. ex-
cept two interior banks, to pay cash.
An extremely interesting chapter In
the book tells OF a dispute of the bank
in 1860 with the Clearing House as
Bullion"
1.-The Chemical Bank" says the mar
rative. was deprived of the privileges
Of the Clearing House during a period
of three and a half months. This un-
precedented situation was the result of
the attempt of the Associated Banks to
pool all their specie and reserve for
mutual protection. and the Chemical is
the only bank over Disseminated against
by the Clearing House simply because of
difference OF opinion"
The result of that policy was beneficial
to the bank
/ THE Chemicals deposits on June 20.
| 1850" runs the narrative, were 50, $4,000
BY April q of the next year they had
grown more than 80 per cent to S351OOOO
The undivided profits had increased from
$50 to S719, ,397. Here was the ratio of
net profits TO capital of s329. 1.-THE high
est In the city. All this within five
months after the bank had been sus-
pended by the Clearing House"
The banks stock in 1860 was quoted
at &25. and the dividends during the war
were S2i share.
Becomes National Bank.
In the next ten years. however. the de-
velopment of the bank was still more
wonderful. The Chemical became a ma
tiOnal bank on June 9. 1855. BY 1871 the
deposits had passed the S5.OOO,OOO mark
and the undivided profits were LIZ OOO
with a surplus of 100000.
In the panic Of 1875 when Industrial
depression, public CONSERVATION, and
financial ruin had plunged the entire ma
ton into gloom, veritable beacon light
Of returning confidence was cast upon the
land with the Chemical Banks declaration
of a dividend of the unprecedented pro-
portion of 100 per cent
Under the presidency of George G. WILL
Jams from 1873 to 1905, the bank showed
still greater growth. The rise in the
price Of stock was extraordinary. 1t ad-
vanced from s2,eOO in 1884 to 1900 in ISSS
In April, 1895, two shares were sold at
$500 a share. William II. Porter held
the presidency before entering the firm
OF J. p. Morgan & Co, in 1910 leaving a
surplus and undivided profits at his re-
tirement of s6,500,OO0. ]. B. MartindaIe
succeeded him to the presidency.
In 1850 the bank moved to go Broad
way. On July u, 1906 the cornerstone
was laid for the splendid new banking
house at go Broadway and with q wing
on Chambers Street.