The Washington herald., 1915-05-03
,From the North American Review.


/.
The origin of the National City Bank
of New York was directly related to the
dissolution of the first bank of the United
States, the charter of which expired 1T
ISL The establishment of the Bank o,
the United States had been one OF Inc
chief features OF Alexander Hamilton
administration as Secretary oi tIe
Treasury. Its charter was dated in IN
and ran for twenty years. In lSll, on ac-
count Of the political situat ton. although
tho President. james Madison. and the
Secretary of the Treasury. Albert Ca
attn favored an extension of the cha"-
or the Congress. by vote OF h. 10 VI
in the House Of Representatives. ana
tie vote in the Senate. refused 10 gram
it and the bank was Obliged 10 go "h''
liquidation. II was the most important
financial institution in the country III
the time. and its retirement from t"e
field. and the closing of its branch ofhce
i'm New York city. made an opening ana
created n need for = new and impOr -a'st
banking institution in this city.
Accordingly group of prominent DUST
moss mon OF New York city. headed pF
Col. Samuel OsGood. who had been the
first Postmaster General OF the hlttu
States. applied to the legislature OF the
state OF New York for charter TOT
bank, there being no general oahhIh-
law at that time. The charter WAS grant
ed by an act approve June III. M
Offspring Of Bank Of l. :.
The directors OF the new institution AR
ranged that the holders OF stock in the
Bank OF the United States might eN-
change that stock. upon eGuitaoie ter''S'
for stock in the City Bank. and TINS
offer was awaited OF 10 the extent
of I0.0Co shares. Or SJVno" par
value of city Bank stock. AS TINS COM
prlsed more than majority of the orig
inaI capital, the City Bank may be lair
10 to nave been a direct offspring OF
Alexander Hamiltons Bank of the United
States. It opened for business in the
bsn1ing-room that had been occupied by
the New York branch OF the Bank OF the
United States. at j. Wall street. an" re-
manned in that Location until IL moNeo
into its present home, ~ Wall street Inc
authorized capital OF the bank was
s.. 900 900 in shares of s." each. but !;
hogan business with $4,000 of capital
paid up. ,
The member Of the first board OF di-
rectors were named in the charter. 10
hold until July /. 1919. and were as tol-
lows. Samuel Osgood. Grove Wright.
Jasper Ward Henry Fannins- lchaood
PraIi. Benjamin Bailey. Abraham Blood
good. Samuel Tooker. Isaac Pierson'
William Cutting Peter Stage. John
Swartwout. William Irving. John l.. Nor
ton and William Furman. The Wliiiam
Irving named was d me mbsr OF congress
and brother OF Washington Irving. Al
>.sre men of weigh; and influence in the
community.
u. First President.
The first president OF the city Bank
was Col. Samuel Osgood. one OF the
most distinguished citizens of the state
OF New York and man OF conspicuous
services in the Revolutionary war ana
in the esta blishment OF the Federal gov
eminent
He was born in Andover, Mass. In Thy,
graduated from Harvard in li'u, and was
a man who combined large capacity In
affairs with scholarly abilities. His po-
litical career began in ia as delegate
to the Essex County convention. lie Or
ganized and commanded company OF
minute-mcn at Lexington and Cambridge
in 1919. He was aide-de-camp on the
staff of Gen. Ward, declined COM
mand Of a regiment. was menu
Der of the Massachusetts Provincial
Congress and a delegate to the State
constitutional convention. In 1872 he was
sent nv Congress as a delegate to Rhode
Island To urge the legislature to assent
to Alexander Hamilton's plan concerning
duties on imports. In lIS he was APP
pointed first commissioner OF the United
States Treasury The legislature 81
Massachusetts came forward in body
and became his bondsmen. an honor
never accorded to any other private m
dividual He held this office until 1859
when. the Constitution having been
adopted and George Washington elected
and inaugurated President of the United
States. he was appointed by the Presi-
dent to be the first Postmaster General
He held this position until the removal
of the government from New YORK 10
Philadelphia in 1871. when he resigned.
He was then elected member or the
legislature of the State of New YORK anu
became speaker of the house. Col. Os-
good was one OF the original stock
holders and member of the first board OF
6Irectors of the Bank of North America
in philadelphia. the first bank to receive
a charter In the United states. He was
one of the original members Of the Amer
ican Academy Of Arts and Sciences. an
incornorator OF the Free School Society.
a founder of the City Dispensary. the
author of several works on theological
subjects. and a valued friend and cor
RESPONDENT of Benjamin Franklin, Thorn
a. Jefferson, John Adams, and George
and vas buried In the brick Presbyterian
Church, Of which he was memoer.
Early Services of the Bank.
The CITY Bank began its career at one
Of the most critical periods of the coun-
try's history. Three days after its char
ter was granted the President issued
declaration OF war on Great Britain. and
for the next two and one-half years the
country was engaged in a conflict with
one .fthe first military powers OF the
world, an undertaking for which 1t was
In no sense adequately prepared.
The war and the administration were
both unpopular In New England. and that
section was indisposed to contribute with
either men or money. Times were very
hard. the revenues Of the Treasury were
Iieht and the burden OF supporting the
government fell mainly on Philadelphia
snd New York. The first loan was raised
before the bank was open for business.
but In the spring Of 1913 another Of VS.
OoO COO was offered about one-third or
which was taken in New York. The City
hank received subscriptions to this and