The Washington herald., 1915-05-03
ACENTURY OF BANKING

whom dcvolved the difficult task of ,;rid-
ing the bank through the troubled year,
that followed. Col. Few was a native Of
Georgia. had won distinction i'll the
Revolutionary War. and. after holding
various civic and judicial positions
was elected one of the first two
United States Senators from the State
I OF Georgia. lie located in New York II.
1879. and in 1901 was elected to the New
York legislature. He proved to be a
! capab bic head for the city Bank and
held the position four years
In the trying times from Isl; To 1911
| the Treasury was obliged to appeal re-
pcatcdly 10 the New York financial com
munity for aid. and the city Bank reg
! uiarly responded. subscribing it's own
account. and acting rs the agent of the.
Treasury in receiving subscriptions II,
May. 1914. the Treasury having asked for
subscriptions TO 100000 of bonds. tho
bank for second time took $780,
I pom another occasion the directors, au-
thorizinG q subscription of saulun To a
war loan. spread upon the record the re-
port of the loan committee. which de-
clared that in making this recommends
ton the committee is actuatcd by a de
sire of rendering this institution srrv-
i"eable to the government OF our "ou:i-
try IN support of tn" just and mccrSSaIl
contest in which it is cnSa yed as wen q.
a firm conviction in their minds that
the interest of the bank will he promoted
thereby
The records of the bank afford mucn
evidence Of the critical state Of botr,
political and commercial affairs in the
summer OF ISL The overthrow of Ma
poieon seemed 10 give England free
hand to deal with the United States The
currency of bank notes and treasury bills
was deprecated. trade lanyuished and
commercial failures were numerous Tine
services OF a special committee Of di-
rectors were required TO attend to the
protested notes and such overdraw WIN ?,
as may occur" on July Il a commit
tee of directors was appointed to make
proper arrangements for the removal of
The books, cash. etc. belonging TO the
bank in case of the invasion of the CITY
10y the enemy" Business was parsIvzed
specie was disappearing, and there were
all signs OF a crisis.
Germ of the clearinghouse.
The New York Clearing House was no,
organized until 1N:Si but thu. germ of il
appears in the action of the banks in
these trying days of ISL On July " the
directors of the city Bank appointed the
president and cashier committee To
meet with similar committees of other
NJ results Followed.
Lut on August 10 the directors made an
other effort to bring about concerted
action. and appointed Messrs Irving
Swartwout and Tooker committee TO
confer with committees from any two
or more banks in this city with full
powers TO devise and adopt such meas
ures as shall be deemed proper by SAID
committee for the renewal OF public
credit and to prevent the expectation OF
specie to the enemy
Stirred at last to action. the banks
came into conference and adopted a
series of resolutions. which were to he
binding on them for three months. or
on twenty days notice. The banks
agreed to give every aid to one another
consistent with their own safety. in MAX
ing payments in specie: to continue daily
exchanges and to pay interest at the
rate OF per cent year on daily bal
ances or to pay balances in specie or it's
equivalent. and in preference to any
other debt due by the institution
ON August 81. four days after the fall
OF Washington. the general committee
resolved 10 suspend specie payments
thus giving official recognition to : con-
dition they found themselves powerleSs
20 prevent. The Philadelphia banks mao
suspended on the 3Oth. and the Baltimore
banks before that. The country general
ly remained on paper basis until after
the establishment OF the second Bank of
the United States in 1877.
From william Few to Moses Taylor
This was period of prosperity and
growth for the city OF New York and
for the City Bank. The completion OF
the Erie Canal in 1875 gave a great I'M
petus to the city. which carried it past
Philadelphia in population to the posi-
ton which it has since held as the chief
city of the United States in population
and commerce. John Swartwout OF the
City Banks original board of directors
was one Of Dewitt Clintons principal.
aids in this work.
Isaac Wright. OF the shipping firm of
Isaac Wright n Son. was one OF the
notable presidents Of the bank. his term
extending from 1871 to lS;. This firm
established the first regular trans-AtIan-
tic service with ssilings at first once a
month. but after 1872 with vessels leaving
New York and Liverpool simulta neousIy
on the LIST and 18th of each month
ITO he concluded tomorrow,