The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1916-04-26
THE FIRST UNITED STATES BANK
louisville POST

strange efforts towards the mainte-
nance of a government currency and
the failures were as numerous as the
attempts, while there were also issues
on private banking credit The old
Land and Massachusetts, Bank of
Massachusetts, which was founded in
1740, issued currency redeemable only
DIN merchandise. and yet for a time
was more popular than Massachusetts
bills, and merchants made it special
feature of their advertisements that
they would exchange their wares for
mandatory bills"
The New London Society, for trade
and commerce, issued notes which cir
culated in Connecticut in 1923. but
were soon suppressed. A private COM
pany in New Hampshire essayed to
supply circulating medium. by the
isue of bills, but all such schemes
were sufferers by the act passed by
parliament after the collapse of the
South Sea Bubble in 1920.
Regular banks of issue in America
may be said to date their history from
the founding of the Bank of Pennsyl
vania. which originated with a num-
Der of patriotic gentlemen of Phila-
delphia in 1880 for the purpose Of
furnishing rations to the army.
The currency consisted at first of
interest-bearing notes with time linn
it. This was followed in 1881 by the
Bank of North America after a plan
of Robert Morris and authorized by
Congress. Its capitalization was
100000, with the government as a
stakeholder The bank did much to
strengthen Federation finances.
After the United States became an
established government the question
CT national currency was quite a
bone of contention. Alexander Hamil-
ton, the Secretary Of the Treasury in
Washington cabinet had been es-
teemed particularly strong on financial
questions, but when he proposed a
scheme for the establishment of the
first United States Bank he was met
with criticism and the bitter fight
that followed arrayed the people into
two distinct political parties.
Those who had opposed the adoption
of the Constitution as we'll as those
who had not taken a position of snch
broad opposition, and still some who
had supported the Constitution, were
up in arms against national banking
act, on the ground that the Constitu-
ton contained no express grant OF
power to Congress to create a corpor-
alton Jefferson and Randolph were
against the measure. but it was passed
by the First Congress in 1871 and re-
ceived Washington's signature.
its capital was placed at 100000 900,
one-fifth of which must be subscribed
by the government. In turn the bank
must loan the government an amount
equal to it's subscription to the stock,
the loan to be paid in ten equal pay
ments. These payments were not
met and from time to time the govern
ment's stock was sold for that pur.
pose. and thus by 1902 the govern
ment ceased to be stakeholder. Its
stock, however, had netted hand.
some premium, for the bank paid an
annual dividend of more than per
cent. Branches were established in
New York. Baltimore Boston, Wash
ington, Norfolk, Charleston, Savannah,
and New Orleans.
Jeffersons opposition continued in.
to his Presidency and he sought to
direct the government deposits to
other than national banks. but Albert
Gallatin, his Secretary of the Treas.
ury was firm friend of the bank and
even prevailed upon the President to
approve the bill establishing the
branch at New Orleans
As the charter was to expire in 1911
the stockholders began their fight for
renewal in 1908. and the Eleventh Con-
gress would have granted 1t. but 1t
was allowed to go over and before the
next session the State banks had or.
ganized against it. After a memor
able fight the bill failed The House
on January "a. 1911. postponed indefi-
nitely the bill for renewal by a vote of
665 to IA. The Senate stood II to II
and Vice President Clinic gave the
casting vote against renewal
The circulating notes and the de-
posits of the Bank of the United States
were eventually paid in full. and the
accounts of the assignees were final
ly settled in 1856 The shareholders
received no returns on their stock in
the final settlement the whole $685.
100000 invested by them being total
loss