The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-19

intimate relation to public policies is fasci-
mating story.
Long after the adoption of the Constitution, variety of
currency of various made the value of money in
circulation confusing that part of the curriculum in
every hghgade school to teach the boys what the money
ofNewYork or Connecticut was worth in Maryland
other state.
In the years gone by three banks have been closely
nected with the the Bank of North
America established by Robert Morris in 78I, which aided
in financing the Revoluon the First Bank of the United
States established by Alexander Hamilton in and the
Second Bank Of the United States chartered in 1916 But
there never was real nationally supervised banking system
In this country until passage Of the National Bank Act in
1901 which ultimately brought order of chaos in bank
note circulation.
This Act cured evils the currency situation and based
national banknote circulation the security of United
States Government bonds 1t also threw strong safeguard
around the funds Of deposors and gradually worked into
our banking system stability great that there rarely
failure of National Bank.
With the approval of the Federal Reserve Act De
cember q the nation embarked new banking
1t was fortunate that this Act-he result of many years of
sudy-shoud have been approved prior the World War
which began on the first of the following August. This
carefully planned SYSTEM devised by able economists and
hnancicrs carried the nation through the serious fl
nanca strain in the worlds history with unassaed credit
without moratorium notable bank failures.
The '.First Bank of The United States
WHEN the charter of the First Bank Of the United
w States expired in June, and Congress refused
grant an extension state and private banking institutions
had free hand.
If the financial vision of the times had been large enough
IL r. t.
States much of the financial distress Of the early years
our history would probably have been avoided
When became apparent charter would not be
tended group Of leading business in New York, real
izng that there be strong institution take its place.
organized the City Bank Of New York. which incopor
ated June 16, 1872, under the title of "The President
Directors and Company, of the City Bank of New York"
The new institution arranged that the holders of stock
the Bank of the United States might exchange that stock
upon equitable for stock of the City Bank This offer
was avaed of the of 1000 shares, 100000
par value, Of City Bank stock.
AS this comprised than majority Of its original
capital the City Bank may be fairly said have been d.
rect offspring of Alexander Hamtons First Bank of the
United States The bank also acquired the property
in Wall Street which that bank had occupied its New
York headquarters.
COL SAMUEL OscooD, who became the first president of
the City Bank in 1872, of the countrys most dis
ngushed citizens During the Revolution he had rendered
conspicuous military and other public services When Con-
gre in 1885 appointed him Commissioner of the Board
Of Treasury the Legislature of Massachusetts,, of which State
he then citizen forward in body and became
his bondsman-an honor said have been conferred
any other individual He had also rendered important
services in the establishment Of the Federal Government
under the Constitution After Washingtons Inauguration
he became the first Postmaster General.