On 1 Nov. 1781 the Bank of North America was organized, Thomas Willing being chosen president, and a few days later Tench Francis was elected cashier. It began business 7 Jan.
1782, and has continued from that time until the present, a worthy memorial to the genius and wisdom of its founders, an honor to the city of Philadelphia and always a strong sup porter of the public credit.
The Bank of North America had a charter from the Federal Congress and from the States of Delaware and Pennsylvania. In 1864 it entered the national banlcing system. In view of its agel and other circumstances connected with its history, it was permitted to retain its original title. All other national banks are required to have the word "National" as a part of their name.
In the early financial history of the United States no two names occupy a more dis tinguished place than those of Morris and Hamilton. The contributions of the former to relieve the sufferings of the patriots attest alike his patriotism and humanity, and he also pos sessed financial genius of a high order.
Alexander Hamilton, as the first Secretary of the Treasury under the Federal Constitu tion, laid the foundations of our financial sys tem and firmly established the public credit. On his accession to this high office it was to be expected that he would soon attempt to carry into effect his views in regard to a government bank.
Hamilton's first aim was to strengthen the Federal Union, and one of his plans for doing this was to put the public credit beyond ques tion and thus gain confidence for the new government. He favored the payment of the foreign and domestic debt and the assumption sof the State debts by the Federal government.
The first proposition was readily agreed to, the latter was carried with some difficulty, and the proposal to assume the State debts was at first defeated, but was afterward carried by an alliance formed between Hamilton and Jeffer son, by which Hamilton agreed to use his in fluence to secure the permanent location of the capital on the Potomac in return for Jeffer son's assistance in getting votes in Congress for the debt assumption plan. This compact was effectual. Hamilton did not consider the location of the capital as a question involving any essential principle, while he regarded the financial policy he had marked out as being necessary to the welfare of the country. Jef ferson and he were both members of the cab, inet, and the differences which were to ctivide them in later years had not yet developed.
The Bank of New York, located in Nevr York city, is another historic institution. It commenced business on 9 June 1784. The con stitution of the bank, which was written by Alexander Hamilton, provided that the capital stocic should consist of $500,000 gold or silver. Though the bank commenced business in 1784 it did not get a charter from the New York legislature until 21 March 1791.
The Massachusetts Bank was incorporated at Boston 7 Feb. 1784 and commenced business on 5 July of that year, $253,500 of its capital of $300,000 being paid in.
The incorporation of these banks marks the change from the period of depreciated Continental and State currency to a system of bank notes redeemable in specie. This is the beginning of an important epoch in American banking history.