BANKS. The Bank of North America, origi nally chartered by Congress in 1781. was the first bank in Pennsylvania, where it obtained a charter in 1782. In 1793 the Bank of Pennsylvania was incorporated as the official agent of the State, which was heavily interested in it. A few other banks were chartered by individual acts of the Legislature. In 1814 there were six banks, and the State owned stock in the most important ones. In 1814 the State policy toward the banking lousiness underwent a radical change. The Com monwealth was divided into twenty-seven bank ing districts, each of which was allotted a definite number of banks. Unincorporated banking was prohibited and a comprehensive banking law passed. This could not avert the injurious results of the speculative inflation, and in 1816 many banks had to suspend specie payments. Banking became the object of popular disfavor and was held responsible for the critical times. A law was passed in 1S19 providing for forfeiture of charter in case of suspension of specie payments, and it somewhat reduced the number of banks. The period of extensive internal improvements that followed stimulated the banking business as well as all other business of the State, and for ten years the banks were exceptionally prosper ous. In 1836 the second United States Bank, at the expiration of its national charter. became a Pennsylvania• State institution, paying heavily for the privilege. The crisis of 1S37 again caused a suspension of specie payment, and in 1840 after a hard struggle the United States Bank failed, ruined by its heavy investments in the State im provements and its heavy contributions to the State treasury. This failure, together with finan cial difficulties of the State treasury between 1840 and 1845. was felt by the other banks, and the stocks of most of them were sold far below par. Efforts were made to correct this by special legislation. by the levying of a tax on banking stock below par. and by making specie payments obligatory; but this last provision was frequently suspended by necessity. A slight improvement between 1850 and 1855 was followed by the severe crisis of 1857, when several Pennsylvania banks failed and a genera] suspension followed.
An agitation for a free banking system, with guaranteed circulation, was started, and in 1860 a free banking act was passed which was very similar to the New York flanking Law of 1837, hut before the value of this act could he tested the national banking system came into existence.
There was a marked demand for the national charters, which were supposed to exempt the banks from State taxation. By 1868 only 12 State banks remained, as against 198 national banks. In 1870-73 more than 90 State banks were char tered by special acts, hut the Constitution of 1874 prohibited the organization of banks, ex cept under the general law. At present State banking is regulated by the law of 1876 as amend ed in 1891, when a Banking Department was established. National banks remain by far the more important ones. Trust companies are con ducted mostly in conjunction with the banks, and take care of business which the law prohibits the banks from doing. Savings banks have existed in Pennsylvania for almost a century. The first sav ings bank was chartered in 1819. Before the Civil War there were 14 of them. A genera] law for their regulation, strictly limiting their avenues for investment, was passed in 1889. A clearing house was established in Philadelphia in 1858, or five years later than the one in New York. The condition of the banks in 1902 is shown as follows: that year. In 1790 a new Constitution, of a more democratic cast, was adopted. The Constitution, as amended in 1838, vested the legislative power in a General Assembly, consisting of a Senate and a house of Representatives. An amendment to the Constitution, adopted in 1850, made the judiciary elective. An amended Consticntion was adopted in 1873, by a popular vote of 253,744 against 108,594, and went into force •Tannary 1. 1874. If a proposed amendment receives a majority vote of both Houses at two successive regular sessions, it will be submitted to the people, and if ap proved by a majority of those voting, it becomes a part of the Constitution. No amendments can be submitted oftener than once in five year-. A voter must have been a citizen of the United States one month, a resident of the State one year, and of the election district two months, and have paid State or county taxes. No elector can be deprived of the privilege of voting because he has not registered. The general election is held aurually on the Tuesday next following the first _Monday in November. The State has thirty two memhers iu the National House of Repre sentatives.