238 
The preface,* in particular, should be 
read.attentively, as he will from it form 
some idea of the state of public affairs, 
as to money, at the time; of the difli- 
culties attending the revolutionary strug- 
gle on that account, and the means by 
which our independence was secured, or 
greatly promoted, and for the enioyment 
of which he ought never to cease to be 
thankful. 
The establishment of the Bank of 
North America forms a prominent item 
in the administration of Mr. Morris. 
The knowledge which he had acquired 
of the principles of banking, and of the 
advantages resulting to a commercial 
community from a well-regulated bank 
of discount and deposit, in enabling 
merchants to anticipate their funds in 
cases of exigency, or of occasions offer- 
ing well-grounded schemes of specula- 
tion,+ rendered a hint on the subject of 
the importance of a bank to the govern- 
ment enough; and he accordingly 
adopted it with warmth. Such an in- 
stitution had been previously suggested, 
and, as already said, an attempt at one, 
although with paper money, but backed 
by the bonds of responsible men, bad 
been made the preceding year. The 
greater facilities which one with a specie 
capital promiscd, in enabling the go- 
vernment to anticipate its revenue, and 
to increase the quantity of circulating 
medium, and promote trade, were forci- 
bly impressed on his mind, and induced 
him to propose it to congress. In May 
1781, he presented his plan, which was 
approved by that body. Subscriptions 
were opened shortly after; but, in the 
following November, when the directors 
were elected, ‘‘ not two bundred out of 
a thousand had been subscribed, and it 
was some time after the business of the 
* Tt commences thus: 
“To the Inhabitants of the United States, 
*f FELLOW-CITIZENS, 
“That every servant should render an 
account of his stewardship, is the evident 
dictate of commonsense. Where the trust 
is important, the necessity is increased ; 
and, where it is confidential, the duty is en- 
hanced. The master should know what 
the servant has done. ‘To the citizens of 
the United States, therefore, the following 
Pages are most humbly submitted.” % 
+ Mr. Morris stated, in his speech on the 
renewal of the charter of the Bank of 
North America, that before the American. 
war, he had ‘laid the foundation of a 
bank, and established a credit in Europe 
for the purpose. From the execntion of 
the design, he was prevented only by the 
revolution.” Debates, p. 37. 
Memoirs of the Life of Robert Morris. 
7 
f 
[Oct. 1, 
bank was fairly commenced, before the 
sum received upon all the subscriptions 
amounted to 70,000 doliars.””?, Mia, Mor- 
ris, no doubt, became sensible that such 
a capital would go but alittle way in aid- 
ing him in his financial operations for go- 
vernment, and at the same time accom- 
modate the trading pact of the, commnu- 
nity. He therefore subscribed 250,000 
dollars of the 300,000 dollars, (whieh re- 
mained of the money received from 
France,) to the stock ofthe bank, on the | 
public account: 450,000. dollars had 
been brought from Lrance, and lodged 
in the bank, and, he “bad determined, 
from the moment of its arrival, te sub- 
scribe, on behalf of the United States, 
for those shares that remained yacant ; 
bat such was the amount of the public 
expenditure, that, notwithstanding the 
utmost care and. caution to keep this 
money, nearly one half of the sum was 
exhausted before the institution could 
be organized.”* It was principally oa 
this fund that the operations of the insti- 
tution were commenced ; and before the 
Jast day of March, the public obtained a 
loan of 800,000 dollars, being the total 
amount of their then capitas, Thisloan 
was shortly after increased to 400,000 
dollars.f -Considerable «facilities were 
also obtained by discounting the notes of 
individuals, and thereby auticipating the 
receipts of public moucy ; besides which, 
the persons who had contracted for fur- 
nishing rations to the army were also 
aided by discounts upon the public 
credit. And in addition to ajl this, the 
credit and confidence which were revived 
by means of this institution, formed the 
basis of the system through which the 
anticipations made within the bounds of 
the United States had, in July, 1783, 
excceded 820,000 dollars. If the sums 
due (indirectly,) for notes of individuals 
discounted, be taken into consideration, 
the total will exceed one million! It 
may then not only be asserted, but de- 
monstrated, that without the establish- 
ment of the national bank, the business 
of the department of finance could not 
have been performed.” 
Besides this great benefit to the pub- 
lic cause, derived from the: bank, the 
state of Penusylvania, and city of Phila- 
delphia, by loans obtained from it, were 
greatly accommodated. It enabled the 
first to provide ior the protection of the 
* Debates on Bank, p. 48. 
+ The sam total brought into the public 
treasury, from the several states,’ not 
amounting to 30,000 dollars upon the last 
day of June. 
frontiers, 
