4 o8 GEORGE ALFRED TOWNSEND 



the biography of Girard published in 1832, near the time of 

 his death. Believing, as a Jeffersonian democrat, that the 

 United States bank charter would be renewed, he bought 

 through the Barings, of the English selling stockholders, 

 $500,000 of the stock. 



Barings were then about to fail through their American 

 investments, as they did almost fail through Argentine invest- 

 ments eighty years later. The Barings, already embarrassed, 

 owed Girard $1,000,000 which they could not pay. He took 

 this falling stock for the debt. The honest bank settled at an 

 advance of 8J per cent, making Girard's stock 3| per cent 

 premium. The charter being beaten by George Clinton's 

 casting vote, Girard resolved to trust congresses no more, but 

 established a private bank with his money. He originated 

 that now common character, the private banker, in this 

 country. He also pressed Alexander Dallas to have the 

 United States bank renewed. He bought the old United 

 States bank building in Third street, with the cashier's house, 

 for $120,000, one third their cost. Girard was the real founder 

 of the second bank of the United States, which built the mar- 

 ble temple now the custom house in Chestnut street. With 

 the first bank, he received deposits of $5,000,000 specie from 

 the expired bank, and his own $1,300,000. He founded civil 

 service reform by keeping all the United States bank officers. 

 He adopted for his shield and bank note vignette, the American 

 eagle and a ship under full sail. A fair running account was 

 considered entitled to accommodation; small notes were 

 discounted the first; the chief losses were from preferring to 

 lend to big depositors. 



He took large subscriptions to the war loans of 1812-14. 

 He was the Pierpont Morgan and August Belmont of the 

 treasury in that crisis. He called in his own currency at the 

 suspension of specie payment and paid out state bank notes 

 not his own issue, bought for cash. So, by 1817, he stepped 

 forward with his own resources to restore government specie 

 payments. With this specie reserve he ransomed his ship, 

 the Montesquieu, for $93,000 from the British captor, and 

 she had $200,000 cargo. He sold it for $500,000— silks, 

 nankeens, etc., now made in this country. 



