BANKS. 



ments. The bank of Venice was estab- 

 lished as early as about the year 1157, the 

 bank of Genoa in 1345, the bank of Am- 

 sterdam in 1609, the bank of Hamburg 

 in 1619, the bank of Rotterdam in 1635, 

 the bank of England in 1694, the bank of 

 Scotland in 1695, the bank of France in 

 1716, the bank of North America in 1781, 

 and the bank of the United States in 1791. 



The bank of Amsterdam was solely a 

 bank of deposit. The chief design of its 

 institution was, to establish a currency, 

 which having a relation to the intrinsic 

 value of coins, without regard to the clip- 

 ped, worn, and consequently depreciated 

 currency then in common use, should 

 maintain a permanent equivalency with 

 the standard money of the country. Its 

 capital consisted of the " deposits made 

 by merchants and others of coins, as well 

 foreign as domestic, light or standard, 

 for the intrinsic value of which, withput 

 regard to their denominative value, they 

 received a credit on the books of the 

 bank, transferable at pleasure; and as, by 

 law, all bills of exchange for 600 guilders 

 and upwards were payable in bank money, 

 a sound currency, favourable to the ex- 

 changes of the city, was regularly main- 

 tained. For a particular account of this 

 bank, see Smith's Wealth of Nations, 

 Book iv. chap. iii. 



Jlank of the United States. The first 

 institution which bore this title was incor- 

 porated by act of congress on the 25th 

 day of February 1791, with a charter to 

 continue until the 3d of March 1811. Its 

 capital was ten millions of dollars, of 

 which two millions was specie, and six 

 millions funded debt bearing 6 per cent, 

 interest, subscribed by individuals, bo- 

 dies corporate, &c. The remaining two 

 millions was subscribed by the govern- 

 ment, and paid for by a loan made to it 

 by the bank. It had branches at Boston, 

 New- York, Baltimore, Washington, Nor- 

 folk, Charleston, Savannah, and New-Or- 

 leans, at each of which places the business 

 of the branch, denominated the office of 

 discount and deposit, was conducted by 

 a president and twelve directors, who 

 were annually chosen by the twenty-five 

 directors of the mother bank located at 

 Philadelphia. A considerable portion of 

 the stock of this bank was eventually held 

 by Europeans, a circumstance highly be- 

 neficial to the country, as the investments 

 thus made constituted a permanent loan 

 of capital to the nation. The plan of this 

 bank was projected by Alexander Hamil- 

 ton, the first secretary of the treasury af- 

 ter the organization of the government. 

 Towards the expiration of its charter, 



strenuous exertions were made by the 

 stockholders, and other friends of the in- 

 stitution, to obtain a renewal of it, but it 

 was refused by congress, and the bank 

 was compelled to wind up its concerns. 

 This itprogressed in by a gradual diminu- 

 tion of its loans, and a simultaneous divi- 

 sion of its capital; and the result, as far as 

 it has been ascertained, has proved satis- 

 factory to the proprietors and to the pub- 

 lic. At this period, (September 1816) af- 

 ter the whole of the original capital often 

 millions has been paid, a balance due the 

 bank of near 400,000 dollars remains un- 

 collected, and upwards of 2 J0,000 dollars 

 of notes remain yet in circulation. Should 

 all their debts be collected, a surplus 

 fund of 600,000 dollars will be in the 

 hands of the trustees. The dividend of 

 this bank, from its institution to its close, 

 averaged about 81 per cent, per annum. 

 The second Bank of the United States 

 was incorporated by act of congress on 

 the 10th of April, 1816; with a charter to 

 extend until the 3d day of March 1836, of 

 which the following are the principal 

 outlines. Capital 35 millions of dollars, 

 divided into shares of 100 dollars each, to 

 consist of 7 millions of specie, 21 millions 

 of the 6 per cent, funded debt of the Uni- 

 ted States (or an equivalent in 3 and 7 

 per cent, stock) to be subscribed by indi- 

 viduals, corporations, or states, and 7 mil- 

 lions of stock bearing five percent, inter- 

 est to be subscribed by the government. 

 The whole, except the sum subscribed by 

 the government, to be paid in instalments 

 as follows, viz. 30 per cent, at the time of 

 subscribing, of which five per cent, to be 

 in coin; 35 per cent, at the expiration of 

 six months, of which 10 per cent, to 

 be in coin, and 35 per cent, at the expi- 

 ration of twelve months from the time of 

 subscribing, of which 10 per cent, to be 

 coin. The bank to be managed by twen- 

 ty-five directors, 5 of whom are to be ap- 

 pointed by the president and senate, and 

 twenty to be chosen by the stockholders 

 annually, on the first Monday in January. 

 The president of the bank to be appoint- 

 ed annually by a majority of the board of 

 directors. No stockholdertobe entitled to 

 more than 30 votes. The bank never to be 

 in debt over and above its deposit money, 

 more than 35 millions of dollars, and to 

 be allowed the privilege of establishing 1 

 branches upon certain conditions. No 

 note to be issued for a less amount than 

 five dollars. The notes of the bank to be 

 received in all payments to the United 

 States, unless otherwise directed by act of 

 congress. The bank, in case of refusal to 

 pay its notes or deposit money agreeably 



