Page:The American Cyclopædia (1879) Volume II.djvu/299

 BANK 279 by Robert Morris qf Pennsylvania, the prin- cipal provisions of which were as follows: The capital to be $400,000, in shares of $400 each ; that each share be entitled to a vote for directors; that there be 12 directors chosen from those entitled to vote, who at their first meeting shall choose one as president ; that the directors meet quarterly; that the board be empowered from time to time to opan new subscriptions for the purpose of increasing the capital of the bank ; statements to be made to the superintendent of the finances of Ame- rica ; that the bank notes payable on demand shall by law be made receivable for duties and taxes in every state, and from the respective states by the treasury of the United States ; that the superintendent of the finances of America shall have a right at all times to ex- amine into the affairs of the bank. On May 26 congress passed the following: " Resolved, that congress do approve of the plan for the establishment of a national bank in these United States, submitted for their consider- ation by Mr. R. Morris, May 17, 1781, and that they will promote and support the same by such ways and means, from time to time, as may appear necessary for the institution and consistent with the public good ; that the sub- scribers to the said bank shall be incorporated agreeably to the principles and terms of the plan, under the name of 'The President, Di- rectors, and Company of the Bank of North America,' so soon as the subscription shall be filled, the directors and president chosen, and application for that purpose made to congress by the president and directors elected." On Dec. 31 following congress passed " an ordi- nance to incorporate the subscribers to the bank of North America." The first president was Thomas Willing, and the bank became at once a most important auxiliary in aid of the finances of the government, and so continued to the conclusion of the war. This institution was also incorporated by the state of Pennsyl- vania, on April 18, 1782. The bank com- menced business in January, 1782, with a cap- ital of $400,000, of which $254,000 had been subscribed by the government. In the year 1785, when an ill feeling had arisen between the government of the state of Pennsylvania and the bank, the former repealed the charter which it had granted in 1782. The bank, how- ever, continued its operations under the charter granted by the general government till 1787, when it was rechartered by the state of Penn- sylvania. It has from time to time been re- chartered, and now exists under the national system with a capital of $1,000,000, and a surplus of $1,000,000. The First Sank of the United States. On the organization of the gov- ernment of the United States under the con- stitution, Alexander Hamilton, in his masterly report on the finances in 1790, urged upon congress the importance of establishing a bank of the United States. This measure, although it met with vigorous opposition in the house of representatives, passed that body Feb. 8, 1791, having on Jan. 20 passed the senate with but slight resistance. The following abstract of the 12 clauses of the charter will give an idea of the act: 1. The capital shall be $10,000,000, to be divided into 25,000 shares of $400 each. 2. Any person, copart- nership, or body politic may subscribe for such number of shares as he, she, or they may think proper, not exceeding 1,000, except as regards the subscription of the United States. The sub- scriptions, except those of the United States, shall be payable one fourth in gold and silver, and the remaining three fourths in certain 6 per cent, stocks of the United States. 3. The sub- scribers are incorporated under the name and style of " The President, Directors, and Com- pany of the Bank of the United States," and to continue till March 4, 1811. The bank is authorized to hold property of all kinds, in- clusive of its capital, to the amount of $15,- 000,000. 4. Twenty-five directors are to be elected by a plurality of the votes cast, on the first Monday in January of each and every year, for one year only, and the directors are empowered to choose one of their number for president. 5. As soon as the sum of $400,000 is received on account of the subscriptions, in gold and silver, on proper notice being given, the bank may be organized. 6. The directors are authorized to choose such other officers, clerks, and servants as may be necessary for the bank, and shall otherwise manage tho affairs of the bank. 7. This clause prescribes the "rules, restrictions, limitations, and pro- visions which shall form and be fundamental articles of the constitution of said corporation." 8. If the corporation, or any person or persons for or to the use of the same, shall buy or sell any goods, wares, or merchandise whatsoever, contrary to the provisions of this act, such per- son or persdns shall forfeit and lose treble the value of said goods, wares, and merchandise, one half to the United States, and the re- mainder to the informer. 9. If the corporation shall lend to the government of the United States any sum of money to an amount ex- ceeding $100,000, or to any state to an amount exceeding $50,000, or to any foreign prince or state (unless previously authorized by law), all and every person concerned in any way in causing the same to be lent shall for each and every offence, on conviction, forfeit and pay a sum treble the value of said loan or loans one fifth to the informer, and four fifths to the United States. 10. Bills or notes of the bank payable in coin shall bo taken in payments to the United States. 11. The president of the United States may within 18 months from April 1, 1791, cause a subscription to be made to the stock on behalf of the United States for an amount not exceeding $2,000,000, to be paid out of the moneys which shall be borrowed by virtue of either of two certain acts providing for the payment of the debt of the United States, "borrowing from the bank an equal