Bank of North America, First Incorporated
Bank in the United States, Commenced
Business January 7, 1782
The first incorporated bank in America was the Bank of North America, and its operations commenced January 7, 1782, in the commodious store belonging to its cashier, Tench Francis, on the north side of Chestnut Street, west of Third.
In 1780 the Assembly of Pennsylvania made a strong effort to relieve the people from the withering blight of the Continental money. It tried to redeem it by taxation at the rate of 1 to 40. But neither this nor any other measure prevented the coinage of the phrase, “It is not worth a Continental.”
To assist Congress in providing for the army, Robert Morris and other financiers of the State established the Bank of Pennsylvania, the first bank in America. The last attempt to prolong the life of the “Continentals” was made by the Supreme Executive Council in May, 1781; but the remedy proved fatal. Pelatiah Webster said of the proceedings: “Thus fell, ended and died the Continental currency, aged six years.”
During the Revolutionary War the country was extremely poor, with few industries but agriculture, and was quite denuded of the precious metals, owing to a heavy and long continued adverse foreign trade, so that the Congress of the United States experienced great difficulties in providing the requisite means for carrying on the hostilities.
On May 10, 1775, soon after the battle of Lexington, Congress made preparation to issue Continental paper, $2,000,000 of which were put in circulation on June 22 following.
From month to month these issues, which in the aggregate reached three hundred millions, depreciated, until eventually they became entirely valueless, notwithstanding the passage of laws making them a legal tender for the payment of debts.
On May 17, 1781, a plan for a National Bank was submitted to Congress by Robert Morris, of Pennsylvania, the principal 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 twelve 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 open new subscriptions for the purpose of increasing the capital of the bank; statements to be made to the Superintendent of the Finances of America; that the bank notes payable on demand shall by law be made receivable for duties and taxes in any state, and from the respective states by the treasury of the United States; that the Superintendent of Finances of America shall have a right at all times to examine into the affairs of the bank.