On May 26, 1781, Congress adopted the following: “Resolved, that Congress do approve of the plan for the establishment of a National Bank in these United States, submitted for their consideration 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 subscribers to the said bank shall be incorporated agreeably to the principles and terms of the plan, under the name of ‘The President, Directors, 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 December 31 following Congress adopted “an ordinance to incorporate the subscribers to the Bank of North America.”
The first president was Thomas Willing, and the cashier was Tench Francis. The bank became at once a most important auxiliary in aid of the finances of the government, and so continued to the end of the war.
This institution was also incorporated by the State of Pennsylvania, on April 18, 1782.
Robert Morris subscribed for 633 shares of the bank on account of the United States, paying therefore $254,000, but, owing to the necessities of the government, he was almost immediately compelled to borrow a like amount from the bank, so that the institution derived but little benefit from the government subscription.
The deposits gradually assumed large proportions. Some of the States gave to the bank the assistance of their recognition. Connecticut made the notes receivable in payment of taxes, Rhode Island provided punishment for counterfeiting its issue, and Massachusetts created it a corporation according to the laws of that Commonwealth.
The operations of the bank were almost immediately attended with the restoration of confidence and credit. The State of Pennsylvania being unable to pay the officers of its army, relief was found in the bank, which advanced the money for the state, and received its reimbursement when the revenue was collected.
The public enemy infested the Delaware River and Bay, and seized vessels in the port of Philadelphia. The bank advanced $22,500, which enabled the merchants to fit out a ship of war, which not only cleared the river of the enemy, but captured a cruiser of twenty guns belonging to the British[British] fleet.
The defense of the Western frontier was promoted by the advance of £5000 by the bank in 1782.
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, however, continued its operations under the charter granted by the Federal Government till 1787, when it was rechartered by Pennsylvania.