The bank continued in operation till the establishment of the Bank of North America, December 31, 1781, and was the first banking institution in America.
The plan for the bank for the Government was approved by the Continental Congress, May 26, 1781, and this financial agent of the Government was chartered by the Congress December 31, 1781. The capital stock was divided into shares of $400 each, in money of gold and silver, to be procured by subscriptions.
Twelve directors were appointed to manage the affairs of the bank, which was entitled by the Congress “The President, Directors and Company of the Bank of North America.”
Alexander Hamilton, observing the prosperity and usefulness to the commercial community and the financial operations of the Government of the Bank of North America, in Philadelphia, and of the Bank of New York, and the Bank of Massachusetts, which were afterward established, and which three banks held the entire banking capital of the country before 1791, recommended the establishment of a Government bank in his famous report on the finances (1790), as Secretary of the Treasury.
Hamilton’s suggestion was speedily acted upon, and an act for the purpose was adopted February 8, 1791.
President Washington asked the written opinion of his Cabinet concerning its constitutionality. They were equally divided. The President, believing it legal, signed the bill.
The bank was named “The United States Bank” and its charter limited to twenty years.
This bank was soon established, with a capital of $10,000,000, of which amount the Government subscribed $2,000,000 in specie and $6,000,000 in stocks of the United States.
The measure was very popular. The shares of the bank rose to 25 and 45 per cent premium, and it paid an average dividend of 8½ per cent on its capital. The shares were $400 each, same as the Bank of North America.
The United States Bank was chartered February 25, 1791, and established at Philadelphia, with branches at different points. Its charter expired without renewal March 4, 1811.