USA > Washington DC > Washington DC > Centennial history of the city of Washington, D. C. With full outline of the natural advantages, accounts of the Indian tribes, selection of the site, founding of the city to the present time > Part 37
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Produce Bank of the Potomac"; second, the extent of the capital of the new bank, which the same gentleman suggested should be $1,500,000; third, the commissioners to open the subscriptions. The following names were suggested as those of proper persons: Colonel John Taylor, John P. Van Ness, Commodore Tingey, Charles Carroll of Bellevue, Lewis Deblois, Elias B. Caldwell, Thomas Munroe, Walter HIellen, Tench Ringgold, Buller Cocke, James Davidson, Silas Butler, C. W. Goldsborough, William Simmons, John Graham, and D. Sheldon.
At the meeting held in pursuance of the above suggestion, Charles Carroll, of Bellevue, was elected chairman, and Edmund Law secretary. It was then resolved, unanimously, that there be appointed seventeen commissioners to draw up articles of association and to open subserip- tion books for the proposed new bank. Of the above-named gentlemen all were appointed, except Lewis Deblois, Tench Ringgold, William Simmons, John Graham, and D. Sheldon; and in addition, there were appointed Washington Boyd, Roger C. Weightman, Andrew Way, James D. Barry, Phineas Bradley, and James H. Blake. These commissioners were authorized to fix upon a "scite" for the bank, the capital stock, and the president's house. At a subsequent meeting the commissioners submitted articles of association for an institution to be named "The President and Directors of the American Bank." The association was to continue twenty-one years. The capital stock was to be $1,000,000, divided into shares of $40 each, and the copart- nership was to transaet its business in the city of Washington. After several attempts to hold meetings and to secure subscriptions, the com- missioners gave up the attempt to establish the bank; and at length, on January 20, 1813, the citizens of Washington who were desirous of having a second bank opened in the city were requested to meet at McLeod's Tavern on the 25th of that month for the purpose of choosing commissioners to carry out the project. General John P. Van Ness was called to the chair, and Alexander Kerr made secretary. But little was accomplished at this meeting, and a second meeting was held, February 1, 1813, at which it was resolved that, as it was not known that there was any application before Congress for a new bank when they commenced operations, they would await the result of that application before proceeding any further.
This application does not appear to have resulted in the establish- ment of any banking institution, and in November, 1813, the movement postponed, as above related, was again taken up, and at a meeting held at Davis's Hotel, on the 25th of that month, thirteen commis-
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sioners were appointed to act under articles of association adopted at that meeting. The next meeting, held at Davis's Hotel, January 3, 1814, was of the stockholders of the new bank, which was named "The Bank of the Metropolis." John P. Van Ness was chosen president of the new bank, and Alexander Kerr cashier. The location of this bank was at the corner of F and Fifteenth streets, east of the Treasury building. John P. Van Ness was continued as president of this bank until 1842. Alexander Kerr was cashier until his death, in 1832, when he was succeeded by George Thomas, who was succeeded in 1846 by Richard Smith. In 1829, the capital of this bank was $500,000, and its total assets $645,815.15. Toward the close of the War of 1812-15, when General Jackson made an appeal for funds with which to pay the American soldiers, this bank loaned largely to the Government. After General Jackson became President of the United States, he kept his private accounts with this bank, and after the removal of the deposits from the United States Bank this bank was made a public depository. After the retirement of General Van Ness from the presi- deney of this bank, John W. Maury served in that capacity, and Richard Smith continued as cashier for many years. At length, it was organized under the National Banking law as the National Metro- politan Bank. with John B. Blake president, and Moses Kelly cashier. Mr. Blake remained president until 1874, when he was succeeded by John W. Thompson,1 who is still the president. Moses Kelly was succeeded as cashier, in 1874, by George H. B. White, who is cashier at the present time. When Mr. Thompson became president, the surplus amounted to about thirty per cent. of the capital of the bank,
1 John W. Thompson, one of the leading bankers, business men, and financiers of Washington, came to this city from New York City in 1849. Upon his arrival here he at once entered into an active business life. During the War of the Rebellion, he was identified with the Government of the United States. He was afterward connected with the Board of Aldermen, and was appointed by President Grant to the upper house of the Legislature of the District of Columbia. He was president of the New York, Alexandria, Washington, and Georgetown Steamship Company, established for the purpose of trading between New York City and the District of Columbia. He was one of the principal movers in the building of the Metropolitan Street Railroad, and was for several years president of the company. He has been connected with numerous businesses, and has been and is to-day one of the most successful business men in Washington. This success has led to his selection to fill important positions, both in business and civic circles. He was chairman of the Garfield inauguration committee, and under his management the committee was able to return all the money subscribed as a guaranty fund, for the first time in the history of the country. He has been president of the National Metropolitan Bank since 1874, and his high standing in business and social circles and in the church is the best evidence of the estimation in which he is held by his fellow-men.
Dal Thompson
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which was then, and is now $300,000, while at the present time the surplus and undivided profits, on the first of March, 1892, amounted to $329,286.68.
The Bank of Washington was chartered in 1809, and was the first bank established in Washington. The capital stock was $100,000. Daniel Carroll, of Daddington, was its first president, and Samuel Eliot, Jr., its first cashier. The capital, after the first payment, was paid in in installments, Mr. Eliot, the cashier, on February 10, 1810, notify- ing the subscribers that the fourth installment of $2 on each share would be due on March 3, following, at the temporary banking house of the institution, which was located on Capitol Hill, near New Jersey Avenue. A committee was appointed to 'erect a banking house, and to receive proposals up to July 25, 1810, of which committee Frederick May was chairman. Just where this banking honse was erected has not been ascertained. The last installment on the capital stock was due on September 4, 1810, and had to be paid in order to avoid forfeiture of what had already been paid in. Sometime between 1820 and 1830, the business was removed from the building erected by the committee mentioned above to the National Hotel, and on Sep- tember 27, 1831, a resolution was adopted that the brick building owned by John Stetinus, and occupied by Mauro & Son, auctioneers, standing where now stands the fine marble building of the National Bank of Washington, at the junction of Louisiana Avenue and C Street Northwest, be purchased, and into this building the bank moved in 1832. Daniel Carroll, of Duddington, served as president of the bank until September, 1819, when he was succeeded by Samuel II. Smith, who served in . this capacity until February, 1828; George Culvert was then president until September, 1830; Thomas Munroe, until January, 1835; William Gunton, until December, 1880; Edward Temple, until January, 1888; and Charles A. James, until the pres- ent time.
Samuel Eliot, Jr., served as cashier until June, 1819, when he was succeeded by William A. Bradley, who served until July, 1826, when he resigned, and was succeeded by Roger Chew Weight- man. Mr. Weightman served until October, 1834; John HI. Reilly, until November, 1836; James Adams, from November, 1836, until July, 1870; Charles A. James, from July, 1870, until January, 1888; and C. E. White, from January, 1888, until the present time.
In January, 1886, this institution was organized as the " National Bank of Washington," with officers as noted above. According to its last published statement, its capital is $250,000, and its surplus
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and undivided profits amounted at the same time, March 1, 1892, to $100,644.48.
The Union Bank of Georgetown, District of Columbia, was chartered by Congress, March 11, 1811. The capital stock of the bank was $500,000, in $50 shares. For most of the time during the existence of this bank, Robert Beverly was its president, and David English appears to have been cashier during its entire existence. In 1840, it went into liquidation, but its charter was extended from time to time until 1849, to allow its affairs to be fully settled.
The Central Bank of Georgetown and Washington was chartered March 3, 1817, and when organized John Taylor was president, and A. R. Levering cashier. Mr. Tayloe resigned the presidency in May, 1818, and was succeeded by Francis Dodge, who remained president during the bank's short existence. March 2, 1821, Con- gress passed an aet authorizing this bank to pay off its debts and close its affairs, there being then too many banks in the District of Columbia.
The Farmers and Mechanics' Bank of Georgetown was started in 1814, at a meeting held February 15, at Crawford's Hotel. The gentlemen present were William Marbury, Thomas Turner, John Lee, J. Melvin, R. Riggs, L. II. Johns, George C. Washington, T. B. Beall, T. Robertson, and Charles W. Goldborough. William Marbury was elected president, and Thomas Van Swearingen, of Shepherdstown, was chosen director in his place. A committee was appointed to memorialize Congress for a charter, consisting of William Marbury, T. B. Beall, and John Lee. The salary of the president was fixed at $500 per year, and that of the cashier at $1,600 per year. Clement Smith was then elected cashier. A committee was then appointed, consisting of the president, cashier, and L. II. Johns, T. Robertson, and T. Turner, to receive proposals for a banking-house site. March 1, 1814, Mr. John Peters offered to sell the house at the corner of Bridge (now M) and Congress (now Thirty-first) streets for $14,000, and this offer was accepted by the new bank, payable in eight months from the 15th of March, 1814. On March 21, 1814, the cashier was allowed the privilege either of living in the banking house, or of' accepting in lieu of this privilege $400 additional per year as salary. On April 4, John I. Stull was appointed teller, Horatio Jones bookkeeper, and Robert Reed discount clerk. On May 17, 1814, the following resolu- tion was adopted: "That the cashier be authorized and required to take to the amount of $50,000 of the last loan of the United States for the use and benefit of the bank, provided it can be obtained as
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HISTORY OF BANKING.
original subseribers, with all the benefit and advantages that have or may accrue to them."
July 8, 1817, Clement Smith was elected president of the bank, but soon afterward Thomas B. Beall was elected, and served until 1820, Clement Smith continuing to serve as cashier until 1820. The original capital of the bank was $500,000, and in January it was resolved that the capital should not be reduced to less than $450,000. Clement Smith became president of the bank in 1820, and John I. Stull cashier. December 18, 1823, Thomas Wilson resigned as a member of the board of directors, and Raphael Semmes was chosen in his place. On January 1, 1829, the capital of this bank was $485,900, and its entire assets $793,191.97. April 12, 1834, its board of directors resolved to suspend specie payments, saying, in explanation of their course: "They foresee that the present prostration of business confidence, and consequent derangement of the currency, must eventually reduce them to this course, and they prefer to anticipate the event by yielding at once to the pressure, rather than to avert it by holding out during the short practical period of delay, at the expense of sacrificing the permanent interests of the bank. This measure is of temporary dura- tion. The board see no necessity, in the condition of the bank, for extending it beyond the present singular crisis in the banking history of the country, and confidently anticipate the resumption of active business on a specie basis as soon as this crisis shall pass away."
John Kurtz succeeded Mr. Smith as president in 1841; Robert Reed became president in 1850; George Shoemaker, in 1862, and Henry M. Sweeney, in 1865. John I. Stull served as cashier until 1841; Alexander Suter, until 1848; William Lang, until 1851, and William Laird became cashier in that year.
The original charter of this bank was dated March, 3, 1817, and it was renewed by Congress from time to time, and the stock of the bank, which, on account of the varying fortunes of the banking interests of the country, fluctuated considerably during the "singular crisis," precipitated by the opposition to these interests manifested by one of the great political parties, gradually rose from fifty cents on the dollar in 1838 to above par in 1870.
On January 15, 1872, this bank was organized as a national bank under the name it now bears, "The Farmers and Mechanies' National Bank of Georgetown." At the time of this organization, the following nine directors were elected: Henry M. Sweeney, Philip T. Berry, William C. Magee, Evan Piekrell, William King, Francis Wheatly, John Davidson, Charles M. Matthews, and Evan Lyons.
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HISTORY OF WASHINGTON.
Henry M. Sweeney was continued as president of the bank, and is still its president, having served in that capacity during a period of thirty-six years. William Laird was continued as cashier, and served in the same capacity for forty years.
The Patriotic Bank was established in May, 1815, and on June 5, following, the following directors were elected: Robert Brent, Thomas Law, James D. Barry, Daniel Porter, Timothy Winn, Phineas Bradley, George Way, Thomas Munroe, William Prout, Stephen Pleasanton, George Beall, David Ott, and Nicholas Young. On June 7, Robert Brent was chosen president, and Overton Carr cashier. Joseph Pearson was elected president in 1824, and also in 1825. On June 28, 1825, this bank opened its business in its new banking house, at the intersection of Seventh and D streets Northwest, oppo- site the office of the National Intelligencer. On June 1, 1829, the capital stock was $250,000, and its total assets $503,133.87. In 1832, G. E. Dyson was cashier, he having sometime before succeeded R. T. Weightman. On April 14, 1834, at a special meeting, it was resolved that, in the opinion of the board of directors, the interests of the bank and of its creditors required that the payment of specie for its obligations ought to be suspended; that the bank was able to pay 110 per cent. to the stockholders, and that the creditors of the bank be requested not to sacrifice their claims. "In making known this determination, the board need hardly say that nothing but the extraor- dinary juneture of affairs could have brought them to the painful necessity of this annunciation" -signed by W. A. Bradley, president, and G. E. Dyson, cashier. This bank resumed specie payment July 10, 1836, by unanimous resolution, but on May 12, 1837, it was again compelled to suspend, in common with the other banks throughout the country. This was done at the request of the shareholders of the bank. At that time, a brief statement of the condition of the bank was made public, as follows: Debts due by the bank, $326,560.48; debts due to the bank, including real estate, $528,256.67; capital stock outstanding, $171,040; entire surplus, $30,656.19. P. Thompson was cashier in 1839, and C. Bestor in 1846, Mr. Bradley remaining presi- dent. In 1846, this bank opened a savings department, receiving sums of $5 and upward, upon which it paid interest until the money was withdrawn. This was the first savings bank in Washington.
During the War of 1812-15, with Great Britain, the finances of the country fell into inextricable confusion; the Government was obliged to borrow money at a ruinons rate of interest, giving $100 for $88, and taking the proceeds in the notes of banks which could not
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HISTORY OF BANKING.
pay specie, the notes being worth from sixty to ninety cents on the dollar. Under such disastrous and distressing circumstances as these the evils inflicted on the country by Vice-President Clinton's vote against the renewal of the charter of the old National Bank, already referred to, were plainly visible to those who understood financial matters, and the necessity of such an institution was painfully experi- enced. In this state of things, at the session of Congress of 1813-14, Hon. Felix Grundy, of Tennessee, introduced a measure into the House of Representatives looking to the establishment of a national bank, which was referred to the proper committee. Action upon the question was not taken at that session "for want of time," although Mr. Grundy was of the opinion that there was plenty of time; but in November, 1814, the question again came up, and in connection with the discussion the National Intelligencer said: "Those in Congress who doubt the constitutional power of Congress to establish a national bank are not few; and if we add to the number those who are opposed to the measure for sustaining the public credit, inasmuch as nothing would delight them more than to see the wheels of government stopped by national bankruptey, we shall find a formidable phalanx in Congress arrayed against a national bank, however organized."
These remarks were designed for the Federalists, many of whom believed the war with Great Britain wholly unnecessary. The bill, as presented in the House of Representatives, November 14, 1814, named only Boston, New York, Philadelphia, Baltimore, Richmond, Charles- ton, and Pittsburgh, as places where subscriptions to the capital stock were to be received, thus confining the opportunities to subscribe almost exclusively to the Atlantic cities. This was far from satisfactory to many Western members of Congress, and upon motion of Mr. Sharp, of Kentucky, Lexington was added; on motion of Mr. Robertson, New Orleans; on motion of Mr. Harris, Nashville, Tennessee; on motion of Mr. Lewis, Washington, District of Columbia, Raleigh, North Carolina, Savannah, Georgia, and New Brunswick, New Jersey, were also added, and Pittsburgh stricken out.
For Washington, District of Columbia, Robert Brent, Walter Smith, and Thomas Swann were made the commissioners to receive subscriptions. Mr. Lewis then made a motion contemplating the location of the principal bank in Washington, but this was opposed by Mr. Fisk, of New York, the Ways and Means Committee having selected Philadelphia for that honor. Of this committee Hon. John C. Calhoun, of South Carolina, who had entered Congress about the beginning of the war, was chairman, and in this responsible position
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he introduced the bill, ably advocated it, and really carried it through the House. This, however, was on its final passage. Previously to its reaching this point, its history is of considerable interest. On January 2, 1815, the bill, coming up for final action in the House of Repre- sentatives, was apparently carried by 81 affirmative to 80 negative votes. But the Speaker, IIon. Langdon Cheves, from South Carolina, called attention to the rule of the House which permitted the Speaker to vote in two cases, of which this was one, and, declaring his conviction that the bill was a dangerous measure, cast his vote against it, and thus made the vote in the House a tie, and then decided that the bill was lost. On January 8, however, in an amended form, the bill passed the House by a vote of 120 to 38, and it passed the Senate by a good majority. But on January 30, President Madison returned it, without his approval, to the Senate.
On April 5, 1816, however, the bill, having passed the Ilouse of Representatives by a vote of 80 yeas to 71 nays, passed the Senate by a vote of 22 yeas to 12 nays, and on the 10th of the same month it was signed by the President, and thus became a law. Of those who voted for the bill more than two- thirds were "Republicans," or "Dem- ocrats," as they were indifferently called, in contradistinction to the "Federalists," who numbered about three-fourths of those who voted against the bill. But all of those who thus voted were not opposed to a national bank, being opposed only to certain features of the bill, and voted against it in the hope of throwing it back again into the committee, and of thus having an opportunity to eliminate the features which were objectionable to them.
This was a great triumph for the friends of a sound currency, and for those who were in favor of a vigorous prosecution of the war. The bank went into immediate operation, but for some years the sanguine anticipations entertained of public advantage from its opera- tions were not realized. The difficulties were, that the country, at the close of the Revolutionary War, was flooded with $200,000,000 worth of foreign fabrics, which were sold at any price that could be obtained, with the view of breaking down the manufacturing industries of the young Republic, and the entire country was overwhelmed with both public and private debt; and in addition to these things, the currency was in a most deplorable condition, as a consequence of the failure to renew the charter of the old National Bank. For these reasons it was an impossibility for the bank to restore everything to a prosperous condition in a short period of time, even by affording every facility in its power. After a time, however, aided by a more efficient tariff and
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HISTORY OF BANKING.
an improved management of the affairs of the bank itself, the country began to emerge from its embarrassments, and from 1819 to 1834 the bank prospered, and gave to the country the best currency that the world had ever seen.
When everything was in this prosperous condition, when the National Bank was recognized as a most useful institution, IIon. John C. Calhoun, to whom credit has already been given for the success of the efforts in Congress to charter this bank, said, in 1832: "I may say with truth, that the bank owes as much to me as to any other individual in the country; and I might even add, that had it not been for my efforts it would not have been chartered. I might content myself with saying that, having been on the political stage without interruption from that day to this, having been an attentive observer of the question of the currency throughout the whole period, the bank has been an indispensable agent in the restoration of specie payments; that without it such restoration could not have been effected short of the utter prostration of all monied institutions in the country, and an entire depreciation of bank paper; and that it has not only restored specie payments, but has given a currency far more uniform, between the extremes of the country, than was antici- pated or even dreamed of at the time of its creation."
Under this act the president of the bank appointed as commis- sioners to superintend the taking of subscriptions in Washington, General John Mason of Georgetown, Thomas Swann of Alexandria, and General John P. Van Ness of Washington. Subscription books were opened on Monday, July 1, 1816, and closed on the 23d of the same month. The amount subscribed here up to that time was $1,- 293,000, an amount far exceeding what had been anticipated. By the same time the subscriptions in Richmond amounted to $1,702,000; in Baltimore, to $4,014,100; in Wilmington, Delaware, to $465,600; in Trenton, New Jersey, to $130,000; in New York City, to $2,500,000; etc. By August 29, the total amount subscribed amounted to $25,000,- 000. The deficiency of $3,000,000 was subscribed by Stephen Girard, "a wealthy citizen of Philadelphia."
On January 27, 1817, the following gentlemen were appointed directors of the Branch Bank of the United States in Washington: Richard Cutts, Thomas Munroe, B. Thruston, R. C. Weightman, G. Bomford, G. Graham, and William Brent, of Washington; Thomas Tudor Tucker, J. Deane, and Thomas Swann, of Alexandria, and W. Smith, W. S. Chandler, and R. Parrott, of Georgetown. Richard Smith was chosen cashier, and the office began business on Saturday,
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HISTORY OF WASHINGTON.
February 8, 1817. General John P. Van Ness was elected president of this branch. This branch bank continued in successful operation until the main bank was slaughtered, when, from the necessities of the case, it wound up its affairs.
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