USA > Pennsylvania > Philadelphia County > Philadelphia > Annals of Philadelphia, and Pennsylvania in the olden time; being a collection of the memoirs, anecdotes, and incidents of the earliest settlements of the inland part of Pennsylvania, Vol. III > Part 41
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Concerts were given at the Philadelphia Museum after it was opened, about 1839 or 1840, by Shaw, Watson, and others. The Shaw sisters-Mary, now Mrs. Hoey ; Rosina, now Mrs. Watkins; and Josephine, afterward Mrs. Fogg-sang there. A minstrel concert was given in the old Masonic Hall Theatre by Collins's New Orleans Serenaders in 1846. There was negro singing by solo performers long before that. One of the pioneers in this business was William Kelly of the Northern Liberties. He sang at Fogg & Stickney's Washington Amphitheatre and Circus, Old York road above Buttonwood, as early as 1829 or 1830.
Custom-Houses, p. 474 .- John Bewly was collector in 1704; John Moore in 1806. The custom-house was in Ross's building's in 1800 ; George Latimer was collector, and John Graff deputy. The custom-house built by the government stood on Second street below Dock, west side. The first story of the building was mar- ble, rusticated, a door in the centre, ascended by steps in form of a truncated pyramid. There was a blind window or window-re- cess on each side of the door, filled in with marble. The upper part of the building was of brick, the gable was toward the street. Near the roof was a niche in which was the statue of Commerce
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There were three windows with circular heads. The statue was above all the windows and near the roof.
The government bought the marble building, formerly the Bank of the United States, in Chestnut above Fourth, in 1848, for $270,000.
BANKS.
The first notice we have of an application for a bank charter is on the 7th of 12th month, 1688-9. At " a council in the Coun- cil-Room," Gov. Blackwell presiding, "The petition of Robert Turner, John Tissic, Thomas Budd, Robert Ewer, Samuel Car- penter, and John Fuller was read, setting forth their design of setting up a BANK FOR MONEY; and requesting encouragement from the governor and Council for their proceeding therein.
" The governor acquainted them that some things of that na- ture had been proposed and dedicated to the Proprietor (Penn) by himself, out of New England, to which he believed that he should receive his answer by the first shipping hither out of England. Yet withall acquainting them that he did know no reason why they might not give their personal bills to such as would take them as money, to pass, as merchants usually did bills of exchange." He adds : "It might be suspected that such as usually clipped or coined money would be apt to counterfeit their bills, unless more than ordinary care were taken to prevent it."
THE FIRST BANK IN THE UNITED STATES.
P. 475 .- The plan of the Bank of Pennsylvania, established for supplying the army of the United States with provisions for two months, originated with Robert Morris and a few other pa- triotic gentlemen, who lent their credit in the form of bonds, as is given below. Each bound himself for the payment thereof if necessary to fulfil the engagements and discharge the notes and contracts of the bank. These securities were to be extended to £300,000, Pennsylvania currency, in specie, at the rate of 7s. 6d. for a Spanish dollar.
Two directors were to be chosen to conduct a regular banking business. They were authorized to borrow money on the credit of the bank for six months or less, and to grant special notes bearing interest at six per cent. to the lenders. Congress was to reimburse them from time to time for sums advanced. If money did not come in fast enough, the bond-issuers were to lend a pro- portionate sum of their subscriptions in cash.
The directors were to apply all moneys borrowed and received from Congress to the sole purposes of purchasing provisions and rum for the use of the Continental army, to transportation, and
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to discharging their notes and expenses. The sureties were to choose a factor to make the purchases. Ten per cent. in cash was required from the loaners to start the bank. Notes were to be issued for payments as fast and as much as would be taken by their creditors. When Congress should reimburse the bank the notes were to be paid off and cancelled, accounts settled, and the bank wound up.
The articles mostly expected to be purchased were flour, beef, pork, sugar, coffee, salt, and other goods, and three hundred hogs- heads of rum. Three million rations to be sent at once to Trenton, to the order of the commander-in-chief.
The directors, factor, and others employed were to be allowed compensation by Congress, but none of them meant to derive the least pecuniary advantage at that present time ; nor do we know that they ever did receive a penny for their services, invaluable at the time.
The inspectors of the bank were-Robert Morris, J. M. Nes- bitt, Blair McClenachan, Samuel Miles, Cadwalader Morris ; directors, John Nixon, George Clymer ; factor, Tench Francis.
The heading of the subscription paper was :
"WHEREAS, in the present situation of public affairs in the United States the greatest and most vigorous exertions are re- quired for the successful management of the just and necessary war in which they are engaged with Great Britain ; We, the sub- scribers, deeply impressed with the sentiments that on such an occasion should govern us in the prosecution of a war on the event of which our own freedom and that of our posterity, and the freedom and independence of the United States, are all in- volved, hereby severally pledge our property and credit for the several sums specified and mentioned after our names, in order to support the credit of a bank to be established for furnishing a supply of provisions for the armies of the United States, and we do hereby severally promise and engage to execute to the directors of the said banks bonds of the form hereunto annexed.
" Witness our hands this 17th day of June, in the year of our Lord, 1780."
Here follow 92 names for various sums-2 for £10,000, 1 for £6000, 1 for £5500, 26 for £5000, 9 for £4000, 5 for £3000, 1 for £2500, 38 for £2000, and 9 for £1000; total, £300,000. Of the whole number, but two were living in 1828-William Hall and John Donaldson.
The bank opened July 17, 1780, in Front street, two doors above Walnut. Hours, 9 to 12 A. M. and 3 to 5 P. M. The ad- vertisement read :
" All persons who have already lent money are desired to ap- ply for bank-notes ; and the Directors request the favour of those who may hereafter lodge their Cash in the Bank that they would tie it up in bundles of bills of one denomination, with labels, and
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their names endorsed, as the business will thereby be done with less trouble and much greater despatch."
The tenth and last instalment was called in on the 15th No- vember, 1780.
The bank continued in operation till the establishment of the Bank of North America in 1781, the first incorporated bank of the United States. In May of that year Robert Morris, then Superintendent of Finance, submitted to Congress " A Plan for establishing a National Bank for the United States of North America," and on the 31st of December it was incorporated, and chartered by the Pennsylvania Assembly in 1782, was repealed in 1785, and rechartered in 1787. Owing to its being the first bank, it was allowed to retain its original title, without the prefix of "National," when the National Banking Act of Feb. 25, 1863, went into operation.
I have the original bond given by Richard Peters, and it reads as follows :
" Know all men by these Presents, That I, Richard Peters, Esq., of the city of Philadelphia, am held and firmly bound to George Clymer and John Nixon, Directors of the Bank of Penn- sylvania, in Ten Thousand Pounds, Lawful Money of Pennsyl- vania, to be paid in Silver or Gold to the said George Clymer and John Nixon, or their Attorney, Executors, Administrators, or Assigns; for which payment well and truly to be made, I bind Myself, my Heirs, Executors, and Administrators, firmly by these Presents. Sealed with my seal, on this Twenty-Second day of June in the year of our Lord one thousand seven hun- dred and eighty.
" Whereas, the above-bounden Richard Peters hath by an In- strument of Writing, bearing date the seventeenth day of this present month of June, subscribed and pledged his Property and Credit for the sum of Five Thousand Pounds in Specie, in order to support the credit of a Bank, to be established for fur- nishing a supply of provisions for the Armies of the United States ; Now, the condition of this obligation is such, that if the said Richard Peters, his Heirs, Executors, or Administrators, shall pay such sums of money, not amounting in the whole to more than the aforesaid sum of Five Thousand Pounds, as the Inspectors or Directors of the Bank of Pennsylvania shall from time to time demand, then this Obligation shall be void and of none effect, or else shall be and remain of full force and virtue.
" RICHARD PETERS.
"Sealed and Delivered in the presence of
" WILLM. GRAYSON,
" TIM. PICKERING."
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This bond is endorsed on the back in the handwriting of Judge Peters :
"This Bond was given by me, among others, to establish a Fund for the first Bank in the United States-the Bank of North America, and which was set agoing on private credits by a Multiplication of such Securities.
"R. P."
P. 475 .- The Bank of North America removed their old building and replaced it with another in 1849.
P. 476 .- " The stately marble bank " was bought at its failure by the United States, and was pulled down, with a view of erect- ing a post-office on the site, in 1857. But the opposition of the citizens was so great that it was finally decided to change the location, and the building was erected, as it now is, for the appraisers' offices and stores. The bank, in the mean while, built a massive granite building on Chestnut street above Fourth, but before it was completed its disastrous failure took place, and the building was finally sold to and completed by the Phila- delphia Bank, which then moved over from the opposite corner of Fourth and Chestnut streets.
The Philadelphia Bank originally (in 1805) occupied a square Gothic brick rough-cast building, with the centre portion elevated higher than the sides, which stood back from the corner of Fourth and Chestnut streets, with the entrance by a flight of marble steps on Fourth street-65 feet front on Fourth street and 50 feet in depth on Chestnut. It was surrounded by a garden, and shaded by trees, shrubbery, and flowers, and enclosed with an iron rail- ing mounted upon a wall. In 1836 it was removed to give place to the present building on its site, which was occupied in the second story by the Philadelphia Bank till its removal to the granite building opposite. The Commonwealth Bank then occupied the lower story till its removal in 1876 to the south-west corner of Fourth and Walnut streets.
Fraudulent Issue of Stock .- It was decided in the Schuyler case (New York) and a long line of others following it that a company was bound to make good the certificate of its officers under the corporate seal, so that the result was as long as it was broad. This has been the law and the practice in this State and elsewhere ever since.
One of the first cases of that kind about here was that of Hosea J. Levis, the cashier of the old Schuylkill Bank, which stood in 1839 at the corner of Sixth and Market streets. The Schuylkill Bank was the transfer agent of the Bank of Kentucky, and Levis, as the cashier of the former, made an over-issue of $1,300,000; and this very question arose then, and there was a great legal battle over it before Judge Edward King. It was in this case that the first bill in equity was filed in this county, and
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it was from the able opinion read by Judge King in that contro- versy (1 Parson's Equity) that he got the foundation for his great fame as an equity lawyer. The next great fraud of this kind was that of Schuyler. The next we had in this city was that of the Race and Vine Streets road in 1860, when Martin Thomas was president. Then there was an over-issue of about $150,000. This stock was recognized under the same reasoning. Then came another case which excited Third street very much. This was the misuse of stock of the estate of the late Charles S. Wood by the acting executor, George R. Wood. This executor had been speculating largely on Third street, and had left the certificates still standing in the name of the testator. These, with blank powers of attorney, he had put into the hands of his brokers, and other brokers advanced money on these certificates of stock. The estate filed a bill in equity to restrain the transfer of the stock so fraudulently used, and praying for their delivery. Judge Paxson granted the injunction, but the Supreme Court, on appeal, set aside the injunction. The case of S. Gross Fry, president of the Darby road, and his over-issue of some $90,000, are also fresh in the memory of men; and, still later, the discovery, in the summer of 1877, of the issue of stock of the West Philadelphia Passenger Railway by John S. Morton, its president, to the ex- tent of 12,000 shares. That stock will also be recognized. So that it is now settled law that a certificate of stock under the seal of the corporation, attested by its officers, when passed into inno- cent lands will carry a good title, though it may have been issued in fraud.
How often the Banks Suspended Specie Payments .- In the first place, it is well to notice the emission of Continental money, which was something like our greenback currency, put out with- out the means of redemption, and in the expectation that, if the Revolution was successful, the country would be in a condition, after the war had ended, to gradually redeem that currency. The first emission of Continental currency was made May 10th, 1775, the notes not being in actual circulation, however, until the fol- lowing August. Altogether, there were issued, between 1776 and 1781, of what was called the old emission, $357,476,541.45. There were issued of the new emission, $2,070,485.80. In round numbers, the Continental money issued was over $358,000,000. During the years 1775-76 this money was at par, but by the be- ginning of January, 1777, the faith of the people in its redemp- tion began to weaken, and it was at one and a quarter per cent. discount ; in January, 1778, four per cent .; in January, 1779, from seven to nine per cent .; in January, 1780, from forty to forty-five per cent. ; in January, 1781, one hundred per cent. ; and in May following, from two hundred to five hundred per cent. By June the paper money had ceased to circulate, and was bought np at prices ranging from 400 for 1 to 1000 for 1. The Bank VOL. III .- Z 33
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of North America went into operation in 1782, and from that time, during the brief remainder of the Revolution and under the Confederation, the notes of that bank and of the banks of Massachusetts and New York, and specie, were the only currency of the country. After the Federal government was formed State banks began to multiply. Between that time and 1812-1813 one hundred and nineteen banks had been set up in the United States, with a capital of about $77,000,000. The first suspension of specie payments took place on the 1st of September, 1814, and was general throughout the United States. The second Bank of the United States was opened at Philadelphia in January, 1817. It commenced to pay specie immediately. The result was that the shinplaster currency which had been in circulation before that time was forced to redemption. The local banks were careful to issue as few of their notes as possible, but nominally they were compelled to redeem them by the influence of the United States Bank. From 1817 to 1837 there was no suspension of specie payments. On the 10th of May, 1837, the banks suspended specie payments, and the city and district corporations issued cer- tificates of loans called "shinplasters." The suspension continued for over a year. In New York the banks nominally resumed about January, 1838-the Philadelphia banks, however, declar- ing that they were not ready to do so. In July, 1838, Governor Ritner issued a proclamation, in which he said that the banks, by suspending specie payments, had violated their charters ; and he ordered them to resume on the 13th of August following. Under the pressure of the official menace the Philadelphia banks resumed specie payments, and continued for over thirteen months. On the 9th of October, 1839, they again suspended. They were driven into a new resumption on the 15th of January, 1841. This was but a spurt, and did not last three weeks. On the 4th of February the Bank of the United States failed (Thomas Dunlap being president), and all the other Philadelphia banks suspended again. The Schuylkill Bank, at the south-east corner of Sixth and Market streets, failed absolutely on the 17th of December of the same year, on account of the over-issue of stock by its cashier, Hosea J. Levis. It endeavored to continue business, but finally gave up entirely. John P. Wetherill was president in 1844, trying to save the assets. There was no general day of resumption after this. As soon as the community had recovered from the shock caused by the failure of " the monster," the city banks commenced to pay out specie in small sums. The resump- tion was gradual, and continued several years. Meanwhile, there was a great issue of bank-paper, large speculations, and over- importations, until the 21st of September, 1857, when, in conse- quence of the failure of the Bank of Pennsylvania, the other Phil- adelphia banks suspended specie payments, and the suspension became general throughout the country. After this, resumption
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came on gradually, without being assigned to a particular day for its commencement. It continued until November 22d, 1860, when, in consequence of the threatening condition of the country, resulting from the secession movements in the South, the banks again suspended. There was another resumption during the suc- ceeding year, but on December 30th, 1861, there was a new sus- pension, in which our banks followed the example of the New York banks. Although there have been occasional instances of the payment of small notes in specie since that time, there has been no regular resumption since 1862. The government has issued greenbacks, and the banks have redeemed their notes in greenbacks. After the passage of the National Banking Law . the State banks may be said to have suspended altogether, re- deeming their notes in greenbacks and in their own notes issued under the banking laws. Within a year the accumulation of silver and the scarcity of small notes have brought that metal into circulation, because, in point of value, it is worth less than the greenback promises of the government.
Panics .- The charter of the old United States Bank expired on the 4th of March, 1836; it was chartered during the Presidency of Madison. When it was chartered by the Legislature of our State, in 1836, as a State institution, Mr. Biddle resigned the presidency of the old bank to take charge of the new one, the late Matthew L. Bevan being elected to the presidency of the old United States Bank. Mr. Biddle resigned the presidency of the State bank in the spring of 1839, and then the downfall of the bank commenced. Mr. Dunlap was elected to the presidency, and remained till its failure in February, 1841. Nicholas Biddle was president of the national bank from 1823 to 1836, and of the United States Bank of Pennsylvania from 1836 to 1839. The second Bank of the United States-chartered by Congress-did not fail during its chartered term. But that bank became, by a law of Pennsylvania, a State bank. The stock, property, and assets of the old bank were turned over to the new institution. The latter, when it failed, was in substance the old bank con- tinued, and it is common to speak of it as the United States Bank. Nicholas Biddle was not president of the bank at the time of its failure.
The first panic was in May, 1837, when the banks all sus- pended specie payments and the first issue of "shinplasters " by the various district commissioners took place. It was a fearful crisis, and is no doubt remembered by many of the present gene- ration. Some of the first and oldest staunch mercantile houses went down never to rise again, including such firms as Samuel Comly, Jackson, Riddle & Co., R. & I. Phillips & Co. (bankers), and many others of importance at that time. In the spring of 1841 there was another commercial calamity. Such houses as Pope & Aspinwall, John Brock, Sons & Co., and others of im-
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portance also went down. There was no panic after the war of 1812, There was a depression of business, which increased from 1812 or 1813 up to 1819 or 1820. Specie payments were sus- pended in August and September, 1814, and from that time for many years paper money and a shinplaster circulation formed the money circulation-notes being put out for as small sums as six and a quarter cents. The Mexican war took place in 1846-48, and there was no panic during that period or for some time after- ward. In fact, gold was more plentiful then than it ever was before or has been since. There were panics in 1857 and in 1873.
The Presbyterian Church, corner of Coates and Second streets (p. 481), was erected in 180 -. My father was then in the count- ing-house of Robert Ralston, who was the chief instrument in having it built. My father collected most of the money sub- scribed toward it, and most of the pew-rents. It was opened by a sermon from Dr. Green. It was at first in connection with the Second Presbyterian Church, whose ministers, Dr. Sproat, Dr. Green, and afterward Dr. Janeway, preached alternately in the "Campington Church," and then in this till Rev. Mr. Patterson was called as its pastor. This house was sold and pulled down to make place for the stores now standing on the old site, the congregation having built the new church on Redwood street, where Mr. Patterson preached, died, and is buried-in front of it.
Coates's Burial-ground, p. 482 .- In the year 1746, William Coates owned two hundred and fifty-six acres of land in one body, and appropriated a small portion of the tract as a place of deposit of the mortal remains of his immediate family and their descendants. "The spot chosen for the graveyard was well secluded from the gaze of men, being surrounded with hickory woods on either side, and hence the primitive name of Coates street, which was the southern boundary of the original plot, was Hickory lane, as may be seen by inspecting deeds on record. William Coates and wife were the first to occupy the spot, and their immediate posterity " "for several generations." Although William Coates gave the whole area of Brown street to the public as a gratuity, his burial-ground was made the sub- ject of so many county charges that it was levied on by the sheriff and ordered to be sold for the debt. "The property finally, under order of the court, was sold for over $12,000, although its full value in 1746 was not probably $50." " After paying the debt the proceeds were divided among the heirs of the proprietor, so as to leave $2000 to erect a monument over the re- mains of Coates and his wife." The remains have been removed and houses erected, so that the " thousands who pass along Third and Brown streets will be as ignorant of Coates's burying-ground as if it had never been." Some soldiers were buried here during
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the Revolution who died of small-pox, etc., which accounts for military buttons being occasionally found here.
South End, p. 483 .- The planting of cannon along the streets near the wharves has been a custom in this country from the time whereof "the memory of man runneth not to the contrary." We presume there is no person, however old, in Philadelphia who does not remember the cannon along the wharves from his earliest child- hood. We have seen views of the Delaware front taken before 1790 in which cannon are plainly visible. They were probably used in merchant-ships and privateers during the Revolution, the war of 1812, and afterward. They were sold as old iron, and, being less destructible than wooden posts, were sold to City Councils and to the district commissioners, and placed where they now are.
Anthony Cuthbert (p. 484), now dead many years. His son Allen, who was living in 1856, had a silver cup which was for- merly fastened by a chain to a pump up town, which belonged to the Wilkins family to which he was connected, and has descended down to him through about two hundred years, having the names of all the parties through whom it descended to him engraved on it. He had also the balance-wheel of Fitch's steam engine. He owned a portion of the wharves between Lombard and South, where were once his father's, McCall's, and other ship-yards.
Western Commons, p. 485 .- Fifty years ago there was a small market-house on Broad street, extending from the north side of Chestnut street to Centre Square. It was known as the "Sunday Market," and was used for the sale of provisions on the morn- ing of that day until eight o'clock. On the west side of Broad street were six or eight dwellings, which have since been taken down or altered. They were at that time principally occupied by Irish hand-loom check-weavers. Porter, who was hung on Bush Hill for being concerned in robbing the Kenderton and Reading mail-coaches, at one time boarded and worked at that business in one of them. Mr. Frederick Helmbold kept a hotel and a public horse-market-where a horse could be purchased from one dollar to a thousand dollars-at the south-east corner of Market street and Centre Square. The old Tivoli Theatre was on the opposite side of Market street, about where the Golden Horse Tavern now is. The Bolivar House or Garden was at the north-west corner of the square and Market street. The build- ings were at the back end of a grass-plot, toward Filbert street, extending to Schuylkill Eighth (now Fifteenth) street. The lot was surrounded by Lombardy poplar trees. It was quite a resort for nine-pin, shuffle-board, and quoit players. It was kept by a Mr. Evans. The old Centre building was used as a watch-house and as a dépôt for oil burned in the street-lamps. When the building was taken down in 1828, a portion of the old marble in it was re-dressed, and was used in erecting the front of the Uni- tarian Church, corner of Tenth and Locust streets.
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