USA > Pennsylvania > Philadelphia County > Philadelphia > Warwick's Keystone commonwealth; a review of the history of the great state of Pennsylvania, and a brief record of the growth of its chief city, Philadelphia > Part 21
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Philadelphia still retained her supremacy as the great commercial centre in the new world. In the years 1805. 1806 and 1807, nineteen hundred and twenty-six foreign vessels arrived in this port, while the number of coasting vessels amounted to thirty-six hundred and seventy, the number increasing gradually every year. During this same period, the foreign clearances amount- ed to nineteen hundred and fifty-nine, while the number of coasting vessels that cleared the port were thirty-seven hundred and forty. This will give some idea of the wealth and importance of the city's foreign and domestic trade. The banking facilities not being sufficient to meet the demands, the Philadel- phia Bank was organized in 1807, with a capital of a million dollars. The principal banks at this time were, the Philadelphia Bank, the Bank of North America, the Bank of the United States, and the Bank of Pennsylvania. The Farmers' and Mechanics' Bank was organized subsequent to the creation of the Philadelphia Bank.
The Philadelphia National Bank, formerly the Philadelphia Bank, was pro- . jected at a time when the growth of commerce had greatly enlarged the busi- ness interests of the city and made more banking capital necessary. Philadel- phia was the principal seaport of the country at that time; its export trade was growing steadily, and there were only three banks in the city and forty in the entire country. The merchants had expressed dissatisfaction with the exist- ing banking methods and on August 3, 1803, this dissension crystalized in the organization of the Philadelphia Bank, in the counting house of John Welsh, No. 31 South Wharves. Its organizers included men who were prominent in Colonial affairs and its first President was George Clymer, a signer of the Declaration of Independence. John Welsh, the prime mover in the bank's for- mation, came to be known as "the father of the bank" and continued active in its affairs for fifty years. During its existence of one hundred and ten years, the bank has had an eventful and most interesting history. It has survived many panics and its steady growth is entirely due to the wonderful business acumen and executive ability of the men who have directed its affairs, many of whom were conceded to be the ablest financiers of their time. When the bank
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commenced business on September 19, 1803, it occupied a rented building on the south side of Chestnut street above Third, on the site where the Merchants and Mariners Building now stands, and later, removed to Fourth street below Chestnut in a building which the bank erected on the site of "Morris' Tav- ern." A more pretentious building was afterwards erected at this loca- tion and occupied by the bank until 1858, when the present building was purchased from the receivers of the Bank of Pennsylvania, one of the early financial institutions of the city which failed while the building intended for its use was in course of construction. FIRST BUILDING BUILT AND OCCUPIED BY THE PHILADELPHIA NATIONAL BANK, S. W. C'OR. 4TH AND CHESTNUT. The Philadelphia Bank was char- tered by the State in 1804. Its capital was $1,800,000, and this was subse- quently reduced to $1,500,000. On March 9, 1804, six months after commenc- ing business, it paid its first dividend "at the rate of three per cent. for the half year, on the installments constituting the present capital of the bank, $1,000,000." Since that time the dividends have ranged from three per cent. per annum to sixteen per cent., the present rate. In 1865 the annual dividend was fifteen per cent., and owing to the sale of gold which the bank had in its vaults and for which a large premium was received, a spe- cial dividend of twenty-five per cent., amounting to $375,000, was declared. In all, the bank has paid dividends of ten hundred and thirty-six per cent., amounting to $16,016,872, or nearly eleven times its capital. A most won- derful record. In addition to this, it has rendered efficient aid to the Na- tional, State and Local Governments, has subscribed liberally to two war funds and has never failed to respond to the call for aid from distressed communities or scenes of great disas- ter. The Philadelphia Bank establish- ed in 1854 a Clerks' Pension Fund, probably the first of its kind in a finan- cial institution, the fund providing pensions for clerks stricken during the service or incapacitated by age.
The bank has always been fore- most in every movement for public good, for its directorate for one hun- dred and ten years has included the
THE PHILADELPHIA BANK.
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leading men of the various periods-men of philanthropic inclinations and sterling integrity-which has given the bank a deserved reputation for liberality, conserva- tism and solidity. It has always had the support of the best business interests of the city and its deposits now amount to $50,000,000, while the total assets exceed $55,000,000. The bank conducts a most extensive business in all its branches both in this country and abroad, having direct connections with all the leading cities of the world.
It was the first bank to enter the Philadelphia Clearing House Association in 1858 and was among the earliest to enter the National System under the Act of 1863-1864, which necessitated its reorganization and the addition of the word "National" to its name.
Since its organization, the bank has had but eight presidents. These were George Clymer, David Lennox, John Read, Samuel F. Smith, Thomas Robins, Benjamin B. Comegys, N. Parker Shortridge, who became Chairman of the Board of Directors in 1907, and was succeeded by Levi L. Rue, the present incumbent of the office. Mr. Rue's rise to the presidency of the bank is due to his strict probity and thorough knowledge of banking in all its detail. lle en- tered the institution as a boy during the presidency of Benjamin B. Comegys, who was with the bank for fifty-two years and was considered one of the greatest financiers of the age. Mr. Rue filled many positions of constantly increasing responsibility until he rose to the vice-presidency and finally became directing head of the bank when Mr. Shortridge was made Chairman of the Board. Under his careful direction, the bank has maintained the high reputa- tion and conservatism that it has enjoyed since the early days of the last cen- tury. The other officers are Lincoln Godfrey, Vice-President; Ilarry J. Keser, Cashier ; Horace Fortescue, William S. Maddox and David W. Stewart, Assis- tant Cashiers. The Board of Directors includes N. Parker Shortridge, Chair- man ; Richard Ashhurst, Lincoln Godfrey, George Wood, Alfred C. Harrison, Levi L. Rue, George II. Frazier, Percival Roberts, Jr., George H. McFadden, Edward T. Stotesbury, Effingham B. Morris, Randal Morgan, R. Dale Ben- son, Samuel Rea, Alba B. Johnson, Pierre S. du Pont, Thomas S. Gates and Asa S. Wing. This is the character of men who have directed the institution's destinies for one hundred and ten years so that it is not strange that the bank has weathered every financial storm and survived to become a power in the monetary world.
Philadelphia was the art centre of the country, and in 1806 was opened on Chestnut street between Tenth and Eleventh streets, the Philadelphia Acad- emy of Fine Arts. A number of artists had settled in this city, either per- manently or temporarily and helped to create in our midst an artistic taste, among whom can be named the Peales, father and sons; Robert Edge Pine, an English artist of some note; Gilbert Stuart, whose portrait of Washington is famous ; Houdon, the French sculptor who modelled the life mask of Washington ; Cheracchi, an Italian sculptor who subsequently was executed for an attempted assassination of Napoleon; William Rush, a native sculptor, and Benjamin West. Of course, the contributions to the Academy at the start were not many nor very valuable but about the first importation made was a number of plaster casts representing the nude in art. The exhibition of these figures,
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however, met with considerable adverse criticism and the prudery of that day was so great that Monday of each week was set apart exclusively for ladies, when unaccompanied by their male escorts they were permitted to view without bringing a blush to their cheeks, the Apollo Belvidere, the Fighting Gladiator, the Laocoon, the Venus de Medici and numerous other classic groups and fig- ures.
Philadelphia, too, was the literary centre of the country, and Joseph Den- nie, an essayist and a well known journalist, was the leader of the circle. The book store of Asbury Dickens on North Second street was the rendezvous for all the literary characters of that day, both residents and visitors. It was here that Thomas Moore, the celebrated Irish poet, found, according to his own testimony, for the first time during his visit to this country, a congenial and an interesting circle of men. Charles Brockton Brown, the first author of fic- tion in America of any repute, was among the number. Lawyers, pamphleteers, essayists, ar- 97.CURRIERS tists and actors made up this interesting group IN! of men, and they met in such numbers at the shop of Mr. Dickens that they at times actu- ally interfered with the conduct of his business.
Casual reference has been made to the banks in existence at this period, but the bank of North America is deserving of more than mere mention, for it was instituted to aid the THE BANK OF NORTH AMERICA 1781 307 CHESTNUT STREET PHILADELPHIA Colonies in their struggle for independence. This institution, the oldest of its kind on the American continent, was authorized to do business by ordinance of Congress passed December 31, 1781, and began active operations January 7, 1782, in a store, whichi stood on the site of its present building and which it occupied continuously for sixty-five years. It was organized at a time when Robert Morris was Superintendent of Finance, and Thomas Willing, a business partner of Morris's, was its first president, while its organizers and first board of directors were all men of high position in Colonial days. Although started during the period of much depression it over- came all obstacles and in addition to earning good dividends for its stockholders was of invaluable service to the National, State and City governments. Morris acknowledged that "without the establishment of the National bank, the busi- ness of the Department of Finance could not have been performed." The money advanced the Government was used to keep up the army and similar aid was extended to the State of Pennsylvania to pay the officers of its army. The bank also advanced the State money to pay its quota to the United States Government in 1782, and advanced money to fit out a vessel which was of in- estimable service in keeping Delaware Bay and River free of British vessels. It loaned money to the State Treasury for the defense of the Western frontiers and to the city for the care of its poor and there was no service, public or char- itable, which it did not assist. At this time there was doubt as to the validity of
£
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the charter granted by Congress and application was made to the Assembly for a State charter, and on April 1, 1782, it was duly incorporated under the laws of Pennsylvania for a period of seven years. In 1784 the success of the bank was assured and this brought much jealousy and opposition which cul- minated September 13, 1785, by a repeal of the charter. The bank lost some prestige by this drastic action but continued operations under its Congressional charter and in 1787 it again secured a State charter. All opposition was now overcome and the bank entered upon an era of prosperity. When Alexander Hamilton became head of the Treasury Department, he openly acknowledged
1893
THE BANKOF NORTH AMERICA.
THE BANK OF NORTH AMERICA. 205, 307, 309 CHESTNUT STREET, PHILADELPHIA.
the aid afforded the United States by the Bank of North America and in his plan to establish a great national bank, he invited overtures from the bank, but the directors preferred to remain under State auspices and took no steps in this direction.
During the War of 1812 the bank advanced money to support the army and navy and aided largely in promoting the circulation of Treasury notes. It also afforded material aid in the defence of the city. When war was declared between the North and South, the Bank of North America was among the first financial institutions in the country to declare confidence in the National Gov- ernment and it hastened to take measures to aid in the preservation of the
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Union. It appropriated money for the defence of the city and in addition to subscribing its pro rata share of United States Treasury notes it loaned the Government large sums of money. During all the periods of depression and panic that have occurred during its 131 years of its existence, the bank has never failed to pay at least one dividend in each year. Under its charter from the State it was obligatory to declare a dividend at least once a year and in 1842 its affairs were in such a condition that it could not pay its usual dividend. Four fifths of its capital was locked up in unavailable securities and to keep within the law it paid the stockholders one cent per share. In 1844 conditions again became normal and in 1847, a new bank building- was erected, which in 1893 was replaced by the present magnificent structure, making a record of 131 years on the same site. In 1864 the bank was reorganized under the National Cur- rency Act, and after much correspondence and discussion with the Secretary of the Treasury it was allowed to retain its old name without the prefix "National." It had advanced to the Government four and one-half million dollars, or four and one half times its capital stock on United States securities and this was accepted as evidence of its loyalty to the Government and no change in its cor- porate name was demanded. During its long and successful existence the bank has had but ten presidents who served in the order named: Thomas Willing, John Nixon, John Morton, Henry Nixon, John Richardson, James N. Dickson, Thomas Smith, Charles S. Lewis, John H1. Michener, and the present incumbent of the office, Harry G. Michener, who succeeded his father September 21, 1906.
The Census of 1810 showed the city's population to be fifty-three thou- sand seven hundred and twenty-two. The outlying districts, the Northern Liberties, Penn Township, Southwark, Moyamensing and Passyunk showed a population of forty-two thousand nine hundred and forty-two, making a total population of nearly one hundred thousand. The Mayors during this period were Robert Wharton, John Inskeep, Matthew Lawler, General John Barker, and Michael Keppele. In 1810 the police force consisted of thirty-two watch- men whose duty it was to light the lamps and to see that they were kept burn- ing during the night and extinguished in the morning. The yellow fever con- tinued to make annual visits, but it was not so virulent as it had been in the past.
CHAPTER XVI.
WAR OF 1812. FEARON'S IMPRESSIONS OF THE CITY.
A FTER the Revolutionary War, the sentiment was strongly anti-Eng- lish, as was natural under the circumstances, but instead of allay- ing this feeling, England only intensified it by her arbitrary conduct. Philadelphia's prosperity depended much upon her commercial in- terests, and during the wars between England and France each country for- bade the United States to trade with the other. Besides this, England treated us in a most insolent manner, stopped our vessels upon the high seas and im- pressed our sailors into her service. We protested against this right of search, but without avail. England claimed that if a man could not prove he was by birth an American, he must be a Britisher and a deserter from her navy. It is a wonder we submitted so long to her insolence. As mistress of the seas, it was upon her part an arrogant assumption of power. The deck of a ship is a part of the territory of the nation under whose flag the vessel sails, and to trespass upon that deck and to impress our sailors was as heinous an act as would have been the invasion of our land or the kidnapping of its citizens.
In 1807, the British man-of-war, "Leopard," stopped one of our war vessels called the "Chesapeake" under circumstances when the latter could not make an effectual resistance. Four of the American crew were seized and one of them was hanged as a deserter. This outrage aroused the indignation of the whole country, and Congress passed an Embargo Act, by which it forbade any American vessel to sail from our ports. There being no exceptions under this sweeping law, coasting vessels found it difficult to carry on their trade, and even fishing smacks on the New England coast had to obtain special per- mission before leaving for the banks. It was supposed by the passage of the Embargo and Non-Intercourse Acts that the belligerent states, England and France, so dependent for their supplies upon the products of this country, would be brought to terms, but instead of starving these nations we only im- poverished ourselves, for the exports fell off in the neighborhood of forty mil- lions of dollars in one year. There was a general demand throughout the na- tion for the repeal of these Acts, but especially was New England affected by this legislation, and she even went so far as to threaten rebellion. Her mills closed down and her workmen were reduced almost to starvation.
In 1809 Congress repealed the Embargo Act, and gave the right to trade with all foreign countries other than Great Britain and France. This, in a measure, increased our exports but did not restore them to their former vol- nime and importance. About this time the President, anxious to renew com- mercial relations with either France or England in order to relieve the dis- tressed condition of the people, listened to a proposition made by Mr. Erskine, the then British Minister to this country. He gave Mr. Madison, the Presi-
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dent, to understand that England would allow our vessels to sail the seas un- molested, provided we would agree to send our grain, rice, cotton and other exports to England alone. This agreement was entered into and the news received with great rejoicing by farmers, merchants and ship owners through- out the country; but, unfortunately, the British Government declared it was all a mistake, that the Minister was not empowered to enter into such an agreement, and that he had transcended his authority. Trade at once ceased,
AN UNUSUAL PORTRAIT OF NAPOLLON.
and the ill feeling between England and America became more bitter than ever.
Napoleon, too, thought he would take a hand in the game, and agreed to let our commerce alone, provided we would not trade with his arch-enemy, England. We were about to bind ourselves when it was discovered that Na- poleon's offer was simply a trick to deceive us, and to involve us in a war with England.
As time ran on, England continued to impress our sailors into her ser- vice, and in the summer of 1812 we made a declaration of war. England, then, was the great maritime power, the great commercial centre of the world. She occupied a proud and commanding position in European politics. She was about the only nation that had never formed an alliance with Napoleon,
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and she had ever remained his determined and relentless foe. The battles of the Nile and Trafalgar made her supreme upon the ocean, and her suc- cesses in Spain were the first repulses the French had sustained. England had fifty vessels where we had one, and her absolute supremacy upon the sea was acknowledged the world over. It was in 1812 that Napoleon's power began to wane, for it was in this year that he undertook his disastrous invasion of Rus- sia. Half a million men followed the standard of the Empire in this memor- able campaign, but beaten, not in battle but by the elements, this once grand host that triumphantly followed the eagles of this modern Cæsar, retreating in disorder and dismay, dwindled to an army of thirty thousand men. It is from this point that we may trace Napoleon's decline, and as his fortunes waned the power and influence of England increased.
It was not thought that the young Republic could make much headway against England, because the latter had a million men under arms, and her soldiers had passed through Napoleonic campaigns and were seasoned and trained in service We did not make much of a record on land to be sure, but on the ocean we met with glorious successes. Out of fifteen naval engage- ments we were victorious in twelve of them, and in the majority of the bat- tles fought, the English had greater tonnage and more sailors engaged than we had.
Philadelphia, because of her commercial interests, was seriously affected by the war. ller harbor was filled with vessels that could not raise a sail, be- cause of the restrictions of the Embargo. There could be found no foreign market for her products and manufactures. The Republicans were of the opinion that the Embargo of 1809 would bring England to terms, but the Fed- cralists strongly opposed the Act. Meetings were held in the State House vard by the parties either endorsing or denouncing Jefferson for having signed the bill. Timothy Pickering, who had voted against the Embargo and who had criticized Jefferson for having signed the Act, was strongly denounced by the Republicans and on the sixth of February, 1809, he was hung in effigy from a gibbet that was erected at the Town Hall in Northern Liberties. He had the British orders in Council hanging to his neck, and the French Decrees to his heels. The dummy was set on fire at seven o'clock in the evening, and it was hanged at a height of fifty feet above the ground.
Philadelphia was not the centre of the conflict in 1812, as she had been in the Revolution, but the war was brought close to her doors when on April sixth, 1813, the English opened fire on the town of Lewes. The militia were pressed forward to the scene but they saw no active military service. The British troops retired, the volunteers returned to the city and were given a grand reception and quiet was once more restored.
Meanwhile the British had blockaded all our ports along the Atlantic coast, and they had looted and burned a number of towns. In the summer of 1814. on August twenty-fourth, they entered Washington, and so sudden was their appearance that the President was interrupted at his dinner and had to flee, he in one direction, and Mrs. Madison in another. In the evening the torch was applied to the Capitol, the President's house and other public buildings, and they were entirely destroyed. The close proximity of the enemy
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threw Philadelphia into great confusion. A town meeting was called in the State House yard. It brought all classes of people together and there was great enthusiasm. Thomas Mckean, eighty years of age, presided. "It is not a time for speaking," he said, "but a time for action," and a committee was appointed to make arrangements for a defence against the advance of the enemy. Many of the people were enthusiastic and determined to make a stand in defence of their city, but, on the other hand, many were thrown into a panic, packed up their goods, secreted their money and left for places of refuge and safety. Stephen Girard removed great quantities of his goods, transporting them to Reading, but he himself never for a moment aban- doned the city. Sentinels were thrown out on every road leading from the south, and a system of signals was inaugurated, giving notice in case the enemy should approach. On the line of march of the British, farmers were directed to remove their vehicles, horses and oxen as far away as possible, thus depriving the invading host of all means of transportation. Large trees were felled and thrown across the road, and the water wheels were removed from the mills to prevent the grinding of grain. A number of forts and redoubts were hastily thrown up, and the citizens volunteered to do the work necessary for the erection of these fortifications. While the men were so engaged they were generously supplied with portions of grog and encouraged by patriotic appeals. When the excitement was at its height and the enemy was expected to make its appearance at any hour, the streets were crowded with men, wo- men and children to hear the latest news. On September twelfth, the British General Ross, at the head of his command had been killed, but the British veterans soon sent the militiamen on full retreat, and the British army then pressed on towards Baltimore. The ships in the harbor bombarded Fort Mc- Henry, but after twenty-five hours of incessant and desperate firing accom- plished nothing, and on the morning of the fourteenth the British land forces took to their boats. On the fifteenth, the grateful news was brought to the city by a courier from the seat of war. An eye-witness of his arrival says, "He came down Chestnut street at a full gallop, the crowd opening right and left. He pulled up at the corner of Fourth and Chestnut streets, and after a pause of a few moments to recover his breath, he cried out in a loud tone of voice, 'The d-d British have been defeated at North Point and their Gen- eral, Lord Ross, is killed.' This announcement was followed by such a fierce cry of triumph and such cheers as I have never heard since that memorable day." Crowds paraded the streets during the night shouting and singing na- tional airs and cheering for the brave Baltimoreans. Men mounted steps or boxes and harangued the crowd. One jolly old fellow, the landlord of a well known hotel, carried away by the excitement, pulled off his coat and hat at Third and Chestnut streets and waving them in the air hurrahed lustily until he reached South street, followed every step of the way by great crowds of excited men and boys.
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