pHlLADLLPHi. iw .% Jlli .11, ., ^ 539 w m(W ^fA//aa'.''.'l/,'mi/f'i&.S. ^^^: ^^i ^ p .ass ' y5 C} @ J! w t- ^ 4^^ I "^ Ki' %g =;:^i^?I ^f s S-MS: ^'f i =^5* K =S: 11 III W a |ij i|'^M|: ^=i^^i ^^Bl \^Si^^^^?tr'^ i* wvMii**/u3s >^/r X OT E/^>/^^/^ !.^ .# W.^^^^^^7^ Philad? March 1'.' 1815. FRACTIONAL, NOTES uF 1315. (original size.) The War Begins 57 Bank had been declaring semi-annual dividends of 4 per cent, for several years, but in September, 181 1, on account of the depressed condition of affairs, it was decided not to declare any dividend. In March, 18 12, 3 per cent, was declared; in September, 3I per cent.; and in March, 1813, the 4 per cent, rate was resumed. The Bank had been selling new shares at intervals, and by 18 13 the capital vv^as thus increased to $1,- 800,000, making $72,000 dividend at 4 per cent, paid at each dividend period. In expectation of the war it had strengthened its holdings of specie, largely by accumulating Spanish silver dollars, then the universal coin of America, so that in Septem- ber, 1812, the cash reported was $1,055,093, of which the gold was $21,504, the silver $403,866, and the remainder banknotes. Thus the Bank went into the war. In April, 181 2, anticipating the conflict, and the United States finances being in bad shape, Albert Gallatin, the Sec- retary of the Treasury, sent a communication to the Philadel- phia Bank, asking it to subscribe to a loan of the United States, and saying that the amount of the subscription would remain on deposit in the Bank until the Government needed the money. On April 2 2d the Bank subscribed $100,000 to this loan. The Pennsylvania law required the Governor to approve all loans to the Government by State banks, and on May 5th, Governor Simon Snyder sent his approval from Harrisburg, whither the State capital had been removed. When this was consummated, the United States Treasury put its first deposit in the Philadelphia Bank. Late in July the directors decided to make another loan to the Government of $400,000, the war being then in progress, and the Governor gave his approval August loth. This latter loan was credited in four monthly instalments, beginning September 15th. The death of the first President, George Clymer, occurred at Morrisville, January 23, 181 3. His last appearance at the 58 The Philadelphia Bank Bank was on the closing day of 1812. On January 25th a letter from Mr. Clymer's son announced his death, and a committee of directors was appointed to wait on David Lenox, and request him to succeed the late president. On the 28th he was elected a director, and subsequently the president of the Bank, and some time afterward his salary was fixed at $3,000. Major David Lenox was a leading merchant of Philadelphia, and one of the trustees of Stephen Girard's Bank. The effect of his two connections was seen a little later, when the board determined to open an account with, and to receive on deposit, the notes of "Stephen Girard, Banker." Major Lenox had served with distinction in the early Revolutionary War in the Third Pennsylvania Battalion. He was wounded and cap- tured at Fort Washington in November, 1776, and was held as a prisoner by the British until his exchange in May, 1778. He entered mercantile life in Philadelphia after the war, and became very prominent in business. He was president of the Philadelphia Bank nearly six years, until, deciding to retire from active life, to the general regret he resigned his posi- tion December 31, 1818. He subsequently lived in retirement in Philadelphia, dying about 1826. To carry on the war, a United States loan of $16,000,000 six per cents had been authorized, and Secretary Gallatin, on March i, 1813, had requested the Philadelphia Bank to open subscription books for this loan, which was done on the 12th. To help it along, the Pennsylvania Legislature passed an act offering the Government $1,000,000, and correspondence was had with the Bank relative to providing part of this loan. Down to this time the State had not called upon the Bank for any loan under the charter provisions for loaning the State $100,000 at five per cent, for ten years, and, meeting the situa- tion, the directors on March 22d passed a resolution loaning the State $200,000 for six years at six per cent. Progress of the War 59 PROGRESS OF THE WAR The Government loan was very slow of sale, and when it had hung fire for a considerable period, Stephen Girard and David Parrish, of Philadelphia, came to the rescue, subscribing one-half of it, and John Jacob Astor, of New York, who was then coming into financial celebrity, took $2,000,000, so that the larger portion was thus placed. They got it at 86|. The war was now going on w^ith great activity at sea, the American warships, most of them built at Philadelphia, gaining many successes and making numerous British captures, though the United States armies on land had repeated defeats. The British fleet maintained a close blockade of the Delaware River entrance, almost entirely cutting off access, and the Custom House at Philadelphia, which under the moderate rates of duty then prevailing had received an average of $300,000 monthly in 1 810, was, in 1813, reduced to less than $25,000 receipts monthly. The British repeatedly captured valuable prizes at the Delaware Capes, where vessels, ignorant of the war, arrived from remote parts of the world. Among these was one of Stephen Girard's finest ships, the " Montesquieu," coming home from Canton, with a cargo valued at $1,500,000, which, after considerable negotiation, he ransomed by a payment of $180,- 000 in specie. In April, 1813, the people were in great alarm about the defenseless condition of the city, which was at the m.ercy of the enemy's fleet, and at a large meeting they ap- pointed a "general Committee of Superintendence for the protection of the River Delaware and the City of Philadelphia, " President David Lenox being a prominent member. The tendency of financial affairs was to take the Spanish silver dollars, the most valuable coin, out of the country, and we find in October, 1813, the amount of silver held by the Bank reduced to $129,638, while the gold coins in the vaults 6o The Philadelphia Bank had increased to a value of $150,688. In that month the Bank took more Government loan, getting $242,000 sixes at 88j, which action was approved by the Governor. The first United States tax on bank notes, in the form of a stamp tax, was imposed as a war revenue measure in August, 181 3, and the Philadelphia Bank, in conformity with the terms of the Act, commuted this tax by an annual payment of ij per cent, upon the amount of bank dividends made. In March, 1814, the Bank loaned the State $100,000 out of a loan of $300,000 ordered by the Legislature for war purposes; in September, 1814, it loaned the city of Philadelphia $43,000 to assist in pro- viding for local defense, and in October the Government was loaned $33,333. Thus, to the nation. State, and city it had loaned for carrying on the war, in 18 14, a total amount of over $1,100,000 out of its entire capital of $1,800,000. The war was bearing very hard upon the people in every way; the blockade had greatly advanced prices, and we find in January, 1814, the Bank directors, "in consequence of the advanced price of the articles of living," giving the clerks ten per cent, increased pay for the previous year. A similar in- crease was made for several years afterward. The war made many failures and assignments, and the meetings of the board were largely occupied with consideration of the cases of insolvent debtors, sending committees to creditors' meetings, making settlements, and voting releases on partial payments. So much law thus arose that it became necessary to have a permanent counsel. Previously various prominent lawyers had, in a desultory way, attended to the occasional suits of the Bank — Mr. Dallas, Mr. Tilghman, INIr. Ross, INIr. Kittera, and others. On January 27, 1814, the first formal election of counsel for the Philadelphia Bank is recorded, Charles Chauncey being chosen, and on February 7th he was elected a director of the Bank. His opinions were sent to the board on many mxatters subse- m Philad\ f^-^^^Uti^2j?^iSi^ FAY to t_^^^^ (^=2^^^^^^ -&«-w.«^ or ^i^ ^ Dollars, — Cents. -Dollars, *::z='ii€tnfs. EARLY BANK CHECK— 1S14. (reduced size.) 'i^ itfTTt'-ilil'-i- W IIIIII MIBl T I I I If r I I I a^sQ^iacsaiSBa^p' .. ..."u^UMillLllllilWT 3AXK NOTES— 051 AND i-^'i. WITH OI-FICEKS- SIl '.NATrKES, VIGNETTES OF GEORC.E CLYMKR AND JOHN WELSH. (^REDUCED SIZE.) Suspension of Specie Payments 6i quently, he served on various committees, and, occasionally, associated with him in the legal proceedings and in opinions is found the Nestor of the Philadelphia Bar, Horace Binney, then advancing into fame. The Bank came into a difScult period. The extensive loans to the Government had taken away most of the banking capital previously engaged in mercantile business. In these days "call loans" had not been devised; deposits were small; there were no surplus funds, and the banks depended entirely upon their capital for loaning. Suspensions and assignments locked up a good deal in paper that could not be collected, and renewals were universal. Joint committees of the city banks frequently met to consider the condition of affairs. It became necessary to curtail. The parent Bank almost stopped loan- ing, and in March, 1814, all the branches v/ere ordered to limit their discounts to the amounts then loaned. In May the branches were ordered to reduce ten per cent, in discounting on all notes as they fell due and to discount no new paper. Ex- tensions had to be given and other methods taken to relieve debtors, as the record says, who were under stress, "from the present state of the commerce of the country." Even bank directors made assignments and sent in their resignations from the board, which were regretfully accepted. SUSPENSION OF SPECIE PAYMENTS In the summer of 18 14 the British sailed up Chesapeake Bay, landed at the head of Elk, attacked Baltimore and Wash- ington, and burned the Capitol. This made the greatest excitement in Philadelphia, renewing the fears of attack, and necessitating the loans for local defense. There was an ex- tensive recruiting of volunteers and all the city organizations were ordered out. This took away several of the clerks and 62 The Philadelphia Bank the first teller, and there is a record of a committee of the directors being sent to General Cadwalader to get the teller released from service, as his presence was imperatively neces- sary at the Bank. Another clerk provided a substitute to go to the field, and the board allowed him S6o. When the capture of Washington was announced, the board immediately gave instructions not to receive the notes of any bank to the southward of Philadelphia. The committees of the city banks met August 29th and unanimously resolved: "that it be recommended to the several Banks of this city to suspend their payments in specie, under existing circum- stances." The next day all the banks in Philadelphia sus- pended, the New York banks and those elsewhere throughout the country immediately following. The Philadelphia Bank the same day sent most of its specie, $35,000 in silver and $40,000 in gold, to the branch bank at Harrisburg for safe- keeping. They also notified all persons having property in the Bank that it would be kept wholly at the risk of the owner. On August 31st a large meeting of business men was held at the Merchants' Coffee House, approving of the suspension, and passing a resolution to sustain the banks and take their notes as usual. This action by the banks was absolutely necessary, as, other^vise, the small amount of specie in the country would at once have gone out of the banks and been exported to pay debts abroad. The next time the Bank's money was counted, out of a total of over $968,000 it held only $5,009 in gold and $9,768 in silver in the vaults at Philadelphia. The specie sent to Harrisburg was not brought back until after the close of the war, in April, 18 15. The suspension of specie payments soon caused great popular inconvenience. All the small change disappeared. To supply it, various kinds of paper notes were issued by in- dividuals, some as low in denomination as two cents. These, Suspension of Specie Payments 63 called " shinplasters, " circulated for a while, but were rarely redeemed. The Philadelphia Bank early began to supply this want of change. There were copious issues of one-, two-, and three-dollar notes, and of smaller paper tokens for change to provide the various fractional parts of the Spanish dollar, in denominations of 50, 25, 12I and 6| cents, the latter two being the famous "levy" and "fip" which were so long in circulation in this country. Nearly $130,000 of these fractional notes, called "tickets," were issued, including a peculiar denomina- tion, necessary for the West India trade, of a note for S1.56I, being one-tenth of a Spanish doubloon. There were $31,250 of these peculiar notes printed and nearly all were issued. They were called in and burned in 181 7 and later. About the time of this small note issue, the first local bank outside the old city of Philadelphia began business, the Bank of the Northern Liberties, and on December 15, 1814, the Philadelphia Bank opened an account with it. In September, 1814, the Philadel- phia Bank dividend was reduced to 3^ per cent., and that rate was continued in iSIarch, 181 5. The Government was unable to pay its interest on the public debt at the close of 18 14, and various projects were discussed for temporary relief. It was at this period that the Treasury tried to negotiate a fresh loan of $6,000,000 at 7 per cent., which was but sparsely taken, until Stephen Girard came to its relief and subscribed the whole unsold balance, thus saving the national credit. The war was ended by the battle of New Orleans, January 8, 181 5, of which news reached Philadelphia, February 5th. This battle was fought after the treaty of peace had been signed at Ghent in the latter days of 18 14, but the peace was not known here until February 13, 181 5. The war had cost the Government in borrowed money $63,000,000 in 6 and 7 per cent, loans, $17,000,000 in Treasury notes, and large undeter- mined sums for individual claims; and the total United States 64 The Philadelphia Bank debt, after their partial adjustment, was reported to Congress in 1816 at $103,000,000. Paper money alone being in circulation, it was at a discount, the Philadelphia Bank notes selling 15 to 20 per cent, below par in specie. In December, 181 4, to relieve the scarcity of money, the Pennsylvania Legislature had passed an Act, empowering the State banks to make large additional note issues. Coin had then entirely disappeared. The close of the war and relief of the blockade at the Delaware Capes naturally brought a period of general business recuperation, and the activity of trade soon ameliorated the stress which had been upon most industries. The Philadelphia Bank directors gave the branches more liberal lines of discount. In April, $92,000 more United States loan was taken as an in- vestment for the sinking fund set apart for the gratuity given the State for the charter, and $50,000 more was loaned the State to enable it to straighten out its crippled finances. As too much paper money was out, all the banks in the summer began contracting their note issues, so that by July, under the improving conditions, the discount on Philadelphia Bank notes had fallen to 8 per cent. This curtailment of notes again v/as detrimental, however, for there w^as less money to loan, and we find a committee reporting it inexpedient to make further loans, except where absolutely necessary, the discounts being too much extended. The reduction of note issues and of loans caused much business distress during the latter part of the year. RESUMPTION These difficulties were successfully surmounted, however, and there came a rapid trade recovery in 1816, the charter of the second and greatest United States Bank being granted by Congress in April, 18 16, with a provision that it should make payments on demand in specie, under penalty of twelve per Resumption 65 cent, per annum. This resulted in the calling of a convention of representatives of the banks of New York, Philadelphia, and Baltimore, which was held in Philadelphia, August 6, 7, and 8, 1 816, to provide for a general resumption of specie payments. They passed resolutions to resume specie payments on the first Monday in July, 181 7, by which time the Bank of the United States was then expected to be ready to begin active business in Philadelphia, with branches in Boston, New York, and Baltimore. If resumption were possible at an earlier date, the resolutions indicated that the time v'ould be anticipated. Upon being informed of this action, the Philadelphia Bank directors passed a resolution on August 15th that the Bank "resume payments in specie on the first Monday in July next, provided that all the Banks represented in said convention adopt the same resolution." All the banks, in September, joined in an address to the public announcing their action, and indicating that they might, should the developments be favor- able, resume at an earlier time. This, however, required a good deal of preliminary v/ork. The Bank of the United States opened for business in Philadelphia on the first Monday in January, 181 7. To successfully carry out the requirements of the charter as to payments in specie, it was necessary to buy a supply abroad and bring it across the ocean. With this object, John Sergeant, one of the leading citizens of Philadelphia, was sent as Commis- sioner to London to obtain the specie, and for this purpose to negotiate a loan, pledging as security United States loan. The other banks in Philadelphia were invited to participate, and Mr. Sergeant consummated the arrangement. He got at that time $1,195,000 in specie and brought it over, and upon this fund the subsequent resumption was based. The various banks participated in proportion to the amounts of United States loan they respectively contributed to the general fund, 5 66 The Philadelphia Bank the banks also agreeing to make good any deficiency in the value of the collateral that might ensue. The share of the Philadelphia Bank was $101,833.36 in specie, and it pledged $150,000 in United States loan, which it borrov/ed from the Pennsylvania Bank, and subsequently repaid, buying the loan at 99i. The imported specie was coined into American money, and the progress of events toward a formal resumption was more rapid than had been anticipated. The Government made an announcement early in 181 7 that it had decided to cease issuing irredeemable paper on February 20th. The officers of the United States Bank then suggested that there be a simultaneous resumption by the banks, and the Philadelphia Bank directors, on February 3d, passed a resolution ordering resumption February 20th. Soon afterpv^ard we find the Bank officials sending large amounts of Spanish dollars to the mint for coinage into half-dollars. It is a curious commentary on this resumption of February 20, 181 7, which in practice was merely nominal, not becoming actually effective until a good while later, that the Philadelphia Bank, although the specie importation cost it $5,500, seems never to have really gotten possession of its share of the specie. The necessities of the United States Bank at that period re- quired it to absorb all the specie in sight, and in January, 18 18, it theoretically gave the Philadelphia Bank its share of the specie, by charging the amount against a balance then owing by the latter Bank to the former. The Philadelphia Bank also seems from its own resources to have gotten gold in quantities, which it loaned to the United States Bank at intervals in 18 17 and 1 8 18. It became very inconvenient to carry out the actual resumption in 1817, and in August the banks agreed, instead of settling, to pay interest on the balances they owed each other, this continuing until June 20, 181 8, when they were able to resume actual specie payments of balances due. The Phil- Earliest Philadelphia Bapk Statement 67 adelphia Bank subsequently sold in London its $150,000 United States loan, and liquidated its proportion of the debt in- curred to obtain the specie. The scarcity of the precious metals continued for a long period afterw'ard, and at times greatly interfered with general business and banking. EARLIEST PHILADELPHL^ BANK STATEMENT As an outcome of the movements toward resumption was the first publication of a statement of the finances of the Phila- delphia Bank. Committees from the Legislature had occa- sionally visited the Bank, and made an official but quite perfunctory examination, without any publication. Late in December, 1816, however, the Legislature called for a statement from the various banks in Philadelphia. The result was that in January, 181 7, a detailed statement was transmitted to each House, the figures being made up as of November 4, 181 6. This is the first recorded statement of the Philadelphia Bank. The figures show aggregate assets of $3,330,460. There were $2,372,231 discounted notes, $98,000 United States loan (held for the contingent fund), $50,000 loaned to the State of Pennsylvania and $59,000 to the city of Philadelphia, $190,600 due from other banks, $54,200 banking house, $21,300 other real estate, including the branches, $3,000 turnpike and bridge stocks, $4,648 expenses since the last dividend, $145,126 cost of charter, $228,438 specie, and $103,917 notes of other banks. The capital stock was $1,800,000, the notes in circulation $456,013, due individual depositors $671,737, due to banks $152,100, deposit of State of Pennsylvania $22,500, dividends unpaid $12,402, and sinking fund for cost of charter and con- tingent fund, $195,884. It will be noticed that the deposits were comparatively small, and that the Bank did not undertake to make loans much in excess of the capital and note issues. 68 The Philadelphia Bank such being in those days the general idea of the basis of bank- ing, while it undertook to hold about twenty per cent, of its notes and deposits in specie. The branches did a large share of the discounting, $936,431, compared with $1,435,800 discounted by the parent Bank, and, as has been seen, their excesses were continually causing anxiety, and ultimately led the institution to close them, both the Harrisburg and Washington branches being sold in 181 7, securing their own charters direct from the State. Ill THE UNITED STATES BANK ERA 1816-1841 Ill THE UNITED STATES BANK ERA 1816-1841 Banking in Philadelphia — Ba^ik Robberies — The Phila- delphia Bajik Chai^ter Extended — Removal of the De- posits from the United States Bank — The Panic of i8^y — End of the United States Bank. BANKING IN PHILADELPHIA DURING more than two decades following the war with England, the finances of Philadelphia and of the country were largely dominated by the second Bank of the United States. Such serious financial difficulties had followed the enforced liquidation of the first Bank of the United States, and the Government had been so much crip- pled in raising money to carry on the war, that public opinion again became strongly inclined to the idea of reviving the national bank as a remedy. Albert Gallatin, who had been Secretary of the Treasury until February, 1814, and Alexander J. Dallas, of Philadelphia, who succeeded him, both urged the necessity of having a great national bank as an indispensable adjunct to the Federal treasury. In April, 1816, Congress chartered the second Bank of the United States, to continue for twenty years, and as the country had grown so much, its capital was enlarged to $35,000,000 (the Government holding $7,000,000), compared with the $10,000,000 capital of the first bank. Such a gigantic institution for those early days soon 71 72 The Philadelphia Bank became an enormous power both in finance and politics, and it overshadowed the smaller State banks in Philadelphia. The second United States Bank began business in Carpen- ters' Hall, January 7, 181 7, and in April, 1819, the corner-stone of its new bank building was laid on Chestnut Street above Fourth Street, a short distance west of the Philadelphia Bank. This United States Bank building was modeled after the Parthenon at Athens, and is novv* the Philadelphia Custom House. The dealings with the other banks in reference to the resumption of specie payments have already been described. Among its first operations was the transfer to itself from other banks of the Government money deposits which several of them held. Its opening was an impressive event, and was heralded as a favorable augury for the future. It is note- worthy that a great patriotic ball was given in this city on Washington's Birthday, 181 7, at Washington Hall, then the chief assembly hall, of which President Lenox of the Phila- delphia Bank was one of the leading managers, representing the Society of the Cincinnati. The Philadelphia Bank during this period was going along with its regular business, growing in esteem and strengthening its position by conservative management. About this time it changed its discount days from three to two per week, fixing Monday and Thursday for the board meetings, which con- tinued until very recently. Shortly after the close of the v»-ar, the four banks in the city, with the Bank of the Northern Liberties, which was located just across Vine Street, on the northern boundary, formed an organization for mutual ex- changes of their bank notes at stated periods, and also an arrangement for the payment of interest upon the balances owing by one to another. This grew out of the necessity of some arrangement, as specie was then at a premium, and it was the germ which afterward developed into the Philadelphia Banking in Philadelphia 73 Clearing House. The banks agreed to settle balances due in treasury notes or United States loan, both at market value, by drafts on other banks, or "by any other method that might be mutually arranged." Some of the newly chartered banks declined to pay interest on the balances, and were excluded, but they gradually came in during succeeding years, so that the arrangement ultimately covered all the banks in the city and county of Philadelphia. Committees from each board supervised the organization, and it was then called the "Gen- eral Bank Committee," and usually discussed and formulated all topics requiring joint bank action. During 1816 and 18 17 business was dull and times were hard in Philadelphia, with much suffering among the poor, so that relief meetings were held in the winter. The restricted trade curtailed banking profits and in September, 1816, the Phila- delphia Bank had to reduce its semi-annual dividend to 3 per cent., and in March, 181 7, it paid 3 J per cent., and in Septem- ber, 3 per cent. The resumption of specie payments in Feb- ruary, 181 7, was little more than nominal, and for a long time afterward both American and foreign coins continued at a premium, and the only actual money in circulation was bank notes and "shinplasters," and these were very scarce, the larger part of the United States having no money at all, the people carrying on business by the primitive methods of barter. The resumption, however, had somewhat checked the tendency of Europe to draw coin from this country. The new United States Bank was universally looked to for a remedy, and its panacea was generally the suggestion to the other banks to enlarge their lines of discounts. As these suggestions came to the Philadelphia Bank, the proceedings of the board show that they were always voted inexpedient. The United States Bank went freely into discounting, and particularly in lines which included the notes of certain of its 74 The Philadelphia Bank stockholders in Philadelphia and Baltimore, and this curtailed the general use of its capital. As 1817 progressed, it and most of the other banks increased their loans enormously, with the expanding mercantile business of the country, and at the close of the year there were much more bank credits than at any time previously. These excessive bank loans naturally created alarm, and in the autumn of 181 7 a curtailment began, the United States Bank enforcing a reduction of about $7,000,000 during October, which produced a severe monetary stringency. Specie was again going out of the country, and meetings of merchants asked Congress to prohibit its export. This was not actually done, but early in 181 8 Congress endeavored to adopt a system of commercial retaliation for discriminations by other nations, but it was soon found impracticable of en- forcement. In October, 1818, President David Lenox announced to the directors that he intended to retire from active business and resign as president of the Philadelphia Bank, at the close of the year, and on December 31st he presented his resignation as president and director. The resignation was accepted, the board sending him a letter expressing their sentiments of good- will and confidence, and w^ishing him in his retirement ''that happiness which a long life spent in a manner equally honorable to yourself and beneficial to your country, justly entitles you." This letter elicited a warm and friendly acknowledgment from the retiring president. Upon December 31, 181 8, John Read, who had been serv- ing as a State director, was elected a stockholders' director and president of the Philadelphia Bank. At the same time Charles Chauncey resigned as director and solicitor of the Bank. John Read was born at New Castle, Delaware, July 7, 1769, and was the fourth son of George Read, who was afterward a member of the Continental Congress, and one of the signers Banking in Philadelphia 75 cf the Declaration of Independence from Delaware. His mother was Gertrude, daughter of George Ross, a prominent Presbyterian clergyman of New Castle, and his maternal uncle, George Ross, the second, was also a signer of the Decla- ration of Independence. John Read was graduated from Princeton College in 1787, and studying law was admitted to practice at New Castle, subsequently removing to Philadelphia. Here he married Martha Meredith, daughter of Samuel Mere- dith, the first Treasurer of the United States, and a niece of George Clymer, the first president of the Bank. Mr. Read became the Agent-General of the United States in 1797, ad- justing Revolutionary and other claims against the United States under the Jay Treaty. He was subsequently a member of the Philadelphia City Councils, and of both Houses of the Legislature and City Solicitor in 18 17. Mr. Read w^as an executor of the estate of George Clymer, and this began his connection with the Philadelphia Bank, to which the Senate elected him a State director in January, 18 18. He served as president of the Philadelphia Bank from De- cember 31, 1 818, until his resignation on account of the weight of increasing years, February 5, 1842. Mr. Read then re- moved to Trenton, New Jersey, where he spent the remainder of his life, dying July 13, 1854, at the age of eighty-five years. He was for many years during his residence in Philadelphia the Rector's Warden of the United Churches of Christ Church, St. Peter's, and St. James; and subsequently had an active connection w^ith St. Michael's Church in Trenton. He was the author of various valuable papers in connection with his services as x\gent- General of the United States, published at that time in a book entitled "Arguments on British Debts." 76 The Philadelphia Bank BANK ROBBERIES The Philadelphia Bank was not without the customary dangers of the business. The counterfeiters and forgers have already been referred to. It also suffered from robberies. The greatest bank robbery in early Philadelphia history was the entering of the Pennsylvania Bank in August, 1798, about $161, coo in money being stolen. The thieves were not dis- covered until the following November. One of them was the bank porter, and being taken ill of a fever, he confessed, after- ward dying. There was one other confederate, a man then prominent in politics, and the successful management of the case against him enabled the bank to recover $158,000, so that the actual loss was only about $3,000. The Philadelphia Bank was entered on Saturday night, and robbed on Sunday, October 20, 1816. The thief was unable to get into the inner vault, but he took from the desks and drawers and other places, some silver plate, and money amounting to $4,093.79, mostly in bank notes. A constable nam.ed Millman v/as able to locate and arrest the thief, who proved to be a man quite well known, N. W. L. Learnard, and he managed the capture so well that the Bank gave the constable a reward of $50. Of the plunder $3,423.89 was recovered, the loss being $669.90, mostly in the paper notes of the denomination of $1.56!. Learnard was convicted and sentenced to twelve years' imprisonment. Another attempt at robbery occurred in April, 1821, but happily was detected and frustrated. The story has a tinge of romance. The sewer which was constructed to cover the southern branch of Dock Creek runs from Orianna Street up Chestnut to Fourth, and then southwest past the original Philadelphia Bank building toward Fifth Street. The build- ing was constructed on heavy arches alongside this sewer, and Bank Robberies 77 a party of thieves conceived the scheme of robbing the Bank by passing from the Delaware up the Bock Creek sewer in a boat, vv^hich they left in the neighborhood of the Girard Bank, and then going into the branch sewer to the Philadelphia Bank building, where they excavated a passage through the sewer wall and under the foundations of the Bank, and thus got into the vaults. Upon x'Vpril 16, 1821, their operations were acci- dentally discovered by overhearing the thieves at work. Quintin Campbell, the cashier, was in the habit, after the Bank had closed, of going inside to see if everything was right. The v/atchman, who has left the account of this attempted robbery, says that upon that evening the cashier, who was inside, came to the Bank door and asked him to enter. He did so, and found several of the clerks there, whom the cashier had sent for. They cautioned him. to be silent and listen, and in a short time a noise was heard as of filing or sawing, upon the outside of the inner door leading to the cellar. To find out what it was, the door was quickly opened, the watchman rushed in, followed by the others, and discovered tv/o men, whom they pursued down the cellar steps, the watchman striking at the thieves with his sword, but they turned suddenly into one of the arches and passed out of sight. They overturned the ash- scuttle in their flight, and the pursuers made for that point, and in front of the arch, v;here the ashes were kept, they dis- covered the hole by which the thieves had entered and escaped. It was evident that they had intended to dig into the money vault, but missed it by a few yards. A watch was at once set; tvv^o clerks immediately proceeded to the sewer inlet on Orianna Street near Chestnut, thinking the men would come out there, it being near the Bank. In a few moments they heard talking in the sewer near the inlet, and directly they saw the men place their hands on the iron bar that crossed the inlet in the act of coming out, but one of the 78 The Philadelphia Bank clerks being too hasty aimed a blow with his sword at their hands, causing them to retreat. The clerks returned to the Bank and reported this. Another clerk, having no weapon, went home to procure one, and returning down Fourth Street above Market, saw a man covered with filth and dirt walking closely alongside a bordering wall as if to avoid observation. The clerk accosted him, but getting no explanation, arrested the man on suspicion, taking him to the Bank, and it turned out that he was one of the party of robbers. The next day Fourth Street was excavated in front of the Bank. An ex- amination of the entire sewer was made, and in it, down at Third Street, nearly opposite the Girard Bank, was found a boat containing shovels, spades, pickaxes, handspikes, and other tools, also a liberal stock of provisions — ham, crackers, cheese, dried beef, etc. This boat had been stolen from a boat-builder on Swanson near Queen Street. It was sur- mised that the thieves had been occupied two or three weeks, working in the day-time when the noise in the streets would prevent them being heard, and coming out of one of the inlets at night. The captured thief v/as convicted and imprisoned, but was afterward pardoned out, when he stole a horse and gig, the narrator says, and left for other parts. The Philadelphia Bank was entered by thieves a third time on the night of Saturday, January 12, 1834, and during that night and Sunday the main vault was opened and robbed of $64,265, all in notes, chiefly the Bank's own issues. The thieves escaped wdth their plunder, and although much trouble was taken, and they were traced to New York, and finally to Europe, nothing seems to have been recovered. The Bank passed its dividend the next i\Iay and thus recouped the loss. In the general progress of the business of the Bank, it determined upon winding up the branches which had been found not only troublesome, but also unprofitable. In re- Bank Robberies 79 peated instances, after the war, their business had been re- stricted, and in 181 7 arrangements were made to sell them to organizations w^hich had obtained bank charters in the respec- tive localities. In May, 181 7, the board issued a general instruction to stop business at the branches, ordering them to collect the debts due, and send the proceeds to the parent Bank. Throughout this period of the Bank's history the record is frequent of subscriptions to the old city volunteer fire com- panies, usually ten dollars to each. The Bank was liberal in its loans to the State of Pennsyl- vania. It loaned $50,000 in April and $50,000 more in Octo- ber, 18 1 8, another $50,000 in 1820, and another $50,000 in 1821, so that in a statement made April 4, 1821, there appeared an item of $200,000 loaned to the State. There was then a five per cent, loan of $1, 000,000 issued by the State, and the four State banks in Philadelphia took it all, the Philadelphia Bank taking $250,000. In 1823 the Bank loaned the State $150,000 more at 6 per cent., and in 1826, with the Farmers' and Mechanics' Bank, it took a loan of $300,000, issued by the State at io3f. In June, 1820, the United States asked pro- posals for a $2,000,000 loan, and the Philadelphia Bank offered to take $300,000 at 102. The Bank of the United States, how- ever, outbid this, taking the whole loan, and the Philadelphia Bank's offer was declined. In the decade from 181 1 to 1820 inclusive, the dividends on Philadelphia Bank stock aggregated sixty-six per cent. In the bank statement of April 4, 1821, the loans were reported at $2,117,822, the deposits $495,521, and the issue of notes $407,400. There is a record in 1821 of a loan to the Bank of Georgia of $50,000, and in 1831 of $150,000 to the Bank of New Orleans. In March, 1822, vrhen the appli- cations for discounts were unusually large, there was an order made that no paper running over four months should be dis- counted. In those davs the Bank was allowed to own its own 8o The Philadelphia Bank stock, and in March, 1823, it had $214,495 invested in its own shares. A long time was required to collect all the outstanding debts due the branches, and as late as November, 1830, a record shows that $129,905 was then still owing by the branches. THE PHILADELPHIA BANK CHARTER EXTENDED The original charter of the Philadelphia Bank expired March 5, 1824. The directors early determined to ask for an extension, and their petition to the Pennsylvania Legislature for this was made December 7, 1820. The bad financial con- dition of the country was quoted as a reason for not causing the disturbances that would arise, through the enforced liqui- dation, by the lapse of the charter, of the Bank, which then had nearly $2,000,000 loaned to individuals. The petition re- ferred to the "real distress of the people," and *'the singularly disordered state of the currency," saying that "universal dis- tress and embarrassment prevail throughout the comm.unity, when it is difficult for those Vv^ho are in debt to comply with their ordinary engagements, and when the Legislature itself, m.oved by the general suffering, has interposed to prevent the sacrifice of property of the debtors." The extension of the charter passed the Legislature March 28, 1823, and was accepted by the stockholders at a meeting held June 4th. It continued the existence of the Bank until May I, 1839, and by another act, passed April i, 1836, the Bank was further extended for twenty years. The title was shortened to "The Philadelphia Bank," which thus continued under this extension and the general banking law of the State afterward passed, until on October 20, 1864, the stockholders voted to become a national bank under the Federal laws. The new charter limited the capital, as previously, to N'. PARKER SHORTRIDGE, President. The Philadelphia Bank Charter Extended 8i $2,000,000, and made various changes and restrictions. The board was reduced to seventeen directors, thirteen to be chosen by the stockholders and four by the Legislature, and each director to hold at least five shares; the third Monday of No- vember was made the annual election day, the cashier was prohibited from holding stock, and the debts of the Bank were limited to twice the amount of the capital stock actually paid in. The rate of discount on loans was not to exceed one-half of one per centum for thirty days, the dividend periods were changed to the first Monday in May and November, and annual statements were to be made to the Auditor- General in Novem- ber for transmission to the Legislature. The suspension of payment in specie was prohibited under penalty of payment of twelve per cent, interest per annum, on the note, bill, de- posit, or other obligation so refused payment in specie, but the holder must make demand every three months to continue the interest. If the refusal continued more than three months, the Bank was liable to forfeiture of the charter, but this for- feiture which the creditor could secure reduced the interest rate on the debt to six per cent. The Bank was also prohibited from making any more dividends or issuing any more notes, until specie payments were resumed, "except to such claimants of deposit moneys as may demand them in lieu thereof." Internal improvements, mainly by constructing canals, were then the popular movement, so that this new charter was paid for by the Bank agreeing under certain conditions to subscribe for five hundred shares of stock in the Chesapeake and Delaware Canal, which after the lapse of fifteen years were to be transferred to the Commonwealth. The State of Penn- sylvania also was given the right to subscribe two thousand additional shares in the stock of the Bank at par; and whenever requested, the Bank was to loan the State, at five per cent, interest, an amount not exceeding five per cent, of the capital 6 82 The Philadelphia Bank for a term not exceeding the unexpired portion of the charter. The stock subscription privilege was relinquished in the sub- sequent extension of the charter in 1836. The Pennsylvania Legislature in March, 1823, made the first incorporation of a railroad, chartering a company to build a line from Philadelphia to Columbia. This was the result of a memorial by John Stevens, and the corporate title was "The President, Directors and Company of the Pennsylvania Railroad Company." It was to exist fifty years and have a capital of six thousand shares of $100 each. Horses were to be the motive power, no reference being made to using steam. The project was regarded as experimental, and was not utilized until much later, and then by the State itself, beginning the location in 1828. Canals being the favorite form of internal improvement, Pennsylvania, in April, 1825, created a Board of Canal Commissioners to manage them. The Philadelphia Bank having in view the penalties for suspending specie pay- ments, had already begun curtailing its note issues, and in 1824, in deference to the provisions of the new charter, they were reduced to $298,000, and in 1830 were down to $281,500. The specie held in 1824 was $185,000; and in 1830, $219,000. Better things came by 1825, and business was more pros- perous. Pennsylvania had devoted $6,000,000, chiefly raised by loans, to improvements, and they began to show com- mercial results. The industrial and financial difficulties of the previous period were being surmounted. During several years the records of the Philadelphia Bank show loans to the State and to the Canal Commissioners to carry on the public works. Thus, in July, 1827, it took $40,000 five per cent, loan of the State at 104I. In May, 1829, it made a temporary loan of $50,000 for canal purposes, the State then being much crip- pled by the heavy charges upon it for these public works; and in July it made another similar temporary loan of $30,000. In Removal of the Deposits 8$ October a third temporary loan of $61,000 was made with stipulations for its expenditure upon the Susquehanna and Juniata Canals. In this connection, at the close of 1829, the State Government began the necessary preliminaries to get from the Philadelphia Bank the loan provided for in the charter, of five per cent, of the capital at five per cent, interest, and this amount, $90,000, was placed to the credit of the State in February, 1830. Out of these transactions there came a movement to get the Bank charter extended ten years beyond 1839 in return for a loan to the State of $500,000. A bill passed the State Senate for this purpose, but, being obstructed, the Philadelphia Bank directors sent a committee to Harrisburg offering a loan as high as $2,000,000 at five per cent, for the charter extension. The movement, however, came to naught, and we find the Bank selling to John Jacob Astor, in January, 183 1, $90,000 of its State loan. REMOVAL OF THE DEPOSITS Events had been rapidly progressing in fomenting the great quarrel between President Andrew Jackson and the Bank of the United States. This is said to have had its inception in the refusal of President Nicholas Biddle, of the bank, to re- move from the presidency of the branch bank at Portsmouth, New Hampshire, in the summer of 1829, Jeremiah IMason, who was a friend of Daniel Webster. Jackson's message to Congress at the opening of the session, the subsequent Decem- ber, began the attack upon the bank. He said that "both the constitutionality and the expediency of the law creating this bank are well questioned by a large portion of our fellow- citizens, and it must be admitted by all that it has failed in the great end of establishing a uniform and sound currency." 84 The Philadelphia Bank This position taken by the President of the United States, then somewhat startled the country, but the matter seems to have slumbered until 1832. The time for the expiration of the United States Bank charter in 1836 was approaching, and the sentiment in Philadelphia strongly favored its renewal. In February, 1832, the Phila- delphia Bank directors sent a memorial to Congress, in accord- ance with this sentiment, asking the passage of an act extending the charter. In this paper the United States Bank was de- scribed as having "aided the fiscal operations of the Govern- ment in the collection and distribution of the public funds; furnished a sound circulating medium which may be con- sidered at par in all parts of the Union ; facilitated the general operations of trade and commerce," and "by the diffusion of its capital advanced the prosperity of the people." The paper continued "that the general prosperity of the nation is inti- mately connected with the continuance of the Bank of the United States, and that the refusal of your honorable bodies to grant a renewal of the charter, will be attended with the most disastrous results, causing a great depreciation in the value of real and personal estate, and widespread commercial embarrassment and ruin." Congress passed the bill to recharter the bank, but Presi- dent Jackson, on July 10, 1832, vetoed it. This caused great excitement and bitter feeling, a Presidential veto having been practically unknown down to that time. The political ani- mosity grew, and President Jackson determined to remove the Federal deposits from the United States Bank, the officials sending circulars in August, 1833, to various State banks, in- quiring if they would receive the deposits. Amos Kendall came to Philadelphia on this errand, and announced that he had been appointed by the Secretary of the Treasury, at the request of the President, to confer with the State banks on the Removal of the Deposits 85 subject. He notified the Philadelphia Bank of his arrival, and on August 8th the board passed a resolution that he be informed "the Philadelphia Bank is willing to undertake the agency of the Government in the collection and management of its funds in the State of Pennsylvania, and that the board will be happy to receive further communications on the subject." On September i8th President Jackson read to the Cabinet his reasons for the removal of the deposits from the United States Bank. He declared the bank had entered politics, and used its vast influence in promulgating certain principles which were not those held by the Government ; that in sixteen months, ending shortly before the veto, the bank had increased its loans over $28,000,000 with the intention of bringing a large number of people under its influence, a considerable portion of this amount being appropriated for subsidizing the press. For these and other reasons, the President declared, it was no longer safe to allow the public moneys to remain in possession of the United States Bank. The law placed the deposits under control of the Secretary of the Treasury, and Louis McLane, of Maryland, who held that office, showing repugnance, was made Secretary of State, and William J. Duane, of Philadel- phia, appointed his successor. Duane declined to order the removal, and was himself removed, being succeeded by Roger B. Taney, who carried out Jackson's wishes, and October i, 1833, was named as the day for the withdrawal. Great efforts were made on behalf of the Bank of the United States to prevent the removal of the deposits. The plan of the Treasury was to select State banks in different parts of the country to which the deposits would be transferred. There was to be one bank each in Philadelphia, Boston, and Baltimore, two banks in New York, with others in the South. They were to receive the public deposits in the States where located, and make payments when and where required, in 86 The Philadelphia Bank accordance with an elaborate plan formed by Mr. Kendall, and were to render without charge every service performed by the Bank of the United States. The Philadelphia Bank re- ceived various proposals on the subject of becoming a deposi- tory from Mr. Kendall, and replied to him on September 26th, suggesting some modifications, but accepting most of his proposals. The result of the negotiation was that on Octo- ber 17th Cashier Campbell and John M. Read, the solicitor (the son of President Read), representing the Bank, went to Washington and presented Secretary Taney a letter stating that the Bank "will take the whole, or a part of the Govern- ment deposits in the State of Pennsylvania, upon the same terms which any other Banks have accepted them, in any part of the United States. We are also directed by the Board to assure the Secretary of the Treasury that the Philadelphia Bank will use its best efforts to perform all the required duties under the proposed management." The deposits, amounting to nearly $8,000,000, were re- moved from the Bank of the United States, but none came to the Philadelphia Bank. Stephen Girard had died December 26, 1 83 1, and his banking house on Third Street was utilized by the Girard Bank, chartered April 2, 1832, with $1,500,000 capital, and this new bank was made the depository of the Government moneys in Philadelphia late in 1833, and it thus got very large Treasury deposits, which soon exceeded half the then capital of the bank. The removal of the deposits caused great public anxiety, and was followed by a general curtailment of loans by the Bank of the United States, causing serious distress. The Philadelphia Bank directors afterward changed their views on the subject of the deposits, and on December 30, 1833, voted to withdraw their application to the Secretary of the Treasury for a Government deposit; and they also adopted two memorials, one sent by various State banks The Panic of 1837 87 jointly on December 30th to Congress for a restoration of the deposits to the Bank of the United States, and the other, sent January 9, 1834, to the State Legislature inviting their inter- position with Congress to that end. On January 16, 1834, an elaborate protest was filed by three of the four State directors of the Philadelphia Bank against these memorials. The financial distress in Philadelphia led the City Councils to pass resolutions against the removal of the deposits, among the reasons urged being the fact that the securities of the Girard Estate left in trust to the city had depreciated in value through this removal $312,304. The Board of Trade, January i, 1834, passed similar resolutions, asking the restoration of the Bank of the United States to its former place as an agent of the Government as a necessary step to restore public confidence. There were then fifteen banks in Philadelphia, and nine of them joined in a memorial stating that the removal of the deposits had made "a disorganization of the whole moneyed system, and the whole revenue system of the country," and declaring their restoration to the bank a measure that was absolutely necessary. The banks signing this memorial were North America, Pennsylvania, Farmers' and Mechanics', Commercial, Mechanics', Penn Township, Manufacturers' and Mechanics', Moyamensing, and Schuylkill. The six banks that did not sign were the Philadelphia, Western, Southwark, Kensington, Northern Liberties, and Girard. THE PANIC OF 1837 The quarrel between Jackson and the United States Bank grew, and made the most intense enmities. The efforts to get the deposits restored were fruitless. The President fully con- trolled Congress against the bank. His party attacked Nich- olas Biddle, its head, as a despot who sought to extend the rule 88 The Philadelphia Bank of a moneyed aristocracy over the nation, while the friends of the bank denounced Jackson in unmeasured terms. The more they abused him, the higher grew his temper. He drove away from his presence the deputations sent to seek favor for the bank; and is said to have replied to a delegation from Baltimore, which asked for relief: ''Come not to me, sir, go to the monster. It is folly, sir, to talk to Andrew Jackson; the Government will not bow to the monster!" When the annual election of directors in November, 1835, came, Quintin Campbell, the cashier, who had served so faith- fully for thirty years, resigned, much to the general regret, and retired from active business. The board presented him with a handsome silver service as a testimonial of respect and esteem, and he was immediately elected a director by the stockholders, serving continuously until his retirement in 1859, making a period of over fifty-five years from the time he began duty at the beginning of the Bank. Mr. Campbell had been an original subscriber to the stock of the Pennsylvania Fire In- surance Company, upon its incorporation in January, 1825. In September, 1826, he was elected a director of this Insurance Company and served continuously until his death. Some time after his resignation as cashier of the Philadelphia Bank, he was elected president of the Insurance Company in Decem- ber, 1839, and resigned from the presidency in June, 1853. Mr. Campbell died April 6, 1863. His successor as cashier of the Philadelphia Bank was John B. Trevor, elected Novem- ber 30, 1835, who served until his resignation, August 28, 1851. As the time approached for the expiration of the United States Bank charter in 1836, the State of Pennsylvania in February renewed it as a State bank for thirty years, passing the act thirteen days prior to the expiration. It thus went under State control with the same capital, exclusive of the Government investment of $7,000,000. This investment was The Panic of 1837 89 repaid in full when the Federal bank was wound up, and the Treasury records showed there had, in addition, been made a profit on the stock of $6,093,167, as regular dividends had been paid, and, in addition, a premium of over fifteen per cent, was returned above the par value of the Government stock. The Bank had been of great service in regulating the currency, and during its twenty years' existence had brought out from Europe to maintain specie payments nearly $7,000,000 coin, at a cost for expenses and exchange of $500,000. The prosperous times which had come resulted in such ample government revenues that by 1835 the entire public debt of the United States left after the close of the war with England had been paid off. The new bank paid a good price for the State charter, a bonus to Pennsylvania of $2,000,000, extending over ten years, the money to be used for the schools. Nicholas Biddle at once resigned the presidency of the Federal bank and was pre sented by the stockholders with a magnificent service of plate valued at $30,000. He was then chosen president of the State Bank of the United States, which began business ]\Iarch 4, 1836. As part of the same legislative procedure which obtained the United States Bank charter, there was also passed on April I St the act already referred to, extending the Philadelphia Bank charter for twenty years, until 1859. The success of this was due largely to the efforts of Cashier Trevor, who spent much time at Harrisburg during the session. The stockholders in formal meeting on May 9, 1836, accepted the new charter extension, and as an expression of their gratitude to the cashier voted $1,000 to procure a service of plate for presentation to him. They also ordered a new banking house to be built, as the Bank had outgrown the old one. It is noteworthy that on the same day as the Philadelphia Bank charter extension, April I St, the law was also passed, which still exists, requiring 90 The Philadelphia Bank all State banks to make quarterly reports to the Auditor- General. When it had gotten fully under way as a State institution, the United States Bank shares were quoted at 125 and the Philadelphia Bank shares were at 125 @ 130. Congress in 1836 passed an act regulating the Government deposits in the various State banks, and this caused the Phila- delphia Bank directors to make another effort to become a depository. Committees were sent to Washington at various times to secure part of the deposits, and interviews were had with the Secretary of the Treasury, but the journeys were with- out result. The Girard Bank had increased its capital to $5,000,000, and secured a continuance of the Government deposits under the new Act, the amount it held soon running up to $3,600,000. The evanescent character of this business, however, was shown the next year, when all the money was drawn out of the Girard Bank but $10,000, and in 1838 the Treasury deposit it held was less than $1,000. The large excess of revenues in the Federal treasury, accumulating after the national debt was paid, had caused a clamor, and the very peculiar method was devised of remedying this by dividing the surplus cash among the various States in proportion to population. There were thus disposed of $28,000,000 early in 1837, causing the Federal depository banks to lose nearly all their Government deposits. Anticipating this, the Philadel- phia Bank then sought to be made a depository of the portion of surplus accruing to Pennsylvania. In December, 1836, the members of the Electoral College, who had voted for President Van Buren, and large numbers of members of the Legislature joined in petitions to the Secretary of the Treasury, recommending that the Philadelphia Bank be selected as a depository of these surplus funds. The J&nal result was that, joining with the Pennsylvania Bank, the two institutions got this Pennsylvania surplus on deposit by an offer to pay six per The Panic of 1837 9^ cent, interest for it, on March 6, 1837, and the money was em- ployed in discounting. But the country was again on the verge of bad times. The Government war against banks continued. The supply of specie in the country was small, the mint having coined barely $50,000,000 since its start in 1792, which had been depleted by steady exports, and the Treasury now required that all pay- ments for public lands should be made exclusively in gold or silver, while payments for the excessive imports of merchandise again drew coin largely to Europe. The winter of 1836-37 saw much business distress and many failures, and the rapid disappearance of coin from circulation made it almost impos- sible to conduct commercial operations. It was at this period that the Philadelphia Bank, in 1837, moved into its third bank building. This fine structure on the southwest corner of Fourth and Chestnut Streets, had been for some time in process of erection, being occupied jointly by the Philadelphia Bank and the Bank of the United States. It was a white marble building, extending with a broad front on Chestnut Street, and in part was built upon the portion of the original lot which had previously been a garden. The Philadelphia Bank occu- pied the second floor; the ground floor being rented, yielding over $3,000 per annum. The business stress and difficulty of retaining specie be- came so great, with sterling exchange at twenty per cent, premium, that on May 10, 1837, the banks of New York city suspended specie payments. The news of this action reached Philadelphia that morning, and next day the banks in this city suspended, the course being immediately followed by all the banks throughout the country. The Philadelphia Bank sus- pended specie payments with the others, transmitted the reso- lution ordering suspension to the Governor, and determined to receive the notes of the other city banks as usual. In subse- 92 The Philadelphia Bank quent proceedings the directors decided not to unduly enlarge their note issues, and to keep steadily in view an early resump- tion. The need of small change, caused by the disappearance of coin from circulation, was supplied at this juncture by the city and outlying districts, which issued paper notes for frac- tional parts of a dollar. Then there came another deluge of "shinplasters" issued by various irresponsible parties, and with them serious troubles, great suffering, numerous suspen- sions, declines in wages, and universal distress. This condi- tion continued throughout the subsequent winter, but times becoming somewhat improved, efforts were made in 1838 to secure a resumption. The New York Legislature fixed August 13th as the date for a return to specie payments by the banks of that State, and Governor Ritner issued a proclamation in July ordering all the banks in Pennsylvania to resume on the same date. This led to a partial movement by the other banks of the country to resume at the same time. The interior banks, however, did not join, and their abstention made additional troubles, causing great differences in the discounts and pre- miums on bank notes. This resumption of 1838 w^as premature. There was not enough specie available to maintain it, especially as the banks in Philadelphia, under a law passed in 1827, were not per- mitted to issue notes for less than five dollars, and, therefore, had to pay small sums in specie, which was thus steadUy drained out of them. The year 1839 came, and matters went from bad to worse. Early in the year another suspension was feared, and there was a constant stream of the precious metals sent abroad by every packet, Europe drawing her capital away as fast as was possible. On March 29, 1839, Nicholas Biddle resigned the presidency of the United States Bank,* being succeeded by Thomas Dunlap. In July exchange had gotten * Nicholas Biddle died February 27, 1844. End of the United States Bank 93 to ten per cent, premium; money loaned at i| per cent, per month; United States Bank stock decHned to in, and Phila- delphia Bank stock to 103. In the autumn specie was being sent abroad by millions, and the banks began conferring as to the policy of another suspension. A meeting was held by representatives of fourteen banks at the Board of Trade, October 8th, and they voted upon a resolution for suspension, which was defeated, five to nine, the Philadelphia Bank voting in the negative. The next day, October 9, 1839, the Philadelphia Bank committee reported this action to the board, but no sooner had they done so than a communication was received from the United States Bank, next door, that they had suspended. This was unexpected, but the other banks had to follow, and the same day the Philadelphia Bank, with the others, passed resolutions for an immediate suspension of specie payments, which action was followed by the banks throughout the country. The United States Bank explained that its course was due to embarrassment arising from the large balance of foreign ex- change against the United States, which was draining its specie, but the real reason was that the great bank, as the sequel proved, was really insolvent. In November, owing to defal- cations, the Schuylkill Bank was closed. Then the famous Dr. Thomas W. Dyott, who had extensively issued notes of his "Manual Labor Bank," which he did not redeem, was im- prisoned for fraud, but afterward pardoned. END OF THE UNITED STATES BANK The repeated suspensions by the banks led Congress to create the sub-treasury system, thus keeping the Government money in the Treasury vaults, instead of in banks. This was adopted during President Van Buren's administration, and 94 The Philadelphia Bank suspended for a time in 1841, when President Harrison as- sumed office, but finally put into effective operation in 1842, the system continuing ever since, though with modifications. The great effort after 1839 was to compel the banks to resume specie payments; and the obstacle was the inability of the United States Bank to do so. Governor Porter, in his message, called the attention of the Pennsylvania Legislature, in 1840, to the general bank suspensions, urging remedial measures. The banks in Philadelphia, in February, sent an address to the Legislature, declaring they could not with safety resume before February i, 1841, and the Board of Trade confirmed this declaration. The Legislature passed a drastic law, directing resumption of specie payments by the banks, January 15, 1841, under penalty of forfeiture of their charters. There now began various interesting movements designed to sustain the Bank of the United States, so as to secure a success- ful resumption at the time appointed. Prominent in these was Richard D. Wood,* the merchant and manufacturer, who was first chosen a director of the Philadelphia Bank in 1835, and again in 1837 and successive years, until his retirement in 1864. During the summer of 1839, Mr. Wood casually met James Martin, one of the directors of the United States Bank, and remarked to him that as the period for the resumption fixed by law was fast approaching, it was quite time to put things in order for it. In subsequent conversation the two gentlemen agreed as to method, and Mr. Wood brought the subject before the Philadelphia Bank board, and Mr. Martin presented it at the United States Bank. The latter appointed a committee consisting of Lewis Wain, James Martin, and Joseph Cubot. With Mr. Wood, in the Philadelphia Bank, were associated two veteran directors, Samuel F. Smith, afterward becoming in 1842 the president, first elected a director in 1807, ^.nd re- * Richard D. Wood died April i, 1869, aged sixty-nine. End of the United States Bank 95 tiring from the presidency in 1852, and Samuel W. Jones,* who was elected a director in 18 14, and served continuously until 1852, when he retired. The first movement toward this process was taken by the Philadelphia Bank in September, 1840, when it was announced that the committee appointed in August to confer with the United States Bank had been informed that it could not resume unless the indebtedness it owed the other banks could remain intact. The Philadelphia Bank agreed to this, its share of the indebtedness not to exceed $1,000,000. Upon the motion of Mr. Smith, Messrs. Wood and Jones went into joint com- mittee on the subject with ten other city banks, the result being that the united banks agreed to loan the Bank of the United States about $5,000,000, by extending their indebtedness for thirteen and one-half months, and to aid in this, the banks of New York and New England were to be requested to loan the banks of Philadelphia about half that sum, so that individual debtors in this city need not be pushed. It took nearly four months' negotiation to accomplish the latter, the joint banks appointing a committee of three, John White, of the Penn- sylvania Bank, Robert Howell, of the Farmers' and Mechanics' Bank, and Mr. Wood, who went to New York and Boston on this errand and arranged the loans. It was noted at the time that exchange in Philadelphia on New York had risen to four per cent, premium. It is noteworthy also that in the joint meeting of the committees representing the various banks in this negotiation, Thomas Robins appears as secretary, he then representing the Bank of North America. Mr. Robins in 1852 succeeded Mr. Smith as president of the Philadelphia Bank. The amount the Philadelphia Bank was to borrow in the arrangement was $600,000. Upon October 24, 1840, the committee of the United States * Samuel W. Jones died in November, 1873, aged ninety-three. 96 The Philadelphia Bank Bank was notified that the $5,000,000 was available, and re- plied that it would be sufficient for the purposes of resumption, the bank having obtained $1,000,000 additional, so that thus had been arranged "the postponement of $6,000,000 of the immediate liabilities of the Bank." The position of the Philadelphia Bank, when it thus engaged to let the United States Bank be $1,000,000 debtor, and to do this was ready to borrow $600,000, is shown by the statement of November 9, 1840. The aggregate assets were $4,068,985. These in- cluded $1,301,711 bills discounted, $495,719 investments, $266,018 due from foreign banks, and $2,005,537 money, of which $315,162 was specie, $561,481 due from city banks, and $1,128,894 notes of other banks. The liabilities were $1,087,905 deposits, $60,433 notes in circulation, $91,500 post notes, $59,511 due city banks, and $989,557 due foreign banks. It had suspended specie payments, but was very strong. The Bank held 2578 shares of its own stock, and in the statement these were deducted from the capital, which was thus reduced from $1,800,000 to $1,542,200, and it reported surplus and profits of $180,942. During the two decades from 1 82 1 to 1840, the dividends aggregated 105 per cent. Upon January 14, 1841, the day before the date fixed for resumption, the Bank of the United States made a further most unexpected demand upon the Philadelphia Bank, that, in addition to all the money already advanced, it should take a further sum of $375,000 in sterling bills, with like arrangements by the other city banks, without which additional help it could not resume. This was most reluctantly acceded to, the board, according to the record of its proceedings, being in the dilemma "either to accede to the proposal or risque a resumption with- out the Bank of United States under its heavy indebtedness." It thus placed nearly seven-eighths of its capital under control of the big bank, and this compelled the decision. End of the United States Bank 97 The resumption came, but it was with universal pubHc distrust that the banks could not maintain their position. The Bank of the United States had about $2,171,000 specie and over $11,270,000 notes out. The stock had declined to 63, and when the doors opened, January 15th, there was a brisk demand for specie. This continued for three weeks, and it got all the specie it could from every possible source, and in that time had paid out $6,683,321 in gold and silver, and on February 4th the shares were quoted down to 45I. The other city banks in the same period had paid out $5,122,732 in coin, the Philadelphia Bank paying out over $1,000,000. The United States Bank could stand the pressure no longer, and February 4th stopped paying coin on any notes above five dollars. The other city banks continued until the 5th, when most of them stopped paying coin on any notes above five dollars. The scheme was at this time adopted of marking checks "good" instead of paying them. The United States Bank then stopped, and on the 13th memorialized the Legisla- ture for relief, saying they had honestly attempted to carry out the resumption law. There was nothing done specially for the bank, however, except an authorization to the bank to make an assignment for the benefit of creditors. This was contained in the ** relief law" passed in May, which authorized the other State banks to loan the State $3,100,000 in their own notes of denominations of five dollars or less. The end of the great bank was approaching. A committee of shareholders examined its condition during the spring of 1841, and reported an impairment of capital of about $2,000,- 000. Suspended debts showed a loss of over five millions, depreciation in stocks over seven millions, and over three millions due by State banks were uncollectable. Foreign exchange had been steadily against the country, and in this way, for years, the ''Exchange Committee," a sort of inside 7 98 The Philadelphia Bank power, had been piling up foreign loans, chiefly due in England and France, which had reached over twenty-three millions. Post notes had been issued for part, and when these fell due they could not be paid, and other assets had to be hypothecated. The ''Exchange Committee" had transactions in cotton, ex- ported through Philadelphia to Liverpool, amounting to $9,000,000, and this and much else was done without the knowledge of the directors. It was afterward learned that the United States Bank had lost about $2,000,000 in the cotton operations. The developments caused universal surprise and the greatest consternation among the stockholders, who found their shares unsaleable, and dividends ceasing reduced many who had been wealthy to a condition of poverty. The end came on September 4, 1841, when the United States Bank made its assignment, and Mr. Wood's diary mentions it with the pointed remark, "a tragic end for an Institution of thirty- five million!" The assignees were a long time winding up its affairs. The bank notes and deposits were paid in full, but the stockholders lost everything, and the last quotation recorded of United States Bank Stock was i J in 1843. IV UPS AND DOWNS OF EARLY BANKING 1841-1855 IV UPS AND DOWNS OF EARLY BANKING 1841-1855 Most Serious Banki7ig Depression — Recuperation — Internal Iniprove7nents i?t Pettnsylvania — Co7itinuing Prosperity. MOST SERIOUS BANKING DEPRESSION IT is difficult to-day to realize the unfortunate condition of business affairs in the United States at the close of 1841 and during 1842. The Federal Government, like every one else, was almost stripped of specie, which was being shipped abroad to pay debts. The Philadelphia Bank made two ex- changes on requests from the United States treasury, on April I and 13, 1841, each of $100,000 in coin for treasury notes bear- ing six per cent, interest. All prices declined. In September, 1841, after the United States Bank assignment, Philadelphia Bank shares had declined to 70, and in November the Bank had to pass its dividend. The half-year's profits, the dividend com- mittee reported, would warrant a dividend of three per cent., but the large debt due by the United States Bank made it impolitic to declare any dividend. Independently of this the Philadelphia Bank had a contingent fund or surplus of over $200,000. This depressing report of the committee was signed by John Welsh, Samuel F. Smith, Richard D. Wood, Samuel W. Jones, and B. C. Cooper, while General Robert Patterson made the motion accepting the report and passing the dividend. The statement of the Philadelphia Bank in November, I02 The Philadelphia Bank 1 84 1, showed the deposits to be $986,021 and the circulating notes outstanding $165,253. The specie held was $263,016 and there were post notes due by the United States Bank of $1,000,000, with a claim of $69,454 contingent interest there- on. This debt, equaling the greater part of the capital, overweighted the Philadelphia Bank, as similar debts did most other banks in the city, and caused them to pass through the period of worst depression in their history. Two and one-half years elapsed before the Philadelphia Bank could resume paying dividends. It was able, however, to take care of its notes, and appeared to always adopt the policy of holding enough specie to cover the whole outstanding note issue. The most serious period for the Philadelphia Bank was the year 1842, but it got on better than most others, and success- fully weathered the storm. Richard D. Wood, in his diary, records that on August 9, 1842, he bought three shares of Philadelphia Bank stock for 32J, and on September 21st thirty shares more for 35. The Girard Bank, early in the year, had its notes thrown out by the other banks, and closed its doors, its shares declining to 8J. This bank recovered, however, though not until 1849, when it reduced its capital from $5,000,- 000 to $1,250,000 and resumed paying dividends. The Pennsylvania Bank got into trouble, and also had its notes thrown out by the other banks, so that a run began. It held $800,000 Pennsylvania State funds, part of which was to be disbursed for State loan interest due February ist, and, the run imperiling this deposit. Governor David R. Porter came to Philadelphia, with his Attorney- General, to take legal pro- ceedings to protect the State moneys and secured an injunction. The Pennsylvania Bank applied to the other banks for help, and the Philadelphia Bank loaned it $30,000 at the end of January. Its available securities were so poor in value, how- Most Serious Banking Depression 103 ever, that a record is made of this fact as a reason why the banks jointly could not loan upon them. The Pennsylvania Bank could not pay the State interest due February ist, and on that day the Philadelphia Bank joined with others in loaning the State $300,000 to pay the interest, which, after various delays, was paid to the loan holders in March. The Penn- sylvania Bank stopped payment for some time and considered making an assignment, but it managed to struggle through without this, and ultimately regained a sound position. The tremendous strain of carrying on the Philadelphia Bank under such unfavorable conditions had been wearing upon the president, John Read, and on February 5, 1842, he resigned the presidency and also as a director. It was with great regret that the resignation was accepted, and the board adopted a series of appropriate resolutions, to which Mr. Read made a very feeling response on February 8th. At the same meeting, his son, John M. Read, also resigned as solicitor of the Bank. The venerable director, Samuel F. Smith, was elected president as the successor to Mr. Read, but he accepted somewhat reluctantly, saying that he could not become the permanent officer, but might retire when circumstances made it necessary, as his health was infirm. He continued in office until 1852, but nearly every year he desired to resign, and the board and the stockholders would not permit it. The minute- book records several very elaborate and earnest letters which the gentleman wrote in presenting successive resignations, which he was persuaded, however, to withdraw. He brought the Bank successfully through its great difficulties, and when he finally closed his service as president, it was again in pros- perous condition. Samuel F. Smith was a native of Philadelphia and a promi- nent merchant. He was first elected a State director of the Philadelphia Bank by the Legislature in 1807, serving one year. I04 The Philadelphia Bank The stockholders elected him a director in 1813, and he served continuously until his final resignation, November 18, 1861, a period of forty-eight years. He was the president from February 5, 1842, until January 19, 1852, nearly ten years. Mr. Smith died August 24, 1862. He was a merchant of high repute, and a gentleman of fine literary tastes, of which the records of the Bank give ample testimony in his letters and other documents. The suspension of the Girard and Pennsylvania Banks had caused the other banks of the city to join in efforts to with- stand a general run, which was threatened in the excited state of the public mind, and they formed a "bank league," con- tributing $75,000 for every $500,000 capital to a fund pledged for the redemption of notes. The run soon began on the Moyamensing Bank, afterward the Bank of Commerce, but the league fund was put into use for the redemption of its notes and it withstood the strain. Country bank notes were being thrown out by the league, and this and other troubles, together with the general popular suspicion, which affected all banks, created so much excitement, that on March 12, 1842, the Legislature determined to compel resumption, by passing an Act commanding the banks to resume payment of their notes, deposits, and other liabilities in gold and silver coin, and enacting that refusal to do so ''shall be deemed and taken to be an absolute forfeiture of their respective charters." No time was given for preparation, and the consequences were unfortunate. The banks consulted three days after the Act passed, without definite result. Next day, March i6th, a serious run was made on the Penn Township Bank, and it was unable to meet the pressure and closed; the Mechanics' Bank and the Manufacturers' and Mechanics' Bank had the same fate. The Philadelphia Bank resumed payment March i6th, and during that and the following day, eight other banks l,IN'COLN GODFREY, First Vice-President. Most Serious Banking Depression 105 resumed. There were six banks, however, that suspended, the Moyamensing Bank also declining to resume. It is noteworthy that in June, 1842, during this period of serious depression, the Philadelphia Bank was selected as a depository of the public money of the United States, and also as the Government agent for the payment of pensions in Penn- sylvania. These appointments were a mark of confidence in the darkest period of the Bank's history; and were largely due to its resolute efforts to maintain specie payments. When its statement was made up in November, 1842, the Bank held $671,800 in specie and had $439,089 notes outstanding, its deposits being $878,582. It then held of Pennsylvania State loans $344,526, but they, like all other securities, had seriously depreciated in value. No dividends were paid in 1842, but the Bank had been well cared for, and accumulated a contingent fund of $273,892. The board made a long report to the stockholders at the annual meeting November 14th. They described the United States Bank debt and the Pennsylvania State loan as being of ^'such uncertain value that they cannot at present be esti- mated with any degree of accuracy, and the amount to be realized on them will depend much upon the time which may be given to their final disposal." The board, after a careful examination, valued the Philadelphia Bank stock at not less than $48 per share, exclusive of the amount due from the United States Bank, and this debt was equal to $63.40 addi- tional per share. An arrangement was suggested at this time to extinguish the Pennsylvania State loan, by the amount of stock in the Bank held by the State, the stockholders' meeting authorizing the Board "to purchase out the entire interest of the State in the institution, if it can be done on terms satis- factory to the Directors." io6 The Philadelphia Bank RECUPERATION The Philadelphia Bank passed its lowest point in the winter of 1842-43. The following spring saw better times; money became more plentiful, stock prices advanced, and in June loans were made at five per cent, in Philadelphia, and 4 per cent, in New York. Philadelphia Bank shares gradually appreciated, and sold in the summer at 62^ and in September at 70. The United States Bank trustees sold some of its assets, and the Philadelphia Bank joined with other creditor banks in buying them. The State of Pennsylvania also sold all its holdings of bank and other stocks, and the Philadelphia Bank stock was largely bought for the Bank at the auction sale on October 35th. This purchased stock was canceled, thus reducing the capital of the Bank, and strengthening its position. Thereafter, the four directors who had represented the State w^ithdrew from the board, and it w^as subsequently governed entirely by the directors elected by the stockholders. The directors had an annual dinner on the day of the organiza- tion, and thus managed to get a little enjoyment in connection with their arduous duties. The report of November, 1843, announced that the Gov- ernor of Pennsylvania would not permit the exchange of the State loan for the Bank stock, as had been desired, but got the Legislature to order an auction sale. Out of 5333 shares of Philadelphia Bank stock held by the State, the Bank bought 3919 shares at an average cost of $62.54 per share, and, this being canceled, reduced the capital to 11,503 shares, or $1,150,300. The larger part of the Pennsylvania State loan held by the Bank was sold to provide funds for this purchase. The report to the stockholders was much more cheerful, and it said: "The period of darkest and deepest gloom has nearly passed over, and although the institution has not escaped Recuperation 107 without sustaining heavy losses, in common with several others, yet it affords the Directors much pleasure to be able to inform the stockholders, that they have in a great measure been retrieved, and they now look forward to the period as not far distant, when from the profits of the Bank, they will again be in receipt of the usual dividends of which unfortunately they have been so long deprived." The assets were carefully examined, and a statement made up at market value. The United States Bank debt was reduced in the schedule to sixty per cent, of its face. While no Bank dividends had been declared in 1843, making five that had been passed, yet the board felt confident of being able to make a dividend in May, 1844, and that the stock might safely be considered as having reached its par value again. In the statement there was $427,781 charged off the United States Bank debt, and other items were also charged out, making the total reduction in values $505,357. The chief of these was $53,466 loss on Pennsylvania State loan. The net results showed the Bank to have a surplus of $1,552 over the capital of $1,150,300. The deposits were then $1,601,247 and the circulating notes $671,878. In May, 1844, the Philadelphia Bank was able to resume making dividends. Having placed the institution back upon a paying basis, the president, who had been working over two years at the task, wanted to resign, and wrote a very plaintive letter, referring to his illness and his physician's advice that he must seek relief at some of the medicinal springs. This was on June loth, but the Bank would not listen to such a suggestion, and gave President Smith leave of absence for such time as he might deem necessary, and elected his close companion, the other venerable director, who had served since 18 14, Samuel W. Jones, president pro tempore. The president was back at his post, much refreshed, in the autumn, io8 The Philadelphia Bank and another dividend was declared in November, 1844. The report said: "The last year has been one of great prosperity to the Bank." Business had greatly improved, and though interest rates had been low, the Bank had been able to extend discount lines, and make satisfactory profits. There had been two dividends declared for the year, each of four per cent., and the surplus, which was only $1,552 in November, 1843, had now increased to $79,430 over the capital, which was fixed at $1,150,000. The statement showed that the Bank held $904,011 deposits of the United States Treasurer, $84,283 of the Pennsylvania State Treasurer, and $1,681,033 of individuals. The United States Bank trustees also were accumulating funds to pay their debt, and had $462,600 on deposit. The specie held was $916,618 and the circulating notes outstanding were $624,307. The Bank had $2,391,374 loans and discounts, and $410,527 demand loans, this being the first separate entry of loans on call in its statements. It also held $160,400 United States loans and $20,762 loans of Pennsylvania. The Bank had retrieved its position. In 1845 General Jackson died, and with him were buried most of the animosities arising out of the great conflict with the United States Bank that had had such serious financial consequences. There is a minute on June 23, 1845: "It was agreed to close the Bank on Thursday next in consequence of the observance of the obsequies of General Jackson." Upon that day, June 26th, the bell was tolled in Independence Hall, the building was draped in black, and a great procession moved to Washington Square, where a memorial meeting was held, George M. Dallas, Vice-President of the United States, making the oration. In November, 1845, the United States Bank trustees had increased their deposits in the Philadelphia Bank to $567,800, and in the summer of 1846 they made a partial settlement. Recuperation 109 paying the Bank $617,663.69 on account of the debt. Other sums were subsequently paid on account, and out of these the Bank directors made extra dividends to the stockholders. The Mexican War, which had been declared in May, was then going on, and greatly stimulated business, though the adoption of the sub-treasury system in full force and the war necessities had then taken about all the Government deposits out of bank. At the close of 1847 the report to the stockholders spoke of the ample export trade abroad producing "large imports of specie, enabling banks to maintain large discount lines." The Bank made dividends of 17 per cent, in 1847, and was described as ''at the very highest of its prosperity." It had then received from the United States Bank trustees $96,509 more on account of the debt than the sixty per cent, valuation at which it was carried on the books, and the bank shares, which had been down almost to 30, had advanced in November, 1847, to 119. President Samuel F. Smith again wanted to resign. The Bank was all right, everybody was in good humor, and he sent the directors a very long and urgent letter explaining why he must retire from the presidency, and pleading most earnestly to be relieved by the election of a successor. This letter was received by the board November 4th, and the directors referred it to the stockholders' meeting held shortly afterward. The meeting would not hear of such a thing, but requested him not to resign and voted him "a handsome and complete service of tea silver" as ''a tribute of regard and respect." The minute of the board at its reorganization meeting, No- vember 1 8th, records: "Notwithstanding the above letter, Samuel F. Smith, Esq., was unanimously reelected President." In 1848 another change came, and the money market tightened in January, being quoted at the rate of i| per cent, per month for good paper. Business was less prosperous no The Philadelphia Bank in that year, and the Philadelphia Bank report in November speaks of depressed trade and manufactures, a restricted money market, and losses arising from mercantile failures. The United States Bank trustees were still paying in money, and twelve per cent, dividends were declared by the Bank for 1848, and fifteen per cent, dividends for 1849. The regular semi-annual rate had been increased from four to five per cent, and the additional dividends were extra. The Bank had also accumulated a contingent fund of $300,000, which it was decided should be maintained. The United States Bank had down to this time returned ySj per cent, of its debt. Upon May 11, 1848, it is recorded that "the Board pro- ceeded to the election of a clerk of the Bank, when B. B. Comegys was duly chosen and appointed Assistant to the General Ledger bookkeeper." Thus began the service of over a half-century, of that estimable gentleman and distin- guished banker, whose fame and that of the Philadelphia Bank are indissolubly connected. It is noteworthy that the reports of following years are in Mr. Comegys' handwriting, and, speaking of the large bank business done in the year ending with November, 1850, he records that the receiving teller took in $600,000 daily average, and the paying teller paid as much out, making a daily cash movement of $1,200,000, and that the discounts of the half-year had amounted to $5,507,000. He also recorded that the $1,000,000 United States Bank debt had all been discharged except $155,003, exclusive of interest. The whole of this principal sum was ultimately paid. Notwithstanding the omission of dividends for two and one-half years, the aggregate bank dividends for the decade from 1841 to 1850 inclusive were 79 per cent. Internal Improvements m INTERNAL IMPROVEMENTS In the early history of the Philadelphia Bank the road- making and bridge-building of the Commonwealth were en- couraged by subscriptions to stocks in turnpike and bridge companies, while there also were taken by the Bank, State loans issued for the construction of canals and the exten- sive system of State transportation works. Railroad-build- ing afterward became the popular form of improvement. The early and unused charter given John Stevens for the Philadelphia and Columbia Railroad has been referred to. The construction of that road was afterward undertaken by the Commonwealth as a public work. It was located in 1828 and finished in 1834. Horses hauled the cars until 1836, when locomotives were first used. These locomotives were owned and worked by the State under the Board of Canal Commissioners, the cars being the property of indi- viduals, who paid tolls for having them pass over the road. The route between Philadelphia and Pittsburg by rail and canal was completed and put in operation about 1834. The first charters for a railroad over the Alleghenies were passed in 1837, but were not used for several years. The agitation for replacing the interior canals through the Alleghenies by a railroad from Harrisburg to Pittsburg first t-ook formal shape in Philadelphia at a large meeting of merchants held in the Musical Fund Hall, December 9, 1845, 2.t which Thomas P. Cope presided. An address to the people of Pennsylvania, and a petition to the Legislature advocating a railroad charter, were formulated. The Penn- sylvania Railroad was chartered April 13, 1846, as a result of the movement, with $10,000,000 capital. Its construction began in 1847, and it was completed to Pittsburg in December, 1852, in connection with the State works over the mountains. 112 The Philadelphia Bank A second meeting was held in Philadelphia, April 27, 1846, to advocate subscriptions to the stock, and committees were appointed who labored throughout the year to get the railroad shares taken, but the subscriptions met with serious opposi- tion. There were, however, considerable individual subscrip- tions, and the city of Philadelphia and the various districts in the county ultimately took $5,000,000. Among the earnest workers in this subscription were David S. Brown and Rich- ard D. Wood. On December 31, 1846, it is recorded that the Philadelphia Bank subscribed for two hundred shares of the "Central Railroad," as it was then called, though this was only carried by one majority, the vote being 6 to 5, among the opponents being President Smith and Mr. Jones. The railroad company afterward became a depositor in the Bank, which took two hundred and six more shares, making four hundred and six, which were carried on the books at a valua- tion of 45, aggregating $18,325. A letter from the President of the Pennsylvania Railroad is referred to on March 30, 184S, in which he desires to be relieved of the implied obliga- tion of keeping a certain sum on deposit, and proposes paying six per cent, annual interest on the stock, which was agreed to. Other investments were made afterward to help along similar enterprises. The North Pennsylvania Railroad was projected from Philadelphia northward to the Lehigh at Bethlehem, and the Bank took one hundred and forty shares, costing $7,000, and later $20,000 of the bonds, which were charged at $15,000. The Cleveland and Mahoning Railroad was constructed as part of a line extending the Pennsylvania Railroad system through Ohio toward Lake Erie, and the Bank subscribed to $10,166 bonds issued for that enterprise, and also $3,000 to bonds of the Erie Canal, another project for connection with the Lake. In November, 1850, the assets of the Philadelphia Bank Continuing Prosperity 113 aggregated very nearly $4,000,000, and it held $3,022,185 loans and investments and $665,650 specie. The deposits were $1,526,683, and the amount due to banks $636,242, the notes outstanding were $427,798, and the Bank had $202,876 surplus. CONTINUING PROSPERITY In 1 85 1, upon August 28th, John B. Trevor, the cashier, resigned, and Benjamin B. Comegys was elected cashier of the Philadelphia Bank. This change came in consequence of Mr. Trevor having made advances to aid in the development of a coal property in Northumberland County, Pennsylvania, of which the president and directors disapproved. The matter attracted much public attention at the time, but through the commendable action and assistance of INIr. Trevor, it was adjusted with but small loss to the Bank. The venerable President Smith, who was in infirm health, at last accomplished the great object of his later life and resigned from the office of president. On October 20, 1851, he gave notice of his resignation on account of ill health, and on December 21st sent the formal letter. Mr. Robins had then been informally selected as his successor, and was elected a director of the Bank on the 29th. Mr. Smith's resignation was tendered to take effect January 19, 1852. He v/rote a letter, which evinced deep feeling, announcing his intention of ceasing his arduous labors as president of the Bank. On January 19th, when he retired, the board adopted a minute recording their high appreciation of his services for a period of nearly eleven years "marked by a series of unparalleled convulsions following the expiration of the United States Bank, its subsequent bankruptcy as a State institution, the financial embarrassment of our commonwealth 8 114 The Philadelphia Bank and two radical changes in the tariff; during which, by his unwearied devotion to the duties of his trust, his energy, skill and talent, he not only succeeded in preserving the valuable interests committed to his charge, but in advancing the pros- perity of the Bank to its present position as one of the most successful banking institutions in the Commonwealth." Upon January 19, 1852, Thomas Robins was elected president of the Philadelphia Bank. Mr. Robins was born at South Point, Maryland, January i, 1797, and, receiving his education there, he came to Philadelphia in 181 6, entering the dry-goods jobbing house of James Fassett & Co., at Second and Market Streets, where he served for ten years. In 1826 he became the head of the dry-goods firm of Robins, Tingley & Co., afterward forming the firm of Robins, Clag- horn & Hill, auctioneers, and finally Robins, Powell & Co., dry-goods jobbers, with a branch house in New York. During this time Mr. Robins was a director of the Bank of North America, and he was also one of the assignees of the United States Bank. When he was chosen president of the Philadel- phia Bank in 1852, Thomas Allibone was a candidate against him, but being defeated, turned his attention elsewhere, and during that year was elected president of the Pennsylvania Bank, which became insolvent within five years and passed out of existence. Mr. Robins served as president of the Philadelphia Bank for twenty-seven years, until January 16, 1879, when he retired, but was continued as director until his death, April 13, 1882, in his eighty-sixth year. He was made president of the Philadelphia Clearing House at its organization in 1858, and for over fifty years was a vestryman of St. Andrew's Church. He was also a director for forty- two years of the Pennsylvania Fire Insurance Company. Upon November 17, 1853, Mr. Samuel W. Jones resigned as director, and we find INIr. Smith making an eulogistic Continuing Prosperity 115 address for his old friend and submitting a minute, which the board adopted, regretting the retirement of the veteran director after more than forty years of service. Mr. Jones was the chairman of the annual stockholders' meetings for several years after\\^ard, and he died in November, 1873, at the age of ninety-three. Upon March 6, 1854, the death of John Welsh on the 4th was announced. He was the oldest member of the board, and had served more than fifty years. The minute recorded described him as ''the Father of the Bank," said that to him more than any other man it was indebted for its corporate existence, and referred to his indomitable energy and perse- verance, which triumphed over the powerful, bitter, and un- compromising opposition the Bank had in its earliest history and for many succeeding years, while to him, perhaps, more than any other was the Bank indebted for the full measure of success which it realized. It further testified to his constant watchfulness and care for its interests until within a few weeks of his death at the ripe age of eighty-four. Upon July 7, 1854, another of the old directors of the Bank died suddenly, Mr. William Worrell, who was described as one of the most amiable of men. The Philadelphia Bank was still receiving money on account of the debt due by the United States Bank, and early in 1853 the directors, upon the initiative of ex-President Smith, resolved to devote a portion of this to the establishment of the "Clerks' Pension Fund." This was formally ratified by the stockholders on November 13, 1854, and in the state- ment of that year the contingent fund of the Bank is given as $313,339, and the Clerks' Pension Fund also appears with a credit of $30,000, which was set apart from that fund tem- porarily, to be reimbursed from an expected settlement with the United States Bank trustees. The endowment, as adopted. ii6 The Philadelphia Bank provided a fund "the accruing interest on which to be applied from time to time, or such portion of it as the board may direct, to the aid and assistance of such of those in the employ of the Bank, as may be overtaken by sickness, casualties or such other vicissitudes, while in the employ or service of the Bank, as to unfit them for the performance of their accustomed duties, and who may find themselves in circumstances to require such aid or assistance." This beneficent fund, the first of its kind established by any financial institution, has since steadily grown, and is one of the important adjuncts of the service, doing great good. In June, 1866, the board directed that the surplus income of this fund should be added to the principal sum of the endowment. The autumn of 1854 began to show, after several years of great prosperity, signs of monetary stringency, and these were evidenced by much larger requests for discounts than the Bank could take care of. Thus were given slight pre- monitory symptoms of the brewing of another financial storm, but at the close of December the stringency had passed away, and it was noted in January, 1855, that specie was accumulating in the vaults and discounts were being freely made, and a similar condition existed in March, 1855. The troubles, how- ever, were only delayed, not removed. V THE FINANCIAL CRISIS OF 1857 1856-1859 THE FINANCIAL CRISIS OF 1857 1856-1859 Events Leading to the Panic — The Crisis Comes — An Early Resumptim — The Present Banking-house Bought. EVENTS LEADING TO THE PANIC THE Philadelphia Bank at the close of 1855 was in ex- cellent condition. It had $440,550 notes outstand- ing and held $329,205 specie. The loans were about $2,964,000, the deposits $2,036,000, the money in bank $960,- 000, and the surplus or contingent fund $377,194. The Legis- lature, on April 14, 1856, passed an Act further extending the charter for seventeen years, for which the State was paid a bonus of one per cent, on the capital stock (subsequently in- creased to $1,800,000). This bonus was $18,000, and it was a favorite method in those days of getting money into the State treasury. The stockholders on May 29, 1856, held a meeting and formally accepted the extension of the charter, Samuel W. Jones being chairman, and Charles Henry Fisher, secretary, those gentlemen continuing to be the regular officers of the stockholders' meetings for many years. Paying the bonus took some money out of the Bank, and drew upon the con- tingent fund, so that at the end of 1856 it was down to $338,493, but the Bank, nevertheless, was able to pay twelve per cent, dividends for the year, and the stockholders felt so strong that at the annual meeting in November they author- 119 I20 The Philadelphia Bank ized the directors to reissue the stock previously canceled, and reinstate the capital, then $1,150,000, to the former amount — $1,800,000. This was done, but the Bank again became the owner of a large amount of its own stock, $155,399 being thus invested. The preliminaries of the great panic of 1857 were indicated during almost two years previously. The discovery of gold in California in 1849, and the large production during subse- quent years, made a fever of speculation all over the world. The Crimean War of 1854-56 added stimulation, through the artificial demand for special supplies. Finance companies were started in France and Germany creating vast credits, and railroad building was pushed both there and in the United States, where liberal land grants were made on which lines were extended west and south, ahead of the movement of population. Bank loans were expanded, large amounts of paper money were issued, and the unusual demand for loans produced scarcity and stringency in all the money markets. In the records of the Philadelphia Bank are found various loans in 1854 and 1855 to the city of Philadelphia to pay bonded debt interest and bills, in amounts varying from $25,000 to $60,000. In December, 1855, the banks of the city had to join in a large advance to enable the treasurer of Philadelphia to pay January interest. On November i, 1855, quite a large sum had to be discounted in the Phila- delphia Bank to help other banks, and the Pennsylvania Bank was reported very short of specie. As 1856 progressed, matters showed no improvement. On November 24th, the money rate was quoted at one per cent. per month, and it was stated that ''commercial affairs, without any apparent approach to a crisis, have an uncomfortable appearance; money in demand, because there does not seem to be enough to be had to meet engagements, except at high The Crisis Comes 121 rates." This was typical of what was going on all over the country, and it got worse after 1857 began. Bank reserves everywhere were falling, liabilities increasing, and merchants found constantly greater difficulty in making collections. The New York banks on August 22, 1857, had $120,000,000 of loans, $9,000,000 notes out, $89,000,000 deposits, and held only $10,000,000 specie; but their condition was far better than that of the banks elsewhere in the United States, there being an enormous amount of irresponsible and "wildcat" bank currency afloat, without much evidence of any specie reserve to take care of it, these notes having been issued under the very loose banking systems prevailing in the West and South. THE CRISIS COMES On August 24, 1857, the Ohio Life and Trust Company, in New York city, failed, and this began the trouble. Early in September, in Philadelphia, there were very uncomfortable business indications, with money very scarce, the best paper being at one and one-half to two per cent, per month. On the 1 8th the loss of the steamer "Central America" was an- nounced, with many lives, and a large amount of California gold ; and there was general alarm and an increasing demand for money, while the next day several of the largest business houses of Philadelphia, unable to get accommodation, failed. Upon September 21st the Philadelphia Bank directors held a long session, discussing chiefly the question whether the Pennsylvania Bank should be sustained. It resulted in a decision to give help, by taking that bank's bills on London, secured by bills receivable, which the Pennsylvania Bank gave. Upon the 23d the Philadelphia Bank directors were considering the question of continuing to receive the Penn- 122 The Philadelphia Bank sylvania Bank notes, there being indications of that bank going into liquidation. Next day, several bank presidents met and had a long session on the question without decision. During these few days the Philadelphia Bank loaned the Pennsylvania Bank $225,000, but it was without avail in holding up that tottering institution. The fateful 25th of September came, and the storm broke upon the city. The Pennsylvania Bank suspended early in the day, and within an hour the Girard and Commercial Banks declared a suspension of specie payments. There was great excitement, and some of the banks summoned police protection. At the Philadelphia Bank on that day people began drawing out gold in small quantities, increasing as the day advanced, and by three o'clock the Bank had paid out $200,000 specie. During the day the various banks of the city paid out about $1,500,000 in coin. The directors met in the afternoon and agreed, with the other banks, to suspend specie payments. Pennsylvania Bank shares had declined to 91 before it closed, but they were not saleable aftenvard, and Girard Bank shares went down to 8, and after the sus- pension there were practically no dealings in any of the city bank stocks. Pennsylvania Railroad shares declined to 36. The notes of the banks quickly sank to six and seven per cent, discount. The next day, September 26th, the anxiety of the debtor community was partly relieved by the suspension, and though there was much perplexity among the people for currency, a feeling of more satisfaction was evident. Governor James Pollock, of Pennsylvania, came to the city on that day, and the bank officers convened, and requested him to summon the Legislature in special session, to give the banks relief from the penalty of forfeiture of their charters in case they suspended for a longer period than thirty days, and also to The Crisis Comes 123 aid the public, who seemed to be universally in debt. The Legislature was summoned October 6th, and on the 8th the business men held a meeting in Independence Square asking relief. During September there had been, throughout the country, forty bank failures. Scores of other banks were in sore straits, while over one hundred leading business houses had been compelled to suspend. Prices fell in all directions; goods were almost unsaleable; cotton declined from 16 cents to 9 cents per pound, and an enormous number of working people were thrown out of employment. The public and the press generally blamed the panic upon too much railroad expansion, and soon the railroad corpora- tions began to default in their interest payments. On October nth the Illinois Central Railroad system in the West made an assignment, being quickly followed by the New York and Erie Railroad. About the same time the Delaware, Lacka- wanna, and Western Railroad, which was constructing its line to Scranton, suspended. The Philadelphia "Public Ledger" on October 14, 1857, said of the Lackawanna road: "It is one of the wildest works of its kind ever constructed in this country — as impracticable as unnecessary. It is just such works as this that has brought about the present bank- ruptcy and ruin that pervades the country. A railroad where this is laid, is not wanted, and will not be required for any supply of fuel for half a century to come." The New York and New England banks had been en- deavoring to maintain specie payments, but found it very diihcult. Gold advanced to seven per cent, premium in New York, and this started a run, so that on October 12th to 13th the New York banks paid out $6,000,000 specie, and on the 13th they suspended, being followed the next day by the Boston and New England banks, so that in the middle of October the suspension of specie payments was universal 124 The Philadelphia Bank throughout the country. The Pennsylvania Legislature was in session for about a week, and passed an Act relieving debtors, removing the penalties on the banks, and requiring them to resume specie payments by the second Monday of April, 1858, and for this boon the banks were ordered to pay into the State treasury by January ist a bonus of J of one per cent, on their respective capitals. Upon October 31st the stockholders of the Philadelphia Bank met and accepted the provisions of the Act. Throughout October the demand for discounts at bank was large and the supply of cash available was small. On the 19th the merchants held a meeting to bring pressure upon the banks to get them to increase their discount lines. On the 27th there was general gloom in commercial circles; and on the 31st the various bank presidents met and received a report from a committee, that the affairs of the Pennsylvania Bank were in great confusion and disorder, showing a large deficiency altogether unaccounted for, whereupon they passed a resolution ''that the banks here represented, apprehending and believing that the said Bank of Pennsylvania is in an unsafe condition, unanimously request Thomas Robins, Esq., President of the Philadelphia Bank, to certify this belief to the Governor, on our general behalf." This was the end of the Pennsylvania Bank. The statement of the Philadelphia Bank on November 9, 1857, after going through the worst of the panic, showed as favorably as could have been expected. The bank dividend in May had been five per cent., but in November was cut to three per cent., making eight per cent, for the year. The capital had been increased to $1,800,000 and the contingent fund to $385,799. The Pennsylvania Bank owed it $225,000, and there were other suspended debts of $86,499, w^hile there had been borrowed $188,091 temporary loan. The notes in AI,FRED C. HARRISON. An Early Resumption 125 circulation were $141,537, and the specie held $177,523. The discounts for the year aggregated $16,661,000. The report presented described in words of lamentation the serious ordeal through which the Bank had passed, and the numerous failures, saying that it cannot escape from losses which must grow out of such a widespread ruin, adding: ''It is difficult, while the storm is still raging, to form an accurate estimate of what these losses will be. A large proportion of the failures to meet engagements have been by houses or individuals of ample means, but who, from the destruction of confidence, and the indisposition on the part of capital to advance money on any securities, were unable to make their means available to pay their debts. In all such cases, a little forbearance and aid will enable them rapidly to liquidate the claims against them, and thus a large proportion of suspended paper will soon be settled." The directors could make no estimate of apprehended losses, but "trust they will not impair the present large contingent fund." AN EARLY RESUMPTION In a short time the whole aspect changed. On the day the above statement and report were presented the money market was easier, and early in December the Bank was loaning more freely. Pig iron had gone down to $20 per ton, being a lower price than for years. On December 7th the Bank was said to be doing a moderate business, while upon the 12th the banks of New York resumed specie payments. This caused the question of resumption in Philadelphia to be actively discussed, and at the opening of 1858 it became the prominent financial and commercial question of the day. The accumulation of specie and generally improved outlook, in fact, enabled the banks in Philadelphia to resume much 126 The Philadelphia Bank sooner than had been anticipated, and on February 3, 1858, they were paying specie, and on the next day the Clearing House Association met and passed a formal resolution that ''the Banks of Philadelphia resume specie payments forth- with." It is recorded on February 4th, in the minutes of the Philadelphia Bank board, that ''In conformity with the fore- going resolution, this Bank is now paying specie upon all its liabilities, and has fully resumed specie payments after a suspension of one hundred and thirty days, caused by panic, distrust, and severe mercantile pressure existing during the last six months." Commercial business, however, became very dull. The Bank had difficulty in finding enough good paper to discount, and throughout the spring of 1858 the offerings were much smaller than the income, and rates at times were below five per cent. These conditions made a great falling-off in the revenues of the United States Government, and Congress had to authorize the temporary expedient of issuing treasury notes bearing interest, to replenish the treasury. To employ its idle capital the Bank bought $300,000 of these notes in March, at four to five and one-half per cent, interest, another $300,000 in May, at four and three-quarters to five and one-quarter per cent., and $100,000 in June, at five per cent. Conditions had thus completely changed from the stringency of 1857, This state of affairs continued throughout the year, and in fact the dullness and depression did not end for a long time. The events of this period led to the establishment of the Philadelphia Clearing House in its present form. The New York banks had established their Clearing House in August, 1853, making weekly publication of their reports. This led to a similar suggestion in Philadelphia, but President Allibone, of the Pennsylvania Bank, always opposed it, while President Robins advocated it. Allibone carried his point, but a tem- An Early Resumption 127 porary system was established, by a meeting of a Board of Cashiers to make daily exchanges, though without daily settle- ments, and this continued several years. As soon as the Pennsylvania Bank was eliminated, the Philadelphia Clearing House was established with Thomas Robins as its president, and the first clearings were made March 22, 1858. When the stockholders met at the close of 1858, the report of the board, after referring to the panic and resumption, described the year 1858 as *'a year of liquidation and settle- ment, throughout the business community, during which period the business of the Bank had gone on regularly and prosperously." The loss upon suspended paper was much less than had been feared, and in fact was below $20,000, or a fraction over one per cent, on the capital of the Bank. In this estimate, the debt due by the Pennsylvania Bank was not included, the remainder of this debt as yet unliquidated being $58,142, and '^secured by assets which the Board believe will pay its face." The stagnation of business, by accumu- lating idle capital seeking em.ployment, reduced the interest rates and banking profits, but after paying two dividends of five per cent, each during the year, they were still able to increase the contingent fund by $8,258. The decline in busi- ness, however, was well shown by the falling-off in the total discounts to $12,124,000. The Bank was very strong. It held $843,570 specie with but $352,710 notes out, and $2,036,527 deposits. It also then still held $450,000 of the United States treasury notes that had been purchased. The suspended debt was reduced to $36,419, and the contingent fund was $352,710. 128 The Philadelphia Bank THE PRESENT BANKING HOUSE BOUGHT For some years the Philadelphia Bank had found itself cramped for space, and the occupancy of the second story of its building as a banking room was unhandy and not satis- factory. The Western Bank had succeeded the United States Bank as its neighbor. There are repeated references to securing another site, and as early as 1856 Mr. Wood's diary mentions the discussion of a project to buy ground for a new banking house, to enable the business to be done down-stairs. When the Pennsylvania Bank failed it was about finishing the fine Quincy granite building on the north side of Chestnut Street opposite the Custom House, into which, however, it never moved. When the construction of this building began, the Philadelphia Bank directors were full of the idea of securing the property adjoining it on the eastward, then occupied by the United States Hotel, but it was held at too high a valuation. Subsequently, this property was acquired for the Philadelphia Trust and Safe Deposit Company. The Pennsylvania Bank Assignees had their unfinished building as an asset, and it was offered at public sale by M. Thomas & Sons, auctioneers, on the evening of March i, 1859, at the Philadelphia Mer- chants' Exchange, now the Stock Exchange, and it was bought for the Philadelphia Bank. The circumstances attending this purchase are interesting. The house had cost about $320,000, and in the then condition of affairs there was doubt whether a satisfactory purchaser could be found, as it was only suitable for a bank. The Phila- delphia Bank people did not decide to bid for it until the day of the sale. Their committee met in the morning, and resolved to report in favor of buying the Pennsylvania Bank building, and they had the board summoned for four o'clock in the afternoon, when the purchase was agreed upon, and after The Present Banking House Bought 129 considerable discussion it was decided to authorize bidding to $186,000. Mr. Robins bought the building for $163,100, much to the satisfaction of the purchasers. Thus the Phila- delphia Bank acquired the banking house it now occupies, at a price which was about one-half the original cost. In this connection it was at the time stated by Mr. Francis M. Drexel, the founder of the banking house of Drexel & Co., that he fully intended to buy the building at the sale, but he went home, and, falling asleep after tea, did not awaken until too late to go down to the Exchange. The next morning he called upon Mr. Robins and told him the circumstance, adding that, had he been there, Mr. Robins would not have got the building without paying a much higher price. The law in those days prohibited any bank investing more than $50,000 in its banking house, and the old bank at Fourth and Chestnut Streets was carried on the books at that figure. Mr. Robins consequently had to become the owner of the building, and on March 3d he wTOte a letter to the directors announcing his purchase, and that he was prepared to negotiate with the Philadelphia Bank for a lease of the premises, and would also make a title to the Bank, "when such legislation has been obtained as will enable the bank legally to hold it, and when they shall have paid to me the amount of the pur- chase money, $163,100, and the expenses w^hich may be in- curred thereon. " The board thereupon appointed a committee to negotiate with the president for occupancy, with power to complete the building, and apply to the Legislature for such modification of the law as would enable the Bank to hold title to the building. This the Legislature obligingly did, and the banking house was at once prepared for occupancy. The finishing and furnishing cost about $13,500, making the entire cost of the property about 8176,500. The banking room was at the northern end, reached by a corridor from Chestnut 130 The Philadelphia Bank Street, and the front of the house was for many years let for offices. The old bank at Fourth and Chestnut Streets was sold at auction May 31st, and bought by Richard D. Wood for $76,500. The surplus over $50,000 was passed to the credit of the new building, and in i860, when everything was completed, its whole cost was entered on the books at $153,480.99. The Philadelphia Bank removed from its old building on the afternoon of June 28, 1859, and began business in the new building on the morning of Wednesday, June 29th. This was the fourth banking house it had occupied, and is the present Philadelphia Bank building. It is noteworthy that during 1859, while business was dull with money rates easy and discounting often at five per cent., the Bank was able to make ten per cent, dividends for the year. The directors marked this period by determining to place the portrait of the venerable ex-President Samuel F. Smith as a vignette on the notes. The success of the year and the purchase of the new Bank gave so much satisfaction that the president's salary was increased to $5,000. Quintin Campbell, who had been in the service of the Bank since its organization in 1803, as teller, cashier, and director, over fifty-six years, resigned as director in November, 1859. At the close of 1859 the Bank held $658,831 specie and had $377,230 notes outstanding, the contingent fund being $324,155. During this year also resigned the old runner, William Long, who had done his work faithfully during the half-cen- tury, and only asked permission to resign on account of the infirmities of age, he being eighty-one years old. The board adopted a most appropriate minute to this faithful ser\^ant, written by the facile pen of Mr. Smith, whose literary pro- ductions are scattered through the Bank records for so many years. In the course of the eulogy, Mr. Smith wrote these words of proper tribute to his fidelity and integrity: ''During The Present Banking House Bought 131 the time he has been in the service of the Bank, he has col- lected and accounted for untold millions of dollars, without having been the cause of the loss of a single dollar, either by negligence, carelessness, or in any other way, and so far as it is known he has done this without giving offence to any one with whom he has transacted the business of the Bank by his manner of doing it. The duties compelled him to traverse the entire city almost daily, through summer's heat and winter's storms, and in many instances during the prevalence of desolating pestilence, but, faithful in the dis- charge of his duty, he never faltered nor failed to execute it, without reference to the labor which it cost, or the personal risk it involved." An ample pension was provided for Mr. Long. The dividends of the Philadelphia Bank during the decade 1851-1860 amounted to iii per cent., and from the foundation of the institution in 1803, to the close of i860, there had been paid in dividends 402 per cent. VI THE SECOND WAR PERIOD 1860-1865 VI THE SECOND WAR PERIOD 1860-1865 The BiHef Suspension in i860 — The War Opens — The Long Specie Suspension Begins — Progress of the War — Eiid of the War. THE BRIEF SUSPENSION IN i860 AFRESH financial derangement was produced by the approach of the War of the RebelHon in i860. The presidential election on November 6th resulted in the choice of Abraham Lincoln, and throughout the South immediate preparations began for secession. The annual statement of the Philadelphia Bank, compiled on the day preceding the presidential election, showed the condition of its finances before this derangement came. The specie in bank was $505,957, the notes issued $407,745, the deposits $2,736,550, the loans $4,036,258, and the contingent fund $324,155, with the capital continuing at $1,800,000. Within a week after the result of the presidential election became known, the South was aflame, alarming reports pervaded the country, the stock market declined, and money rates advanced. The most gloomy predictions of disunion were made, and great commercial distrust ensued, so that by November 17th call loans had reached eight per cent, and commercial paper was quoted at one to one and one-half per cent, monthly for the best, and two to two and one-half 135 136 The Philadelphia Bank per cent, for other names. Then the public took alarm, the banks began losing specie and had to contract their loans. Upon November 19th the Clearing House statement of the banks in Philadelphia showed both loans and deposits to be declining, and that, in the aggregate, they held $4,116,000 specie, of which the Philadelphia Bank had $470,000, its note issues within two weeks having declined to $270,000, the deposits to $2,128,000, and the loans to $3,483,000. These evidences of contraction created serious public anxiety, and, the tendency everywhere being to draw out deposits, the managers of the savings funds in Philadelphia joined in an agreement to insist on full two weeks' notice from the with- drawing depositors, having previously been rather lax in this regard. This action added to the excitement. In New York sixteen banks united in an arrangement to buy a large amount of sterling exchange, hoping thus to strengthen themselves by getting gold from abroad. The trouble became most acute in the South, and on November 21st the Richmond and Petersburg banks in Vir- ginia suspended specie payments. This news being tele- graphed to Baltimore, the bank presidents in that city imme- diately met, and decided to suspend specie payments the next day, November 2 2d. The Philadelphia money market became very stringent, and was described as even harder than during the crisis of 1857; commercial paper was almost unsaleable; the banks did little discounting, and rates were quoted at two and one-half to three per cent, per month. When November 2 2d opened, the action of the Baltimore and other Southern banks was announced in the morning newspapers, and a run began on the banks in Philadelphia. The presidents immediately met, and ordered a suspension of specie payments at noon. The Philadelphia Bank board was hastily convened, and the minute records the action of LEVI I,. RUE, Second \"ice-President axd Cashier. The Brief Suspension in i860 137 the joint meeting and that an immediate suspension of specie payments was ordered. When they stopped specie payments at noon, the city banks had lost about $500,000 in gold and silver since they opened in the morning, and they still held about $3,500,000 specie in the vaults. This suspension was not total, however, as small sums for change were paid out and specie drafts honored where it was absolutely necessary. The next day the New York banks for the first time adopted the loan certificate system, which was afterward repeatedly resorted to in times of excessive stringency to protect the reserves. This was a virtual suspension, and the suspension soon became general all over the country, gold going to a premium of two per cent. The next aggregate bank statement in Philadelphia showed on November 26th that their specie had decreased $771,320 for the week, to $3,354,542, and their deposits were reduced $1,133,442. The Philadelphia Bank held $360,000 specie and had note issues of $274,000 and deposits of $2,209,000. The city of Philadelphia was in great straits, being unable to pay its warrants, as the treasury was empty. A temporary loan of $500,000 had been negotiated, but was soon used up, and the warrants had gone to ten per cent, discount. Subse- quently, the outstanding warrants were funded into city six per cent. loan. The year i860 closed with greatly depressed business and a bad outlook. South Carolina seceded from the Union in December, and the national treasury was almost bankrupt, the entire financial system being disordered, and money being borrowed at twelve per cent, to pay the interest on the public debt due January ist, while merchants were paying fifteen per cent, for loans at the end of the year. 138 The Philadelphia Bank THE WAR OPENS There ensued three months of great political and business uncertainty in Philadelphia, but monetary matters got rather calmer, and the gold premium had disappeared in the spring of 1 86 1. All kinds of public meetings were held looking to conciliation and averting a rupture, but in the mean time the Southern States were following the example of South Carolina and successively seceding, and the Southern Confederacy was set up in February with Jefferson Davis as president. While the South was preparing for war, the North was drifting aimlessly along. In March the banks had considerably strengthened their position in Philadelphia, the aggregate statement of March 5th showing that they held over $5,000,000 specie with $2,811,000 notes in circulation and $14,868,000 deposits, the specie having steadily increased since the sus- pension of the previous November. The Philadelphia Bank held $749,000 specie, with $391,000 circulating notes and $2,277,000 deposits. Money rates were quoted in March at six to seven per cent, on call, and eight to ten per cent, for the best paper, other descriptions being higher. Temporizing was still going on. Upon April 12 th firing began upon Fort Sumter at Charles- ton, and two days later Major Anderson surrendered. The greatest excitement followed, and in a twinkling the whole Northern sentiment changed, the spirit of the nation was aroused, and everywhere troops were being mustered and sent to the front. General business was checked, however, and this made money plentiful, and the loaning rate fell to six per cent. The Pennsylvania Legislature at once passed an act appropriating $500,000 to organize, equip, and arm the State troops, the money to be raised by loan, and on April 1 8th the Philadelphia Bank directors authorized Presi- The War Opens 139 dent Robins to notify the Governor "that this bank is ready to respond to the appKcation for a loan to the Commonweahh, to the extent of the abiHty of the bank." On the 22d the Philadelphia Bank responded to the request of the Committee of Public Safety organized for the defence of Philadelphia, and contributed one-half of one per cent, on the capital to a fund of $250,000 raised for the purpose, either as "3. donation or a loan." It also "placed at the disposal of the officers $1,000, to be used for the defence of the Institution." The "Home Guard" was immediately formed for city de- fence, and on April 25th, we find the Philadelphia Bank board approving the following resolution: "That the officers and clerks of the several Banks and Insurance Companies of the City of Philadelphia, located on Chestnut Street, west of Third Street and east of Fifth Street, form themselves into a Home Guard for the protection of the said Banks and Insurance Companies, and offer their services to Col. A. J. Pleasanton, as a portion of the Home Guard of Philadelphia and request that they be detailed for such special service." The great event of the succeeding Fourth of July was the parade of this Home Guard, which made a most creditable appearance. It was recognized, however, that the war had become most portentous in aspect, for on July 5th, as the term of service of the three months' regiments was soon expiring. President Lincoln recommended raising an army of 400,000 men, and estimated that it would cost $400,000,000 to carry on the war. The Philadelphia Bank on May i, 1861, joined with the other banks in the first adoption of the system of Clearing House loan certificates in Philadelphia. The certificates were to bear sLx per cent, interest, and were based on deposits of the Bank's assets with the Loan Committee, up to seventy- five per cent, of their face. They were to be used in settlement I40 The Philadelphia Bank of balances at the Clearing House for the succeeding ninety days. The whole issue was not to exceed $2,500,000. The specie in all the banks was also to be considered, and treated as a common fund for mutual aid and protection, the Loan Committee being given power to equalize the same by assess- ment or otherwise at their discretion. After June ist, each bank was required to have on hand in specie an amount equal to one-fourth of its net liabilities. This arrangement was made by nineteen banks, and formed the basis of their mutual relations thereafter, the Loan Committee appointed to carry it into effect being Charles H. Rogers, Tradesmen's Bank; Edwin M. Lewis, Farmers' and Mechanics' Bank; Joseph Patterson, Western Bank; B. B. Comegys, Philadel- phia Bank; and John B. Austin, Southwark Bank. Herein is found the germ of the twenty-five per cent, bank reserves in large cities enacted by the National Banking Acts. The subsequent history of the Philadelphia Bank during 1 86 1 deals largely with loans to the governments of the nation and State. On June loth it subscribed $100,000 State loan, and on the 13th $30,000 additional. On July 25th it made a temporary loan at sixty days of $150,000 to the United States. The treasury was getting into great straits for money, and on August 15th an arrangement was made by a convention of the banks of New York, Boston, and Philadelphia, to assist the Government by taking three years' treasury notes bearing 7.30 per cent, interest. This interest rate was adopted because it was one cent per day interest on $50. The associated banks were to take $50,000,000 of these treasury notes at once, a second $50,000,000 October 15th, and a third $50,- 000,000 December 15th. The portion allotted to Philadelphia was ten per cent, of the whole amount, and the Philadelphia Bank in proportion to its capital took its share ($750,000) of each issue of these treasury notes. The Long Specie Suspension Begins 141 The times were unpropitious for all banks, however, as business was dull, and at the end of October, 1861, Phila- delphia Bank stock was quoted down to 85. On November 4th the stockholders of the Bank met and received the annual report. The Bank held $1,273,823 specie and had $292,350 notes in circulation. It had loaned the State of Pennsylvania $180,000, and the United States $1,097,625, besides holding $188,450 treasury notes. The unfortunate commercial condi- tions were shown by suspended debts of $148,830, and the contingent fund was $344,268. The report stated that business had been much interrupted by the political troubles, "stopping all communications with the Southern States, and locking up, if not totally extinguishing, a large amount of funds belonging to the customers of the Bank, and seriously embarrassing many houses, heretofore of undoubted standing in our business community." The negotiation of loans with the Government by the treasury note issue was explained, it being announced that ''the banks, gathering strength from the public sentiment, deemed it expedient and proper to assume the grave responsi- bility of this negotiation, considering it of vital importance to every material interest, as well of the banks as of the country, that the Government should be sustained in its endeavors to maintain the integrity of the Constitution and the laws." Thus the Philadelphia Bank, in 1861, had loaned the greater part of its capital to the Federal and State governments; while the May and November dividends were each reduced to three per cent. THE LONG SPECIE SUSPENSION BEGINS As December, 1861, approached matters were looking better. There were large produce exports and specie had been coming into the country, so that early in the month 142 The Philadelphia Bank money was abundant at easy rates and there was some cheer- fulness. But just at this time an American man-of-war forcibly removed Mason and Slidell, the Confederate diplomatic agents, from the British steamer "Trent," and this instantly changed the whole outlook. -Upon December 15th the New York banks held $39,435,000 specie and the banks in Phila- delphia $7,354,000, of which the Philadelphia Bank had $1,181,000, and money rates were quoted at six to seven per cent. Upon that day, however, the mail steamer from Liverpool arrived at New York with the portentous intelligence that England had demanded from the United States the sur- render of Mason and Slidell, and an apology. The greatest excitement ensued, as it was feared that England would join with the South in the war. Gold exports to Europe began, stocks declined, and serious apprehension was felt. This alarm continued for nearly tw^o weeks, when it w^as announced on December 28th that the Government had surrendered Mason and Slidell, and thus prevented a rupture. But the financial damage had been done. The drain on the New York banks had reduced their specie to $23,000,000, while the Philadelphia banks were down to $5,193,000, of which the Philadelphia bank had $875,000. Besides the drain of specie to Europe and the interior, there were also large pay- ments made to the Government for treasury notes. This pro- cess of depletion going on in all the banks necessitated a radical contraction of commercial loans. Upon Saturday, December 28th, gold was in such demand that it was quoted at a premium of one-half per cent., paid mostly for small lots, evidently for hoarding, while the treasury 7.30 notes w^ere at one per cent, discount. The outlook was bad, and another run was feared, so that in the evening the presidents of the New York banks met, and decided to suspend specie payments on Monday morning, December 30, 1861. The Long Specie Suspension Begins 143 The suspension was made on the same day by the Boston and Philadelphia banks, the entire country following. Thus began the long suspension of specie payments, which continued for seventeen years, until 1879. The necessities of the war and the lack of currency soon paved the way for the Govern- ment issues of legal tender notes, and the National Banking Laws of 1863 and 1864, which based the banking S3'stem of the United States upon the Government loans and legal tenders. On January 2, 1862, gold was quoted at one per cent, premium, and sterling exchange at iio^, making gold exporting profitable. The currency question became very embarrassing, as Jan- uary progressed, and was the prominent topic, while gold advanced to 104I. The treasury was selling large amounts of treasury notes, which were usually at a small discount. Matters rather improved in the spring, however, and the gold premium declined; while money became more plentiful as the Government was making large disbursements on account of the war, and the prices of goods were advancing. This gradually produced easier conditions, and by June money had become so abundant that the loaning rates were down to four per cent. Then came the defeats of McClellan and Pope in the summer, and the Confederate advance to Antietam, Maryland, in September, with another alarm along the border. On September 14, 1862, the directors of the Philadelphia Bank passed a resolution giving leave of absence to such of the clerks as could be spared, "to join the several military organi- zations, which, at the call of the Governor of the Common- wealth, are about to prepare for the defence of the State, and that during such absence, their salaries be continued to •them." The battle of Antietam was fought, and the Con- federates recrossed the Potomac. The gold premium again advanced, and speculation in stocks and in goods became 144 The Philadelphia Bank greater, the continued enormous Government disbursements supplying plenty of money. The Philadelphia Bank during 1862 did not have a very favorable year, the May dividend being but three per cent., while the November dividend was four per cent. The slack- ness of trade during the greater part of the time reduced the amount of bills discounted to about $8,000,000, while to employ its funds the Bank bought corporation loans, mostly railway bonds, amounting to over $387,000. By the November statement it had $83,000 suspended debt ; it held $225,625 Penn- sylvania State loan, $46,000 Philadelphia city loan, $230,000 treasury 7.30 notes, and $250,000 United States certificates of indebtedness. Legal tender notes appear for the first time in this statement, the Bank holding $998,005, and it held $856,155 gold and silver, while the contingent fund was $458,- 207 and the total assets $7,656,502. The issue of bank notes was $372,000 and the deposits $4,931,063. The report said that "the unsettled state of the affairs of the nation, the em- barrassment of commerce, the depreciation in the value of the circulating medium below the specie standard, and the fluctuations in credits, render it futile to form or express any opinion about the future business and financial affairs of the bank or of the country. The Board can only promise that they will give diligent care in the management of the Insti- tution, and endeavor to prevent losses and keep the capital whole." There then began a period of enormous inflation, due to the immense government war disbursements, and the higher gold premium, as the national struggle became more costly and determined. A cotton famine came in 1863. In January cotton advanced to 84 cents per pound, and in February gold was at 171; early in March cotton was at 95 cents, but the military successes in the West had reduced the gold pre- ALEXANDER J. CASSATT. The Long Specie Suspension Begins 145 mium later in the month to 153 and cotton to 55 cents. For the half-year ending with April, 1863, the banking profits were the largest ever earned, though the prevalent discount rate was usually only five per cent. In July Gettysburg had been fought, and Vicksburg surrendered, cotton kept at 55 cents, but gold was down to 126. This year the Federal income tax was first collected. In the autumn all goods had a further rise, cotton going in October to 90 and 92 cents, and No. 2 pig iron in December reaching $42 per ton. The Bank loaned the Government $165,000 gold in May, 1863, to aid in paying public debt interest, and advanced the State of Pennsylvania $144,000, requested by the Legislature for the troops called out for State defence in the Gettysburg cam- paign, and to pay interest on the State debt, besides subscribing $5,000 to the city fund for defence. In September, 1863, the Bank also arranged to loan the government $750,000, to be repaid in five per cent, legal tender treasury notes, and after- ward, in December, it advanced the city $50,000 for the bounty fund. The Bank was doing so much better that it paid two dividends of five per cent, each in 1863, and in the November statement reported the contingent fund increased to $576,534, while the suspended debt was only $7,787. The Bank then held $1,967,683 United States loans and certificates, $187,700 loans of the State of Pennsylvania, and $46,000 of the city of Philadelphia. It also held $849,409 legal tenders and $545,450 gold and silver as reserves. While the Bank had been prosperous, yet the taxation was very heavy, $7,743 having been paid to the State and $27,875 to the United States during the year. The bank note issues were down to $100,060 and it had $4,838,130 deposits, besides $327,500 deposit of the United States Treasurer. 146 The Philadelphia Bank PROGRESS OF THE WAR The Government expenditures with the progress of the war became constantly larger. At the opening of the cam- paign of 1864, General Grant personally led the army against Richmond, moving forward in April. The City Treasurer appealed for help in February, when the draft was enforced and bounties for enlistments were being provided, and the Bank loaned the city $150,000 on the security of bounty warrants, to provide funds. Pig iron then was at $44 per ton, and when General Grant started on the march through the "Wilderness" of Virginia, gold was at 175 and cotton 85 cents per pound. In May cotton advanced over $1 per pound, and on June i6th it was at 1.40, while on June 24th a sale of one case of 42-inch cotton goods was made by Richard D. Wood to James, Kent, Santee & Co., of Philadelphia, at 60 cents per yard, being stated as "just the cost of making cotton at $1.50." The Government was pouring out greenbacks, interest- bearing notes, certificates, and bonds, to provide for the vast war disbursements, thus making an extraordinary inflation, so that a period of wild speculation had set in, affecting all the markets, and on June 20, 1864, when Grant was fighting his way through the "Wilderness," gold advanced to 250, and on the 30th to 251. The city had to issue another loan to fund its military indebtedness, and the Philadelphia Bank took $500,000 of it, and in September it took $400,000 more United States loan. The conditions then had somewhat improved, for the National Banking Acts were going into effective operation, making a large demand for Government bonds from the banks; General Grant was achieving success on the ap- proach to Richmond from the south side of James River; and General Sherman was conducting a brilliant campaign in the Progress of the War 147 West. Both gold and cotton declined, the latter selling down to 105 at a large Government sale of captured cotton upon September 26th. The Philadelphia Bank decided to become a national bank in October, 1864, and as the security for the circulation was thencefon\'ard to be United States bonds, it sold $300,000 gold which had been held as a reserve, the quotation then being 2i6|. President Lincoln was re-elected for his second term on Novembers, 1864. This was universally interpreted as mean- ing a continuance of the war to the end, with large additional issues of paper money, so that on the 9th gold fluctuated violently upward, ranging during the day from 245 to 259!, at which it closed, but the next day it was more quiet at 252I to 255. It is interesting to note that the quotations in paper money on that day were for United States bonds sixes io6| to 107I, treasury 7.30 notes 107, and certificates of indebtedness 95^, while the ten-forty-five per cent, loan then first issued was at 102^. Cotton was quoted at $1.40 per pound. The last dividend made as a State institution by the Phila- delphia Bank was eight per cent, in May, 1864, and since its organization in 1803 it had down to that time divided no less than 433 per cent., the dividends aggregating $6,634,572. In November, 1864, the first dividend was made as a national bank, five per cent. When the statement was made up for this dividend, the Bank had a contingent fund of $696,979. It held $1,415,405 United States loans, $37,000 State loans, $500,000 city loans, $383,500 railroad bonds, $2,600,558 ordinary loans and discounts, $263,055 gold and silver, and $2,082,674 paper money. 148 The Philadelphia National Bank END OF THE WAR In the early winter of 1864-65 it became evident that the War was nearing its end. Sherman's march to the sea cut the Confederacy in t\\^ain, and Grant's movement south of Petersburg and Richmond was gradually outflanking Lee's army. As the inevitable result came nearer, the credit of the United States began appreciating. By the end of February, 1865, the gold premium was down to 200, and a vigorous demand for United States bonds set in abroad, so that in March the five-twenties were quoted in London at 52 to 54. These foreign purchases of bonds caused gold to be liberally shipped to the United States, and the premium further de- clined, so that on March 22, 1865, it was at 156, and the next day at 151. The decline greatly unsettled the stock market, and all inflated values of goods were also declining, causing at times almost a panic. The United States bonds and greenbacks were appreciating as the gold premium fell away, and thus additional value was being added to the larger portion of the Bank assets. The minute-book of the directors of the Philadelphia National Bank at this time shows the engrossing interest taken in public affairs. Upon April 3d it is recorded that "just before the board met at 11 o'clock to-day, intelligence was received in the city of the capture of Petersburg, Virginia, and while the Directors were engaged in discounting, a despatch was sent into the room announcing the occupation of Rich- mond by our forces under General Weitzel, this morning at quarter past eight o'clock." Gold fell to 144 upon this news, but it afterward rose again to 153, and the stock market was moved up and down largely with the gold premium. The final collapse came in the surrender of Lee's army at Appomattox on April 9, 1865. On the loth the gold premium End of the War 149 again declined to 144 upon the announcement of this event. The minute recorded on that day reads: "The President, before taking his seat, made some appropriate remarks, congratulating the Board on the glorious news, and the probable speedy- return of peace and prosperity." There was the greatest re- joicing everywhere at this result. But the joy soon turned to mourning. Upon the evening of April 14th President Lincoln was assassinated, and the whole world was shocked by the atrocious deed, which the "Public Ledger" next day described as "The Crime without a Name." The Stock Exchange was closed and did not open until the 17th, when gold excitedly opened at 155, though the premium gradually declined during the day to 148 at the close. President Robins, when the Bank board convened on the 17th, appropriately addressed the directors, and his re- marks were ordered to be recorded on the minutes. He described the joy of the previous week, and the sorrow into which the country was now plunged, declaring "these events have created a profound sensation in the public mind, and shrouded in grief the whole nation, and the board will feel it due to the solemn occasion to recite these facts upon their minutes, to express their own deep feelings of sorrow and heartfelt sympathy with their immediate fellow-citizens and the nation at large, in the common calamity which has befallen the country. " The occupation of Mobile was announced on April 17th, and as the armed opposition to the Government became more and more feeble the gold premium steadily sank, until in June it had touched 137. But there were still enormous dis- bursements necessary for war expenses, with further issues of Government bonds and greenbacks, so that it was more than a decade before the gold premium entirely disappeared, and resumption came, January i, 1879. The tremendous 15© The Philadelphia National Bank financial task involved in crushing the Rebellion was shown in the startling comparison that the ordinary expenses of the Government, which had been about $60,000,000 in i860, had increased in 1865 to $1,217,000,000. A proclamation by President Johnson on April 2, 1866, declared officially the end of the Civil War. VII THE PHILADELPHIA NATIONAL BANK 1864-1879 VII THE PHILADELPHIA NATIONAL BANK 1864-1879 Its First National Charter — Recuperation and Reconstruc- tion — The Panic of iSy^ — Final Resumptio7i of Specie Payments. ITS FIRST NATIONAL CHARTER IN June, 1863, the original National Banking Act parsed by Congress went into operation. This Act had in con- templation more the creation of new banks than placing under the national control the older institutions already in operation by State charters, but it was soon found that if the latter were accomplished it would secure the most powerful financial aid for the Government in carrying on the war, which had become such a prodigious task. The earliest refer- ence made to changing the relations of the Philadelphia Bank is upon December 21, 1863, when the board had some dis- cussion about taking a United States charter, though nothing was then done. Congress passed the second National Banking Act, June 3, 1864, and it was specially designed to bring into the national system the State banks, its provisions being elastic enough to provide for the varying peculiarities of banking methods in different parts of the country. This Act conferred the greatest boon upon the public in providing for the safety and security of the paper currency, for it made full provision 153 154 The Philadelphia National Bank for the issue of national bank notes, curing the many defects of the old State bank issues which had given such endless trouble, and at times caused such heavy losses through failure of redemption. These State bank issues were taxed out of existence. The new law was entitled, ''An act to provide a national currency, secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof." This new law was generally approved by bank managers, and as the banks of the State were desirous of taking advantage of its provisions, the Legislature of Pennsylvania, on August 22, 1864, passed an enabling Act permitting them to become banking associations under the United States laws. The subject of taking out a national charter was again discussed in the Philadelphia Bank early in September, 1864, and on the 15th the board unanimously voted to make the change, and began the necessary procedure. It was de- cided to reduce the capital stock from $1,800,000 to $1,500,- 000 as a national bank through the purchase and cancelation of 3000 shares, including those which the Bank then owned. The stockholders were convened upon October 20th, and voted to surrender the charter to the State in accordance with the provisions of the Act of the Legislature and to become a national banking association under the Act of Congress of June 3d. Upon the resolution, three hundred and forty stockholders, holding 14,636 shares, voted in the affirmative, and one stockholder, holding five shares, in the negative, so that, more than two-thirds of the whole capital stock approving, the resolution was adopted. Henry Wharton was the solicitor of the Bank who attended to the necessary legal procedure, and the stockholders ordered that a portrait of the president, Thomas Robins, be procured for the Bank. The Articles of Association, formulated the same day, were adopted under the name and style of ''The Philadelphia Its First National Charter 155 National Bank"; Thomas Robins was appointed president, and Benjamin B. Comegys cashier, and $500,000 registered bonds of the United States were ordered transferred and de- livered to the Treasurer of the United States in Washington, that being the amount then required by the law to be deposited and transferred preliminary to the commencement of business as a national bank. The number of directors was thirteen. These Articles of Association were signed by Thomas Robins, Richard D. Wood, Lewis R. Ashhurst, Marshall Hill, Henry Preaut, Benjamin G. Godfrey, S. W. DeCoursey, George Whitney, J. Gillingham Fell, and James L. Claghom, a majority of the directors. The election of directors was fixed upon the second Tuesday in January, and Mondays and Thursdays were made discount days. Mr. Comegys went to Washington with the bonds and other necessary documents, completing the arrangements with the treasury, and on October 22, 1864, Hugh McCulloch, Comptroller of the Currency, issued the certificate authorizing "The Philadelphia National Bank" to commence business, being No. 539 in the national roll of banks. The actual beginning of business under the national charter was upon the morning of Tuesday, October 25, 1864, and President Robins so reported to the board on the 27th. He also then reported the purchase and cancelation of the three thousand shares of stock, reducing the capital to $1,500,000. It is interesting to note in this connection that a director made an arrangement to sell the Bank 171 of these shares, being paid at par in gold, the latter being quoted at 2i6|, and he subsequently executed an agreement with the Bank to take these shares back at par in gold, at any time down to October 24, 1865, if tendered to him. The gold premium had greatly declined when that day came, and the option was not exercised. All the plates and dies of the State bank notes 156 The Philadelphia National Bank were canceled so they could not be used, and then Solicitor Wharton, for the Bank, surrendered them, under the State law, to the Court of Quarter Sessions of Philadelphia, The following staff began the business of ''The Phila- delphia National Bank" in October, 1864: Paying teller, Isaac P. Mein; receiving teller, John Murphy; general book- keeper, Joseph Roberts; cashier's clerk, Joseph P. Mumford; discount clerk, Horace Hill; foreign note clerk, Charles E. Elmes; bookkeepers and clerks, James Glentworth, Samuel A. McFarland, Joseph P. Cramer, Thomas Waterman, F. A. Tierney, E. Kochersperger, Samuel Henry, Jacob V. Weldon, Henry Farnum, John S. Mcllvaine, E. P. Ireland, H. K. Fairgrieve, W. G. Clarkson, William Sherwood; runners, Joseph Wilson, Henry C. Cornog; porters, William A. Mad- dock, Davis Graver; messenger, John MacGowan; watchmen, Alexander MacGowan, John DeBuist. Upon October 27th the directors counted and burned all the notes of the Philadelphia Bank of previous issues that were in the Bank, amounting to $449,155, and all the sheets of printed and unsigned notes. Thus having completed all the formalities, the board ordered a flagstaff to be put on the building and the United States flag to be displayed, and voted $3,000 toward "sustaining the Government in all lawful and proper ways in the coming emergency." One of the features in thus passing under the rule of the United States was the receipt by the board on October 31st of a request from the tellers and clerks that in view of the change in the relations of the bank, permission be given them to take the oath of allegiance to the United States; whereupon, it was "Resolved: that the board highly approve of the patriotic sentiments, expressed by sundry employees of this Bank, in their communication of this date," and the president was required to make this action known to them. Its First National Charter- 157 The board ordered $450,000 national bank notes to be ob- tained and issued, and subsequently increased the amount to $540,000. It sent $100,000 more bonds to Washington to be deposited as security, so that the Bank could be a designated depository of public moneys, and $100,000 additional security for circulating notes, so that it had $700,000 bonds in Wash- ington. The successful transfer of allegiance to the Federal Government put the board in generous mood. The president's salary was increased to $6,000, the cashier's to $5,000, and $10,000 gratuity was distributed among the clerks. Liberal donations were given the Volunteer Refreshment Saloons, the hospitals, the Soldiers' and Sailors' Fair, and other organiza- tions for soldiers' relief; and $2,500 was presented to the permanent fund of the Merchants' Association. The old account books and accumulated records of years were sold, and so high was the price of waste paper that they produced $1,174.63. Finally, from the sale of gold, a special dividend of twenty-five per cent, was given the stockholders out of the surplus in January, 1865, amounting to $375,000, Upon April 6, 1865, having got into practical operation under the National Banking Acts, the Philadelphia National Bank made its statement to the Comptroller of the Currency at Washington, which is attested by the familiar signature of B. B. Comegys, Cashier. The aggregate assets were $6,873,- 224.17. Included were $3,371,236 loans and discounts, $1,356,912 United States bonds and securities, $132,070 due from banks, and the banking house $150,000, The cash held consisted of $88,944 specie, $14,140 notes of various banks, and $1,717,295 lawful money of the United States. On the other side of the account were deposits $3,049,073, due to banks $945,561, circulation $449,980, discount and interest $136,963, surplus and contingent fund $791,645, and capital $1,500,000. 158 The Philadelphia National Bank RECUPERATION AND RECONSTRUCTION After the close of the war the great task of the country was to assimilate the new conditions. The armies were grad- ually disbanded, and the soldiers returned to the pursuits of peace. The Treasury disbursed enormous sums throughout 1865 and 1866 in paying war expenses and adjusting claims, creating large additional loans and pouring out more paper money. The long and tedious task of Southern reconstruction was entered upon. Another change came in banking methods, due to the revival of many industries previously dormant and the shock of rapidly declining prices from the fall of the gold premium, the latter, however, checked, and at times even advanced, by the enormous Government emissions of paper money and bonds. The minutes of the Philadelphia National Bank directors at this period make repeated records of donations to the sick and wounded soldiers, to the hospitals, and to the soldiers' orphans in the Lincoln Institution, then just founded. In 1865 and 1866 the Bank dividends were fifteen per cent, each year. The declining prices and changes in business methods after the war produced numerous failures. These troubles extended abroad, and we find the Bank conservatively con- ducted under the new conditions. In 1866 the suspension of Overend, Gurney & Co. caused a period of serious embarrass- ment in London, continuing throughout that year, the Bank of England discount rate being advanced to ten per cent. This was followed in January, 1867, by exciting flurries in the American stock markets and more failures. Cotton sold at 35 cents and the gold premium was at 141. The revival of commercial enterprise in new channels had, however, been steadily enlarging the business of the Philadelphia National Bank, so that it was decided to increase the official staff. Recuperation and Reconstruction 159 To partly relieve President Robins, on January 10, 1867, Mr. Benjamin B. Comegys was elected a director and vice-presi- dent of the Bank, and the office of assistant cashier was then created, and Mr. Benjamin F. Chatham appointed to that position. Then another period of stress came, and the op- pression of debts, which, from declining prices, had become so serious throughout the country, led Congress to enact a general bankrupt law in March, 1867. In July the death of Marshall Hill, one of the active directors of the Bank, was recorded in an appropriate minute. In 1867 the dividends were sixteen per cent., and in 1868 fifteen per cent. There came in 1868 serious troubles about the repeated issues of Erie Railway shares under the Gould regime, resulting in a "corner" in November, and demoralizing the stock markets. This caused the New York Stock Exchange to require all stocks to be registered. There was, however, in 1869, a considerable revival of active commercial business. This received a sudden shock in September, through the wild speculation in gold, which culminated in the famous "Black Friday" collapse. Prior to Wednesday, September 22, 1869, the price of gold had been ranging at 136 and 137, with quiet- ness, but with a steady demand from importers, who had to buy it to pay Custom House duties. That morning, how- ever, there appeared a sudden and greatly enlarged speculative demand, making fluctuations, and at times much excitement in the New York Gold Exchange. The price advanced from 137 to i4ii, and the transactions of the day aggregated the large total of $324,524,000, most of the trading being pure gambling, as barely $3,000,000 gold actually changed hands in the settlements. It was the custom of the Treasury to provide a supply, by selling gold at intervals. George S. Boutwell was the Secretary of the Treasury, and strong appeals were made to i6o The Philadelphia National Bank him for large sales, some suggesting that eighty to ninety millions should be thus offered to relieve the market. The speculation was based on the idea that control could be exerted by a relative of President Grant to prevent a Treasury sale of gold. On Thursday, the 23d, there was a larger speculation, great excitement, and the price advanced to i44i. Along with this was an increased demand for bank loans, with call money at eight per cent, and mercantile paper up to ten and twelve per cent. The Thursday gold transactions were larger than those of Wednesday. The crisis was on Friday; the price was rushed up to 150 at the opening with wild excitement, and then to 162 J, the Gold Exchange being a perfect Bedlam, and most enormous trading going on, of which it was im- possible to keep any correct account. The collapse came with startling suddenness, the price falling to 134, and shortly afterward it was telegraphed from Washington that the Treasury would sell $4,000,000 gold on Saturday, and to give monetary relief would also buy $4,000,000 bonds. The day closed with gold at 133. The gold transactions of "Black Friday" were estimated at $500,000,000, but. it was entirely impossible to keep track of the engagements made, and nine firms failed. The Gold Exchange closed for a week to enable its tangled affairs to be straightened out. It was discovered afterward that the speculation collapsed when the news was obtained that the President had peremptorily ordered the sale of gold. On Saturday the Secretary sold only two millions at 132 J to 1 34 J, declining all bids below the lower figure. When the Gold Room reopened October ist, the placid condition reap- peared, with the gold quotation around 130. The stock market was demoralized and general business deranged during this period of excitement. At the close of 1869, gold had declined to 120. The Panic of 1873 161 The Philadelphia National Bank moved quietly in this brief crisis. The flurry in gold did not affect it, for it held so little. Out of $2,070,500 cash in the Bank on September 27th, the gold and silver were only $34,575, while the legal tenders were $584,862. The basis of banking was the latter, with $310,000 Clearing House certificates and $420,000 three per cent. Treasury notes. When the account was made up for the dividend in November, the Bank held $7,185,769 assets, of which $1,150,000 was in United States bonds. The Bank dividends in 1869 and in 1870 were fourteen per cent, for each year. During the decade ending with 1870, not- withstanding the depression that prevailed at the outbreak of the war, the Philadelphia Bank paid its stockholders, in divi- dends, 150 per cent. In August, 1871, we find the Bank subscribing $500,000 to a new five per cent, loan of the United States, and placing the amount, August 31st, to the credit of the United States Treasurer. In October, 187 1, the great Chicago fire came, followed by another serious stock market panic and declines in prices, though a recovery soon followed. About a year later, in November, 1872, the great fire in Boston brought a second period of pronounced depression. In 1871 and 1872 and for a series of years aftenvard the dividends of the Philadelphia Bank w^ere uniformly fourteen per cent, annually. Mr. Comegys, in January, 1872, resigned the post of cashier, devoting himself exclusively to the increasing duties of the vice-presidency, and Mr. B. F. Chatham, on January 15th, was elected cashier. THE PANIC OF 1873 The first railway route across the Continent, by the Union and Central Pacific Railways, was completed in 1869. This II i62 The Philadelphia National Bank gave great impetus to the progress of the West, stimulating all kinds of business, particularly manufactures and railroad building. During three or four years afterward an enormous amount of capital was invested in these enterprises. The construction of the Suez Canal, and the beginning of active traffic through it in 1870, had also stimulated maritime trade. The substitution of steel for iron rails had been of vast bene- fit to the railroads in cheapening transportation expenses, and also tended to enlarge the railway development of the far West, bringing large areas of new lands within reach of markets. The cost of steel rails, which were $166 per ton in 1867, had declined to $112 in 1872. There conse- quently came an excessive development of railways, factories, industries, ships and land cultivation, the energies of the people, previously devoted to the war, being mostly employed in these enterprises. Much of this work was done on bor- rowed capital at high interest rates based on the inflated prices of former years. By 1872 capital had been duplicated by these processes to such an extent that it was no longer possible to sell all the products at the former high prices. First in manufactured goods, then railway securities, and finally farm products, came decided declines. The Granger agitation had been growing in the South and West, and from the original proposition to issue unlimited amounts of greenbacks, which were to be used to pay the public debt, the suggestion extended to other forms of invest- ment, so that capitalists and investors were frightened. They became afraid of railroad securities, and this feeling crippled those corporations which were almost entirely deprived of necessary financial help. Out of the accumulating troubles came the great panic of 1873. I^ April, 1873, there was a premonitory symptom in the failure of the Atlantic Bank of New York. The financial stress became acute in September. The Panic of 1873 16 o On the 8th the New York Warehouse and Security Company failed. This made such an impairment of confidence that a run followed upon most of the institutions and houses that had the reputation of being burdened with railroad securities. On September 15th we find a note of caution in the Philadel- phia National Bank, the board passing a resolution "that no discounts or loans shall be made by this Bank upon non- dividend, or non-interest paying stocks or bonds." The Philadelphia National Bank, upon this date, Sep- tember 15th, which was just at the entrance of the acute period of the panic, had $5,705,000 loans, $4,437,000 deposits, and $1,000,000 circulation. The reserves were $1,595,000, and, in addition, the Bank held $55,000 specie. The money market was getting stringent, with paper quoted from 8 to 12 per cent, for time and 6 per cent, for call loans. The gold premium had gradually been declining and was at in to 112. During the following week the conditions got worse. The Eclectic Life Insurance Company of New York and the Brooklyn Trust Company failed, and various railroads made announcements that they could not meet their bond interest coming due. Among the corporations which were seriously overweighted was the Northern Pacific Railroad, and on September i8th the country was startled by the an- nouncement of the failure of Jay Cooke & Co., who were financing it. This made an enormous sensation, and at once the money market and all commercial business became demoralized. There was, however, very small effect upon the gold premium, which only advanced to 113I, and in a few days had fallen back to iiif. Upon September 19th runs were made on various financial institutions and many failures were announced. Scores of stock houses and commercial firms suspended, owing to inability to get loans. The panic was so severe that the i64 The Philadelphia National Bank New York Stock Exchange was closed for three days. Capital- ists were afraid to loan money and rates advanced to very high figures. Upon the 19th, to give relief, the New York bank officers met and authorized the issue of $10,000,000 loan certificates, and they also immediately collected and sold to the Treasury $10,000,000 United States bonds, thus strengthening their position by fresh accessions of money. The banks in Philadelphia, on the 24th, followed the example, and also authorized an issue of loan certificates, this giving much relief. Mr. Comegys, of the Philadelphia National Bank, some years later, in a statement that on five different occasions the Philadelphia Clearing House had resorted to the issue of these certificates, made a lucid explanation of their character. He said that these certificates, bearing six per cent, interest, were issued to the various banks applying for them, and always on deposit of satisfactory collateral security, and they were receivable only in payment of daily balances at the Clearing House. The purpose was to enable the banks in time of panic to accommodate the commercial community by discounting paper to a larger amount than their cash reserves would warrant, and when such loans made a bank a debtor, the certificates could be used in settlement instead of cash. They were never used to pay checks, or to pay debts due banks elsewhere than in our own Clearing House. Mr. Comegys said: ''The device is a convenient one under extreme circumstances, but should never, otherwise, be resorted to." We find the Philadelphia National Bank board, on September 25th, giving the president authority to lodge securities with the Clearing House Committee for the issue of loan certificates. The panic, thus begun, was severe and long-continuing, and the country did not recover from its effects for several years. As the whole world was involved in unsound specula- WIIJJAM POTTER. The Panic of 1873 165 tion, the financial troubles became widespread. Congress, under the Granger inspiration, was quick to express its belief that the trouble came from the need of more currency, and in 1874 passed a bill for further inflation, but President Grant, who held sounder views, vetoed it. In the midst of these difficulties Philadelphia was then organizing the great Cen- tennial Exposition of 1876, and there is a record of a sub- scription by the Philadelphia National Bank of five hundred shares of stock in the Centennial Finance Fund. There is also a minute announcing the death, on November 10, 1873, at the age of ninety-three, of the venerable Samuel W. Jones, who had been so long a director, and afterward the chairman of the stockholders' annual meetings, it being recorded that he was the last surviving signer of the original Articles of Association, forming the Philadelphia Bank in 1803. The financial troubles depressing the country became worse in 1874, while the three following years produced even greater distress throughout Europe, as well as in the United States. Yet the Philadelphia National Bank was able to continue its regular semi-annual dividends of seven per cent, during all these years, reducing the rate, however, to six per cent, in May, 1878. The Philadelphia Bank statement of May, 1875, showed aggregate assets of nearly $8,000,000, while the Bank had $893,845 surplus and net profits, $4,831,- 606 deposits, and $720,000 circulation. In the summer of 1877 the business difficulties and depression were intensified by general railway strikes, owing to the decline of wages and falling off of railway traffic. These produced riots and bloodshed, necessitating the calling out of troops and the interposition of the strong arm of the Federal Government. During this time of very serious trouble the peace of Phila- delphia was threatened. The Mayor had to divert the police force to the suppression of outbreaks and secure an extra i66 The Philadelphia National Bank corps to do their ordinary patrol duty. The banks of the city provided him with the money necessary to pay the latter, and on July 26th the Philadelphia National Bank board authorized the president to act in this matter, and on the 30th he reported he had loaned the city $1,000 to assist the Mayor, William S. Stokley, in raising $30,000 for the purpose. FINAL RESUMPTION OF SPECIE PAYMENTS During the time of most serious depression following this panic, Congress passed the Act of January 14, 1875, ^C)r the "Resumption of Specie Payments." The price of gold had remained nearly stationary since 1873, and was about 112 when this law was passed. There was an almost universal impression that if the Treasury could secure a sufficient supply of gold, the legal tender notes could be maintained at par, and thus insure the stability of all the currency. The policy of excessive issues of greenbacks had lost support after the veto of the previous year, and the leading financiers then formed a new plan, which produced the Resumption Act, and gave ample time to carry its provisions into effect. This law of 1875 declared that after January i, 1879, the Secretary of the Treasury should redeem in coin the United States legal tender notes. To do this he was empowered to use any surplus revenues not other^^ise appropriated, and to sell United States bonds at not less than par in gold. Toward the end of 1877 an improvement began gradually spreading over the country. The preparations for resumption had been going on quite successfully, and gave such reassurance that the gold premium steadily declined. Speculation in gold, which formerly had been on a vast scale, now became so small that the New York Gold Exchange in May went out of existence. By January, 1878, the premium was down Final Resumption of Specie Payments 167 almost to one per cent., becoming simply a commission given by importers to get gold to pay duties, and in March it had declined below one per cent. The general business recupera- tion was slow in 1878, but the specie resumption came into practical operation at the close of the year, as the law required, and then the recovery was more rapid, with an enormous boom in the stock market in the autumn of 1879. Ever since January i, 1879, all the money of the United States of every description has been maintained at par in gold. The growth of confidence and expansion of wealth continued there- after for several years. It was at the opening of 1879, with the generally roseate outlook of business affairs then so promising, that President Thomas Robins, admonished by the weight of advancing years, decided to retire from the office he had so long and acceptably filled. Upon January 6th he made the formal announcement to the board in a felicitious address in which he stated his intention of declining a renomination by the new board of directors to be elected on the 14th. The board unanimously resolved to invite ]Mr. Robins to act as advisory member, with an office in the Bank, and also adopted a minute giving a history of Mr. Robins' long connection with the institution, and their high appreciation of his services. This minute was beautifully engrossed, signed by the directors, framed, and presented to Mr. Robins. He had been the president for twenty-seven years, guiding the Bank through times of severest trial — the panic of 1857, the war of the Re- bellion, and the panic of 1873. Yet during the period the Bank had paid dividends of $5,220,867, averaging over thirteen per cent, per annum, and the contingent fund had been in- creased from $290,000 to $750,000. Not a single director remained in the board in 1879 ^^'ho was a member when Presi- dent Robins was elected in 1852. The minute highly com- i68 The Philadelphia National Bank mended his conservative management and irreproachable character, and expressed gratification that "the time chosen to relinquish the cares and responsibilities of his office is pro- pitious with indications of returning prosperity, and the position of the Bank, the foremost among all her sister institutions in this city." Mr. Robins continued his attendance at the directors' meetings with rare punctuality, until a few days before his death, in April, 1882. VIII CLOSING YEARS OF THE CENTURY 1879-1903 VIII CLOSING YEARS OF THE CENTURY 1879-1903 The Administration of President Comegys — Progress of the Bank — Various Financial Panics — Mr. Comegys Closing Years — President N. Parker Shortridge, his Successor. ADMINISTRATION OF PRESIDENT COMEGYS UPON January i6, 1879, Benjamin B. Comegys was elected President of the Philadelphia National Bank. It is universally conceded that Mr. Com- egys was one of the most prominent bankers of the United States, and that he occupied the front rank among the man- agers of the institution to which he devoted his life-work of more than a half-century. It is noteworthy that this eminent financier was born in a bank, the Farmers' Bank of Dover, Delaware, of which his father was the cashier, on May 9, 1819. He came to Philadelphia in early life, and after serving for about eleven years in two Market Street dry-goods houses, was elected a clerk in the Philadelphia Bank in 1848, upon May nth, when he had just passed his twenty-ninth birthday. He had served a little over three years in various capacities, when he was made the cashier August 28, 1851 ; upon January 10, 1867, he was elected the first vice-president, and January 16, 1879, the president. He filled the presidency for over twenty-one years, until his death on March 29, 1900, having thus faithfully served the Bank for nearly fifty-two years. 171 172 The Philadelphia National Bank Under his management the Philadelphia National Bank reached a high point in its career, in fame and prosperity alike. When Mr. Comegys was elected president, he made a brief and modest speech which sounded the keynote of his idea of banking. He described the office as honorable, but as a place of great trust and responsibility. "There are," he said, "but two general principles which should govern those who have the care of financial institutions — Safety and Profit. Much depends on the order in which these two are considered. I believe that the first thing to be thought of is Safety, and next to that, Profit. Capital first. Dividend next. There are but two methods of Bank government, personal and constitutional; a government by one man, or a government by a Board of Directors. This Bank, in a most conspicuous degree, has been governed by its Board of Directors. I have no wish to change this policy. I shall give my whole time in the hours of banking, to the duties with which I am charged, and I shall depend upon you to aid me with your counsels in all my official duties." The estimate in which Mr. Comegys was held in Phila- delphia was shown by the other positions to which he was appointed during his long and useful life. He was a manager of the American Sunday School Union, manager of the House of Refuge, trustee of the Jefferson Medical College, member of the Board of Public Education, and director of the Board of City Trusts managing the Girard Estate; and in financial capacities he was made a director and vice-president of the Philadelphia Trust, Safe Deposit and Insurance Company, manager of the Western Saving Fund Society, and director of the Pennsylvania Railroad Company. In the Clearing House, he was for over forty years a member of the Clearing House Committee, and its chairman during the last fifteen years of his life. No Philadelphian was ever held more trust- KinVARD T. STOTESBURY. The Administration of President Comegys 173 worthy or in higher esteem, and his death was regarded as a general calamity. His coat of anns, a spotless life, An honest heart his crest; Quartered therewith was innocence, And thus his motto ran, — " A conscience void of all offense, Before both God and man." Mr. Comegys was a gentleman of fine literary tastes, an author of reputation, and in 1894 the Jefferson Medical College conferred upon him the degree of LL.D. He had an extensive and valuable library containing the best English literature, and his recreation from the cares of banking was largely among his books. In 1893 he published A Tour Round My Library^ a collection of literary essays, with descriptions of his books and their authors, which he dedicated to "The Philadelphia Bank, the Oldest Bank in the City Chartered by the Commonwealth." There are nearly a score of interesting volumes which he has published, many of them devotional works, manuals for wor- ship and prayers, others containing his addresses on various public occasions, and essays especially for the guidance of young people, in which he was peculiarly adept. His Primer of Ethics, published in Boston, has been translated into Italian, Arabic, and Japanese. He was especially happy in his business and banking addresses, which have had wide cir- culation, and one of them, What Manner oj Man Should a Banker Be? has been repeatedly reprinted. It was an address made to the American Bankers' Association in Baltimore, October, 1894. While his fame as a banker leads, the repu- tation of Mr. Comegys in his favorite field of literature and authorship is widely known. When Mr. Comegys became the president of the Phila- delphia National Bank, its statement made January i, 1879, 174 The Philadelphia National Bank showed aggregate assets of $9,786,449. The loans were $5,505,086, due from banks $163,766, and the cash and reserve, including exchanges for Clearing House, $4,117,597. The deposits were $6,866,519, the circulation $772,730, and the surplus or contingent fund and net profits $772,730, with $1,500,000 capital. Nearly twenty years later, in 1898, Mr. Comegys in the course of an address described the requisites of a sound bank in the following terms: "A bank may be said to be in good condition when it has an adequate Capital (not too large), a Contingent Fund at least half as large as the Capital; when its dealers supply it with business paper to the extent of its needs; when it has a Board of Directors who are not content to be mere figureheads, but who understand their business and remember their qualification oaths: Directors who count the cash frequently, who insist that every person in the em- ployment of the Bank shall take a vacation every year, and who believe that 'nothing is good enough that can be made better.'" PROGRESS OF THE BANK The Philadelphia National Bank during its subsequent career did not make much of what might be called history. The old philosopher has told us that "happy is the nation which has no history," and so it is with a financial institution. The Bank under its careful and conservative management went steadily along, increasing in strength, and constantly enlarging its business. The surplus and net profits, which were $772,730 at the beginning of 1879, were $871,959 in November, 1880; $975,144 in November, 1885; $1,127,232 in November, 1890; $1,169,330 in December, 1895; and $1,658,514 in December, 1900. The aggregate assets of $9,786,449 in January, 1879, had increased to $10,287,501 Progress of the Bank 175 in November, 1880; $12,633,373 in December, 1895; and $31,626,029 in December, 1900. The Bank was skilfully guided through repeated periods of financial stress and panic. President Garfield was shot early in July, 1881, causing an enormous derangement of the stock markets, and declines in all values, culminating the following September in Henry Villard's "blind pool" operations, and in the subsequent year followed by repeated Stock Exchange "corners," and in 1883 by the second Northern Pacific Railway catastrophe. This came closely upon the famous "driving of the golden spike," when Henry Villard and Sitting Bull were the chief actors in a weird drama on the Dakota plains which ended in a Wall Street cataclysm. In May, 1884, there was another general collapse in New York, the Marine Bank suspending, followed by the Grant & Ward failure two days later, and on May 14th by the Metro- politan Bank suspension, making a wild panic, so that the next day the banks were compelled again to resort to an issue of loan certificates. This caused depression during the re- mainder of the year, but it was overcome by the financial genius of ]\Ir. J. Pierpont Morgan, who arranged for the absorption of the West Shore Railroad by the New York Central Railroad in July, 1885, a coup which produced a complete transformation, and caused another stock market boom. During this period there were some changes in the staff of the Bank. Mr. B. F. Chatham, who had succeeded Mr. Comegys as cashier in 1872, died in November, 1879, much to the regret of the board, and was succeeded by James ]M. Gregg on December nth. Mr. Gregg resigned in November, 1883, and James W. Torrey was elected cashier December 13th. Mr. Benjamin B. Comegys, Jr., the only son of the president, had entered the Bank as a clerk in 1S80, and upon 176 The Philadelphia National Bank January 4, 1883, was appointed assistant cashier. Upon November 20, 1884, young j\Ir. Comegys died. Upon April 17, 1882, the board adopted a minute expressive of its high regard for the venerable ex-President Thomas Robins, whose death had occurred just previously to the meeting. Another minute, upon July 23, 1885, records the universal sorrow produced by the death of General Ulysses S. Grant. When John Welsh, the "Father of the Bank," died in 1854, his place at the board had been taken by his sons, who filled it alternately, Samuel Welsh and John Welsh. The latter, who was one of the most distinguished citizens of Phila- delphia, foremost in its service in many capacities, the president of the Board of Trade, the head of the Centennial Board of Finance, and American Minister to England, died April 10, 1886. He had been a director at various periods since May, 1857, and the minute of the board on April 12th records his excellent service during the very serious panics of 1857 and 1873, and the trying times of the war of the Rebellion. To the statement of his valuable work for the Bank, the minute adds this deserved personal tribute: "Those of us who have been associated with Mr. Welsh here, will never forget his genial, attractive and most affectionate address and com- panionship. His whole life also was well balanced and sub- stantial; a beautiful illustration of all that is noble and Chris- tian in human character. He was, in the highest and best sense, a true American; he was a Philadelphia gentleman and our first citizen." Samuel Welsh, the elder brother, resigned in January, 1890, after a service covering forty years as director, at various periods. Death was busy, removing several of the older directors during the years following Mr. Comegys' election as president. In April, 1880, John E. Cope died; in March, 1885, George Whitney; in September, 1890, William Brockie; in November, Various Financial Panics 177 1891, Edward Y. Townsend; and in May, 1895, Alfred M. Collins. One of the most faithful employees of the Bank, Joseph Roberts, died March 23, 1886, and the board ordered engrossed upon its minutes a most feeling tribute to his in- tegrity and excellent service for over thirty-three years, giving him this high record: "In all the years of faithful service, conscientiously performed, he never swerved from the path of duty. He never seemed to consider himself, but always the Bank. He entered at the lowest place, but very soon rose to a position of confidential relations with the upper officers and directors, which he maintained with increasing respect and affection until his death. No shadow ever rested on his good name ; no reproof or rebuke was ever administered ; no sharp word was ever spoken; with literal truth may it be said of him, — 'Well done, good and faithful servant.'" VARIOUS FINANCIAL PANICS Upon May 11, 1888, President Comegys began his forty- first year of service with the Philadelphia Bank, and on the preceding day the Board of Directors took appropriate action, entering upon the minutes an elaborate statement of his long and faithful career and their high appreciation of the "lasting benefits which have resulted." It recited the list of successive posts of duty he had filled, the many periods of perils through which the Bank had been guided, and mournfully recorded that "one by one, those with whom he commenced the race have fallen by the wayside, until to-day he stands alone, the sole survivor of the number, who, as directors, officers, and clerks, were connected with the management or detail of the Bank's business, when he entered its service." With pride it was also recorded that eighteen gentlemen had graduated from the Bank to positions of trust and honor, four to become 178 The Philadelphia National Bank bank presidents, eight bank cashiers, and the others to respon- sible positions outside the banking fraternity. The minute added that "the members of the present force of the Bank look up to the President as to a father for advice and en- couragement, never failing to receive considerate and kind treatment." Extending to him their hearty congratulations, with the hope that the Bank may for many years enjoy the benefit of his mature judgment and ripe experience, the docu- ment was suitably engrossed, signed by the directors, and transmitted to the president. In June, 1889, occurred the appalling calamity of the Johnstown flood, and an expression of sympathy was trans- mitted to the correspondent there, the First National Bank of Johnstown, and $1,000 was contributed to the relief fund. The business w^orld had again been moving financially at too rapid a gait, and there came another crisis in 1890. This culminated chiefly abroad, but its effects were sorely felt in the United States. A wild speculation in mines and industrial promotions had been pushed under English auspices in the Argentine, and in November it collapsed, bringing down in the wreck of credit the great house of the Barings in London, which suspended on the loth, causing a widespread and lasting financial depression. The banks of New York found it necessary again to resort to the issue of loan certifi- cates on November 14, 1890, and the example was followed in Philadelphia. A year or more elapsed before the opera- tions of the financial syndicate which undertook the arrange- ment of the affairs of the Barings had restored confidence. Upon the recovery, there came a great speculation in anthracite coal properties, based upon the combination plans of President McLeod of the Reading Railroad, beginning in February, 1892, and continuing for a year, when the legal and other opposition engendered, and the stock market inflation that Various Financial Panics 179 had been produced, resulted in a collapse, the Reading Com- panies suspending and going into a receivership in February, 1893. Again the Philadelphia National Bank was subjected to a serious strain, and again it was skilfully guided, as often before, through the period of peril. For some time aftenvard all banking was fraught with most serious and unusual difficulties, causing constant financial disturbances, resulting in the hoarding of m.oney and periods of the greatest scarcity of currency. This arose from the spreading over the country of the silver craze, developed in the demand for unlimited silver coinage at the ratio of sixteen to one. The operation of the Bland and other coinage acts of Congress had been filling the Treasury with enormous amounts of silver bullion, coined into silver dollars, which could not be forced into circulation, and upon which silver notes were issued, forming a very large part of the circulating medium. Month after month, under the operation of law, the Treasury bought and coined silver, while the excessive production had gradually decreased its market value. The troubles thus engendered produced such derangement that in 1896 another panic came, with a resort to loan certificates, and the country both politically and financially was in great straits. The Bank was well managed, its dividends main- tained, and its surplus increased, while its strong influence was as constantly used to produce more healthy public opinion and a better financial system. The sound money battle was fought and won in the presidential election of 1896, and sub- sequently the repeal of the silver coinage laws made an im- provement, which gave great hopefulness. While these momentous events were transpiring, the Bank was under the skilful guidance of President Comegys, but there were changes in the office of cashier. James W. Torrey, the cashier, died, much to the general regret, upon ]March i8o The Philadelphia National Bank 13, 1893, and the board recorded a most feeling minute in memory of his twenty-one years of service, the last ten years being as cashier. He died in early manhood, at the age of thirty-eight, having for over a year struggled bravely and hopefully with the malignant and painful disorder which ended his life. Mr. Horace Hill, who was Mr. Torrey's assistant, resigned January 11, 1894, severing a connection with the Bank which had existed for thirty-nine years. Mr. Levi L. Rue, who had been elected assistant cashier April 13, 1893, after Mr. Torrey's death, was upon November i, 1894, elected cashier of the Philadelphia National Bank. Levi L. Rue was born in Philadelphia, July 14, i860, and received his education in the public schools. In 1878 he was desirous of entering business, but receiving no encouragement from his father, who wished him to take a college course, pre- paratory to studying law, he sought a position for himself. Thinking he would like to enter a bank, he visited several financial institutions, and in one of them was offered an imme- diate position. This, however, he did not accept, but after- wards called at the Philadelphia National Bank, and was presented to the vice-president, Mr. B. B. Comegys, who promised him a position if he would study shorthand, w^hich he did in a very short time, and on December 5th, the minutes record "the employment of a lad on trial by the name of Levi L. Rue." From that time on he passed through the various departments and grades of the bank until he was appointed receiving teller, which position he retained until April 13, 1893, when he was appointed assistant cashier, and on November i, 1894, cashier. On October 28, 1897, he was made a director, — the first cashier elected, while in service, to membership in the board. On April 5, 1900, he was elected second vice-president, which position, together with that of cashier, he now holds. Mr. Comegys' Closing Years I5l MR. COMEGYS' CLOSING YEx\RS The semi-centenary of Mr. Comegys' connection with the Philadelphia National Bank came upon May ii, 1898. Upon this occasion the directors marked the event by giving the venerable president a dinner at the Hotel Bellevue. The invitation was transmitted upon April 27th. It referred to the completion of his half-century of service, to the growth of the bank to high rank among the financial institutions of Philadelphia, and added that "the same qualities which have contributed to its success have placed you personally in the front rank of the citizens of Philadelphia, and have com- manded for you the high esteem and regard of the entire community." This invitation was signed by his twelve col- leagues in the board, Augustus Heaton, J. L. Erringer, N. Parker Shortridge, Richard Ashhurst, Lincoln Godfrey, John H. Converse, George Wood, Lawrence Johnson, Alfred C. Harrison, James M. Duane, Frank Thomson, and Levi L. Rue. At the dinner the two Bank statements were con- trasted, 1848 when he began and 1898. In 1848 the Bank had $1,150,000 capital, $262,813 surplus and profits, and $4,060,336 aggregate assets. In 1898 the capital was $1,500,- 000, the surplus and profits $1,300,746, and the assets $19,- 455.745- Mr. Comegys made the occasion memorable by giving his reminiscences of the half-century, reading a most interest- ing paper, which has been the foundation of much that is written in this history of the Bank. He said he had been elected a clerk on May 11, 1848, and at once entered upon his duties as an assistant to the general-ledger bookkeeper. A political quarrel between the cashier and one of the book- keepers, which resulted in the latter's resignation, caused the vacancy he was chosen to fill. Within a week the general- i82 The Philadelphia National Bank ledger bookkeeper died, the discount clerk was appointed to his place, and Mr. Comegys was made discount clerk. The new general-ledger bookkeeper proving incompetent, the foreign note clerk was appointed to the position, and Mr. Comegys made foreign note clerk. Then the cashier became involved, resigning in 1851, Mr. Comegys was made cashier, and thereafter he and the Bank became almost synonymous. He gave a short history of what he regarded as one of the most influential means of extending the business and useful- ness of the Bank through the change in the banking house in 1892. The front of the building on Chestnut Street had been previously occupied by various city offices, the banking room being at the rear. These offices were withdrawn in 1892, and removed to the City Hall, and it was determined to remodel the Bank building, the work being planned and carried out by a committee of directors, Messrs. N. Parker Shortridge, Lincoln Godfrey, and Alfred M. Collins. The house was entirely reconstructed, and the Bank brought to the Chestnut Street front, which was first occupied November 19, 1892; and there were further improvements and enlarge- ments made necessary by the increasing business, in the summer of 1895. He described many banking methods and systems for increased safety and convenience first introduced in the Phila- delphia Bank, which had been copied and generally adopted elsewhere, and expressed gratification that, with one very slight exception, there had been no defalcation in the Bank for nearly fifty years. During the half-century $9,000,000 had been paid in dividends, a larger sum than had been dis- bursed by any other bank in the city, being 621 per cent, of the capital, and a yearly average of 12J per cent., and since its organization in 1803 the dividends had annually averaged 9^ per cent. Mr. Comegys' Closing Years 183 Mr. Comegys thus enunciated his broad ideas of the science of banking: "It is not the chief end of the individual man to make money and accumulate wealth; so, likewise, a bank is created and sustained, not merely for the purpose of making money and paying large dividends to the owners of its shares. It is eminently proper that a merchant, manu- facturer, mechanic, railroad manager or farmer, shall conduct his business on high principles, dealing justly with his com- petitors, taking no unfair advantage of the ignorance of others, requiring faithful service and giving just remunerations; and it is also the office of a well-managed bank so to administer its affairs with reference to the well-being of others, that it shall always be ready to aid, within proper limits, legitimate enterprises for the public good; not overworking or under- paying its employees, nor retaining in its service persons of unworthy character; but holding before the community in which it is located a model Bank in all its features. The community has a right to claim this of its citizens, and espe- cially has it a right to claim it of banks and other financial institutions; for all the money in the country, excepting what is in the Treasury of the United States, or in the pockets of the people, is in the custody of Banks, Trust Companies, or Bankers, by whatever name they may be called, and it is of the utmost importance that the business of such institu- tions shall be conducted by men of high personal character." In connection with the operations of the Bank itself, at the same time, he referred to public services rendered, and aid extended to the Government in various ways, and to business interests having no direct connection with the Bank; and thus continued: "We have never been behind our neighbors in matters of great public interest. We have provided an ade- quate pension fund for superannuated clerks; and have grad- uated from our staff of clerks twenty persons to high positions i84 The Philadelphia National Bank in our own and other institutions, fifteen of whom have been bank officials, three officers of large corporations, and one has entered the Christian ministry. The Philadelphia Bank has been especially liberal to those faithful to its interests, having a system of graduated vacations, regulated by the length of service; and in numerous instances has granted a more ex- tended leave of absence as a recognition of special fidelity." After referring to various financial panics, he added that "the management of this Bank, during these most trying periods, in supplying our dealers with currency, and in remitting to our correspondents, and to many others who committed busi- ness to us which had been diverted from its regular course, currency or New York exchange, at an expense of many thou- sands of dollars to us, was so wise and liberal, as to give entire satisfaction to all parties concerned, and contribute largely to the popularity of the Bank. I speak with entire freedom from self-praise, because, during the hottest of this period, I was absent from home." The Philadelphia Bank, in 1896, when it became necessary to sustain the Government sound money policy by providing the Treasury with ample gold, subscribed Si, 000,000 United States loan, the record tersely reciting "said bonds to be paid for in gold." Again, in April, 1898, when the Spanish war was coming on, the board transmitted to Congress a message signed by the officers and directors, imploring that body to sustain President McKinley "in his conduct of our unfortu- nate complications with Spain, and permit him to carry out what we believe will be a successful issue of his wise and well considered policy." When the Spanish war came, the Bank in June, 1898, promptly subscribed $10,000,000 to the Govern- ment war loan of $200,000,000. The connection of the Bank with the Pennsylvania Railroad had been marked by the en- trance of its president, Frank Thomson, to the board in April, HARRY T. KESER, Assistant Cashier. Mr. Comegys' Closing Years 185 1897. Mr. Thomson died in June, 1899, ^.nd the new presi- dent of the Pennsylvania Railroad, Alexander J. Cassatt, suc- ceeded him as a director. In March, 1900, the oldest director, Augustus Heaton, who had served for forty years, died, and the board adopted an appropriate minute. President Comegys was advancing in years, and while his zeal and devotion were undiminished, he needed rest and asked for a leave of absence, which he availed of to make an ex- tended tour abroad. At Mr. Comegys' suggestion, the office of vice-president was revived and upon June 5, 1899, Lincoln Godfrey was elected vice-president of the Bank, which office he still holds. Mr. Godfrey was born in Philadelphia May 17, 1850, and was the son of Benjamin G. Godfrey, long a director of the Philadelphia Bank. He entered his father's business house at the age of sLxteen, and was admitted a partner in 1872, subsequently withdrawing to assist in form- ing the firm of William Simpson, Sons & Co., of which he is now the senior partner. In January, 1880, he was elected a director of the Philadelphia Bank. He is president of the Eddystone Manufacturing Company, a director of the Pennsylvania Railroad, of the Philadelphia Trust, Safe Deposit and Insurance Company, of the Insurance Company of North America, and of other institutions. In March, 1900, the career of the great banker, Benjamin B. Comegys, closed. After a brief illness, he died March 29, 1900, in his eighty-first year, having served the Philadelphia Bank for nearly fifty- two years. His death caused profound sorrow in Philadelphia, and general regret was expressed in banking circles throughout the country, he being regarded as one of the great leaders in finance. In recording the death of its venerable president, the board announced that ''his personality has been synonymous with the standing of the Bank, and in the estimation of the business community, Mr. i86 The Philadelphia National Bank Comeg}^s and the Philadelphia National Bank were insepa- rably associated. His loyalty to its interests was complete and unwavering, his pride in its growth and influence was intense and conspicuous. By his sterling character, he commanded the general respect of the community. His uniform courtesy to all ; his sympathy for those who needed counsel and encour- agement ; and his sincere interest in every good work, endeared him to all with whom he had business relations. He had a breadth of view born of sound judgment and ripe experience. The estimation with which he was held in financial circles testified to the sincere regard and respect he everywhere in- spired. The influence of his upright Christian life and ex- ample had no small effect in maintaining a high standard of character in all the departments of service of the Bank. The Board recognizes that much of the prosperity which the Bank has enjoyed has been due to his able and conservative man- agement." PRESIDENT SHORTRIDGE HIS SUCCESSOR N. Parker Shortridge, who had been a director since 1867, was elected president of the Philadelphia National Bank, April 2, 1900, and the present official organization of the Bank was then formed, Mr. Godfrey continuing as first vice-president, and Mr. Rue, the cashier, being elected the second vice-pres- ident on April 5 th. Mr. Shortridge was born at Portsmouth, New Hampshire, November 28, 1829, his father having been a merchant of that city. At the age of sixteen years he came to Philadelphia, and entered the dry-goods commission house of David S. Brown & Co. Here he continued for twelve years, when he became a partner of George F. Peabody & Co., engaged in similar business, and in 1864 he entered the firm that sue- President Shortridge His Successor 187 ceeded it, Harris, Shortridge & Co., which in 1867 became Shortridge, Borden & Co. He was at this time elected a director of the Philadelphia National Bank, and in 1874 was chosen a director of the Pennsylvania Railroad, of which he has been for many years chairman of the Finance Committee. He is also president of the Philadelphia and Erie Railroad. The Philadelphia National Bank had received a consid- erable impetus in its business through the increasing activities following the Spanish war, and the period of high industrial prosperity which the country afterward enjoyed. In ^lay, 1900, the City National Bank, one of the strongest of the smaller banks of the city, was merged with the Philadelphia Bank. The City National Bank, of which Josiah Kisterbock, Jr., was the president, had $400,000 capital and a large surplus, and in the subsequent liquidation of its affairs its stockholders received for each share of 850 par a distribution of $105.77 in cash. The Philadelphia National Bank had large accessions to its business and deposits during the remainder of the year 1900, so that in December its aggregate assets had increased to $31,626,029. It had $20,310,445 loans, $1,647,105 due from banks, and $9,678,479 cash and reserve. Its deposits were $27,779,965, its circulation $697,550, surplus and profits $1,658,514, and capital $1,500,000. The constantly enlarging business of the Bank required that the office of assistant cashier should be again revived, and on April 26, 1901, Harry J. Keser was appointed to that position. Mr. Keser was born in Philadelphia, March 30, 1873, and was educated at the public schools and Girard College. Upon graduation from the latter, he entered the service of the Philadelphia National Bank, June 11, 1888, and was advanced step by step to the post of assistant cashier, which he now fills. The business of the Bank continued to expand, and in the i88 The Philadelphia National Bank statement of July i, 1903, the aggregate assets had increased to $38,343,032. It had $21,312,517 loans and investments, $3,924,547 due from banks, $12,505,968 cash and reserve, and the banking house was valued at $600,000. The deposits were $34,590,869, the circulation $50,000, surplus and net profits $2,202,163, ^^d capital $1,500,000. The Clerks' Pension Fund of the Philadelphia National Bank has steadily increased to an invested capital, at present, of $112,000, the accounts being kept entirely apart from those of the Bank, as a special trust. It has, during its existence, supported twenty beneficiaries, the aggregate disbursements of income to them having been $80,000, and there are now six beneficiaries receiving pensions. During the century of existence, the Philadelphia Bank and the Philadelphia National Bank have paid to the stock- holders nine hundred and thirty-six (936) per cent, in dividends, amounting to $14,104,372 in cash, being nearly nine and one- half times the present capital of the Bank. There are eight hundred and ten (810) stockholders of the Bank. These are 299 men, 334 women, 150 trust estates, and 27 corporations. During the century, the Bank has had one hundred and ninety- one (191) directors, including many of the most prominent citizens and business men of Philadelphia. The staff of the Bank numbers ninety persons. These pages have told the story of the Philadelphia Bank, of its fortunes, its career, and the close and influential con- nection it has had with the great events that have made up the financial history of the nation, State, and city. Always loyal, always helpful, it has grown with the vast growth of the country and of the community it has served, and begins its second century, September 19, 1903, with the best wishes of its friends and patrons, and the entire confidence of the city of Philadel- phia, whose honored name it bears. IX APPENDIX 1803-1903 IX APPENDIX 1803-1903 Bank Statements, i8i6-igoj — Organization, i8oj-igoj — Officers During the Century — Directors — Dividends — Biographies of the Directors, igoj. THE following pages contain the first statement issued by the Philadelphia Bank, November 4, 1816, and the statement of the Philadelphia National Bank of July I, 1903; the organization of the Bank in 1803 and 1903; a list of the officers during the century, also of the directors, and of the dividends paid; and biographies of the directors, members of the board for 1903. 191 192 Appendix THE PHILADELPHIA BANK THE FIRST STATEMENT November 4, 1 8 1 6 Resources Notes Discounted at Philadelphia, $1,435,800 Notes Discounted at Branches, 936,431 $2,372,231 Stock Bought on Account of Contingent Fund, 98,000 Banking House and Adjoining Lot, 54,200 Loan to State of Pennsylvania, 50,000 Loan to City of Philadelphia, 59, 000 Due from Pennsylvania Bank, $87,500 " Commercial Bank, 18,300 " Mechanics' Bank, 72,600 " Other Banks, 12,200 190,600 Real Estate at Branches and Taken for Debt, 21,300 Bridge and Turnpike Stocks, 3,000 Charter (Cost), 145,126 Expenses since Last Dividend, 4,648 Cash: viz. Specie, $228,438 Notes of Other Banks, 103,917 332,355 $3.330,4<5o Liabilities Capital Stock, $1,800,000 Notes in Circulation, 456,013 Due to Bank of North America, $12,000 " Farmers' and Mechanics' Bank, 72,800 " Merchants' Bank, New York, 49,000 " Other Banks, 18,300 152,100 " State of Pennsylvania, 22,500 Dividends Unpaid, 12,402 Discounts since Last Dividend, 19,824 Due to Individual Depositors, 671,737 Sinking Fund to Liquidate Cost of Charter and Reservation as Sinking Fund, 195,884 $3»330,46o Appendix 193 THE PHILADELPHIA NATIONAL BANK THE LATEST STATEMENT July I, 1903 Resources Loans, Discounts, and Investments, $21,312,517 Banking House, 600,000 Due from Banks, not Reserve Agents, 3,924,547 Exchanges for Clearing House, $2,153,205 Cash and Reserve, 10,352,763 12,505,968 $38»343.032 Liabilities Capital Stock, $1,500,000 Surplus Fund, 2,000,000 Net Profits, 202,163 Circulation, 50,000 Deposits — Individual, $22,919,521 Bank, 11,671,348 34,590,869 $38,343,032 13 194 Appendix THE PHILADELPHIA BANK 1803 ORGANIZATION President, George Clymer. Cashier, James Todd. Directors George Clymer John Welsh John Gardiner, Jr. Samuel Meeker Elisha Kane Jacob Sperry Matthew Lawler Louis D. Carpentier William Guier Joseph D. Drinker John Bohlen William Haslett Jacob Shoemaker Abraham M. Garrigues Alexander Cranston Joseph Clark First Teller, Quintin Campbell Second Teller, Moses Musgrave First Bookkeeper, E. Salomon Second Bookkeeper, Samuel Field Discount Clerk, Thomas F. Gamble Note and Transfer Clerk, .-John Neal Notary, Nicholas Diehl Runner, Francis G. Deimling Watchmen, Joseph Carroll, Robert Bayne Appendix 195 THE PHILADELPHIA NATIONAL BANK 1903 ORGANIZATION President, X. Parker Shortridge First Vice-president, Lincoln Godfrey Second Vice-president and Cashier, Levi L. Rue Assistant Cashier, Harry J. Keser Directors N. Parker Shortridge J. Livingston Erringer Richard Ashhurst Lincoln Godfrey John H. Converse George Wood LA^^'RENCE Johnson Alfred C. H.arrison Le\t L. Rite George H. Frazier Alexander J. Cassatt Percr'al Roberts, Jr. George H. McFadden William Potter Edward T. Stotesbury James F. Hope Solicitor Angelo T. Freedley Auditor William Sherwood,* 1864 Assistant, William N. Emory, : Loan Department Horace Fortescue, 1893 Richard C. Stephens, Jr., 1884 David W. Stewart,. Paying Tellers' Department Samuel H. Mein, 1871 Hugh Dunlap, 1884 James A. Duffy, Samuel L. Turner, 1899 WiLLi.\ii W. Allen, Jr.; * The year is given when each person began service in the Bank. .1900 196 Appendix Receiving Tellers' Department Frank P. Stephens, iSSi Josiah B. Bartow, 1884 Edwin K. Steel, 1S69 Stephen E. Ruth, ..iSgo Ernest Choate, 1S85 John R. Naisby, 1902 James C. Torrey, 1895 E. Wallace Miller, 1902 Charles S. Emory, 1895 James Hassard, 1902 Harold I. Taylor, 1900 Walter S. Heins, 1902 Alfred M. Walton, 1900 Charles A. Faloon, 1903 Eugene A. Skilton, 1900 Percy N. Demuth, 1903 James A. Carrigan, 1900 John R. Rue, 1903 Campbell M. Carr, 1901 Charles J. B. Dixon, 1903 Nelson H. Clark, 1902 Guy W. Sturdivant, 1903 Wilfred M. Powell,. 1902 W^illiam E. Penington, 1903 Russell Watson, 1902 L. Parker Miller, 1903 Francis W. Westwood, 1903 General Ledger Bookkeepers John G. Roberts, 1899 Arthur N. Starin, 1899 Matthew B. Duffy, 1899 Charles H. Voorhis, 1901 L. Thomas Trook, 1902 Augustus M. Wessels, 1901 Franklin P. Rouleau, 1902 Individual Ledger Bookkeepers Howard K. Dunn, 1876 William Watters, 1876 Alfred Choate, 1886 William W. Hughes, 1900 Robert W. Knight, 1901 Daniel Porter, Jr., 1900 Ira S. Mayer, 1901 Foreign Collection Department Frederick C. Staff, 1889 H. St. Clair Ash, 1899 Jacob M. Tryon, 1901 Hermann V. Weinmann, 1903 Runners' Department Ernst Schw.a.cke, 1874 William H. Pettit, 1900 Thomas Marshall, 1874 Samuel Gibson Jr., 18S6 George E. Tucker, 1901 William Goodall, 1SS7 Frank W. Durell, 1902 J. D. Earl Allen, 1902 Appendix 197 Correspondence Department JOHX K. Turner, 1899 Charles N. Broadbext, 1900 CAL^^^r C. Rush, 1901 Richard D. Bateman, 1900 Clayton J. Larash, 1901 Arthur G. Moore, 1900 J. Byron Deacon, 1901 Lewis Walker, 1903 Analysis Department James B. Ruth, 1899 John R. Westwood, Jr., 1901 O. Hov.'ard Wolfe, 1899 Linwood J. HANNUii, 1902 Superintendent of Building Joseph Grieves, 1890 Stenographers Sara H. Rodgers, 1900 Florence E. Grafftey, 1902 Telephone Exchange Mary V. Neville, igoo Messengers James Blackburn, 1891 William P. .Allan, 1900 Day Watchmen Michael A. Sullivan, 1901 John J. Thompson, 1903 Night Watchmen George Ettinger, 1897 J.\mes Ewing, 1903 Page Ernest A. Jackson, 1900 198 Appendix OFFICERS DURING THE CENTURY Presidents George Clymer, August 18, 1803, till January 23, 1813 David Lenox, January 28, 1813, till December 31, 1818 John Read, December 31, 1818, till February 2, 1S47 Samuel F. Smith, February 2, 1847, till January 29, 1852 Thomas Robins, January 29, 1852, till January 16, 1879 Benjamin B. Comegys, January 16, 1879, till March 29, 1900 N. Parker Shortridge, April 2, 1900 Vice-presidents Benjamin B. Comegys, January 10, 1867, till January 16, 1879 Lincoln Godfrey, June 5, 1899 Levi L. Rue, April 5, 1900 Cashiers James Todd, August 17, 1803, till November 7, 1805 QuiNTiN Campbell, November 7, 1805, till November 17, 1835 John B. Trevor, November 30, 1S35, till August 28, 1851 Benjamin B. Comegys, August 28, 1851, till January 15, 1872 Benjamin F. Chatham, January 15, 1872, till November 26, 1879 James M. Gregg, December 11, 1879, till November 28, 1883 James W. Torrey', December 13, 1883, till March 13, 1893 Levi L. Rue, November i, 1894 Assistant Cashiers Benjamin F. Chatecam, January 10, 1867, till January 15, 1872 Benjamin B. Comegys, Jr., January 4, 1883, till November 20, 1884 Horace Hill, November 3, 1892, till January 11, 1S94 Levi L. Rue, April 13, 1893, till November i 1894 Harry J. Keser, April 26, 1901 Appendix 199 DIRECTORS DURING THE CENTURY The following is a chronological list of the Bank Directors, those elected by the Legislature of the State of Pennsylvania being marked *, and State Directors, who were also elected Directors by the stockholders, being marked f. The year of first election of each Director is given. THE PHILADELPHIA BANK 1S03. 1806. 1S07. George Clymer, President 1809. John Welsh John Gardiner, Jr. 1810. Samuel Meeker 181 2. Elisha Kane J.\coB Sperry Matthew Lawler Louis D. Carpentier WiLLi.A.ii GuiER 18 13. Joseph D. Drinker John Bohlen WiLLiAii Kaslett 18 14. Jacob Shoemaker Abraham M. G.\rrigues IsR-AEL Israel Joseph Clark. *Michael Bright *JoHN Jackson fDAviD Jackson 1815. tSAMUEL CARSWELL *LEW^s Rush *WlLLLAM McFaDDEN. Augustine Bosquet John Warder 1816. ♦Henry Orth *HuGH Henry. ♦Robert Johnson 181 7. fTHOMAS Ross. Caspar W. Morris Thomas Callender 1818. *Adolphe Eringhaus *Theophilus Harris fSAMUEL F. Smith. ♦Robert Harris, Jr. fTHOMAS W. Fr-ancis 1819. ♦Samuel Hodgdon. ♦John W. Faussett ♦David Atcheson. ♦Jacob Holgate. William Phillips Joseph Lea Joseph Lo\\'nes Matthew L. Bevan ♦William Smiley. David Lenox ♦Godfrey Smith ♦William Weaver. Joseph Clark, Jr. John Godfrey Wachsmuth Charles Chauncey ♦Christopher J. Burckle ♦Thomas F. Gordon fFREDERICK RaVESIES ♦Jacob Houpt. John Stille Samuel W. Jones ♦Joseph McCoy ♦Joseph Worrell ♦John Geyer. John Magoffin ♦John Claxton ♦Robert A. Caldcleugh. Joseph R. Evans fCHARLES BiDDLE, Jr. ♦Morris Wurts. Benj.amin Stille ♦D.A^^EL H. Miller ♦John Read fRoBERT Patterson ♦Andrew Fisher. Charles Graff William Yardley 200 Appendix Directors During the Century I8I9. John M. Price. 1837- *James McCormick 1820. John A. Dutilh ^Benjamin E. Carpenter. Caleb Newbold, Jr. 1838. John Duncan Edward Twells ♦Alexander Cummings *Alexander McCaraher *J. Sidney Jones *JoHN Conrad. *Jesse R. Burden I82I. *JOHN L. Clark *G. C. PIowell. *JosEPH Watson. 1839. ♦Daniel M. Keim 1822. *MlCHAEL RiTER ♦David P. Pussier. *James M. Linnard. 1840. ♦W. C. Cochran 1823. ^Abraham Okie. ♦B. Cooper 1824. Daniel Moore ♦W. H. Spackman. *Levi Ellmaker. 1842. John W. Claghorn 1826. Joshua Longstreth. ♦Edward T. Mott 1827. Cyrus Jacobs. ♦Henry M. Phillips. 1828. William Worrell 1844. Edwin M. Lewis. John Cowden 1845. John Devereux. John A. Otto 1847. William S. Boyd. *JoHN M. Barclay. 1848. Samuel Welsh. 1829. *Samuel Heintz 1851. John Yarrow *WiLLiAM Boyd. Joseph Swift 1830. *Lewis Ryan. Thomas Robins. I83I. *Edwin N. Bridges 1853- Daniel B. Hinman. *JOHN B. Trevor. 1854. Albert Worrell. 1832. Aaron Kille 1856. Marshall Hill. *Joseph Plankinton 1857- Lewis R. Ashhurst *Benjamin Jones Frederick Lennig ♦Alexander McClung Abraham H.\rt *HuGH Downing. John Welsh, 2D. 1833- *Francis Shoemaker 1859. Edward S. Clarke *Paul S. Brown. Richard Wood 1834. Lewis Waln J. Gillingham Fell Joshua C. Oliver. John P. White. 1835- Richard Price i860. Charles Lennig QuiNTiN Campbell Augustus Heaton. John N. Conyngham 1861. J. Livingston Erringer Richard D. Wood James L. Cl.'^ghorn *JoEL Cook Samuel W. DeCoursey. fHENRY C. CORBIT. 1862. Henry Preaut 1836. *Daniel M. Broadhead George Whitney *Lewis M. Troutman. Benjamin G. Godfrey. 1837. *George H. Howell Appendix 20I Directors During the Century THE PHILADELPHIA NATIONAL BANK 1864. 1866. 1867. 1868. 1874. 1875- 1876. Thomas Robins, President 1876. Richard D. Wood 1877. Marshall Hill Lewis R. Ashhurst 1880. J. GiLLixGEAM Fell 1882. Charles Lennig 1883. Augustus Heaton J. Livingston Erringer 1884. James L. Claghorn 1885. Samuel W. DeCoursey 18SG. Henry Preaut 1887. George Whitney Benjamin G. Godfrey. 1890. John D. Taylor 1891. James Steel. 1S95. N. Parker Shortridge Edward Y. Townsend 1897- Frank L. Bodine Benjamin B. Comegys. 1899. George W. Mears. Richard Ashhurst 1900. John E. Cope Charles C. Harrison. John R. Whitney. 1901. William Brockie 1902. Henry K. Dillard. William W. Frazier, Jr. Alfred M. Collins. Lincoln Godfrey. Alexander Brown. Edward S. Buckley George Burnham. Eugene Delano. John H. Converse. Henry T. Townsend. Isaac H. Clothier William Henry Trotter. George Wood. Lawrence Johnson. Alfred C. Harrison James May Duane. Fr.ank Thomson Levi L. Rue. George H. Frazier A. J. Cassatt. Percival Roberts, Jr. George H. McFadden William Potter. Edward T. Stotesbury. James F. Hope 202 Appendix DIVIDENDS DURING THE CENTURY ^^6 per Cent. 114,104,372 in Cash Year Rate Amount 1804 61% $66,634 1S05 (>h% 84,500 1806 7i% 99.631 1807 8% 124,816 1808 8% 126,584 1809 8% 132,556 1810 8% 143,220 iSii 4 % 72,000 1812 6^% 117,000 1813 8% 144,000 1814 7h% 135,000 iSis 7i% 135,000 ISI6 7% 126,000 I8I7 7% 126,000 I8I8 6% 108,000 I8I9 3% 54,000 1820 3 % 54,000 1821 4% 72,000 1822 5 % 90,000 1823 5 % 90,000 1824 5 % 90,000 1825 5 % 90,000 1826 5 % 90,000 1827 5% 90,000 1828 4^% 81,000 1829 5 % 90,000 1830 5 % 90,000 1 83 1 5h7o 99,000 1832 6% 108,000 1833 6% 108,000 1834 3 % 54,000 1835 6h% 117,000 1836 7 % 126,000 1837 6i% 117,000 1838 6^% 117,000 1839 7% 118,266 1840 6% 92,532 1841 3 % 46,266 1844 7% 80,500 1845 8 % 92,000 1846 8 % 92,000 1847 17 % 195-500 1848 9 % 103,500 1849 15 % 172,500 i8so 14 % 161,000 1851 II % 126,500 1852 II % 126,500 1853 12% 138,000 1854 12 % 138,000 1855 12 % 138,000 Year 1856 1857 1858 1859 i860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890 189 1 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 Rate 12% 8% 8% 10% 10% 6% 7% •10% 13% 15% Total, 936 per cent.; $14,104,372 25% (special) 15% 16% 15% 14% 14% 14% 14% 14% 14% 14% 14% 14% 12% 11% 12% 11% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 5% (half-year) Amount $138,000 140,750 135,064 168,660 168,735 101,103 115,022 154,865 198,168 225,000 375,000 225,000 240,000 225,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 180,000 165,000 180,000 165,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 75,000 Appendix 203 THE PHILADELPHIA NATIONAL BANK BIOGRAPHIES OF THE DIRECTORS 1903 N. Parker Shortridge, elected director January 8, 1867, and presi- dent, April 2, 1900, was born in Portsmouth, New Hampshire, November 28, 1829. His father, John Hart Shortridge, was a merchant of Ports- mouth, and his mother, Margaret Tredick, was a daughter of Captain Henry Tredick, of Portsmouth. His great-grandfather was Captain Richard Shortridge, of the Second New Hampshire Regiment in the Revolution, who served until July 8, 1776, when he died at Crown Point on Lake Champlain. Mr. N. Parker Shortridge was educated at the Academy, Dover, New Hampshire. Coming to Philadelphia, at the age of sixteen, he entered the counting-house of David S. Brown & Co., cotton and woolen dry-goods commission merchants. Here he continued for twelve years, learning all branches of that extensive business, and then, with George F. Peabody of that firm, he established the new firm of George F. Peabody & Co., dry-goods commission merchants. In 1864 this firm was succeeded by Harris, Shortridge & Co., and in 1S67 by Shortridge, Borden & Co. He retired from active business in 1877, and the next year spent five months in travel abroad. He was very active in the organization of the American Steamship Co., and the Centennial Exhibition of 1876 at Philadelphia, being prominent in conducting the affairs of the Centennial Board of Finance. He was elected a member of this board at its organization in 1873, ^^^ continued actively in its management until the closing of the business of the Exhibition, twenty years later, and he was also a member of the committee that wound up its affairs. Mr. Shortridge was elected a director of the Pennsylvania Railroad in March, 1874. He is also President of the Philadelphia and Erie Railroad Company, president of the Trenton Delaware Bridge Company, and director of the Pennsylvania Com.pany; Pittsburg, Cin- cinnati, Chicago and St. Louis Railroad; Philadelphia, Bahimore and Washington Railroad; Northern Central Railway; West Jersey and Sea- shore Railroad, and many other corporations subordinate to the Penn- sylvania Railroad, of which latter company he is also chairman of the Finance Committee. He is a trustee of the Union Trust Company of New York City, and a member of its Executive Committee. He is also 204 Appendix a director of the Philadelphia Trust, Safe Deposit and Insurance Com- pany, a manager of the Western Saving Fund Society, a manager of the Merchants' Fund and an executive councillor of the Board of Trade. Mr. Shortridge assisted in the formation of the New England Society of Pennsylvania and has served as a director and vice-president. For many years he has been a warden of the Church of the Redeemer at Bryn Mawr, Pennsylvania, and on October i8, 1902, he was elected an honorary member of the New Hampshire Society of the Cincinnati. J. Livingston Erringer, elected director June 13, 1861, is the oldest member of the board in years and in term of service. He was born in Philadelphia, December 2, 181 5, and was educated in the schools of Philadelphia and of Plainfield, Connecticut. He began business in Phila- delphia, in 1 83 1, as assistant bookkeeper in the dry-goods commission house of J. & M. Brown and M. D. Lewis, then the leading firm in that line in the city. He subsequently was transferred to the sales depart- ment at his own request and learned all branches of the business. After- ward, with Horatio C. Wood, he formed the well-known dry-goods com- mission house of \\'ood & Erringer, continuing until 1866, when he retired from business. Mr. Erringer assisted in forming the Philadelphia Trust, Safe Deposit and Insurance Company, of which he was made the vice- president, May 6, 1869, and was elected president February 11, 1874, and he has since continued at the head of that well-known institution. Mr. Erringer is also a manager of the Saving Fund Society of Germantown, a director of the Guarantee Company of North America, and a manager of the American Sunday School Union. Richard Ashhurst, elected director January 13, 1874, was the son of Lewis R. Ashhurst, long a director of the Philadelphia Bank, and was born in Philadelphia, June 28, 1833. He was educated in various private schools and at James' Academy, and the University of Penn- sylvania, graduating from the latter in 1853. In September of that year he became a clerk in the Farmers' and Mechanics' Bank, and after two years' service resigned and began business as a partner in the firm of Caldwell & Green, produce commission merchants. Retiring in 1856, he went to Europe, and remained abroad until September, 1857, when Appendix 205 he returned to the United States and again entered the service of the Farmers' and Mechanics' Bank. Subsequently he studied law in the office of his uncle, Isaac Hazelhurst, and in the Law Department of the University, and was admitted to the bar. He practiced law for many years with his father and his uncle, John Ashhurst, at No. i6 South Third Street, and during this time, when his father's dechning health caused his retirement from the Philadelphia Bank board in 1874, was elected his successor. In 1881 Richard Ashhurst went into partnership with WiUiam Wharton, Jr., and Edward Samuel, as William Wharton, Jr., & Co., for the construction of railway supphes for trolley lines, then first beginning to be built. Their business becoming greatly enlarged, the firm was afterward chartered as WilUam Wharton, Jr., & Co., Incor- porated, and Mr. Ashhurst was elected secretary and treasurer of the company, which position he still holds. He was many years ago made the treasurer of the American Sunday School Union, in which he has taken great interest, and he still occupies the office at the request of the Board of Managers, though not now performing the active duties. Mr. Ashhurst is the president and treasurer of the Tuckerton Railroad, and director of the Camden and Burlington County Railroad and of the Tucker- ton and Long Beach Building, Land and Improvement Association, and he has, for a long period, been a vestryman of St. Peter's Protestant Epis- copal Church. Lincoln Godfrey, elected director January 13, 1880, and \'ice-president, June 5, 1S99, was born in Philadelphia, May 17, 1850, and was the son of Benjamin G. Godfrey, for many years a director of the Philadelphia Bank, and the nephew of Marshall Hill, also long a director. He was educated at the Germantown Academy, and afterward at the Ury House School, Foxchase, which he left at the age of sixteen to enter his father's business house, B. G. Godfrey & Co. He was admitted a partner in 1872, and in 1873 withdrew, to enter, at its formation, the present house of Wm. Simpson, Sons & Co., of which he is now the senior partner. ]\Ir. Godfrey is also president of the Eddystone Manufacturing Company, a director of the Pennsylvania Railroad Company, of the Philadelphia Trust, Safe Deposit and Insurance Company, and of the Insurance Com- pany of North America, a manager of the Western Saving Fund Society, and of the Alerchants' Fund and a trustee of the Hospital of the Protestant Episcopal Church in Philadelphia. 2o6 Appendix John H. Converse, elected director May 7, 1885, was born in Burling- ton, Vermont, December 2, 1840. He was educated in the schools of that city and at the University of Vermont, from which he graduated in 1861. For three years subsequently he was engaged in journaHsm on the staff of the BurHngton "Times," and then removing to Chicago, entered the service of the Chicago and Northwestern Railway in 1864. Here he continued two years, and in 1866 accepted a position under Dr. Edward H. Williams, then general superintendent of the Pennsylvania Railroad, at Altoona. Dr. Williams, in 1870, became one of the owners of the Baldwin Locomotive Works in Philadelphia, and Mr. Converse was given by him a desirable position in that estabhshment, and in 1873 was admitted a partner in the firm with which he has since continued, being now in charge of the general business and financial management of that great manufactory. Mr. Converse is a director of the Philadelphia Trust, Safe Deposit and Insurance Company, the Real Estate Trust Company, and a manager of the Philadelphia Saving Fund Society. He is a member of the Board of Directors of Philadelphia City Trusts, a trustee of the Presbyterian Hospital, of the Pennsylvania Academy of the Fine Arts, and of the University Extension Association. He is also presi- dent of the Board of Trustees of the General Assembly of the Presby- terian Church in the United States, chairman of the Business Committee of the Board of Publication of the General Assembly, and also chairman of its Committee on Evangelistic Work. He has been always liberal in his benefactions to charities, churches, educational and civic institutions, and to his Alma Mater, and in 1897 the University of Vermont conferred upon him the honorary degree of LL.D. George Wood, elected director January 23, 1890, was born in Phila- delphia, July I, 1842. He was the son of Richard D. W^ood, a very prom- inent merchant and manufacturer, who was long a director of the Phila- delphia Bank, and was educated at private schools in Philadelphia, at Westtown Boarding-School, and at Haverford College. He entered the business office of his father, who owned the cotton mills at Millville, N. J., operated by the firm of Wood & Garrett; and in 1863 he was admitted to partnership in that firm. In 1864 he removed to Millville, N. J., to take charge of the manufacturing part of the business. During his ad- ministration there the mills were greatly enlarged; he organized and built a bleach and dye works and finishing establishment; developed the Appendix 207 water power there ; and had the oversight of the construction of the cotton mills and development of the water power at May's Landing, N. J. In 187 1 Mr. Wood returned to Philadelphia, taking up the direction of the commercial department of the business. He became a director of the IMillville and Glassboro Railroad upon its construction, and when it was merged into the West Jersey Railroad was elected a director of that com- pany, being chairman of its Finance Committee. He was made president and superintended the construction of the West Jersey & Atlantic Rail- road, connecting Atlantic City with the West Jersey system. He was elected, in March, 1891, a director of the Pennsylvania Railroad Company. In 1 88 1 Mr. Wood was one of the originators of, and for years was the president of the Philadelphia Manufacturers' Mutual Fire Insurance Company, and upon resigning the active supervision of that company, was elected its vice-president. He is president of the Milhdlle Manu- facturing Company and the May's Landing Water Power Company; and a director of the Pennsylvania Railroad, the Pennsylvania Company, West Jersey & Seashore Railroad, Millville National Bank, Philadelphia Manufacturers' Mutual Fire Insurance Company, and the Mutual Fire, Marine and Inland Insurance Company. Lawrence Johnson, elected director November 21, 1891, was bom in Philadelphia, September 28, 1849, the son of Lawrence Johnson, the well-known founder of the Johnson Type Foundr}^ of Philadelphia, was educated at Dr. Faires' School, and at Princeton College. In 1868 he began business as a clerk in the shipping house of Isaac Hough & Morris, continuing for about two years. Upon becoming of age in 1870, he started in business for himself in the firm of Lawrence Johnson & Co., shipping and commission merchants and foreign bankers, which he has since con- tinued. Mr. Johnson is a director of the Pennsylvania Company for Insurances on Lives and Granting Annuities, the Insurance Company of North America, and the Philadelphia Warehouse Company. Alfred C. Harrison, elected director February 18, 1895, was born in Philadelphia, February 20, 1846, and was the son of George L. Harrison. He was educated at preparator}' schools, and at the University of Penn- sylvania, graduating from the latter in 1864. He began business the same year in the ser\'ice of the Franklin Sugar Refiner}', and continued until 1892, when he retired from active business. Mr. Harrison is a director 2o8 Appendix of the North Pennsylvania Railroad Company, a manager of the Western Saving Fund Society and of the House of Refuge, and a director of the Williamson Free School of Mechanical Trades. Levi L. Rue, elected cashier November i, 1894, director October 28, 1S97, and second vice-president April 5, 1900, was born in Philadelphia, July 14, i860. He was educated at the public schools of the city, and on December 5, 1878, began his service with the Philadelphia National Bank, advancing step by step, from a junior position in the Bank, through all its various departments, until he was elected assistant cashier April 13, 1S93, and subsequently cashier and second vice-president, both of which positions he now fills. Mr. Rue is a manager of the American Baptist Publication Society, and a member of its Executive Committee, a trustee and treasurer of the Baptist Home of Philadelphia, and a member of the Society of the Sons of the Revolution. George Harrison Frazier, elected director June 10, 1899, was born in Philadelphia, January 18, 1867, the son of WiUiam W. Frazier, and grandson of George L. Harrison. His maternal uncle, Charles C. Harri- son, was formerly a director of the Philadelphia Bank, and he is also the nephew of Alfred C. Harrison, now a director. He was educated at the Episcopal Academy and the University of Pennsylvania, graduating from the latter in 1887. He began business with the Frankhn Sugar Refining Company in 188S, and in 1890 became secretary of the company. WTien the American Sugar Refining Company, in 1892, acquired the stock of this, the Spreckels and Knight Sugar Companies in Philadelphia, Mr. Frazier became secretary of all, and later treasurer and business manager. In 1 89 7 he entered the banking house of Brown Brothers & Co., and in 1899 became a partner in that house and in Brown, Shipley &: Co., of London. Mr. Frazier is president of the United States Sugar Refining Company, treasurer of the Franklin and Spreckels Sugar Refining Com- panies, and a director of the Franklin National Bank, the Pennsylvania Company for Insurances on Lives and Granting Annuities, the United States Casualty Company of New York, the Philadelphia Company of Pittsburg, and the Schuylkill River East Side Railroad. He is also treas- urer of the Hospital of the Protestant Episcopal Church in Philadelphia, and the treasurer of the Philadelphia City Institute. Appendix 209 Alexander J. Cassatt, elected director June 12, 1899, was born in Pittsburg, December 8, 1839. His father, Robert S. Cassatt, was actively engaged in the industries of western Pennsylvania, and was the first mayor of Allegheny City. His early education was in the Pittsburg schools, but, the family removing abroad, he received a liberal education there, and studied at the University of Darmstadt. Returning to this country, he took the course at the Rensselaer Polytechnic College of Troy, and graduated in 1859 3-s a civil engineer. His first railway labors were in Georgia, but in 1861 he began work as a rodman on the Pennsylvania Railroad, and in 1863 was an assistant engineer in the construction of the Connecting Railway passing through Northern Philadelphia. The next year he began service on the Philadelphia and Erie Railroad, becoming superintendent of motive power. This post, in November, 1867, he filled upon the Pennsylvania Railroad, with headquarters at Altoona. In 1870 he became general superintendent, and in December, 1871, general manager of all the Pennsylvania lines east of Pittsburg and Erie, with his office in Philadelphia. He was elected third vice-president in 1874, and first vice-president in 1880. In 1882 he retired from active duty, and in Septem- ber, 1883, he was elected a director of the Pennsylvania Railroad and made chairman of the Committee on Road. After a long retirement from active business, Mr. Cassatt returned to executive duty in June, 1899, when he was elected president of the Pennsylvania Railroad. He is president of a multitude of the auxiliary and subsidiary' companies in the Pennsylvania system, and has become the first in rank of the railway mana- gers of America. Mr. Cassatt is also a director of the Fidelity Trust Com- pany and the Commercial Trust Company and of the Equitable Life Assur- ance Society of New York, and a trustee of the Bryn Mawr Hospital. Percival Roberts, Jr., elected director January 9, 1900, was born in Philadelphia in 1857. His father was Percival Roberts, descended from John Roberts, who came from Wales to settle in what is now Lower Merion Township, Montgomery County, in 1682, and his mother was Eleanor Williamson Roberts, descended from Duncan Williamson, who came from Scotland to Philadelphia about the same time, both being original settlers in Wilham Penn's province. Percival Roberts, Jr., was educated at the Episcopal Academy, and afterward at the University of Pennsylvania and Haverford College, graduating from the latter in 1876. During that year he was for several months a volunteer assistant in the 14 2IO Appendix Geological Survey of Pennsylvania. In November, 1876, he entered the Pencoyd Iron Works as a mill clerk, and the next year took a post-graduate course in chemistry and metallurgy at the University of Pennsylvania, subsequently returning to the Pencoyd service, which became his hfe work. He served in every branch of that manufactory, which grew up from a small establishment when he entered it, learning every detail of the business of making iron and steel, and particularly of bridge-building and structural forms, which afterward became its especial hne. The Pencoyd Works were founded in 1852 by his father, Percival Roberts, and Algernon Roberts, who had then a capital of only $5000. The estabhsh- ment prepared the girders and other structural material for the buildings of the Centennial Exhibition of 1876. Gradually the scope and character of the Pencoyd Works were extended under the care of Percival Roberts, Jr., who became the directing head, a special bridge department was added, the business completely reorganized with electrical and other modern appliances, and finally the Pencoyd became the chief factor in forming the American Bridge Company, of which Percival Roberts, Jr., was made the president. This company was afterward absorbed by the United States Steel Corporation, and Mr. Roberts retired from active business, and has during 1903 been taking a well-earned rest abroad. George H. McFadden, elected director April 20, 1900, was born in Philadelphia, July 24, 1847. He was educated at the Friends' Central School in Philadelphia, from which he graduated. His father, George McFadden, was a prominent cotton merchant. In 1868, after his father's death, he estabHshed the firm of George H. McFadden & Bro., leading cotton factors, which has since continued. This firm has branches and correspondents in different cities of America and Europe, and Mr. IMc- Fadden is also a partner in leading firms of cotton factors in Europe, Frederic Zerega & Co., of Liverpool, McFadden Bros. & Co., of Bremen, and the Societe d' Importation et de Commission, of Havre. He is also a manager of the Girard Trust Company, a director of the Insurance Company of North America, and a manager of the Western Saving Fund Society and of the Hospital of the University of Pennsylvania. William Potter, elected director May 11, 1900, was born in Phila- delphia, April 17, 1852. His father, Thomas Potter, was for many years the president of the City National Bank, of which William Potter was a Appendix 211 director at the time of the merger in 1900 with the Philadelphia National Bank. His mother was Adaline Coleman Potter, and her grandfather, General Jacob Bower, of Reading, and her great-grandfather. Colonel Joseph Wood, of Philadelphia, served in the Continental line in the Revo- lutionary War. He was educated in private schools of Philadelphia, matriculated at the University of Pennsylvania, finished his general educa- tion abroad, and subsequently studied law. He then became a partner in his father's large manufacturing corporation, Thomas Potter, Sons & Company, estabhshed in 1837, was made its vice-president, and, entering public life, was appointed a special commissioner to Europe by President Harrison, and negotiated a system of sea post-offices. In 1891 he was a delegate representing the United States in the Congress of the Universal Postal Union at Vienna, which made the general postal treaty coming into effect October i, 1892. In 1892 he was appointed by President Harrison the American Minister to Italy. He retired from active business at that time, and since his return to the United States has devoted his attention to the law. He was a director and secretar}- of the Union League of Philadelphia. He is president of the Jefferson Medical College, and a manager of the Pennsylvania Institution for the Deaf and Dumb, and was also elected in 1896 an honoran,- member of the New Jersey Society of the Cincinnati. Edward T. Stotesbury, elected director November 19, 1901, was born in Philadelphia, February 26, 1849, and was educated in the pubhc and private schools of the city, finishing at the Friends' Central School. In 1865 he began business with Rutter & Patteson, wholesale grocers, and after about a year entered his father's establishment, Harris & Stotes- bun,', sugar refiners. A short time subsequently he began the banking business as a clerk with Drexel & Co., October 26, 1866, and gradually advanced through the different departments of the house until Januar}' I, 1882, when he was admitted as a partner in the three houses of Drexel & Co., Philadelphia; Drexel, Morgan & Co., New York; and Drexel, Harjes & Co., of Paris. After the death of Mr. A. J. Drexel, the New York house was changed to J. P. Morgan & Co., and the Paris house to Morgan, Harjes & Co., and Mr. Stotesbury is partner in both. Mr. Stotesbur>' is the president of the Union League of Philadelphia, and is also a director of the Philadelphia Trust, Safe Deposit and Insurance Company, a manager of the Girard Trust Company, director of the Lehigh \'alley Raibroad, 212 Appendix Cambria Iron Company, Cambria Steel Company, Pennsylvania Steel Company, Latrobe Steel Company, Penn Mutual Life Insurance Com- pany, Keystone Watch Case Company, Jessup & Moore Paper Company, and is officer, director, and trustee in various other corporations. James F. Hope, elected director June 3, 1902, was born at Alexandria, Scotland, September 26, 1843, and came with his parents to America in 1847. He was educated at the public schools of Philadelphia, and at the age of fifteen began business in the grocery house of James Woodside, on Second Street. In 1861 he entered the manufactory of Thomas Potter, and has continued with that estabhshment ever since, advancing from one department to another, in all branches of the business. He is now the secretary and treasurer of Thomas Potter, Sons & Company, in- corporated. Mr. Hope, in 1863, entered the United States Army in the 196th Pennsylvania Regiment, one of the Union League Regiments in the war, and he is now vice-president of the Union League of Philadelphia. He is also a member of Meade Post, Grand Army of the Republic. He has been president of the St. Andrew's Society of Philadelphia, was a director of the City National Bank at the time of the merger with the Philadelphia National Bank, is a trustee of the Penn Mutual Life In- surance Company, director of the American Audit and Appraisement Company, and a manager of the Home Missionary Society. INDEX INDEX A GENT for pension payments, 105 Allibone, Thomas, 114, 126 Anderson, Major Robert, 138 Antietam, battle, 143 Appomattox surrender, 148 Articles of Association, National Bank, 154 Articles of Association, State Bank, 23 Ashhurst, Richard, 204 Assignment, U. S. Bank, 98 Astor, John Jacob, 59, 83 Atlantic Bank of New York, 162 Auditor General's bank reports, 90 DALANCES, settlement of, 73 Bank failures, 123 Bank League, 104 Bank note plates. State, canceled, 156 Bank of Commerce, 104 Bank of Georgia, 79 Bank of ^Massachusetts, 20 Bank of New Orleans, 79 Bank of New York, 20, 29 Bank of North America, 20, 35 Bank of Pennsylvania, 19 Bank taxes hea\'}', 145 Banking, as science, 183 Barings of London, 54, 178 Bayonne Decree, 50 Berhn Decree, 50 Biddle, Nicholas, 83, 87, 89, 92 Binney, Horace, 61 Black Friday, 159 Blind pool, Villard's, 175 Bonus for first Charter, 34 Boston fire, 161 Boutwell, George S., 159 Branch banks, 44, 45, 61, 64, 68, 78, 80 Bridge stocks, 39 Bright, Michael, 50 Brockie, William, 176 Brooklyn Trust Co., 163 Brown, Daxad S., 112 Building, first bank, 26 Building, second bank, 43 Building, third bank, 91 Building, fourth and present bank, 36, 128 Building, present, first occupied, 130 Building, present, reconstructed, 182 Burning notes, 41, 156 Business begun, 28 Business begun as National Bank, 155 pAJvlPBELL, Quintin, 28, 41, 43, 77, 86, 88, 130 Canal Commissioners, 82, iii Capital increased, 37, 38, 57 Capital reduced, 96, 106, 154 Capital subscribed by Pennsylvania, 37 Carpenter's Hall, 72 Cashier first records minutes, 41 Cashier secretary of Board, 40 Cassatt, Alexander J., 185, 209 Centennial Exposition, 1876, 165 Central America steamer wrecked, 121 Charter, first, 30, 33 Charter extended, 35, 80, 89 Charter, first, as National Bank, 153, 154 Charters for banks, Omnibus BiU, 36 215 2l6 Index Chatham, Benjamin F., 159, 161, 175 Chauncey, Charles, 60, 74 Chesapeake and Delaware Canal, 81 Chesapeake outrage, 50 Chicago fire, 161 City National Bank, 187 Civil War begins, 138 Civil War ends by proclamation, 150 Clearing House, 126 Clearing House Loan Certificates, 139, 164, 175, 178 Clerks as volunteers, 61, 139, 143 Clerks' Pension Fund, 115, 188 Clerks take oath of allegiance, 156 Cleveland and Mahoning Railroad, 112 Clymer, George, 26, 40, 50, 57 ColHns, Alfred M., 177, 182 Columbia Railroad, in Comegys, Benjamin B., no, 113, 155, i57> 159. 161, 164, 171, 172, 173, 174, 177, 180, 181, 185 Comeg}'s, Benjamin B., Jr., 175, 176 Commercial Bank, 122 Committee for first Charter, 31 Committee on Loan Certificates, 140 Committee to meet other banks, 38, 43 Converse, John H., 206 Cooke, Jay, & Co., 163 Cope, John E., 176 Cope, Thomas P., in Cotton famine, 144 Counterfeiting, 42 Coxe, James, 43 Crimean War, 120 Currency scarcity, 179 Discounts, amount first recorded, 40 Di\'idend, first, 37 Di\-idend, second, 39 Di\-idend, special, 157 Dividends, list of, 202 Dividends passed, 78, loi Dividends, total, paid, 188 Drexel, Francis M., 129 Driving golden spike, 175 Duane, William J., 85 Dunlap, Thomas, 92 Dyott, Dr. Thomas W., 93 CCLECTIC Life Insurance Co., 163 Embargo, 49, 50 Embargo repealed, 51 English war, 56 Erie Canal, 112 Erie Railroad, 123 Erie Railway corner, 159 Erringer, J. Livingston, 204 Exchange Committee, U. S. Bank, 97, Exchanges, first, 43 Exchanges of notes, 72 CARMERS' and Mechanics' Bank, 35 Farmers' Bank of Dover, 171 Firing on Fort Sumter, 138 First National Bank, Johnstown, 178 Fisher, Charles Henry, 119 Forgeries, 42, 56 Fractional notes issued, 63 Frazier, Geo. Harrison, 20S PjALLAS, Alexander J., 32, 71 Dallas, George M., 108 Davis, Jefferson, 138 Delaware, Lackawanna and Western Railroad, 123 Directors, biographies, 203 Directors, first election, 43 Directors, list of, 199 Directors, total number of, 188 pALL.^TIN, Albert, 57, 58, 71 Garfield, President, shot, 175 Gettysburg, battle, 145 Girard Bank, 86, 90, 102, 122 Girard, Stephen, 54, 59, 63, 86 Godfrey, Lincoln, 182, 185, 186, 205 Gold in California, 120 Gold premium begins, 142 Gold premium disappears, 167 Index 217 Gold sold by bank, 147 Gold speculation, 159 Golden spike, 175 Goods, loans on, 51 Granger agitation, 162 Grant, Ulysses S., 146, 148, 165, 176 Grant and Ward, 175 Gratuity for first charter, 34 Gregg, James M., 175 Guier, William, 37 UAMILTON, Alexander, 19, 29 Harrison, Alfred C., 207 Heaton, Augustus, 185 Hill, Horace, 180 Hill, Marshall, 159 Holidays, 41 Home guard, 139 Hope, James F., 212 1 ATROBE, B. H., 44 Lawler, Matthew, 24, 50 Lee, General, 148 Legal tender notes issued, 143, 144 Lenox, David, 50, 55, 58, 59, 72, 74 Lincoln, Abraham, 135, 139, 147 Lincoln, Abraham, assassinated, 149 Lincoln Institution, 158 Loan Certificates, Clearing House, 139, 164, 175. 178 Loan, first, 28 Loans to Pennsylvania, 58, 60, 79, 82, 83, 103, 139, 140, 145 Loans to Pennsylvania Bank, 122 Loans to Philadelphia, 38, 60, 120, 137, 146, 166 Loans to United States, 57, 58, 60, 140, 145, 146, 161, 184 Loans to United States Bank, 95 Loans on goods begun, 51 Long, William, 130 ILLINOIS Central Railroad, 123 Income tax first collected, 145 Inflation, 144 Inflation Bill vetoed, 165 Internal Improvements, 81, iii Ivy Mills, 42 JACKSON, Andrew, 83, 84, 85, 87, 88, ^ 108 James, Kent, Santee & Co., 146 Johnson, Andrew, 150 Johnson, Lawrence, 207 Johnstown Flood, 178 Jones, Samuel W., 95, 107, 114, 119, 165 I/ENDALL, Amos, 84, 86 Keser, Harry J., 187 Kisterbock, Josiah, Jr., 187 Koch, John Gerard, 56 Mcculloch, Hugh, 155 McFadden, George H., 210 McKean, Thomas, Governor, ^;i, 37, 39 McKinley, William, 184 McLane, Louis, 85 McLeod, A. A., 178 Manhattan Company, N. Y., 29 Manual Labor Bank, 93 Manufacturers' Bank, 104 Marine Bank, 175 Marking checks "good," 97 Martin, James, 94 Marj'land Bank, Baltimore, 20 Mason and Slidell captured, 142 Mason, Jeremiah, 83 Mechanics' Bank, 104 Meeker, Samuel, 24 Merchants' Association, 157 Merchants' Bank, New York, 23, 29 Metropolitan Bank, 175 Mexican War, 109 Milan Decree, 50 Minutes first kept by cashier, 41 2l8 Index Mobile captured, 149 Money in bank first counted, 3 Montesquieu captured, 59 Morgan, J. Pierpont, 175 ^lorris, Robert, 20 Moyamensing Bank, 104, 105 MATIONAL Bank acts passed, 146 National Bank Charter, 147, 153, 154 National bank notes first issued, 157 New Orleans, Battle of, 63 New York Central Railroad, 175 New York Stock Exchange closed, 164 New York Warehouse and Security Co., 163 Non-Intercourse Act, 51 North Pennsylvania Railroad, 112 Northern Liberties Bank, 72 Northern Pacific Railroad, 163, 175 Note for discount must be presented, 40 Notes, first burning, 41 Notes, first issue, 27 Notes, first tax on, 60 Notes, fractional, issued, 63 Notes, Girard's, refused, 55 Notes, Girard's, received, 58 Notes, National Bank, first issued, 157 Notes, paper for printing, 42 Notes, small, first issue, 41 QFFICERS, list, 198 Ofiicial Staff, 1803, list, 23, 194 OflScial staff, 1864, list, 156 Official staff, 1903, list, 195 Official staff, number of, 188 Ohio Life and Trust Co., 121 Opening, Philadelphia Bank, 28 Opposition to charter, 32 Orders in Council, 50 Organization, 1803, 23, 194 Organization, 1864, 156 Organization, 1903, 195 Origin, Philadelphia Bank, 19 Overend, Gurney & Co., suspension, 158 DACIFIC railways, 161 Panic of 1837, 87 Panic of 1857, 119 Panic of 1873, 161 Panic of 1890, 178 Paper tokens issued, 63 Parrish, David, 59 Pemberton, Joseph, 26 Penn Township Bank, 104 Pennsylvania enabhng act for national banks, 154 Pennsylvania Bank, 20, 30, ;^;^, 35, 36, 90, 102, 103, 120, 121 Pennsylvania Bank building bought, 128 Pennsylvania Bank closes, 124 Pennsylvania Bank robbed, 76 Pennsylvania Co. for Insurances, 56 Pennsylvania Fire Insurance Co., 88 Pennsylvania Railroad, 82, iii, 112, 122, 184 Pennsylvania railroad stock subscribed, 112 Petersburg captured, 14S Petition for first charter, 31 Philadelphia Bank robbed, 76, 78 Philadelphia in 1803, 21 Philadelphia Trust Co., 128 Pleasanton, A. J., Col., 139 Pollock, James, Governor, 122 Porter, David R., Governor, 94, 102 Potter, WilHam, 210 Premium on gold begins, 162 Premium on gold disappears, 167 Public Safety Committee, 139 P^EAD, John, 74, 103 Read, John M., 86, 103 Reading Railroad, 17S, 179 Reconstruction, 158 Removal of the Deposits, 83 Reserves, twenty-five per cent, suggested, 140 Resumption act, 166 Resumption of specie payments, 65, 66, 92, 94, 104, 125, 126, 166, 167 Index 219 Richmond captured, 148 Riots of 1877, 165 Ritner, Joseph, Governor, 92 Robberies, 76, 78 Roberts, Joseph, 177 Roberts, Percival, Jr., 209 Robins, Thomas, 95, 114, 126, 127, 129, 149. 154, 155. 167, 176 Rue, Levi L., iSo, 186, 208 Runs, 97, 104, 122, 123, 163 Rush, Lewis, 56 Stockholders, number of, 188 Stokley, William S., 166 Stotesbury, Edward T., 211 Sub-treasury system, 93, 94 Suez Canal, 162 Sumter, Fort, surrenders, 138 Surplus, treasury, distributed, 90 Suspension of specie payments, 61, 62, 91, 93, 122, 135, 136, 143 Susquehanna and Juniata Canals, 83 CCHUYLKILL Bank, 93 Science of banking, 1S3 Semi-centenar}-, President Comegys, 181 Sergeant, John, 65 Sherman, General, 146, 148 Shinplasters, 73, 91 Shoemaker, Jacob, 25, 56 Shortridge, N. Parker, 182, 186, 203 Silver craze, 179 Sitting Bull, 175 Smith, Samuel F., 45, 94, 103, 107, 109, 113. 130 Snyder, Simon, Governor, 36, 57 Soldiers' and Sailors' Fair, 157 South Carolina secession, 137 Spanish silver dollars, 39, 57, 59 Spanish War, 184 Specie bought, 65 Specie, first special deposit, 39 Specie scarcity, 30, 39, 41, 53, 91 Staff, 1803, 194 Staff, 1864, 156 Staff, 1903, 195 Staff, number of, 188 State bank notes, taxed, 154 State Directors withdraw, 106 State stock sold at auction, 106 State subscribes stock, 37 Statement, first, 1816, 67, 192 Statement, 1903, 188, 193 Stephen Girard's Banking House, 55 Stock at lowest price, 102 Stock Exchange, N. Y., closed, 164 -TANEY, Roger B., 85 Tax on bank notes, first, 60 Taxes, heavy, 145 Thomson, Frank, 184 Tickets issued (notes), 63 Todd, James, 26, 43 Torrey, James W., 175, 179 Townsend, Edward Y., 177 Treasury notes issued, 126 Treasun,' 7.30 notes issued, 140 Trevor, John B., 88, 113 Turnpike stocks, 39 Twenty-five per cent, resers-es suggested, 140 T TNITED States Bank building, first. United States Bank building, second, 91 United States Bank, first, 20, 52, 53 United States Bank, second, 64, 71 United States Bank of Pennsylvania, 88 United States Bank fails, 97, 98 United States Bank assigns, 98 United States Bank, assets sold, 106 United States bonds bought for security, 155 United States bonds bought in Europe, 148 United States deposit, first, 57 United States depositor}-, 105 United States Mint, 20 Ups and Downs of Early Banking, loi 220 Index yETO of United States Bank charter, 84 Vicksburg, surrender, 145 Villard, Henry, 175 Volunteer Refreshment Saloons, 157 WAR Loans, 138 War with England, 56 War with Mexico, 109 War with Spain, 184 War of Rebellion, 138 Washington, captured, 61 Webster, Daniel, 83 Weitzel, General, 148 Welsh, John, 19, 21, 25, 37, 52, 56, 115, 176 Welsh, John, 2d, 176 Welsh, Samuel, 176 West Shore Railroad, 175 Western Bank, 128 Wharton, Henry, 154, 156 Whitney, George, 176 Wilderness campaign, 146 Willcox, Mark, 42 Wolcott, Oliver, 29 Wood, George, 206 Wood, Richard D., 94, 112, 130, 146 Worrell, William, 115 UCSB LIBRARY. , ir SOUTHERN REGIOfi^L LIBRARY FACILITY D 000 307 423 4 -''/,";;