Bank of North America
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Formerly called
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The President, Directors, and Company of the Bank of North America |
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| Public | |
| Industry | Financial institution |
| Fate | Merger |
| Successor | Wells Fargo |
| Founded | May 26, 1781 in Philadelphia, Pennsylvania |
| Founders | the Congress of the Confederation of the United States |
| Defunct | 1929 |
| Headquarters | Philadelphia, Pennsylvania, United States |
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Area served
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Colonial America |
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Key people
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Tench Francis, Jr., First cashier; later known as the CEO |
The President, Directors, and Company, of the Bank of North America, commonly known as the Bank of North America, was a private bank first chartered on May 26, 1781 by the Confederation Congress and opened in Philadelphia on January 7, 1782. It was based upon a plan presented by US Superintendent of Finance Robert Morris on May 17, 1781 that created the Nation's first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the country's first initial public offering. It was succeeded in its role as central bank by the First Bank of the United States in 1791.
In May 1781 Alexander Hamilton revealed that he had recommended Morris for the position the previous summer when the constitution of the executive was being solidified. Second, he proceeded to lay out a proposal for a National Bank. Morris, who had corresponded with Hamilton previously on the subject of funding the war, immediately drafted a legislative proposal based on Hamilton's suggestion and submitted it to the Congress. Morris persuaded Congress to charter the Bank of North America, the first private commercial bank in the United States.
When Robert Morris became superintendent of finance in February 1781,continental currency had ceased to be issued. On April 30, 1781, Alexander Hamilton sent Morris a letter. The original charter called for the disbursement of 1,000 shares priced at $400 each. Benjamin Franklin purchased one share for 0.1% ownership as a sign of good faith to Federalists and the new bank and Hamilton made public endorsement of the establishment under his pseudonym.
William Bingham's first daughter, Ann Louisa Baring was born the day before the bank opened, and her father purchased 9.5% of the shares for himself. She was also the granddaughter of Thomas Willing, a primary shareholder and the original President of the bank offices at Philadelphia. Using a gift/loan from France, Robert Morris purchased 63.3% of the original shares for the government. Robert Morris deposited large quantities of gold and silver coin and bills of exchange obtained through loans from the Netherlands and France. He then issued new paper currency backed by this supply.
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Wikipedia