CONTENTS.

SECTION I.

THE RISE AND PROGRESS OF AMERICAN BANKING.

Tobacco, corn, and Wampompeag used as money, 1.-Paper money,

called continental money, issued during the war for independence, 3.—

Bank of North America chartered, 4.-Constitutionality of a National

Bank, 5.-The first bank of the United States, 7.-Suspension of cash

payments, 8.

SECTION II.

THE BANK OF THE UNITED STATES.

Necessity of a National Bank, 12.-Provisions of the charter, 13.-

Progress from 1819 to 1829, and a list of the branches, 15.—Advan-

tages derived from the Bank of the United States, according to Mr.

Gallatin, 16.—A bill passed Congress to renew the charter, but refused

to be ratified by General Jackson, 19.-His reasons for so doing, 20.-

The president removed the government deposits, 23.-Operations of

the mint in 1833, 24.-Laws passed relative to gold and silver coin,

25.-Effects of these laws in preventing the exportation of gold, 26.-

Condition of the bank in November 1834, 28.-The president's

address to Congress, relative to the Bank of the United States, 28.-

Operations of the mint in 1834, 22.-Ditto in 1835, 23.-Charter

expired, but a new charter obtained from the state of Pennsylvania, 34.

-Notice of the Bank in General Jackson's farewell address to Con-

gress, 36.—Mr. Van Buren's sentiments as to rechartering the bank,

38.-Present condition of the bank, 41.

SECTION III.

THE STATE BANKS.

The business of the state banks, 42.-A list of all the state banks

in operation, Jan. 1, 1830, 43.-Tables shewing the number and

condition of the banks in the respective states, January 1836, 48.-A

list of banks that failed or discontinued business from 1811 to 1830,

50.-Condition of the deposit banks, 53.-Distribution of the surplus

revenue, 54.-Circulation of notes by the state banks, 54.-The banks

of the state of New York, 56.-The safety fund security, 59.

Laws respecting banking in the state of Massachusetts compared

with the report of the Secret Committee of the House of Commons

upon joint stock banks, 60.-Revision of deeds of settlement, 61.-

Chartered banks, 62.-Power of suing and being sued, 64.-Paid-up

capital, 65.-Evils of too small or too large a paid-up capital, 66.—

Best way of increasing the capital, 67.-The advantages of a nominal

capital, 68.-Shares of a small amount considered, 69.-Loans upon

the security of shares, 70.—Restrictions upon the amount of liabilities,

72.--Restrictions upon advances, 74.-Qualifications of directors, 76.

-Defect in the law of England relative to joint stock banks that stop.

payment, 77.-Limited liability considered, 78.-The district system of

banking, 81.-Advantages of the branch system of banking, 83.—

Loans by the banks to the government, 88.-Banks giving security for

their notes, 90.-Appointment of directors by the government, 92.-

Taxes upon banks, 93.-Periodical returns to the government, 94.-

Annual publication of a balance sheet, 99.-Provisions of deeds of set-

tlement with regard to secrecy, 102.-Duration of banks, 103.—

Summary of the comparison, 105.-Suggestions for the consideration

of the legislature, 106.

SECTION V.

A COMPARISON BETWEEN THE ENGLISH AND THE AMERICAN

SYSTEMS OF BANKING, WITH REFERENCE TO THE CUR-

RENCY AND TO THE FOREIGN EXCHANGES.

Mode in which the expansion or the contraction of the currency

affects the foreign exchanges in England, 109.-Mode in which the

expansion or the contraction of the currency affects the foreign ex-

changes in America, 111.-The circulation of notes in London, 114.-

The circulation of notes within sixty-five miles of London, 117.—The

circulation of notes beyond sixty-five miles from London, 118.-The

rediscounting of bills in London by country joint stock banks, 119.-—

An inquiry how far the issues of the joint stock banks can render the

exchanges unfavourable in opposition to the exertions of the Bank of

England, 121.-Table of the London and branch circulation of the

Bank of England, and the circulation of the private and joint stock

banks, 133.-Branches of the Bank of England, and arrangements

made with the joint stock banks, 136.-Ways of increasing the power

of the Bank of England over the foreign exchanges, 140.

SECTION VI.

AN INQUIRY INTO THE CAUSES OF THE RECENT PRESSURE ON

THE MONEY MARKET.

Mr. Clay's statement of affairs in May 1836, 141.-Rise and pro-
gress of the pressure, 143.—Publications on the subject, 147.-Causes
assigned for the pressure-first, the excessive issue of notes by the

joint stock banks, 147.-Secondly, the misgovernment of the Bank of

England, 171.-Thirdly, the transactions between the government and

the bank with regard to the West India loan, 181.-Fourthly, the

exportation of gold in consequence of foreign loans, 184.-Fifthly, the

demand for gold from America, 187.—Sixthly, the imprudent conduct

of the American houses, and the facilities afforded by the bill brokers,

189.

-

Proposed improvement of the laws respecting banking in America,

193. Notice of the Bank of the United States in General Jackson's

farewell address to the people of America, 194.-Measures taken by

the Bank of the United States to assist the American merchants in

making their remittances to England, 199.

APPENDIX.

A list of the liabilities and assets of the Bank of England, from Oct.

1833 to April 1837, 204.

A list of the private banking establishments that have been merged

in joint stock banks, 206.

THE

HISTORY OF BANKING

IN

AMERICA.

SECTION I.

THE RISE AND PROGRESS OF AMERICAN BANKING.

THE first settlers in America had not a sufficient quantity of gold and silver to serve as a circulating medium. Hence other materials, such as tobacco or corn, were in some of the States occasionally employed as money. In the year 1618, Governor Argall, of Virginia,* ordered " that all goods should be sold at an advance of twenty-five per cent., and tobacco taken in payment at three shillings per pound, and not more or less, on the penalty of three years servitude to the Colony." In 1641, the General Court of Massachusetts "made orders about payment of debts, setting CORN at the usual price, and making it payable for all debts which should arise after a time prefixed." In 1643, the same General Court ordered that WAMPOMPEAG (an article of traffic with the Indians) should pass current in the payment of debts to the amount of forty shillings, the white at eight a penny, the black at four a penny, except for county rates. In Virginia, the value of a wife even was estimated in tobacco. The following extract is taken from Holmes' American Annals:

* See "A Short History of Paper Money and Banking in the United States," published by William M. Gouge, at Philadelphia, 1833.

B