Qualifications of directors,
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
According to an estimate by the register of the treasury in 1790, the issues of continental money were as follows : — OLD EMISSION. NEW EMISSION. Dollars.. In 1776 20,064,464 ....66 1777 26,426,333 1778 66,965,269 ....34 — 1779 149,703,856 ----77 — 1780 82,908,320 ....47 891,236 80 1781 11,408,095 — 1,179,249 —
On the 31st May, 1781, the continental notes ceased to circulate as money, but they were afterward bought on speculation at various prices, from 400 for one, up to 1,000 for one. In the year 1781, the Congress granted a charter tp be called the " Bank of North America." It was accord- ingly established in Philadelphia, and commenced bttsi+ ness on Jan. 7, 1782. It obtained a charter of incor- . poration upon the ground that it would offer assistance^ to the States in carrying on the war. So profitable was the business that the early dividends were at the ' rate of 12 to 16 per cent, per annum.
Upon an allegation that the bank had produced evil effects, its charter was repealed in Sept. 1785, by the state government of Pennsylvania ;
but it continued its business, claiming the right to do so under the act of Congress.
In 1787, the bank was re-incorporated, and has been continued to the present day. Its operations are confined how*^ ever to the state of Pennsylvania.