BANK OF UNITED STATES

[BANK OF UNITED STATES]. COATES, Samuel. Merchant, philanthropist, and director of the first Bank of the United States from 1800 to 1812, when it ceased operations. Manuscript account book primarily in his hand, 56 pages, twelvemo, January 21, 1800 to July 7, 1806. Marbled paper wrappers. Entitled on the cover, Bank U States with SamlCoates.

The rare account book, which includes entries of prominent names, reflects on banking practices at the turn of the nineteenth century. The first entry, dated January 21, 1800, is a deposit of “Geo. Peters note to me at 60 days dated 16 Instant for [$]1028.47.” This is followed by a log of transactions with other banks, checks and cash for deposit and collection, notes for collection at later dates, drafts for collection by a third party, and other banking matters, such as “When pd, to be credited to Estate Jno Reynell on acct of Mr. Rutherfords debt.” . Examples of entries are as follows: “This day [January 24, 1800] sent to Bank Reps Cash 500…in Charleston branch [plus] notes [for a total of] 875.” March 11: “Sent to Bank Butchers note for 407.14 due 7/10.…” April 24: “Sent to Bank Cash—$1000 / May 8…sent to Bank [6] checks…and Cash 50 [totaling] $1877.52.… May 18—Cash—2000.… June 16. Sent to Bank U/S. Deposit Notes of New York.… Oct 2, [1801] Sent to bank to be Discounted.… [December] 31st Left at Bank Geo Lewis Check 2000.… July 8, 1802…Get any note Ent[ere]d given to Coates & Rand…that was discounted 2 or 3 Days ago $1500.… 10th Octr [1803] Sent to Bank 15,000 Enter it to Peabodys Credit.… July 20 [1805]…A. Cooks dpt in favour of Abel Lunton / Chandler Rice accepted Aug. 6 @ 60 Days.…” The final entry is a check for $1000 sent to the Bank on July 16, 1806.

Among the entries of prominent names are those of Robert Morris, American financier and Signer of the Declaration of Independence; Stephen Girard who founded the Bank of Stephen Girard in 1812 to take over the business of the Bank of United States, aided the government in financing the War of 1812, and helped in establishing the Second Bank of the United States in 1816; Joseph Wharton, who was responsible for the first commercially successful production of spelter—a crude metallic zinc— in America, and was one of the founders of the Saucon Iron Company, later named Bethlehem Steel; and ; William Rawle, the noted lawyer and legal author. On February 11, 1802 there was a deposit of $62 for Wharton, and on May 13, one for $60; later, another entry reads, “Joseph Wharton to Tho[ma]s Parker dated July 12 to 6 Aug 15, 1802, 153.80.” On December 24, 1802 a check of William Rawle in the amount of $173.73 was deposited, on June 14, 1803, a deposit of $327.20 for Girard’s check is recorded, and on [February] 1804, Robert Morris’s check in the amount of 250.… In addition there is an entry for Charles Caldwell, possibly the noted physician who was practicing in Philadelphia at the time (his note was “due 26 March 1804 100”).

The first Bank of the United States was a central bank chartered in 1791 by the U.S. Congress at the urging of Alexander Hamilton and over the objections of Thomas Jefferson. It was a cornerstone of Hamilton’s fiscal policy, a means to fund the public debt left from the Revolution, to facilitate the issuance of a stable national currency, and to provide a convenient means of exchange for all the people of the United States. It was capitalized at $10 million and fully subscribed almost instantly. The Bank accomplished all Hamilton had hoped for and also succeeded in an unforeseen role: the regulation of private banks chartered by the several states. At this time the issuance of notes was a more conspicuous feature of banking than were deposits. Bank notes entered circulation as the money banks lent to their borrowers, and these notes comprised most of the total currency in circulation. Despite its successes, the Bank met political opposition, in large part, based on the very restraints the Bank imposed on private, state-chartered banks. This was also seen as an affront to states’ rights, and the Bank’s federal charter was called unconstitutional. In 1811, when the 20-year charter expired, renewal was politically impossible. Its officers acknowledged reality and successfully sought a state charter in New York.

This item is associated with the following category in our inventory:

• Business