Book Description

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: HISTORY OF BANKING INSTITUTIONS. As early as 168O a bank was established in Boston. No account of its operations, however, has survived. It had an ephemeral existence, not probably extending beyond 1689. In 1714 a project for the establishment of a bank was presented to the Legislature, but a charter was refused. Notwithstanding this official negative, a meeting was held and notice was given that '' there will be attendance at the Sun Tavern of Boston weekly to complete the subscriptions for entering into partnership. Within two months from the publication of this notice, directors of the bank were chosen and circulating bills issued to the amount of 100,000. Almost as little is known of this bank as of its predecessor, but during its brief existence it was the source of considerable embarrassment and trouble to the colony. In 1733 sundry merchants and others of Boston, in order to supply the deficiency of a circulating medium, and to counteract the circulation of a large issue of Rhode Island colonial bills in Boston, formed a private bank and issued paper to the nominal value of 110,000, redeemable in ten years with silver at nineteen shillings an ounce. A committee of the Legislature reported that the merchants' notes emitted by Boston gentlemen should be backed with greater security. The notes, however, continued to circulate, and were rated at thirty-three and one-third per cent. higher than the currency issued by the Province. Still another attempt at banking was made in 1739-40. There were then outstanding bills of credit to the amount of over 200,000, which were under royal instructions to be redeemed during the year 1741, The treasury being empty, there was no way of effecting the redemption of the notes except by a direct tax, which was not expected to yiel...