Federal Banking Laws and Reports, 1780-1912 ..., 50th Anniversary, 1913-1963 ....

[Source: Gaillard Hunt, Journals of the Continental Congress, 1774-1789, Vol. 17, pp. 542, 548-550, 585; Vol. 20, pp. 519, 545-548; Vol. 21, pp. 1185–1190] IN CONGRESS, June 21, 1780.

A letter, of this day, from the Board of War, was read, informing, "that a number of patriotic persons have formed a plan for the establishment of a bank, whose object is the public service; that the directors have applied to that Board to represent to Congress the desire of the company, that a committee of this body may be appointed to confer with the inspectors and directors on the subject to morrow morning: Whereupon,

Ordered, That a committee of three be appointed for the purpose above mentioned:

The members chosen, Mr. [Oliver] Ellsworth, Mr. [James] Duane, and Mr. [John Morin] Scott.

The committee, appointed to confer with the inspectors and directors of the proposed bank brought in a report, which was read stating:

That the gentlemen appointed to confer with the committee, communicated to them a plan for the establishment of a bank for the sole purpose of furnishing and transporting on the eredit and by the exertions of the subscribers, three millions of rations and three hundred hogsheads of rum for the use of the army.

That the committee were in the said conference informed that subscribers stand already engaged to support the said bank to the amount of two hundred and seventy-five thousand pounds, Pennsylvania eurreney; and that there is no doubt but that such further sums as will be necessary to its eredit and the object of its establishment will be eheerfully subscribed.

That this liberal offer at a conjuncture when the efforts of the states have not produced sufficient supplies is equally seasonable and praiseworthy.

That as the subscribers mean not to derive to themselves the least private gain from their patriotie exertions, so it is the opinion of the committee, that they ought to be fully indemnified against any less or expense with which it may be attended.1

1 In the original journals, this passage was crossed out.

The committee also laid before Congress the plan of the bank, communicated to them at the said conference, which being read, Congress thereupon came to the following resolutions:

Whereas a number of the patriotic citizens of Pennsylvania, have communicated to Congress a liberal offer, on their own credit and by their own exertions, to supply and transport three million of rations and 300 hogsheads of rum for the use of the army, and have established a bank for the sole purpose of obtaining and transporting the said supplies, with greater facility and despatch; and whereas on the one hand the associators, animated to this laudable exertion by a desire to relieve the public necessities, mean not to derive from it the least pecuniary advantage, so on the other it is just and reasonable that they should be fully reimbursed and indemnified: therefore,

Resolved, unanimously, That Congress entertain a high sense of the liberal offer of the said associators to raise and transport the before mentioned supplies for the army, and do accept the same as a distinguished proof of their patriotism.

Resolved, That the faith of the United States be, and the same hereby is pledged to the subscribers to the said bank, for their effectual reimbursement and indemnity in the premises.

Resolved, That the Board of Treasury be directed to deposit in the said bank, bills of exchange in favor of the directors thereof, on the ministers of these United States, in Europe, or any of them, and in such sums as shall be thought convenient, but not to exceed in the whole one hundred and fifty thousand pounds sterling; that the said bills are to be considered not only as a support of the credit of the said bank, but as an indemnity to the subscribers for all deficiencies of losses and expences which they may sustain on account of their said engagements, and which shall not, within six months from the date hereof, be made good to them out of the public treasury; and in case of failure, such a proportion of the said bills as shall be requisite to make good the said deficiency, shall be negotiated for that purpose by the said directors, and the residue thereof returned into the treasury.

Resolved, That upon representation made that the bank stands in need of occasional assistance, Congress will advance as much of their current money as can be spared from other services.

Resolved, That a standing committee of Congress be appointed to confer with the officers of the said bank, as occasion may require:

The members chosen, Mr. [Oliver] Ellsworth, Mr. [James] Duane, and Mr. [John Morin] Scott.

Ordered, That two members be added to the committee, appointed to confer with the directors and inspectors of the proposed bank, in the room of Mr. [James] Duane and Mr. [Oliver] Ellsworth, who are absent:

The members chosen, Mr. [Robert R.] Livingston and Mr. Houston, [Samuel] Adams.

« Previous Continue »

Books