Bank of North America

HISTORY OF AMERICAN CURRENCY. 49 It ought to be noticed that this paper was vaunted as "the safest possible currency," which " nobody could take away." BANK OF NORTH AMERICA. December 31, 1781, the Bank of North America was chartered with a capital of $400,000, It took its origin in a union of citizens of Philadelphia, formed in the preceding year, to supply the army with rations. They were allowed to form a bank, and, as it seems, issue notes to buy the articles required. Congress ordered bills drawn on American ministers abroad to be deposited in the bank as a guarantee of payment. $70,000 in specie were subscribed in 1782 by individuals, and the remainder by the government out of the proceeds of a foreign loan. It issued convertible notes, redeemable in Spanish dollars; but the people were slow to take them. According to the story given by Gouge, the Bank was not over strong, and tried to keep up its credit by parading and handling over its stock of silver.

However, it made large dividends, and was attacked by a rival which it was obliged to absorb, 3 5o HISTORY OF AMERICAN CURRENCY. and secondly by an effort to have its charter repealed. The latter effort was successful so far as the state charter was concerned. It went on under the charter of the Continental Congress until 1781, when it was rechartered by Pennsylvania. It exists yet. RENEWED AGITATION IN FAVOR OF PAPER MONEY. In 1785 and 1786 an insurrectionary movement, known as Shay's Rebellion, broke out in New England. It was an insurrection of debtors who were suffering" from the collapse of the currency and return to specie values. They clamored for paper. " No desperately indebted people can long endure a regular, sober government." This insurrection was put down by force, but Massachusetts passed a law delaying the collection of debts. In Rhode Island this movement was not riotous, but took the form of a political movement. The paper money party carried the elections in 1786, and began a new period of this HISTORY OF AMERICAN CURRENCY. JJ mania for their colony. ;£ 100,000 were issued by a vote of the rural districts against the cities.