PERIOD II.—1780 TO 1812.
CHAPTER II.
The Earliest Banks of Discount, Deposit, and Convertible Circulation.
T can cause no wonder that when the Revolution broke out, deep suspicion and prejudice were entertained against everything by the name of bank. It was only under the pressure of great fiscal necessity that the unwillingness to entertain any project under this name was overcome. In a speech in the Pennsylvania Assembly, in, in the debate about the Bank of North America,[1] Robert Morris said that although the proprietary government "had no idea of a bank, the commercial men of the Province had, and I, as a merchant, laid the foundation of one, and established a credit in Europe for the purpose. From the execution of this design, I was prevented only by the Revolution.[2] Silas Dean submitted to Congress a plan for a bank with a capital of a million and a-half pounds sterling.[3] It was suggested in the scheme of reconciliation, which the Carlisle commission brought to America, that a bank might be formed to provide for the retirement of the Continental paper currency. Alexander Hamilton was forming bank projects as early as 1779, although the plan which he then formed may never have left his own hands. April 30, 1781, he sent a paper to Robert Morris, containing a complete discussion of the financial situation, and the measures required. He wanted a national bank, the chief reason being "we have not a sufficient medium." The capital was to be £3 millions, lawful money, to be paid in landed security, specie, plate, bills of exchange, or
