Bank of North America

Bank of North America
Company type	Public (1781–1785), Private (1785–1929)
Industry	Financial services
Founded	May 26, 1781; 245 years ago in Philadelphia, Pennsylvania, United States
Founder	Robert Morris, Alexander Hamilton, William Bingham
Defunct	1929
Fate	Merged with Commercial Trust Company in 1923; subsequent mergers led to Wells Fargo in 2008
Successor	Pennsylvania Company for Banking and Trust (after 1929)
Headquarters	Philadelphia, United States
Area served	United States
Key people	Thomas Willing (president 1781–1792), Tench Francis, Jr. (cashier)
Products	Banking and financial services, issuance of banknotes

Overview

The Bank of North America holds the distinction of being the United States' inaugural chartered bank and functioned as the nation's first informal central bank. Authorized by the Congress of the Confederation on May 26, 1781, it commenced operations in Philadelphia, Pennsylvania, on January 7, 1782. Established by prominent figures such as financier Robert Morris, Alexander Hamilton, and William Bingham, this institution was a cornerstone in the early financial development of America.

Its creation stemmed from a proposal by Superintendent of Finance Robert Morris, with significant contributions from Founding Father Alexander Hamilton, who served as the first Secretary of the Treasury. The bank played a crucial role in financing the Revolutionary War effort through its monetary services. Nevertheless, resistance from Pennsylvania’s state government resulted in its rechartering under state jurisdiction, which curtailed its function as a nationwide entity under the U.S. Constitution.

As a result, Congress established the First Bank of the United States in 1791 to act as an official national bank. Meanwhile, the Bank of North America continued its operations privately, sustaining its influence within the growing American financial sector. Its main office remained in Philadelphia, where it supported U.S. markets and contributed to the foundational banking infrastructure.

Business Profile

- Industry: Financial services - Type: Public (1781–1785), Private (1785–1929) - Founders: Robert Morris (financier and entrepreneur), Alexander Hamilton (government official and business strategist), William Bingham - Headquarters: Philadelphia, Pennsylvania, United States - Key Executives: Thomas Willing (president 1781–1792), Tench Francis, Jr. (cashier) - Business Model: Early banking institution delivering credit and financial services vital to wartime funding and post-war economic growth - Market Influence: Pioneered structured banking operations in the U.S., shaping future national banks and financial entities

The Bank of North America’s visionary leadership and pioneering position in American banking established a foundation for later financial institutions, representing notable accomplishments in U.S. economic history.

Congressional charter

In May 1781, Alexander Hamilton revealed his endorsement of Robert Morris as Superintendent of Finance and advocated for a national bank to serve as an informal central bank. Having corresponded with Hamilton on funding strategies for the war, Morris promptly drafted legislation inspired by Hamilton’s concept and obtained Congress’s approval to establish the Bank of North America—the first private commercial bank in the United States. Dr. Hugh Shiell, an associate of Morris, contributed £5000 toward the bank’s capital stock.

Stock offering

Hamilton’s initial charter proposed issuing 1,000 shares at $400 each. To demonstrate support for Federalist principles and the new bank, Benjamin Franklin purchased a symbolic share. Hamilton promoted the institution under his pen name "Publius," later known through his contributions to the Federalist Papers.

William Bingham, considered among the wealthiest Americans following the Revolution, held 9.5% of shares. The largest portion—63.3%—was acquired by the U.S. government via Morris, financed through loans from France and the Netherlands. This capital infusion was secured by gold and silver coins along with bills of exchange, enabling the bank to issue paper currency backed by these assets.

Officers

The bank's inaugural president, Thomas Willing, who served from 1781 to 1791, was a two-term mayor of Philadelphia and a partner in a leading import-export enterprise. He was followed by John Nixon, who later became the inaugural president of the First Bank of the United States (1791–1807).

Banknotes

Replacing the unreliable Continental currency bills, the bank issued its own notes embedded with colored fibers to deter counterfeiting, each backed by a commitment to redeem silver upon demand. Initially, public trust was limited; to bolster confidence, the bank employed agents to recover funds and orchestrated visible cash movements to imply robust reserves. Confidence increased after full subscription and payment for stock, and by 1783, multiple states including Massachusetts accepted these notes for tax payments, thereby strengthening their status as legal tender.

Private bank

Following economic difficulties after the Revolution, Pennsylvania citizens resisted the bank’s stringent debt collection practices, leading to the revocation of its state charter in 1785. Nevertheless, operations persisted under congressional and subsequently Delaware charters until Pennsylvania issued a new charter in 1786 with restrictions, such as confining merchandise trading exclusively to bullion. The Bank of North America was among the earliest institutions whose shares were traded on the New York Stock Exchange, alongside the First Bank of the United States and Bank of New York Mellon.

After the enactment of the National Bank Act of 1862, the bank converted to national banking status but retained its distinguished name despite legal expectations requiring inclusion of “national.” The Comptroller of the Currency approved this without objection.

In 1923, it merged with Commercial Trust Company to form the Bank of North America and Trust Company; this entity then combined with Pennsylvania Company for Insurances on Lives and Granting Annuities in 1929. Operating thereafter as Pennsylvania Company for Banking and Trust, it united with First National Bank in 1955 to create The First Pennsylvania Banking and Trust Company. Subsequent acquisitions involved CoreStates Financial Corporation (1991), First Union/Wachovia (1998), culminating with Wells Fargo in 2008.

External links

The Bank of North America, Philadelphia, a National Bank, Founded 1781: The Story of Its Progress through the Last Quarter of a Century, 1881–1906, authored by Robert Grier Cooke (1906)
Debates and Proceedings of the General Assembly of Pennsylvania on the Memorials Praying a Repeal of Suspension of the Law Annulling the Charter of the Bank (edited by Mathew Carey, 1786)
A History of the Bank of North America, the First Bank Chartered in the United States, by Lawrence Lewis, Jr. (J. B. Lippincott & Co., 1882)
Legislative and Documentary History of the Bank of the United States: Including the Original Bank of North America, compiled by Matthew St. Clair Clarke and David A. Hall — covering congressional records on early U.S. banking institutions
Legislative and Documentary History of the Banks of the United States, from the Time of Establishing the Bank of North America, 1781, to October 1834; with Notes and Comments, by R. K. Moulton — essential documents on national banking activities from 1781 through 1834