National Bank of Commerce in New York
| Formerly | Bank of Commerce in New York |
|---|---|
| Industry | Banking |
| Founded | 1839 |
| Founders | |
| Defunct | Template:End date and age |
| Fate | Integrated into Guaranty Trust Company of New York |
| Successor | Morgan Guaranty Trust Company J.P. Morgan & Co. JPMorgan Chase |
| Headquarters | , United States |
Key people |
The National Bank of Commerce in New York was a nationally chartered bank based in New York City that eventually merged with the Guaranty Trust Company of New York. This institution subsequently evolved into the Morgan Guaranty Trust Company, a forerunner of J.P. Morgan & Co..
History
The Bank of Commerce was founded on January 1, 1839. Prior to commencing deposit operations on April 3, 1839, from its initial location in the basement of the Merchants' Exchange, it had already committed $500,000 toward a New York State loan aimed at expanding the Erie Canal. The bank's charter authorized capital stock totaling $5,000,000, with founders subscribing $1,505,000 and the remainder offered to the public. Its inaugural president was Samuel Ward, affiliated with Prime, Ward & King.
During its first annual shareholders meeting in May 1839, attendance included 565 stockholders. The original board of directors comprised James Brown, Isaac Carow, James Donaldson, Archibald Gracie, James Kent, Robert B. Minturn, Russell H. Nevins, Pelatiah Perit, John Rathbone Jr., Robert Ray, Samuel B. Ruggles, Charles H. Russell, John Austin Stevens, Jonathan Sturges, Peter Gerard Stuyvesant, Samuel Ward, and Stephen Whitney. Following Ward’s passing in November 1839, John Austin Stevens assumed the presidency.
At the time when the National Banking Acts of 1863 and 1864 were enacted, the Bank of Commerce was recognized as the largest banking institution in the United States. In 1865, upon converting to the National Bank of Commerce of New York, dry goods merchant Charles Handy Russell succeeded Stevens as president. In 1859, Robert Lenox Kennedy joined as a director and was appointed the bank’s fourth president in 1868. Although he retired from this role in 1878, he continued serving as vice-president under his successor Henry F. Vail, who had previously established the Bank of the Republic alongside Gazaway Bugg Lamar.
Merger with National Union Bank
In 1900, the bank expanded through acquisition of the National Union Bank of New York, which had been founded in 1893 by directors affiliated with the New York Guaranty and Indemnity Company and its successor institution, the Guaranty Trust. This entity maintained connections with the Mutual Life Insurance Company. Prior to consolidation, former U.S. Representative from New York, Joseph C. Hendrix, served as president of National Union Bank; after merging, he assumed leadership as president of the combined organization while J. Pierpont Morgan retained his position as vice president.
Following this merger, the capital stock was restored to $10,000,000—reinstating its level from 1877 after having been previously reduced to $5,000,000. The consolidation also led to a change in presidency after the retirement of W. W. Sherman; William C. Duvall had been acting in that capacity since Sherman’s departure.
Merger with Western National Bank
In October 1903, the institution expanded by acquiring the Western National Bank of the United States, which had been established in 1887. This bank itself was formed earlier that year through the union of two entities: the larger Western National Bank of New York, affiliated with Equitable Life Assurance Society, and the smaller National Bank of the United States in New York, connected to Mutual Life Insurance and Morton Trust Company.
Following the merger, Western National's president, Valentine P. Snyder, assumed leadership of the combined bank, with J. Pierpont Morgan serving as First Vice President. The consolidated institution reported capital amounting to $25 million, a surplus of $10 million, and net deposits around $120 million.
"The physical transfer involved moving $16 million in cash—including $12 million in gold—and $67 million in securities from Western National's building at Nassau and Pine Streets to the National Bank of Commerce at Nassau and Cedar Streets."
Upon Snyder’s retirement in 1911, James S. Alexander took over as president. At the same time, Paul Warburg was appointed director, succeeding Jacob H. Schiff. In 1923, Alexander transitioned to chairman, while Stevenson E. Ward was named president.
Merger with Guaranty Trust
In 1929, a significant merger occurred between the bank and the $2 billion Guaranty Trust Company of New York. This consolidation brought together Guaranty Trust's premier trust services with Commerce's extensive commercial banking operations, creating the largest bank in the nation at that time. Prior to finalizing this merger, the Bank of Commerce surrendered its national charter to convert into a state-chartered bank. The newly formed entity commenced operations in May 1929 with $184 million in capital. Leadership roles were divided between William C. Potter, president of Guaranty Trust who became president of the merged company, and James S. Alexander, former chairman of Bank of Commerce, who assumed the chairmanship of the board.
Later developments saw Guaranty Trust merge with J.P. Morgan & Co. in 1959. Although Guaranty Trust was nearly four times larger, management responsibilities were taken over by Morgan executives for the combined Morgan Guaranty Trust Company of New York. Approximately ten years later, this entity established a holding company named J.P. Morgan & Co. Incorporated but continued operating under the Morgan Guaranty name throughout the 1980s before fully adopting the J.P. Morgan brand in 1988. The firm ultimately merged with Chase Manhattan Bank in 2001 to form what is now known as JPMorgan Chase.