National Bank of the United States 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 prominent national banking institution based in New York City that eventually merged with the Guaranty Trust Company of New York, which later evolved into the Morgan Guaranty Trust Company, a forerunner of J.P. Morgan & Co..
History
The Bank of Commerce was officially formed on January 1, 1839, through its articles of association. Prior to commencing deposit operations on April 3, 1839, within the basement of the Merchants' Exchange, it had already committed $500,000 toward a New York State loan aimed at expanding and deepening the Erie Canal. The institution's initial authorized capital stood at $5,000,000, with $1,505,000 subscribed by its founders and the remainder offered to the public. The bank’s inaugural president was Samuel Ward, affiliated with Prime, Ward & King.
At the first annual shareholders meeting held in May 1839, there were 565 stockholders present. The original board of directors featured 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.
During the enactment of the National Banking Acts of 1863 and 1864, the Bank of Commerce held the distinction as the largest banking institution nationwide. In 1865, upon converting to the National Bank of Commerce of New York, Charles Handy Russell took over as president from Stevens. Robert Lenox Kennedy joined the board as a director in 1859 and ascended to president in 1868. Though he retired from this role in 1878, he continued serving as vice-president under Henry F. Vail, who had previously co-founded the Bank of the Republic alongside Gazaway Bugg Lamar.
Merger with National Union Bank
In 1900, the bank expanded by absorbing the National Union Bank of New York, which was established in 1893 by directors associated with both the New York Guaranty and Indemnity Company and its successor entity, the Guaranty Trust. This institution maintained connections with the Mutual Life Insurance Company. Upon consolidation, Joseph C. Hendrix, who had served as president of National Union since its founding and was a former U.S. Representative from New York, became president of the unified organization. Meanwhile, J. Pierpont Morgan, a long-serving vice president at the Bank of Commerce, retained his position.[1]
Following this merger, the bank reinstated its capital stock to $10,000,000 after having previously reduced it to $5,000,000.<ref> Additionally, this consolidation secured a permanent presidency after W. W. Sherman retired; William C. Duvall had acted as interim president since Sherman's departure.[1]
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. Earlier that same year, Western National was created through the fusion of the larger Western National Bank of New York—connected to Equitable Life Assurance Society—and the smaller National Bank of the United States in New York, affiliated with Mutual Life Insurance and Morton Trust.
Following the merger, Western National’s president, Valentine P. Snyder, was appointed to lead the unified bank, while J. Pierpont Morgan took on the role of First Vice President. The consolidated bank’s financial foundation included $25 million in capital, a $10 million surplus, and net deposits estimated at $120 million.
"The transition entailed transferring around $16 million in cash—including $12 million in gold—and $67 million in securities from Western National's premises at Nassau and Pine Streets to the National Bank of Commerce’s headquarters located at Nassau and Cedar Streets."
In 1911, James S. Alexander replaced Snyder as president; concurrently, Paul Warburg joined the board as a director, succeeding Jacob H. Schiff. Alexander advanced to chairman in 1923, with Stevenson E. Ward stepping into the presidency.
Merger with Guaranty Trust
The year 1929 marked a significant consolidation when the bank merged with the $2 billion Guaranty Trust Company of New York. This union, orchestrated by Myron C. Taylor, chairman of U.S. Steel's finance committee, combined Guaranty Trust’s dominant trust services with Commerce’s extensive commercial banking operations to form the largest bank in the United States. Prior to finalizing this merger, the Bank of Commerce surrendered its national charter to operate as a state-chartered bank. The newly merged entity commenced operations in May 1929 with $184 million in capital. William C. Potter, then president of Guaranty Trust, assumed the presidency of the combined institution, while James S. Alexander, formerly chairman of Bank of Commerce, became chairman of the new board.
In 1959, Guaranty Trust merged with J.P. Morgan & Co.. Despite Guaranty Trust being nearly four times larger in size, management control was assumed by Morgan executives within the newly formed Morgan Guaranty Trust Company of New York. A decade later, Morgan Guaranty established a bank holding company named J.P. Morgan & Co. Incorporated but continued operating under the Morgan Guaranty name throughout the 1980s before fully transitioning back to the J.P. Morgan brand in 1988. This entity eventually merged with Chase Manhattan Bank in 2001, resulting in today’s JPMorgan Chase.
External links
- National Bank of Commerce in New York, 1912-1916 Benjamin Newton Duke papers
- National Bank of Commerce, New-York at the New York Public Library