The Bank of New York and it's History

1617 Words4 Pages
bulb-icon

Recommended: The emerging scenario of mergers and acquisitions in the banking sector

The Bank of New York and it's History

On February 23, 1784, a small advertisement appeared in The New York Packet, one of the many New York newspapers of that era. This advertisement announced that prominent New York citizens had established a bank. The bank, established by the prominent, would not officially open for business until June 9, 1784. That bank would come to be known as the bank of New York. Alexander Hamilton, a well-known New York attorney, was asked to write the constitution of the new bank. He complied and therefore Alexander Hamilton was credited with the founding of the Bank of New York. The Bank of New York is the oldest bank in New York and along with that is one of the oldest banks in the world since banking the way we know it today began in the 18th century.

Alexander Hamilton later went on to become the Secretary of the Treasury in President George Washington’s first cabinet. In 1789, Hamilton negotiated the first loan obtained by the new Democratic government. The amount of the loan was $200,000, and was issued by The Bank of New York. Hence, not only is the Bank of New York one of the oldest banks in the world, but it is also a historic one because it was the first bank in the United States to issue a loan. Adding to that historic feeling, when the New York Stock Exchange was created in 1792, the first stock traded was the Bank of New York's stock.

The Bank of New York played a major role in the economic growth in the New York metropolitan area. The Bank was also involved with the growth of transportation. The construction of the Morris Canal in New Jersey and the Erie Canal in New York were partially funded by the Bank, which also provided financing to the steamboat companies that benefited from these waterways. Through investments in nearly every railroad and utility, as well as in the construction of the New York City subway system, the Bank of New York continued to provide vital capital to the expanding American economy. However, far more emphasis was given to conservative practices and retaining the confidence of our customers. That policy enabled the bank to survive the economic turmoil of the early twentieth century.

Throughout its 200-year history, the Bank of New York has been involved in many mergers and acquisitions. Through mergers with the New York Life Insurance & Trust Company, The...

... middle of paper ...

... to service our current needs. It is also important that they are committed to the ongoing investment in technology required to deliver the securities, cash and investment management support services we require. The Bank of New York is a well-established financial institution that has outlasted numerous financial hardships, including the Great Depression. It has a long history of providing excellent services to its customers. In the present day, The Bank of New York continues to live up to that reputation by offering its customers a variety of financial services. The future can only get better for the Bank of New York. With the technological era in full swing, the Bank of New York is taking full advantage by specializing in technological securities. In conclusion, The Bank if New York is a historical financial institution that played an important role in the economic growth of the United States. No other bank can say that it has done as much for the United States as has done the Bank of New York.

Bibliography:

1. http://www.gwdg.de/~ifbg/bank_2.html

2. http://www.bankofny.com/about/ahst.htm

3. http://www.bankofny.com/util/usgx.htm

4. www.bankofny.com

Show More
Related

  • War Of 1812 Dbq Essay

    468 Words  | 1 Pages

    The National Bank created a standarad form of currency and helped pay off the revolutionary war debt. In 1816, there was a second twenty year charter. It was founded during the administration of U.S. President James Madison to stabilize currency. The estblaishment of a national bank led improvements in transportation because now roads could be paid for. These Improvements in Transportations were good for communication around the nation, which helped send messages faster. In 1818, the national road started the growing road systems that tied the new west to the old east. The Erie Canal was built in New York and runs from the Hudson River to Lake Erie, connecting the Great Lakes with the Atlantic Ocean.

    Read More

  • Summary: The Eaton Affair

    393 Words  | 1 Pages

    69. The Bank proved to be very unpopular among western land speculators and farmers, especially after the Panic of 1819 because it was one of the major contributors to inflation. It held federal tax receipts and regulated the amount of money circulating in the economy. Some people felt that that the Bank, and its particular president, had too much power to restrict the potentially profitable business dealings of smaller banks.

    Read More

  • Jacksonian Democrats vs. The Whigs

    1451 Words  | 3 Pages

    The issue of whether or not America should have a National Bank is one that is debated throughout the whole beginning stages of the modern United States governmental system. In the 1830-1840’s two major differences in opinion over the National Bank can be seen by the Jacksonian Democrats and the Whig parties. The Jacksonian Democrats did not want a National Bank for many reasons. One main reason was the distrust in banks instilled in Andrew Jackson because his land was taken away. Another reason is that the creation of a National Bank would make it more powerful than...

    Read More

  • Hamilton And The Economy

    1445 Words  | 3 Pages

    During his term as secretary of the treasury, he acted with the power and commanding force of a Prime Minister. None of the other founding fathers contributed as much to the economy’s growth, and the shape of the country in general, as he did. Alexander Hamilton was the most influential of the United States’ early politicians in the development of the country’s economy. One of the earliest examples of Hamilton’s power was his role in the national assumption of state debts. After the Revolutionary War, individual states had varying amounts of debt.

    Read More

  • teh rechartering of the national bank by Andrew Jackson

    356 Words  | 1 Pages

    First, Andrew Jackson, aimed towards all of the strict constructionists, brought up the point that the formation of a national bank is not in the Constitution, and therefore there is no reason why we should be able to use it. President Jackson also said how the national bank is “rebellious of the rights of the states, and dangerous to the liberties of the people”. Jackson could see that the bank was a monopoly, and the danger that this could bring. He said how the bank is run primarily by 25 people, 20 of which are elected by the bank stock holders, the other five are elected by the bank officials themselves, who in the long run can keep reelecting themselves, and corruption is bound to follow.

    Read More

  • Political Parties In The 1790s

    1746 Words  | 4 Pages

    Going hand in hand with his detestation of large, extremely controlling national governments, Jefferson was intent on having no national bank present in the US, but Hamilton was certain the country would benefit from one. For example, in a personal letter written by Alexander Hamilton, he wrote, “Mr. Madison, co-operating with Mr. Jefferson, is at the head of a faction, decidedly hostile to me, and my administration; and actuated by views... subversive of the principals of good government, and dangerous to the Union... Mr. Jefferson... [displays] his dislike of... funding [the] debt.” (Doc 2) Hamilton implied that by not advocating a national bank, Jefferson did not want to help the country pay off its debt. Jefferson, however, was dead set against having a national bank because he wanted the common people, such as the farmers, to have maximum influence on the government. This way, a strong central government could not have supreme political, economic, and social power, all of which together would open the doors for future corruption, even if the government was set up in the manner directed in the Constitution. Jefferson defended this judgement to the extent that he formed a political party so it could develop into a well-supported suggestion. Thus, the perspective on national banks could more efficiently progress into the point where it impacted the whole country and prevented the formation of a national bank. Equally, the excise tax proposed by Alexander Hamilton and carried out by Congress, factored in on Hamilton and Jefferson’s feud on having a national bank. In a letter written by Thomas Jefferson, he manifested his reaction to the excise tax by commenting, “The excise tax is an infernal one... [the public’s]

    Read More

  • The Issues Of George Washington

    668 Words  | 2 Pages

    One such issue was that of the National debt and creating a National Bank. In 1790, Alexander Hamilton proposed that Congress should establish a national bank, in which private investors could buy stock, could print paper money, and keep government finances safe. Washington signed the bill establishing a national bank and started a strong foundation for a thriving economy and a stable currency.

    Read More

  • The Erie Canal

    1219 Words  | 3 Pages

    In conclusion, there were constantly problems arising during the construction of the Erie Canal. Even though the Erie Canal definitely helped boost economic activity and industrialization in Upstate New York, it also caused more and more people becoming reliable on the government. It also helped bring morality and ethics into their everyday decisions. The major hope of the Erie Canal was to make the United States a better country, but there were obviously paradoxes that came along with that goal.

    Read More

  • Jesse Hawley: The Invention Of The Erie Canal

    1057 Words  | 3 Pages

    All of the positive predictions of how the Erie Canal turned out could be considered "correct" depending on what point you view the situation from. During the mid to late 1820s, trade, and revenue boomed. During this time, revenue in the state of Ohio went from $0, to a little over $450,000 in just the span of about ten years, (Chart 2). Supporting that information in Chart 4, it shows that bushels of wheat transported on the Erie Canal in approximately ten years increases by one million bushels. That is a lot of bushels of wheat. Another example of positive change after the Erie Canal was built might be that in towns, the canal was sometimes considered the "lifeline" of the town. "A Jordan resident was quoted as saying that the canal was the main street of the village and the lifeline," (Picture 1). In picture 2, it could represent a positive change because it shows how many people traveled through the canal and how many new goods reached the western area of the United States through the Erie Canal. This canal also brings new realizations to people during this time about religion and how people were being treated. "A new understanding of how the spiritual transformation of the individual might bring about change was taking place," (Document E). This shows that people had new beliefs and that when traveling the Erie Canal you have new chances. This document in general also shows that people who were traveling the

    Read More

  • The Erie Canal

    1595 Words  | 4 Pages

    The Erie Canal created what was the first reliable transportation system, connecting the eastern seaboard (New York) and the western interior (Great Lakes) of the United States that did not require on land travel. Along with making water routes faster then travel on land it also cut costs of travel by 95 percent. The canal started a population surge in western New York, and opened regions farther west to settlement. This was the start of New York City becoming the chief U.S. port.

    Read More

  • The Return of the Ruined Banker

    722 Words  | 2 Pages

    The setting for this ghost story was at Sturdivant Hall, in Selma, Alabama in the 1860’s.

    Read More

  • Industrialization and Social Changes in Early America

    1716 Words  | 4 Pages

    Farmers, who had moved out west looked for a way to send their produce back east. However, roads were far too expensive and inefficient for this. Thus, canals and steamboats were used to link the country commercially and allow for the transport of goods across the nation. The Erie Canal was one of the greatest technological achievements of its time. At 363 miles long it connects New York to the Great Lakes by water (Sheriff 251). The canal provided easy passage halfway across the country for people and goods and sparked a push for westward movement. To travel on these new canals steambo...

    Read More

  • Andrew Jackson and the Bank War

    2332 Words  | 5 Pages

    The United States government in 1816 chartered the Second Bank of the United States. It had a 20-year charter, which was to expire in 1836. Despite this, the Bank was privately owned and during the age of Jackson, the president was Nicholas Biddle. The Bank was large in comparison to other banks, being responsible for 15-20% of bank loans in the United States and accounting for 40% of the bank notes in circulation. Also, the Bank held a specie reserve of 50% of the value of its notes, when normally other banks only had a specie reserve of 10-25% (Davis 1).

    Read More

  • Relationship Between George Washington And Alexander Hamilton

    569 Words  | 2 Pages

    Alexander Hamilton met George Washington when he was his secretary of treasury. George Washington used him to help with his army that he had. When Alexander Hamilton helped George Washington he realized America was really finacial under.Alexander Hamilton didn’t like the fact the United States were in debt so he decided to make a banking system to get America out of debt. With the help of George Washington, Alexander Hamilton set up a national banking system in major cities across the United States.

    Read More

  • The History of Money and Banking

    1178 Words  | 3 Pages

    The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.

    Read More

More about The Bank of New York and it's History

Open Document