Bank of The United States & The Crisis of 1791
In December of 1790, Hamilton called for the creation of the Bank of the United States, and in February of 1791 President George Washington signed the charter allowing the bank to open. During the initial public offering for the Bank of the United States, investors paid $25 for a stock, called a scrip, and were required to make three additional payments in six month intervals totaling $375. These payments were to be 25% in specie and 75% in US debt securities. Demand for stock in the newly formed Bank of the United States was significant, and prices for scrips increased dramatically for the first several weeks, reaching $280 in New York and reportedly over $300 in Philadelphia by mid-August. The market shifts were not sustainable, and within days prices began to fall rapidly. Hamilton stepped in by working with William Seton, the cashier of the Bank of New York, to authorize the purchase of $150,000 of public debt in New York to be covered by government revenues. By September 12, prices had recovered, and Hamilton’s intervention had not only stabilized the market but also laid the groundwork for his cooperation with the Bank of New York, which would later be crucial in ending the Panic of 1792.
Read more about this topic: Panic Of 1792
Famous quotes containing the words bank of the, bank of, bank, united, states and/or crisis:
“... an adamantine island chained to the shifting bank of the Channel.”
—Christina Stead (1902–1983)
“A self is, by its very essence, a being with a past. One must look lengthwise backwards in the stream of time in order to see the self, or its shadow, now moving with the stream, now eddying in the currents from bank to bank of its channel, and now strenuously straining onwards in the pursuit of its chosen good.”
—Josiah Royce (1855–1916)
“The English language is like a broad river on whose bank a few patient anglers are sitting, while, higher up, the stream is being polluted by a string of refuse-barges tipping out their muck.”
—Cyril Connolly (1903–1974)
“The recognition of Russia on November 16, 1933, started forces which were to have considerable influence in the attempt to collectivize the United States.”
—Herbert Hoover (1874–1964)
“If I be false, or swerve a hair from truth,
When time is old and hath forgot itself,
When waterdrops have worn the stones of Troy,
And blind oblivion swallowed cities up,
And mighty states characterless are grated
To dusty nothing, yet let memory
From false to false among false maids in love
Upbraid my falsehood.”
—William Shakespeare (1564–1616)
“One theme links together these new proposals for family policy—the idea that the family is exceedingly durable. Changes in structure and function and individual roles are not to be confused with the collapse of the family. Families remain more important in the lives of children than other institutions. Family ties are stronger and more vital than many of us imagine in the perennial atmosphere of crisis surrounding the subject.”
—Joseph Featherstone (20th century)