Did the Federal Reserve Bank exist under the National Bank Act of February 25, 1863?
Answer: NO. THE TREASURY was a "TRUST" established for the Payment of Debts and Engagements of the Duly Constituted, Federal Representative Government by COMPACT of Constitution.
The First Bank of the United States.
Birth of the Bank
In February 1791, the First Bank of the United States (1791-1811) received a unique national charter for twenty years. Alexander Hamilton's brainchild, a semi-public national bank, was a crucial component in the building of the early U.S. economy. The Bank prospered for twenty years and performed traditional banking functions in exemplary fashion. With a main office in Philadelphia and eight branches nationwide to serve its customers, the Bank's influence stretched along the entire Atlantic seaboard from Boston to Charleston and Savannah and westward along the Gulf Coast to New Orleans.
Hamilton's Broad Economic Plan
When the Treasury Department was created by an Act of Congress in September 1789, President George Washington rewarded Hamilton with the post of Secretary. Hamilton quickly became the nation's leading economic figure. When Congress asked Hamilton to submit an economic plan for the country, he was well prepared. The Secretary delivered several monumental state papers that forged the financial system for the nation: The Report on Public Credit (January 9, 1790), The Report on the Bank (December 13, 1790), The Establishment of a Mint (January, 1791), and The Report on Manufactures (December 5, 1791). Hamilton's reports outlined the strategies that were part of a comprehensive Federalist economic and financial program. They included a sinking fund to extinguish the national debt and an excise tax to be collected on all distilled liquors.
A key component of Hamilton's economic plan for the country was the national Bank, an institution that would safeguard all pecuniary transactions. The Bank would not only stimulate the economy but also enhance the shaky credit of the government. The English financial system, particularly the Bank of England, provided an important model for Hamilton.
The Bank's Funding and Privileges
The Report on the Bank explained that the national Bank would be chartered for twenty years, during which time the Congress would agree not to establish another national bank. The seed capital would be $10 million: $8 million from private sources, and $2 million from the government. The Bank would have the right to issue notes or currency up to $10 million. The government would also pledge that the notes of the Bank would be unique in that they were valid for payments to the United States. In short, the notes would be suitable for payment of taxes, a feature that would provide the Bank with a strong advantage over its competitors.
The national Bank would confer many benefits on the government including a ready source of loans, a principal depository for federal monies that were transferable from city to city without charge, and a clearing agent for payments on the national debt. The government, as the largest stockholder, would share in the profits, but have no direct participation in the management. more at http://eh.net/encyclopedia/article/cowen.banking.first_bank.us
BANK OF THE UNITED STATES known as BANK OF NORTH AMERICA was long established as far back as 1832. You will find information in the First Edition 1832 (Washington: Gales & Seaton) Reprinted 1967 by Augustus M. Kelley publishers, contained in the Library of Congress Catalogue Card Number " 67-23017 ".
The First Bank of the United States was a bank chartered by the United States Congress on February 25, 1791. The charter was for 20 years. The Bank was created to handle the financial needs and requirements of the central government of the newly formed United States, which had previously been thirteen individual colonies with their own banks, currencies, and financial institutions and policies.
Officially proposed by Alexander Hamilton, Secretary of the Treasury, to the first session of the First Congress in 1790, the concept for the Bank had both its support and origin in and among Northern merchants and more than a few New England state governments. It was, however, eyed with great suspicion by the representatives of the Southern States, whose chief industry, agriculture, did not require centrally concentrated banks, and whose feelings of states' rights and suspicion of Northern motives ran strong. source http://www.answers.com/topic/first-bank-of-the-united-states
Bank of North America, America's first government-incorporated bank. In response to a severe depreciation of Continentals, bills of credit that had been used to finance the American Revolution, the Continental Congress appointed Robert Morris superintendent of a new department of finance in 1781. Morris opened a national bank that commenced operations in Philadelphia on 7 January 1782. The bank supplied vital financial aid to the government during the closing months of the American Revolution. Original depositors and stockholders included Thomas Jefferson, Alexander Hamilton, Benjamin Franklin, John Paul Jones, James Monroe, John Jay, and Stephen Decatur. source: http://www.answers.com/topic/bank-of-north-america
[Note: The Italian Giannini: Bank of America is trying very hard to 'assume the identity of the original Bank of North America:
Within the pantheon of 20th-century American business leaders stands the Italian-American A. P. Giannini (1870-1949). As financier and banker he transformed the nature of banking in large and small ways; as an Italian-American he became a symbol of legitimate success and a source of practical help to immigrants and an inspiration to their descendants.
Amadeo Peter Giannini was born May 6, 1870, in San Jose, California, to Virginia and Luigi Giannini, immigrants from Genoa. The Gianninis possessed enough resources to lease a hotel in San Jose. After several years of successful hotel-keeping, Luigi purchased a 40-acre farm. He was killed in 1877 by a disgruntled worker in a quarrel over a one dollar debt. The following year Virginia married Lorenzo Scatena, who had worked his way to America from Lucca as a sailor. The Scatena family moved in 1882 to San Francisco, where Lorenzo took a job with a fruit wholesaling company in the district of North Beach. Success followed, and within a year Scatena had formed his own fruit company.
Amadeo was a good student, but the excitement of the business life - first tasted after school and on Saturdays in his stepfather's company - lured him into the adult work world after a brief course of study at Heald's Business College. His initiative and enthusiasm quickly resulted in greater responsibility, and by the age of 17 he was making regular business trips for the company. Amadeo, later to be known as A.P., exhibited at 17 many of the traits that would characterize his career as a banker. He worked long hours, was a careful observer of the business environment, and extended his personal and professional assistance to clients he deemed worthy. His efforts as a travelling commission man were eventually rewarded with a half-interest in Scatena & Co.
The rising young businessman married Clorinda Agnes Cuneo in 1892. Her father, Joseph, was one of North Beach's richest men, his fortune having been established in real estate. For nine years after his marriage A.P. continued in the commission produce business, retiring at the age of 30. His savings and real estate, together with $100,000 that he received from the sale of his interest in Scatena & Co., allowed him to support his family in a satisfactory manner. He summed up his attitude toward personal wealth: "I don't want to be rich. No man actually owns a fortune; it owns him."
Early Banking Career
After a brief flirtation with reform politics in Long Beach, Giannini began his banking career upon the death of his father-in-law in 1902. Joseph Cuneo died intestate and the family asked A.P. to manage the estate. Among the Cuneo holdings was an interest in a North Beach bank, Columbus Savings and Loan, which had been founded and was controlled by Italian-American John Fugazi. This first bank in the North Beach community preferred to make large loans, a practice which not only encouraged competition and the establishment of another Italian-American bank, but also gave rise to criticism by Giannini, who was a director of the bank. A.P. argued that the bank was not making enough small loans to the area's newcomers. He advised the bank to actively solicit their business. article continued at http://www.answers.com/topic/amadeo-giannini ]
The U.S. Department of the Treasury was "The Federal Reserve" at that time in American History.
President Lincoln gathered his WAR DEPARTMENT making the decision to use the TREASURY "GOLD" RESERVES for the ship builders in Liverpool England to build a Man o' War for the Union to fight the Confederates of the South. Gold was appropriated and paid to the English Ship Builders in Liverpool. Instead of delivering the Man o' War to the Union.. the Man o' War was delivered to the Confederacy who named the ship THE ALABAMA which became a notorious raider, later sunk at the FALKLANDS.
President Lincoln's War Department went through The U.S. Treasury for the $10 Million to pay for the building of a UNION SHIP to fight the southern confedracy.. England took the money, gave the ship to the Confederacy.
Building the CSS Alabama. England's textile industry relied heavily on Southern cotton and England was a quiet supporter of the C.S.A. Since it violated international laws of neutrality for England to build warships for the Confederate cause, England simply constructed the ships but had them armed in other locations. After leaving England, the CSS Alabama was commissioned and outfitted for combat by the Confederate navy in the Azores.
http://www.uri.edu/artsci/his/mua/alabama/alahist1.html
The Alabama
The Confederate Raider Florida torches the Jacob Bell ... the attention of every passing ship as to the whereabouts of the Alabama in ...
www.eraoftheclipperships.com/page71.htm
CSS Alabama Confederate Navy Sloop of War
CSS Alabama Confederate Navy Sloop of War during the ... of the Deep: Raphael Semmes and the Notorious Confederate Raider CSS ... as "the ghost ship. ...
http://www.americancivilwar.com/tcwn/civil_war/Navy_Ships/CSS_Alabama.html
40 Million Dollars was borrowed at 4% interest from the RAIL ROAD BARRONS and WALL STREETS J.P. MORGAN SYNDICATE for the prosecution of the Cotton Wars aka Civil War.
The NITRATES from PERU allowed the COTTON PRODUCERS OF THE SOUTH to outproduce ENGLANDS COTTON GROWING COUNTRIES. The Civil War was over COTTON not SLAVERY.
The inability to pay the $40 Million to JP MORGAN and HIS WALL STREET CRONIES brought about the "TRIPOD" Banking System of JP MORGAN, W.R. GRACE and ROTHSCHILD's "FEDERAL RESERVE BANKING SYSTEM IN 1913."
Chapter VIII. Federal Reserve Bank. Banking Before The Establishment Of The Federal Reserve System
The National Bank Act of February 25, 1863 (amended many times), controlled our National banking system until November 16, 1914, when the Federal Reserve banks were opened. This Act of 1863 provided that any National bank depositing Government bonds with the Treasurer of the United States should be entitled to receive circulating notes to an amount not exceeding 90% of the market value of the bonds. That is, if X bank deposited bonds with the United States Treasurer worth $100,000 on the market, the bank would be allowed to issue bank notes not to exceed $90,000. The National banks were prohibited from issuing any other form of notes to circulate as money. An Act of March 3, 1865, provided that notes issued by State banks should be taxed 10%. This tax was so heavy that State banks found it unprofitable to issue their notes. The original Act of 1863 had provided for the incorporation of National banks and a method by which State banks could become National banks. An Act of March 14, 1900, permitted the issuance of bank notes by National banks up to 100% of the market value of the bonds not to exceed par, instead of 90% as previously, and the formation of banks with capital as low as $25,000 was authorized.
http://chestofbooks.com/finance/banking/Elementary-Banking-AIB/Chapter-VIII-Federal-Reserve-Bank-Banking-Before-The-Estab.html
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