Bank of the United States (1791-1811). Boston Branch (Boston, Mass.) records

The first Bank of the United States was chartered by Congress in 1791. Alexander Hamilton was the guiding force behind the creation of the bank, which he envisioned as a central bank for the new United States. Modeled after the Bank of England, the bank began accepting subscriptions at its Philadelphia headquarters in 1791. The bank's charter authorized 25,000 shares at $400 each, which raised $10 million in capital. The federal government owned 5,000 shares, while the remaining 20,000 shares were tendered in initial public offering. The Bank of the United States would hold a 20 percent share in the country’s money supply, while private banks accounted for the rest.

Subscriptions for the Bank of the United States were soon in high demand throughout the country. In cities beyond Philadelphia, subscriptions were accepted at local banks. However, the need for local branches of the Bank of the United States soon became apparent. Branches were subsequently opened in Boston, Baltimore, Charleston, and New York. Positions on the local boards of directors, which were chosen by the Philadelphia board, were eagerly sought by local business leaders.

In Massachusetts, subscriptions for the bank were initially accepted at the Massachusetts Bank. The Boston branch of the Bank of the United States took over this role when it was established in 1792. Four Boston branch board members—Peter Roe Dalton, Christopher Gore, Jonathan Mason, Jr., and Thomas Russell—had previously served on the Massachusetts Bank board. Dalton, who served as cashier of the Boston branch for nearly twenty years, formerly held the same position at the Massachusetts Bank. These relationships helped the Boston branch and the Massachusetts Bank to avoid an adversarial relationship that other branches shared with their state banks.

A number of prominent American businessmen had accounts with the Boston branch of the Bank of the United States. They include Ebenezer Storer, Thomas Amory, Oliver Wendell, John Kean (who was also the cashier of the Philadelphia branch of the bank,) Nathaniel Appleton, Samuel Breck, Samuel Otis, and John Coffin Jones, among others.

Although successful, the first Bank of the United States had many enemies, whose fears included corruption, financial manipulation, and speculation. As a result of the controversy, Congress declined to renew the bank's charter in 1811. All branches were forced to liquidate their affairs and pay off their stockholders.