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 ILADELPHIA 
 
 NATIONAL BANK 
 OVNDED -1 7 8 1 
 
 THE STORY OF ITS 
 PROGRESS THROVGH 
 THE PAST QVARTER OF 
 
 A CENTVRY- IS 81-1905 
 

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 THE GIFT OF 
 
 
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The date shows when this volume was tgfeen^ ^ 
 
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 The Bank of North America Philadelphia 
 
 3 1924 032 535 787 
 
 olin Overs 
 
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The Bank of North America 
 
 a national bank 
 
THE! BANKOFNORTH AMERICA. 
 
 (NATFONAL BANKI 
 
 OF PHILADELPHIA. 
 
 I7SI- I907. 
 
THE 
 
 Bank of North America 
 
 PHILADELPHIA 
 A National Bank, Founded 1781 
 
 THE STORY OF ITS PROGRESS 
 THROUGH THE LAST QUAR- 
 TER OF A CENTURY, 1881-1906 
 
 ir 
 
 NEW YORK 
 ROBERT GRIER COOKE 
 
 INCORPORATED 
 
 MCMVI 
 
 V 
 
COPYRIGHT, 1906, BY ROBERT GRIER COOKE, INC. 
 
 A . t. \ 3 V 4- ^ 
 
 PRESS OP ROBERT GRIER COOKE, INC., NEW YORK 
 
The Bank of North America 
 a national bank 
 
THE CORRIDOR. 
 
 INSIDETHE RAIL.. 
 
THE BANK OF NORTH 
 AMERICA 
 
 THE Bank of North America in Phil- 
 adelphia is the oldest bank in the 
 United States. Chartered by the 
 Continental Congress in 1781 and 
 by the State of Pennsylvania in 
 1782, it is likewise the first national and the first 
 State bank organized, and its history is prac- 
 tically identical with the history of the country. 
 The Bank as originally established was the 
 idea of Robert Morris, the great financier of the 
 Revolution and the devoted supporter of Wash- 
 ington. He first outlined the idea, in writing 
 to John Hancock, then Governor of Massa- 
 chusetts Bay Colony, and the original copy of 
 the letter is in the Bank's possession. On 
 May 17, 1781, Morris, at that time Superin- 
 tendent of Finance, presented to Congress a 
 detailed plan for the Bank. On May 26th 
 Congress reported in favor of its adoption and 
 the charter was granted. The Bank did not, 
 however, begin active operations until January 
 7, 1782. 
 
 1 
 
The Bank of North America 
 
 In 1864 application was made to the Comp- 
 troller of the Currency to have the Bank brought 
 under the "National Bank Act," which was done 
 in November of that year. This charter was 
 renewed in 1884 and again in 1904. 
 
 The Bank of North America is the only 
 national bank in the United States which does 
 not have the word "National" in its title. Be- 
 fore organizing under the National Bank Act, 
 the Officers and Board of Directors were so 
 averse to giving up the original title under 
 which it had conducted its business for nearly 
 a century, that they applied for permission to 
 retain it. The Comptroller of the Currency 
 objected decidedly to this retention, but the 
 matter was finally agreed upon by a special 
 arrangement. Although misunderstanding of 
 its national character has at times arisen, the 
 sentiment of the officials of the Bank is still for 
 keeping the original name, taking care at the 
 same time to have it generally understood that 
 the Bank of North America is a national bank 
 doing a national banking business. 
 
 In 1881, during its centennial year, a history 
 of the Bank was published, giving in detail its 
 history and transactions for the first century of 
 its existence. The year 1906 marks the close of 
 the first quarter of its second century, and the his- 
 tory of those years is a record of splendid achieve- 
 ment and continued and increasing success. 
 
 2 
 
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The Bank of North America 
 
 Ever since the Bank of North America re- 
 lieved the acute distress of the nation in the 
 years following the Revolution, national banks 
 have been the able and faithful supporters of 
 the nation's financial life. 
 
 The Bank of North America has been faith- 
 ful to its original record and has never neglected 
 the requests or necessities of the Government. 
 At times, it has even supplied four and one-half 
 times the amount of its own capital. During 
 the last quarter-century the demands have been 
 fewer. At the time of the Spanish-American 
 War, the Government bond issue was so quickly 
 absorbed by an eager public that the national 
 banks were not called upon to any great extent 
 for support in the emergency. 
 
 POLICY OF THE BANK 
 
 The policy of the Bank of North America 
 as voiced by its present officers is : first, to make 
 money for the stockholders by loans to respon- 
 sible persons and institutions, especially in 
 Philadelphia; second, to stand staunchly for the 
 Government and for its own friends, and never 
 to neglect an opportunity for any good invest- 
 ments or worthy project consistent with its 
 safeguarded interests. 
 
 The record of the last twenty-five years shows 
 that the Bank has combined the stability and 
 
 3 
 
The Bank of North America 
 
 reliability of its former record and methods with 
 the effectiveness of modern enterprise. Though 
 business methods change, business principles 
 do not, and the Bank of North America has 
 remained faithful to high principles while con- 
 stantly changing its methods to suit modern 
 conditions and demands. 
 
 Many of the national banks of to-day may 
 carry a larger sum in deposits than the Bank of 
 North America, but none can show a better or 
 longer record of a wisely and safely conducted 
 business, and, after all, such results are the 
 standards by which the measure of the greatness 
 of a bank, as well as of a nation or an individual, 
 is to be made. 
 
 Steady prosperity is essential to the existence 
 of any national bank, and the Bank of North 
 America can look back over the last quarter of a 
 century upon a record in which there are no crises. 
 Dividends have been promptly paid, loans wisely 
 placed, and a uniform earning capacity main- 
 tained through periods of financial stress and 
 national depression. The semi-annual dividends 
 have never been passed and the books show that 
 ready as the Bank has been to lend money freely 
 when the loans were safe, it has always kept a 
 safe proportion of reserve. 
 
 The customers of the Bank have been ac- 
 commodated, and the industries in its immedi- 
 ate neighborhood fostered and developed. With 
 
 4 
 
The Bank of North America 
 
 Socrates, the officers of the Bank believe in the 
 philosophy of surroundings having an influence 
 for good or evil, and they have therefore tried to 
 diffuse the atmosphere of prosperity ; an inherent 
 quality in the Bank of North America. This 
 diffusion must naturally redound to the credit 
 and advantage of the Bank itself. The fact that 
 the Bank of North America is regarded as one of 
 the pillars of Philadelphia and that its growth 
 has been coincident with the growth of the city, 
 amply proves the truth of this philosophy. 
 
 While the Bank of North America has ac- 
 counts practically all over the United States, its 
 loans are of a commercial character chiefly. At 
 one time or another it has bought the paper of 
 almost every well-established commercial en- 
 terprise, and whenever well assured of their 
 personal integrity and ability to pay, it has not 
 hesitated to lend on the notes of private indi- 
 viduals. 
 
 Although the present loans of the Bank 
 amount to $9,500,000, none of these are in spec- 
 ulative business, nor real estate ; the only real 
 estate holding is the site upon which the Bank 
 has conducted its business for the past one hun- 
 dred and twenty-five years. 
 
 A record of dividends, surplus, and individual 
 profits demonstrates the wisdom of this course. 
 
 Although Philadelphia is a reserve city, not 
 a central reserve city, and many banks in other 
 
 5 
 
The Bank of North America 
 
 cities keep a portion of their reserve on deposit 
 in the Bank of North America. 
 
 National banks in other than reserve cities 
 are permitted to keep three-fifths of their re- 
 serves in the form of balances due from "associ- 
 ations approved by the Comptroller of the Cur- 
 rency" in one or more of the reserve cities, and 
 banks in reserve cities are authorized to keep 
 one-half of their "lawful money reserves in cash 
 deposits in New York" as a central reserve city. 
 
 All banks outside of a reserve city are re- 
 quired to have "at all times on hand in lawful 
 money" an amount equal to 15 per cent of their 
 deposits and those in reserve cities 25 per cent 
 of their deposits. 
 
 It is interesting to note that the Bank of 
 North America has among its correspondents 
 many of the oldest and most solidly established 
 banks in the United States; in New York, 
 the Bank of New York, N. B. A., the second 
 oldest bank in the country ; the Merchants 
 National Bank of New York ; the National City 
 Bank of New York; for many years, the Mas- 
 sachusetts National Bank of Boston, and the 
 National Bank of North America of Providence, 
 R. I., both of which are now out of existence ; 
 also, the National Union Bank, the Old Boston 
 National Bank, and the National Shawmut Bank, 
 of Boston, Mass., as well as many of the older 
 banks throughout the West and Southwest. 
 
 6 
 
The Bank of North America 
 
 Not only has the Bank of North America 
 never had to call upon any of its many friends 
 during the last twenty-five years, but has rather 
 set the standard of friendship by its invariable 
 timely and willing loyalty. 
 
 Often, though all of its available money was 
 out in loans, it has secured by means of its own 
 credit the money of which its depositors stood 
 in need. Volume and permanency more than 
 number are the distinguishing qualities of its 
 accounts. 
 
 The stockholders of the Bank are to a large 
 extent descendants and heirs of the original 
 stockholders. There is little disposition to sell 
 the stock and it is seldom found upon the 
 market. The latest quotation, February 16, 
 1906, was 283, the book value being 315J. It is 
 probably the cheapest stock of its kind attaina- 
 ble. The shareholders number 700, a large pro- 
 portion of which number are women. 
 
 At the various bank conventions held in 
 Washington, New York, San Francisco, New 
 Orleans, and other cities during the last few 
 years, President John H. Michener has been the 
 representative of the Bank of North America. 
 Although he has taken no prominent part in 
 determining the measures to be adopted, con- 
 tenting himself with upholding those he deemed 
 wise and rejecting others, the casting of his 
 vote has had its influence. 
 
 7 
 
The Bank of North America 
 
 The Board of Directors has been filled, when- 
 ever vacancies occurred, with enterprising, mod- 
 ern business men, and so well has the policy of 
 the Bank justified itself in the past years that 
 these men are ready to follow it to-day. 
 
 Although it contends with the ordinary 
 competition in the banking business, the Bank 
 cannot be said to have any direct rivalry. The 
 universally high esteem in which it is held makes 
 it a tower of strength, especially in times of need 
 and of financial stress. 
 
 The character of a national bank is shown by 
 almost intangible indications, one of the most im- 
 portant being its action in times of public need. 
 
 "What is the Bank of North America going 
 to do?" is the question often asked in Philadel- 
 phia and in other banking centers. The solidity 
 and steady growth of the Bank seem to prove 
 that the answer to that question has almost in- 
 variably been: "The Bank of North America 
 will do what is right." Other large financial 
 institutions have often been influenced by the 
 course which the Bank of North America has 
 taken. 
 
 In spite of the care and caution with which 
 the Bank has administered its affairs, it has never 
 been found backward in promoting worthy 
 causes, and upon its books may be found the 
 record of contributions at the time of the Johns- 
 town and Galveston floods and to other similar 
 
 8 
 
The Bank of North America 
 
 relief or charitable funds. Many times, however, 
 these demands have been met from the private 
 purses of the Directors, when, although they 
 were convinced of the worthiness of the object, 
 they were still in doubt as to whether the funds 
 of the Bank should be devoted to the purpose. 
 
 Whenever Philadelphia has been in need of a 
 public institution, and the Officers and Directors 
 of the Bank of North America have found upon 
 consultation that they could endorse the object, 
 they have done so both heartily and substan- 
 tially. Examination of such stock subscrip- 
 tion lists as those of the Philadelphia Bourse, the 
 National Guard Armories, and of similar institu- 
 tions, would prove that the Bank was neither 
 absent nor least among the contributors. This 
 is part of the carrying out of the policy of 
 strengthening the institution by encouraging 
 the enterprises by which it is surrounded. 
 
 In a letter written by a distinguished mer- 
 chant in 1872, the Bank is thus spoken of : 
 
 "I may say that there is no service, public 
 or charitable, to which its assistance has been 
 denied." 
 
 Although the Bank has lived up to this state- 
 ment since that time, as it did before, it has 
 never given its assistance where the result did 
 not justify the outlay. 
 
 In these times of rapid growth and equally 
 rapid decay or disappearance of business enter- 
 
 9 
 
The Bank of North America 
 
 prises, the history of the Bank of North America 
 is well worthy of consideration. That an insti- 
 tution founded one hundred and twenty-five 
 years ago, as a patriotic organization to carry 
 the financial burden of the Government, should 
 not only continue to exist in the same city 
 and on the same spot — but that it should so 
 keep abreast of the times as to have a large and 
 yearly increasing business — certainly speaks 
 clearly for the policy and wisdom by which it 
 has been administered. As a result it inspires 
 the greatest public confidence, which in turn be- 
 comes one of its chief and most valuable assets. 
 
 THE BOARD ROOM CLOCK 
 
 10 
 
PRESIDENTS AND DIRECTORS 
 
 1881-1906 
 
 ONE of the most interesting things 
 about a successful institution is 
 the character of the men who have 
 made it a success. The Bank of 
 North America has always had 
 among its Presidents and Directors men of 
 acknowledged ability and standing in the com- 
 mercial world. Thomas Smith, elected to the 
 Presidency by the Board of Directors in Au- 
 gust, 1860, was in that office at the time of the 
 Bank's centennial in 1881 . He retained this posi- 
 tion continuously until April 30, 1883. On that 
 date he tendered his resignation to the Board of 
 Directors, owing to serious indisposition. The 
 tone of his letter tells how deep was his regret at 
 severing his connection with an institution in 
 which his pride, loyalty, and love were so deeply 
 engaged. His letter of resignation reads : 
 
 "Gentlemen: 
 
 "Owing to the impaired state of my health, 
 I am under the necessity of sending to you 
 this my resignation as President of the Board 
 of Directors of the Bank of North America. 
 
 11 
 
The Bank of North America 
 
 " I need not tell you how painful it is to me 
 to sever my executive official position with the 
 Bank, a corporation national in its character, 
 entirely successful in its operations during the 
 whole time we have been together in its manage- 
 ment and control; transacting a general mercan- 
 tile business amounting to over Four Hundred 
 Millions of Dollars in twenty-three years, without 
 a single default, and possessing to an unusual 
 degree the confidence of the entire Commercial, 
 Manufacturing, and Financial community, with 
 perfect harmony of action, as is shown by the 
 fact that, during all that time, no difference of 
 opinion has ever arisen in the Board of Directors, 
 whose members feel such entire mutual respect 
 and honest esteem, each for the other, as rarely, 
 if ever, falls to the lot of any corporation. 
 " Very truly and sincerely, 
 
 "Thomas Smith." 
 
 This resignation was accepted and a com- 
 mittee of three Members of the Board, with the 
 Chairman, ex-officio, were appointed "to pre- 
 pare a suitable minute upon the acceptance of 
 Mr. Smith's resignation and take such action as 
 they deem proper." 
 
 The Chairman appointed Messrs. C. S. Lewis, 
 Jacob P. Jones, and C. A. Griscom, members of 
 the committee. At the next meeting of the 
 Board of Directors, held May 3, 1883, the Com- 
 
 12 
 
The Bank of North America 
 
 mittee appointed at the last meeting of the Board 
 presented the following preamble and resolu- 
 tions, which were unanimously adopted: 
 
 "Whereas, Mr. Thomas Smith has been 
 obliged, on account of his failing health, to re- 
 tire from his duties as President of the Bank of 
 North America, an office he has filled for twenty- 
 three years with so much dignity, satisfaction, 
 and profit to the Bank; therefore, be it 
 
 "Resolved, That the Directors hereby express 
 their kind regards and affection for him personally, 
 and also bear testimony to his faithful manage- 
 ment of the affairs of the Bank, and to his untir- 
 ing industry in promoting its interest and useful- 
 ness, and particularly do they express their sorrow 
 for the reason that causes his resignation, and 
 their prayer is, that a few months of quiet retire- 
 ment will so far restore him to health, that he may 
 soon again meet them at the Board, that they may 
 have not only the pleasure of his association, but 
 also the benefit of his good judgment in the 
 management of the affairs of the institution. 
 
 " Resolved, That the President, Mr. Charles 
 S. Lewis, be requested to send to Mr. Smith a 
 copy of these Resolutions." 
 
 This action was taken only a few days before 
 Mr. Smith's death, which occurred May 20th of 
 the same year. 
 
 He was succeeded by Charles S. Lewis, who 
 13 
 
The Bank of North America 
 
 was elected President of the Bank of North 
 America at the meeting of the Board of Directors 
 held May 3, 1883, at which the resolutions were 
 taken in regard to the resignation of Mr. Smith. 
 
 Mr. Lewis had occupied the position of 
 Director of the Bank since January 31, 1859, and 
 as such had served the Bank faithfully for 
 twenty-five years. 
 
 On June 9, 1887, Mr. Lewis presented the fol- 
 lowing resignation to the Board of Directors: 
 
 "To the Directors of the Bank of North America. 
 
 "Gentlemen: 
 
 " Being admonished by the state of my health, 
 that for its consideration, and my comfort, it 
 is necessary that I should rid myself of the re- 
 sponsibilities of the position of President of this 
 Bank, I hereby tender this, my resignation of 
 that position, to take effect 1st proximo. 
 
 " In relinquishing this position, I do not in- 
 tend to sever my connection with you, gentlemen, 
 Directors, but shall be pleased to continue my 
 position as one of you as long as my services are 
 requested. 
 
 " Very respectfully, 
 
 "Your obedient servant, 
 " Chas. S. Lewis." 
 
 The prosperous condition of the Bank at this 
 time made apparent the wisdom with which he 
 
 14 
 
The Bank of North America 
 
 had governed its affairs. His resignation was 
 accepted and a committee of three appointed to 
 prepare a suitable expression in regard to it, and 
 also to name his successor. The Committee 
 consisted of Messrs. C. A. Griscom, S. B. Brown, 
 and R. H. Downing. 
 
 On Monday, June 13, 1887, at the next reg- 
 ular meeting of the Directors, the Committee 
 appointed at the previous meeting presented 
 the following resolutions: 
 
 "Resolved, That it is with profound regret 
 that the Board of Directors of the Bank of North 
 America has received the resignation of its highly 
 esteemed President, Charles S. Lewis, to take 
 effect July 1st proximo. 
 
 "Resolved, That while Mr. Lewis is convinced 
 the proper consideration of his health requires 
 him to relinquish the responsibilities and con- 
 finement of the Presidency, the Directors learn, 
 with gratification, that he can continue his asso- 
 ciation with them as a member of this Board, 
 where his counsels have for many years contrib- 
 uted greatly to the prosperity of the Bank. 
 
 "Resolved, That it should be made a matter of 
 record, that during the Presidency of Mr. Lewis 
 the affairs of this Bank have been managed with 
 fidelity and success. Its pre-eminent position, 
 its popularity with its patrons, and its strong 
 financial condition have been fully maintained. 
 
 15 
 
The Bank of North America 
 
 Its prosperity under his administration has been 
 a matter of pride to the Directors, and of con- 
 gratulation to the shareholders. 
 
 "Resolved, That a copy of these Resolutions, 
 suitably engrossed, be presented to Mr. Lewis. 
 
 "C. A. Griscom, 
 (Signed) " S. B. Brown, 
 
 " Richard H. Downing, 
 " Committee." 
 
 These resolutions were unanimously adopted, 
 and Mr. Lewis continued to serve as a Director 
 of the Bank until his death, May 11, 1891. 
 
 During the same meeting, at which the reso- 
 lutions regarding Mr. Lewis's resignation were 
 adopted, Mr. Griscom, Chairman of the Com- 
 mittee, made an additional report, stating that 
 the Committee unanimously recommended the 
 nomination of John H. Michener for the Presi- 
 dency. Mr. Fiss, seconded by Mr. Morris, made 
 the nomination, and there being no other nom- 
 inee, Mr. Michener was unanimously elected, his 
 term of office to begin July 1, 1887. 
 
 Mr. Michener had entered the service of the 
 Bank as Director, on January 10, 1871. He 
 has been reelected to the Presidency each suc- 
 ceeding year up to and including the present one, 
 1906. 
 
 Mr. Michener, who is also President of the 
 Philadelphia Clearing House Association, has 
 
 16 
 
CHARLES S.LEWIS PRESIDENT 
 1883 - 78S7. 
 
The Bank of North America 
 
 administered the affairs of the Bank with great 
 success. His loyalty to the institution and to 
 the interests it represents is well expressed in 
 a letter written by him on March 15, 1906. 
 
 "I am proud of the old institution and its 
 record for conservatism and honorable purpose; 
 its loyalty and patriotism; forging always to the 
 front in time of war or domestic strife and in 
 peace able and ready to conserve its purpose in 
 aid of the thrifty and meritorious, throughout 
 the walks of business life." 
 
 Three years ago Mr. Michener was relieved 
 of part of his duties by the election of his son, 
 Harry G. Michener, to the office of Vice-Presi- 
 dent, an office never before existing in the Bank 
 of North America. 
 
 John H. Watt, who entered the Bank as a 
 clerk August 1, 1855, became Cashier May 1, 
 1869, and has retained that position ever since. 
 
 The Assistant Cashier, Samuel D. Jordan, 
 entered the Bank as a boy thirty-seven years 
 ago. He has worked in every department, and 
 his thorough and detailed knowledge of the busi- 
 ness brought him to his present position on July 
 11, 1900. 
 
 These are not the only records of long service. 
 Many of the men on the clerical force have served 
 the Bank for over twenty years. Records such 
 as these belong only to corporations with a suc- 
 cessful and honorable administrative policy. 
 
 17 
 
The Bank of North America 
 
 The Directors of the Bank are men engaged 
 in active business life and well known as business 
 men in the communities in which they live. 
 They are, however, chosen rather for the value 
 of their services to the Bank than for their great 
 wealth. The majority are Directors, Presidents, 
 or Vice-Presidents of railroads and other com- 
 mercial and financial organizations, including 
 trust companies, other banks, coal, steel, steam- 
 ship, insurance, and manufacturing companies. 
 
 Their attendance at the Bank is uniformly 
 good, and their thorough knowledge of its busi- 
 ness combined with wide experience and under- 
 standing of the business problems of the day 
 makes their judgment and advice in the affairs 
 of the Bank of incalculable value. 
 
 During the last quarter of a century twenty- 
 five men have been connected with the Bank 
 of North America in this capacity. The twelve 
 members serving at present are : 
 
 Clement A. Griscom Lincoln K. Passmore 
 
 Theodore C. Search John P. Green 
 
 Richard H. Downing Wm. P. Henszey 
 
 William D. Winsor Wm. F. Read 
 
 Charles H. Harding Christian C. Febiger 
 
 Harry G. Michener J. Howell Cummings. 
 
 A complete list of the Directors from 1881- 
 1906, with the dates of elections, expirations of 
 
 18 
 
The Bank of North America 
 
 terms, resignations, or deaths is included in the 
 Appendix to this volume. 
 
 Many of these men have spent practically a 
 lifetime in the service of the Bank, bound only 
 by their respect for the institution and the wise, 
 wholesome policy which permeates all its de- 
 partments. 
 
 19 
 

 BANK OP NORTH AMERICA S FIRST HOME 
 
 HOMES OF THE BANK 
 
 ON the 7th of January, 1782, the Bank 
 of North America began active 
 operations in a commodious store 
 belonging to its cashier, Tench 
 Francis. This building was situ- 
 ated on the north side of Chestnut Street, a 
 short distance west of Third, and had been pre- 
 viously leased and fitted up for its accommo- 
 dation. The lot and buildings were afterward 
 purchased and the Bank continued its opera- 
 tions in that building for more than sixty-five 
 years. 
 
 On June 11, 1847, it moved to temporary 
 quarters adjoining the Philadelphia Bank, and a 
 
 20 
 
PI 
 
 o 
 
 > 
 
 (A 
 
 I 
 
 m 
 
 > 
 z 
 
 o 
 
 > 
 
 en 
 
 in 
 
 H 
 > 
 Z 
 -^ 
 
 o 
 
 > 
 
 0) 
 
 I 
 
The Bank of North America 
 
 new building was erected on the Chestnut Street 
 site. On March 11, 1848, the doors of the new 
 building were opened to the public and business 
 carried on there for forty-five years. In 1893 
 the exigencies of an increasing business and the 
 improvement in building construction made it 
 expedient for the Bank to erect a modern fire- 
 proof building. The Bank, therefore, moved 
 into temporary quarters at 310 Chestnut Street. 
 The lot next the old building was purchased to 
 provide ample space for the new one, which was 
 completed in May, 1895. This building, planned 
 by Architect James H. Windrim, has not only 
 proved satisfactory to the Bank, but has served 
 as a model for the erection of similar institu- 
 tions. 
 
 The main banking room is 45x78 feet in di- 
 mension, with a clear-story rising of 49 feet to 
 the ceiling. This provides the clerks with ample 
 space, light, and air. 
 
 The President's room, occupied by the Presi- 
 dent and Vice-President, opens directly from the 
 main room at the rear. The wide doors leading 
 to it afford a full view of the entire working force. 
 The room itself is 14 feet in height and contains 
 an entrance to the vault which is situated next 
 to it. 
 
 A corridor leads from the main room to a 
 four story extension at the rear. This is 23x50 
 feet in dimension and contains the Directors' 
 
 21 
 
The Bank of North America 
 
 Room, store room, other offices, dining room, 
 and kitchen. Thus the building is devoted ex- 
 clusively to the uses of the Bank. 
 
 The Directors' Room contains pictures of all 
 the Presidents from the first, Thomas Willing, to 
 the last one, John H. Michener. On the wall 
 also hangs a framed copy of the letter from Rob- 
 ert Morris to John Hancock, in which he outlines 
 the plan for a bank, an idea afterward carried out 
 in the Bank of North America. 
 
 A long table stands in the middle of the room 
 and about this are placed the solid mahogany 
 chairs first used by the Directors of the Bank one 
 hundred and twenty-five years ago . These chairs 
 have had to be reinforced with brass supports 
 but are otherwise in good condition. Near the 
 mantel piece stands a marble topped table which 
 belonged to Robert Morris. 
 
 The vaults in the basement, and, in fact, the 
 whole building, is equipped with every known 
 mechanical device for insuring safety from fire 
 and burglary. The main vaults in the Bank 
 rise solid and individual. They resemble mau- 
 soleums, and may, in fact, be the burying spot 
 of the papers of bygone years, for it is doubt- 
 ful if some of the records of the Bank's trans- 
 actions will ever again see the light of day. 
 
 The vaults were built by the Detroit Safe 
 Company, under the supervision of the Hollar 
 Engineering Company of Philadelphia, and are 
 
 22 
 
The Bank of North America 
 
 equipped with time locks. These are set for a 
 certain hour and can be opened only at the hour 
 set. They cannot be opened prematurely, but 
 can be set to open at any time from one to 
 seventy-two hours after they are closed. The 
 vaults have two distinct non-communicating 
 doors leading into the banking room. 
 
 The whole interior of the Bank is made of 
 indestructible materials, the partitions and desks 
 of solid mahogany, floors and ceilings of iron and 
 steel, the former covered with a pavement of 
 marble tiles, and the latter with friezes and 
 paneled frescoes. The color scheme is cheerful, 
 yet quiet. 
 
 The facade is in Renaissance style, built of 
 Jonesboro granite with Quincy base and col- 
 umns and architrave of polished Scotch granite. 
 While the building gives in every detail the im- 
 pression of solidity and wealth, no money was 
 uselessly expended in its construction. 
 
 Additional dignity seems to be lent to the 
 Bank by the Philadelphia Clearing House next 
 door, and the First National Bank on the farther 
 side of the Clearing House. The group is sym- 
 bolic of strength, permanence, and integrity. 
 
 Up to the year 1904 the Philadelphia Clear- 
 ing House had always met in the third story of a 
 banking building. In 1903 Mr. Michener, Pres- 
 ident of the Bank of North America and of the 
 Clearing House Association, suggested the pur- 
 
 23 
 
The Bank of North America 
 
 chase of the building at 313 Chestnut Street, to 
 be remodeled and used as the home of the Asso- 
 ciation. This suggestion met with immediate 
 and practically unanimous approval, and as a 
 result the Association has a building second in 
 size and convenience only to that of the New 
 York Clearing House. 
 
 THE BANK OF NORTH AMERICA S SECOND HOME 
 
 24 
 
JOHN H. WATT, CASHIER 
 1869. 
 
FINANCIAL HISTORY 
 
 ALTHOUGH there have been financial 
 crises in this country during the 
 last twenty-five years, there are 
 none to chronicle in the history of 
 the Bank of North America. 
 It has never sought to become either a na- 
 tional or a state depository, nevertheless it has 
 often lent money to the Government, and two 
 years ago, when the request was made volun- 
 tarily, it took charge of state funds. Like an 
 honorable man and a good citizen, the Bank has 
 tried to do its duty and neither seek nor shirk 
 responsibilities. 
 
 The year 1881 was one of diminished agri- 
 cultural production in the United States, espe- 
 cially in cereals and cotton. This, combined with 
 depreciated prices abroad, brought troublous 
 times at the opening of the year 1882. Nu- 
 merous failures followed throughout the country 
 and the volume of liabilities increased. There 
 was a crisis in France and the strong impetus 
 toward prosperity abated materially along many 
 lines. Activity continued in others, however, 
 for railroads reached their maximum of con- 
 
 25 
 
The Bank of North America 
 
 struction up to that year, and the fiscal year, 
 ending June 30th, had witnessed the largest im- 
 migration. 
 
 These fluctuations did not affect the Bank of 
 North America, for its investments proved safe 
 and sane. At the end of the year 16 per cent 
 had been paid in semi-annual dividends and the 
 Bank was in excellent condition. 
 
 Liabilities in the United States increased 
 further in 1883, but the deposits of the Bank 
 amounted to $300,000 more than the previous 
 year, and 16 per cent profits were paid in semi- 
 annual dividends. 
 
 The crisis precipitated by the conditions in 
 the two previous years occurred in May, 1884, 
 the date of the failure of Grant and Ward in New 
 York with that of the Metropolitan National 
 Bank and several other important institutions. 
 
 In that and in the subsequent year the credit 
 and strength of the Bank of North America re- 
 mained unshaken and the 16 per cent dividends 
 were continued. The downward movement 
 may be said to have reached its lowest point in 
 1886, but the Bank dividends during that and 
 each year up to 1892 amounted to 16 per cent 
 annually. 
 
 The Bank was interested in almost every 
 great enterprise undertaken during this period 
 in the United States, yet its record is conspicu- 
 ous for the demonstration of safe banking prin- 
 
 26 
 
The Bank of North America 
 
 ciples and the absence of spectacular or specu- 
 lative finance. 
 
 In spite of the low rate of interest on money 
 during the last twenty-five years, the Bank has 
 never suspended dividends. This result is due 
 to the fact that the Bank has been careful not 
 to back any enterprise to such an extent that it 
 would be heavily involved by or responsible for 
 its ultimate failure or success. 
 
 Occasionally when the proportion of safe 
 loans were small, the Bank has had difficulty in 
 placing the capital at its disposal. In 1892, 
 when the public confidence in investments was 
 wavering, great difficulty was experienced in 
 lending money. Although the deposits of the 
 Bank increased nearly $3,000,000 over the previ- 
 ous year on this account the Bank prudently 
 reduced its dividends to 12 per cent. On May 
 28, 1892, only nine banks in Philadelphia had a 
 surplus larger than their capital, but the Bank 
 of North America was first upon the list. 
 
 Having practically no interests abroad, the 
 Bank was not affected by the depression in 
 Europe which began in 1890, three years pre- 
 vious to the crisis of 1893. This depression was 
 caused by a deficiency in the food supply and 
 resulted in the withdrawal of foreign loans from 
 the United States, which created a stringency in 
 the money market. The crisis was postponed 
 by the inflation in the currency occasioned by 
 
 27 
 
The Bank of North America 
 
 the issue of silver certificates in June, 1890, but 
 this artificial increase only rendered the crisis 
 the more severe when it came. The crisis of 
 1893, more than any other, was aggravated by 
 the withdrawal of foreign loans, and the with- 
 drawal was greatly increased by the distrust of 
 the currency. Foreign investors feared that the 
 change from a gold to a silver standard would 
 decimate the value of their American securities. 
 This, coupled with the possible change in political 
 control and the threatened radical alteration in 
 the tariff, created widespread distrust and de- 
 stroyed confidence. 
 
 The climax of the crisis came in May, but the 
 Bank of North America stood firm, and its fiscal 
 policy was again splendidly vindicated. The 
 public and other financial institutions eagerly 
 watched every move, and what the Bank did 
 none hesitated to do. 
 
 Failure followed failure, especially in small 
 businesses, and only the timely action of the 
 large banking institutions averted more severe 
 conditions. 
 
 No banking business can be conducted with- 
 out taking legitimate risks, and although the 
 financial policy of the Bank of North America 
 has been one of steady conservatism, it took, 
 promptly, especially when it knew the men, the 
 risks it believed to be right. The action was 
 justified by universal expressions of confidence, 
 
 28 
 
The Bank of North America 
 
 favorable comment, and praise, and the Bank 
 proved itself one of the pillars of the national 
 financial world. 
 
 In 1896, when the banks throughout the coun- 
 try were calling in their loans, anticipating a 
 panic if Bryan were elected, the Bank of North 
 America again stood firm and the total of its 
 deposits remained intact, although the crisis of 
 1893 had been followed by years of severest 
 financial distress. A larger number of bank 
 failures had been recorded than in the previous 
 crisis of 1873, and the decrease in deposits and 
 the withdrawal of money from circulation con- 
 tinued for a longer time. 
 
 On account of the widespread uncertainty 
 and the difficulty of placing loans that were re- 
 garded as safe, the dividends of the Bank were 
 reduced to 12 per cent, although this was a 
 measure of prudence rather than of actual ne- 
 cessity. At the end of the year 1893 the Bank 
 had out in loans nearly $1,000,000 less than it 
 had the previous year. 
 
 Note. — Credit is due to "Financial Crises and Periods 
 of Commercial and Industrial Depression," by Theodore 
 E. Burton, for much of the above information, some of 
 which is quoted verbatim. 
 
 The dividends remained at 12 per cent a year 
 during 1894 and 1895, though in the latter year 
 public confidence somewhat revived. This was 
 
 29 
 
The Bank of North "America 
 
 dissipated the following year, however, and the 
 excitement and uncertainty preceding the Pres- 
 idential election of 1896 interposed an absolute 
 barrier to any improvement. Business and in- 
 dustry were practically paralyzed by this year 
 of doubt as to the standard of value. The elec- 
 tion of 1896 was probably the most exciting one 
 that had taken place in the preceding fifty years. 
 Men gathered on street corners in the cities and 
 argued the gold and silver platforms until late in 
 the night. The Democratic candidate was ap- 
 parently sweeping everything before him in his 
 whirlwind campaign. Everywhere the amount 
 of business transacted decreased and there was 
 a general retrenchment in both investments and 
 expenses. 
 
 Following the policy adopted in 1893, the 
 Bank of North America did not impose panic 
 rates, but made its loans on the usual terms and 
 stood ready, as it had in 1893, to redeem its notes 
 and pay its creditors and depositors in specie. 
 
 Just before the election of McKinley a de- 
 positor demanded $10,000 in gold, which was 
 promptly paid him. 
 
 "This will be worth a lot more money in a 
 few weeks," he said, as he took it away. 
 
 President Michener, who overheard the re- 
 mark, wrote the depositor a letter. In reply to 
 it the depositor returned ashamed and rede- 
 posited the gold. No other patron showed the 
 
 30 
 
The Bank of North America 
 
 slightest fear or inclination to withdraw his ac- 
 count, so unshaken was their confidence in the 
 Bank, and with the election of McKinley the 
 crisis passed. 
 
 A period of halting followed the election, but 
 signs of a revival plainly appeared in June and 
 July, 1897, and a healthy increase soon began. 
 The Board of Directors of the Bank, however, has 
 maintained the dividends at 12 per cent on the 
 capital stock, although the surplus and undivided 
 profits now amount to over $2,800,000 (see 
 Appendix). The surplus fund, $2,000,000, first 
 established in 1869, has grown steadily ever 
 since. 
 
 The Bank of North America has a capital 
 stock of $1,000,000; $450,000 in circulation in 
 bank notes; and deposits which to-day amount 
 to over $10,000,000. During the entire course 
 of its existence, it has never amalgamated with 
 another bank nor absorbed any other institu- 
 tion. 
 
 Even in times of greatest financial stress there 
 has never been the suggestion of a run on the 
 Bank, and the variations in loan rates have been 
 only such as were necessary to meet condi- 
 tions. 
 
 The Bank has never lost money through de- 
 falcations during this latter period and the items 
 of its profit and loss account are only such as are 
 caused by legitimate business transactions. 
 
 31 
 
The Bank of North America 
 
 The trade statistics of the fiscal year ending 
 June 30, 1898, were unparalleled. Exports ex- 
 ceeded imports by almost exactly 100 per cent, 
 and the total foreign trade, barring a slight 
 excess in 1892, was greater than ever before. 
 The Bank of North America profited by its 
 legitimate quota of this prosperity, its loans 
 amounting to nearly $2,000,000 more than those 
 of the previous year. After June 30, 1898, the 
 proportion of exports to imports decreased 
 somewhat, but an even more prosperous period 
 followed. The prices of iron and steel, in which 
 all Philadelphia banks are naturally interested, 
 showed a rise in the summer of 1897, but the 
 great increase did not begin until 1899. 
 
 The period following July 1, 1897, has been 
 one of great prosperity and expansion. There 
 are distinct indications that the United States 
 will rise higher in the scale of the world's trade 
 and production than any country has ever before 
 done. 
 
 In 1900 the Bank found it advisable to make 
 an issue of $300,000 in notes. 
 
 In 1902 it reached its maximum of deposits. 
 At the beginning of the year the figures were 
 $11,300,046.00. These have since varied with 
 the amount of business activity, and at present, 
 on account of the commercial prosperity, are 
 naturally less, as there is more money in active 
 circulation. 
 
 32 
 
The Bank of North America 
 
 A tabulated statement of the condition of 
 the Bank during the twenty-five years follows 
 this brief review of the commercial conditions. 
 This shows how the fluctuations of business have 
 affected the Bank. To judge the effect of any 
 one year, the statement of the following year 
 must be examined, as these were rendered on the 
 1st of January of each year. 
 
 33 
 
The Bank of North America 
 
 
 
 LIABILITIES 
 
 
 
 
 January 1st 
 
 
 
 
 Surplus and 
 
 
 Divi- 
 
 Year 
 
 Capital 
 
 Undiv. Profits 
 
 Deposits 
 
 dends 
 
 1881. 
 
 .$1,000,000 
 
 $1,103,525.00 
 
 $5,712,392.00 
 
 16% 
 
 1882. 
 
 . 1,000,000 
 
 1,142,125.50 
 
 5,257,126.00 
 
 16% 
 
 1883. 
 
 . 1,000,000 
 
 1,167,723.00 
 
 5,145,910.00 
 
 16% 
 
 1884. 
 
 . 1,000,000 
 
 1,221,542.00 
 
 5,526,324.00 
 
 16% 
 
 1885. 
 
 . 1,000,000 
 
 1,221,733.00 
 
 6,047,790.00 
 
 16% 
 
 1886. 
 
 . 1,000,000 
 
 1,265,488.00 
 
 7,379,458.00 
 
 16% 
 
 1887. 
 
 . 1,000,000 
 
 1,326,822.00 
 
 5,922,296.00 
 
 16% 
 
 1888. 
 
 . 1,000,000 
 
 1,378,899.00 
 
 5,545,695.00 
 
 16% 
 
 1889. 
 
 . 1,000,000 
 
 1,415,332.00 
 
 5,536,763.00 
 
 16% 
 
 1890. 
 
 . 1,000,000 
 
 1,442,972.00 
 
 5,493,915.00 
 
 16% 
 
 1891. 
 
 . 1,000,000 
 
 1,469,119.00 
 
 5,578,673.00 
 
 16% 
 
 1892. 
 
 . 1,000,000 
 
 1,528,112.00 
 
 8,325,352.00 
 
 14% 
 
 1893. 
 
 . 1,000,000 
 
 1,581,387.00 
 
 6,968,645.00 
 
 12% 
 
 1894. 
 
 . 1,000,000 
 
 1,610,267.00 
 
 7,190,137.00 
 
 12% 
 
 1895. 
 
 . 1,000,000 
 
 1,621,515.00 
 
 7,346,362.00 
 
 12% 
 
 1896. 
 
 . 1,000,000 
 
 1,657,160.00 
 
 7,291,681.00 
 
 12% 
 
 1897. 
 
 . 1,000,000 
 
 1,602,948.00 
 
 7,680,338.00 
 
 12% 
 
 1898. 
 
 . 1,000,000 
 
 1,645,521.00 
 
 10,505,258.00 
 
 12% 
 
 1899. 
 
 1,000,000 
 
 1,689,890.00 
 
 11,418,139.00 
 
 12% 
 
 1900. 
 
 . 1,000,000 
 
 1,677,802.00 
 
 8,827,332.00 
 
 12% 
 
 1901. 
 
 . 1,000,000 
 
 1,754,869.00 
 
 10,198,530.00 
 
 12% 
 
 1902. 
 
 . 1,000,000 
 
 1,826,362.00 
 
 11,300,046.00 
 
 12% 
 
 1903. 
 
 . 1,000,000 
 
 1,936,299.00 
 
 9,277,713.00 
 
 12% 
 
 1904. 
 
 . 1,000,000 
 
 2,032,401.00 
 
 9,586,859.00 
 
 12% 
 
 1905. 
 
 . 1,000,000 
 
 2,093,693.00 
 
 10,733,764.00 
 
 12% 
 
 1906. 
 
 . 1,000,000 
 
 2,129,065.00 
 
 9,367,630.00 
 
 12% 
 
 34 
 
The Bank of North America 
 
 RESOURCES 
 January 1st 
 
 Loans Due from 
 
 Year and Discounts Banks and Bankers Cash in Bank 
 
 1881 $5,291,285.37 $373,258.11 $2,790,870.46 
 
 1882 5,451,003.26 453,485.15 2,683,270.77 
 
 1883 5,533,790.60 515,565.84 2,036,124.75 
 
 1884 5,395,854.97 789,735.24 2,279,539.49 
 
 1885 5,549,579.56 889,626.36 2,593,430.16 
 
 1886 6,364,043.36 483,667.21 3,379,475.81 
 
 1887 6,622,315.37 376,075.23 2,000,807.16 
 
 1888 5,780,001.74 450,283.80 1,777,620.59 
 
 1889 5,617,057.16 515,300.35 1,948,210.07 
 
 1890 5,423,198.28 1,010,215.73 1,580,577.51 
 
 1891 5,840,103.23 569,839.67 1,712,666.08 
 
 1892 6,085,040.93 1,404,251.90 3,435,181.82 
 
 1893 6,495,213.17 1,477,927.45 1,646,529.85 
 
 1894 5,478,935.91 1,598,959.74 2,884,211.34 
 
 1895 6,607,058.24 1,417,533.50 2,109,011.79 
 
 1896 6,475,502.75 1,367,418.30 2,249,266.47 
 
 1897 6,289,763.61 1,846,996.59 2,290,578.13 
 
 1898 8,170,728.81 1,937,912.69 3,134,418.31 
 
 1899 8,291,985.25 2,685,771.71 3,276,172.81 
 
 1900 7,629,038.28 2,567,248.36 1,468,818.71 
 
 1901 8,758,614.14 2,456,928.38 2,244,016.51 
 
 1902 9,259,135.03 2,956,467.11 2,374,138.03 
 
 1903 8,708,217.04 2,473,382.30 1,498,437.25 
 
 1904 8,668,859.11 2,450,791.21 1,953,106.15 
 
 1905 9,807,302.40 2,599,297.25 1,777,569.49 
 
 1906 9,018,887.25 2,591,403.61 1,348,833.60 
 
 35 
 
THE FINANCIAL OUTLOOK 
 
 THE Board of Directors and Officers 
 of the Bank of North America look 
 back with pride upon twenty-five 
 years of success and prosperity. 
 The Bank is in excellent condition 
 and the policy which has brought it to the place 
 where it now stands will not be changed. 
 
 The capable and energetic management of 
 the modern business men who control it, the 
 excellent business sense which it always displays, 
 and the initiative which characterizes its policy, 
 these things have retained old friends and old 
 business, while winning a host of new patrons 
 and finding new activities corresponding with 
 the expansion of the times. 
 
 The total sum of dividends distributed in 
 the last twenty-five years, ending January 1, 
 1907, is $3,420,000, or 342 per cent of the capital 
 stock. The gains and losses have all been of a 
 strictly legitimate character and the former so 
 outbalance the latter as to prove that in the 
 Bank of North America the probability of gain 
 is practically a certainty and the possibility of 
 loss is reduced to a minimum. 
 
 36 
 
o 
 
 C 
 
The Bank of North America 
 
 The Bank has weathered so many crises dur- 
 ing the one hundred and twenty-five years of its 
 existence that there is little cause for apprehen- 
 sion in regard to the future. Nevertheless, it is 
 interesting to consider the probable date of the 
 next depression and the indications which point 
 respectively toward or away from such an event, 
 difficult as it is to forecast with any degree of 
 certainty. 
 
 While the conditions at the times of each of 
 the latest crises have differed materially from 
 those of the preceding, the difference in the con- 
 ditions at the beginning of the twentieth century 
 is even greater, which renders prediction cor- 
 respondingly difficult. 
 
 The possession of great wealth is not a pre- 
 ventive of crises; on the contrary, an abundance 
 of available money is often a provoking cause. 
 
 Among the indications at present which 
 point to the approach of a crisis or depression 
 are the following: 
 
 First : Never in the history of any country has 
 there been a time when the speculative move- 
 ment, aroused by an era of prosperity, and dis- 
 played in the floating of securities at many times 
 the actual, present value of the property, has 
 been so noticeable as in the United States to-day. 
 
 We have passed the time when the stocks and 
 bonds of industrial corporations are counted by 
 
 37 
 
The Bank of North America 
 
 thousands or even by millions, for at present a 
 billion is not an unknown figure. In this large 
 capitalization there is a great difference between 
 the nominal value of the stocks and bonds and 
 the actual value of the property which they 
 represent. It is a serious question whether the 
 earning capacity of these corporations is such as 
 to pay a return upon the inflated prices at which 
 their securities have been taken by the investing 
 public. The failure of one of them might at any 
 time cause a crisis and impose a check upon even 
 the most advantageous enterprises. 
 
 The Bank of North America is prepared for 
 such a contingency by the character of its Board 
 of Directors. Being men with business affini- 
 ties in every line, they will be able to foresee pos- 
 sible disasters and enable the Bank to steer clear 
 of them. 
 
 Second: While speculative enterprises and 
 the development of untried fields do not consti- 
 tute so large a part of the prevailing activity 
 as was the case prior to the crises of 1873 and 
 1882-84, new undertakings have been inaugu- 
 rated upon a colossal scale. In the absorption 
 of capital for increase of production or future 
 profits, conditions are quite the same as those 
 which have existed before every previous finan- 
 cial depression. 
 
 This possibility can have little effect upon the 
 Bank, since its policy in the future will be, as in 
 
 38 
 
The Bank of North America 
 
 the past, never to become so deeply involved in 
 any one enterprise that its failure or success 
 would make a material difference. 
 
 Third: If we consider the prices of iron and 
 steel, which have been the best barometer in the 
 past, we are in the fluctuating period. Prior to 
 each of the recent depressions, iron has passed 
 a maximum of price and then has fallen or fluc- 
 tuated for a time before the occurrence of the 
 crisis. Using this as a criterion, we know that 
 the country is safe for at least another eighteen 
 months, as the foundries have orders sufficient 
 to keep them busy during that period, and the 
 volume of steel construction is steadily increas- 
 ing. A fluctuating period such as was mentioned 
 above seems to have commenced at the end of 
 the year 1899, also one year prior to the crisis of 
 1873, and four years prior to the crisis of 1893. 
 In the first six months of the year 1901, how- 
 ever, consumption exceeded production, although 
 the latter was well maintained. 
 
 Fourth : The absence of equilibrium between 
 different kinds of production, which is a precursor 
 of depression, has manifested itself in certain 
 branches, most notably in the manufacture of 
 textiles. Over-production in these has resulted 
 in a decrease of activity and profit. This is of 
 especial importance to Philadelphia, which is fa- 
 mous for the production of textiles. However, 
 the Bank of North America finances only such 
 
 39 
 
The Bank of North America 
 
 enterprises as have been carefully investigated 
 by competent men, thus providing against loss 
 in this direction. 
 
 Fifth: There are not lacking distinct indica- 
 tions of diminished activity and purchasing power 
 in other countries with which we have extended 
 commercial relations and upon whose prosperity 
 our own in a great measure depends. This is 
 notably true of Russia, which met such an un- 
 expectedly powerful and efficient foe in Japan. 
 The crisis of 1893 occurred two and a half years 
 after diminished activity in European countries, 
 clearly indicating that depression began there. 
 
 Having no affiliations abroad, the Bank will 
 have to contend only with strictly local condi- 
 tions, so that it would require both European 
 depression and a long-continued domestic crisis 
 to impair its stability in any way. 
 
 Turning to the sunnier aspect of the future, 
 one may find numerous indications that a crisis 
 is not impending: 
 
 First: A vital distinction exists between in- 
 dustrial operations at this time and those in the 
 periods preceding former depressions. In pre- 
 vious instances the greater part of the activity 
 was in new construction, now it is in the exten- 
 sion or improvement of the old. 
 
 The building of new railroads has almost come 
 to a standstill; yet in volume, the sales of steel 
 
 40 
 
The Bank of North America 
 
 rails and railway material compare favorably 
 with the sales in former years of activity. Prior 
 to 1873 and 1884, thousands of miles of railroads 
 were in process of construction. The greater 
 part of these were through undeveloped terri- 
 tory, especially before 1873, or in competition 
 with existing lines, as was largely the case before 
 1884. Now steel rails are being substituted for 
 iron, or heavier steel rails for lighter. Pressed 
 steel cars are taking the place of wooden ones, 
 substantial embankments the place of trestles. 
 On both highways and railroads, steel bridges 
 are doing away with less permanent structures. 
 
 Demand precedes construction, rather than 
 construction, demand. 
 
 Furnaces and rolling mills, instead of in- 
 creasing in numbers, as on former occasions, 
 are being remodeled and provided with greater 
 capacity. 
 
 Practically the only new enterprise in an un- 
 developed country is the digging of the Panama 
 Canal to complete the work De Lesseps was 
 forced to leave undone. This Government ven- 
 ture is, however, merely an incident among the 
 many vast enterprises of the nation. 
 
 Instead of putting capital into mines of 
 doubtful profit or productive capacity, it is em- 
 ployed in working those which have been found 
 to yield abundant return. Much of the gold and 
 silver mining which formerly depended for its 
 
 41 
 
The Bank of North America 
 
 profits on various contingencies, is now con- 
 ducted in pursuance of careful calculations. 
 
 Before previous crises men were preparing to 
 use capital in untried business or manufacturing, 
 a process always accompanied by uncertainty. 
 To-day they are expending for the better trans- 
 action of existing business or for improved meth- 
 ods of manufacturing, which promises a more 
 assured and, in most instances, a quicker return. 
 Certainly the latter condition has fewer danger- 
 ous features than the former. All enterprises, 
 in fact, seem at the present to be in fields already 
 exploited and found profitable. 
 
 The absence of the experimental element in 
 modern activities means to the Bank of North 
 America, as it does to every other bank in the 
 United States, a safe market for their loans and 
 promises continued prosperity. 
 
 Second : The financial condition of the United 
 States to-day is excellent. The money market 
 has recently experienced several extremely se- 
 vere shocks, pronounced enough to have caused 
 a crisis in earlier years, yet it quickly re- 
 covered. 
 
 In 1899 the reserves in the New York City 
 banks were very low, and the financial situation 
 seemed as threatening as before the crisis of 
 1873, yet the condition of the Bank of North 
 America was as good then as at any time in its 
 history. 
 
 42 
 
The Bank of North America 
 
 Money on call rose to an unusual figure, as it 
 did later in 1906. 
 
 In the speculations of the month of May, 
 1901, losses occurred on the stock market great- 
 er than any ever before experienced. 
 
 Bankruptcies and revelations of business 
 mismanagement and dishonesty, such as usu- 
 ally put a check upon enterprise, have occurred 
 without apparently disturbing the forward move- 
 ment. 
 
 The withdrawal of foreign capital, a danger- 
 ous feature of every previous crisis for the last 
 half century, has been provided against by the 
 reduction of the country's indebtedness abroad, 
 nor can it again be a disturbing influence, for our 
 reliance upon foreign capital for future develop- 
 ment has ceased. This desirable condition has 
 been brought about by the increase in our ex- 
 ports and by the sterling and patriotic qualities 
 in our prominent banks. 
 
 Third : The monetary system of the country, 
 while by no means perfect, is free from irre- 
 deemable paper currency, such as was in circula- 
 tion in 1873, and from the silver inflation of 1893. 
 The Bank of North America stands ready now. 
 as before, to redeem its issues of notes in specie. 
 
 Fourth : The consolidation of great industries 
 under the control of a limited number of organi- 
 zations, while it has objectionable features, also 
 operates to advantage in many ways. Produc- 
 
 43 
 
The Bank of North America 
 
 tion is held in check, and ruinous competition 
 and over-production, conditions always found in 
 times of panic, are diminished. 
 
 From other standpoints, such as reducing the 
 general opportunity to engage in enterprises, the 
 fostering of monopoly, and the throwing men 
 out of employment, there is much to be said 
 against such concentration, but in the possibility 
 of a crisis, it must be regarded as an element of 
 strength. 
 
 Fifth: The maintained increase in railway 
 earnings, the large profits of domestic transpor- 
 tation, and the unusual activity in ship-building, 
 all seem to indicate an increase in demand, pro- 
 duction, and ready sale of these products. 
 
 Sixth: Foreign trade conditions are also 
 favorable. There is neither a marked increase 
 in the proportion of exports to imports from year 
 to year, nor a sudden decrease, nor is there a 
 continued excess of imports over exports. The 
 characteristic of the situation for the last half 
 dozen years is the maintenance of an unprece- 
 dented proportion of exports. 
 
 The Bank of North America looks toward the 
 future cheerily, and with a thrill of pride surveys 
 the prosperity of the nation, of whose history it 
 is a part. The Bank knows that as long as the 
 nation remains undivided, so long will its own 
 existence continue. 
 
 44 
 
The Bank of North America 
 
 In times of trouble it has stood by its friends, 
 and in times of plenty prospered with them. To 
 all its friends, old and new, it sends this account 
 of its activities for the past twenty-five years, 
 with a word of friendly greeting and with the 
 wish that they look hopefully toward the future 
 and 
 
 "<6reet tlje &n$een totti) a Ctytttl" 
 
 45 
 
It is with deep regret that we are compelled 
 to close this history with the record of the death 
 of President John H. Michener. His last offi- 
 cial act was the reading of the proofs of this 
 book. He came to the bank as usual on Fri- 
 day, September 14th, was taken ill on his return 
 to his home, and passed away Sunday morning. 
 
 Mr. Michener was born in Willow Grove, 
 Montgomery County, Pa., March 16, 1821. As 
 a young man he came to Philadelphia and for a 
 time was employed in the store of his uncle, 
 John Hanson. In 1843 he organized the firm 
 of John H. Michener & Co., in which he has been 
 continuously interested for more than sixty 
 years, being at the time of his death the oldest 
 merchant in Philadelphia. 
 
 He became a director of the Bank of North 
 America in 1871, and was unanimously elected 
 to the Presidency in 1887. In 1903 he was re- 
 lieved of a part of his duties by the election of 
 his son, Harry G. Michener, to the Vice-Presi- 
 dency, who succeeded his father to the Presi- 
 dency September 21st, by unanimous election. 
 
 46 
 

 
 
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 ' ■ 
 
 JOHN H. M1CHENER. PRESIDENT. 
 1887 - 1906. 
 
The Bank of North America 
 
 Four years ago John H. Michener.was chosen 
 President of the Philadelphia Clearing House 
 Association, and only a few days before his 
 death urged and supported the vigorous action 
 taken by the Association in regard to the trust 
 companies. 
 
 He was also the sole surviving member of 
 the original Board of City Trusts, President of 
 the North Pennsylvania Railroad, Director of 
 the Delaware Insurance Company, the Mer- 
 chants' Fund, National Optical Company, Phila- 
 delphia Warehouse Company, Vice-President of 
 the Board of Trade, and member of the Union 
 League, as weU as one of its oldest living mem- 
 bers. 
 
 He was deeply interested in the effort to 
 secure a reform administration in Philadelphia, 
 and was one of the first men selected on Mayor 
 Weaver's advisory board. 
 
 Conservative, yet ever active and alert, kind 
 but unyielding in questions of principle, gen- 
 erous and just, he was deeply loved and re- 
 spected by all who knew him. Sought con- 
 stantly and especially by younger men for his 
 judgment and advice, he was found ever ready 
 with an open heart and a helping hand, for 
 charity in its broadest sense was not alone his 
 personal inclination but his life philosophy. 
 
 By the many whose lives and activities 
 touched his he will be keenly missed. His was 
 
 47 
 
The Bank of North America 
 
 a type of manhood modern civilization but 
 rarely produces. 
 
 "Mark the perfect man and behold the up- 
 right, for the end of that man is peace." 
 
 The following resolutions were adopted by 
 the Philadelphia Clearing House Association, 
 October 1, 1906: 
 
 The members of the Clearing House Associa- 
 tion of the Banks of Philadelphia desire to place 
 upon record some minute of their regard and 
 esteem for their late colleague and friend — John 
 H. Michener — who served as a member of the 
 Clearing House Committee since 1887, and as 
 President of the Association since 1903, always 
 bringing to the fulfilment of his duties an abun- 
 dance of energy and zeal. 
 
 Mr. Michener was ever anxious to advance 
 the interests of the Association, and it was 
 through his efforts that the present Clearing 
 House Building was purchased and made the 
 meeting place and home of the Association; and 
 though he had passed the age when most men 
 are willing to lay down the cares and worries of 
 business, his strong physical and mental endow- 
 ment enabled him to continue with skill and 
 zest the activities of a busy life. 
 
 Honest and candid, with strength of decision, 
 and insistency of purpose, he won our esteem 
 
 48 
 
The Bank of North America 
 
 and admiration for his frankness and straight- 
 forwardness, while at the same time winning 
 our friendship and regard, by his good-fellow- 
 ship and open-heartedness. 
 
 It may truly be said of him that he was an 
 honest man and a good citizen; faithful and 
 zealous to the last, he made a distinct impress 
 on his time. 
 
 At a special meeting of the Board of Direct- 
 ors of the Bank of North America, held Sep- 
 tember 19, 1906, the following resolutions were 
 unanimously adopted : 
 
 Death has again visited us and taken our be- 
 loved President to his eternal rest. 
 
 This visitation leaves us sad indeed, for long 
 association with our departed friend has engen- 
 dered feelings far stronger than those of ordi- 
 nary friendship and esteem. 
 
 Mr. Michener was for many years a Director 
 of The Bank of North America, and for the last 
 nineteen years its President. 
 
 His advanced years and extraordinary phys- 
 ical and mental ability, his rare good judgment of 
 men and affairs, his rugged and uncompromising 
 honesty, his recognition of the rights of men in all 
 stations of life, all served to attach us to him in 
 an unusual manner. At the advanced age of 
 eighty-five years he was still recognized as a 
 thoroughly efficient President, and well able to 
 
 49 
 
The Bank of North America 
 
 conduct the affairs of a great financial institu- 
 tion. 
 
 He divided the great endowment nature had 
 bestowed on him with his fellow-men, reaching 
 out into the various walks of life with that 
 generous assistance and wise counsel he so well 
 knew how to render. 
 
 Being mindful of the greatness of character 
 of our late President, the Directors of The Bank 
 of North America, in special meeting assembled 
 this nineteenth day of September, 1906, hum- 
 bly submit themselves to the will of Providence, 
 and deeply thankful for the long life and hon- 
 orable service of their late companion, unani- 
 mously indorse the foregoing, and order a 'copy 
 of same to be engrossed, and sent to the family. 
 
 50 
 
LIST OF 
 
 PRESIDENTS, CASHIERS AND DIRECTORS 
 
 OF 
 
 THE BANK OF NORTH AMERICA 
 
 (a national bank) 
 
 From 1881 to 1906 
 
 PRESIDENTS 
 
 Name Elected 
 
 Thos. Smith Aug. 20, 1860 
 
 Chas. S. Lewis Apr. 30, 1883 
 
 John H. Michener . . .July 1, 1887 
 Harry G. Michener. .Sept. 21, 1906 
 
 Term of 
 Office Expired 
 *Apr. 30, 1883 
 *June 9,1887 
 
 Died 
 May 20, 1883 
 May 11, 1891 
 Sept. 16, 1906 
 
 * Resigned. 
 
 Name 
 
 John H. Watt 
 
 CASHIERS 
 
 Elected 
 
 May 1, 1869 
 
 Name 
 
 Israel Morris. 
 
 Lemuel Coffin. 
 
 Wm. B. Kempton. 
 John H. Michener. 
 
 * Resigned. 
 
 DIRECTORS 
 
 Elected 
 . .Jan. 8, 1878 
 
 Jan. 10, 1882 
 
 Jan. 12, 1886 
 . .Jan. 13, 1880 
 
 Jan. 8, 1884 
 ..Jan. 13, 1880 
 . .Jan. 14, 1879 
 
 Jan. 9, 1883 
 
 51 
 
 Term Expired 
 
 Jan. 11, 1881 
 
 Jan. 13, 1885 
 
 *Jan. 13, 1903 
 
 Jan. 9, 1883 
 
 |Jan. 4, 1895 
 
 Jan. 9, 1883 
 
 Jan. 10, 1882 
 
 fSept. 16, 1906 
 
 t Died. 
 
DIRECTORS— (Continued) 
 
 Name Elected Term Expired 
 
 Henry Winsor Jan. 13, 1880 Jan. 8, 1889 
 
 Jas. C. Hand Jan. 11, 1881 |Jan. 16, 1884 
 
 Clement A. Griscom.. .Jan. 8, 1878 Jan. 11, 1881 
 
 Jan. 10, 1882 Jan. 13, 1885 
 
 Jan. 12, 1886 
 Geo. W. Fiss Jan. 8, 1878 Jan. 11, 1881 
 
 Jan. 10, 1882 *March 23, 1899 
 Wm. G. Audenried....Jan. 8, 1878 Jan. 11, 1881 
 
 Jan. 10, 1882 Jan. 13, 1885 
 
 Jan. 12, 1886 fJuly 28, 1896 
 John H. Brown Jan. 11, 1881 Jan. 8, 1884 
 
 Jan. 13, 1885 Jan. 12, 1886 
 Wm. Simpson, Jr Jan. 11, 1881 Jan. 8, 1884 
 
 Jan. 13, 1885 Jan. 8, 1895 
 
 Jacob P. Jones Jan. 9, 1883 tMay 20, 1885 
 
 Henry Lewis Jan. 9, 1883 fOct. 20, 1886 
 
 Chas. S. Lewis Jan. 9, 1883 tMay 11, 1891 
 
 R. H. Downing Jan. 10, 1882 Jan. 9, 1883 
 
 Jan. 13, 1885 
 
 Samuel B. Brown Jan. 8,1884 Jan. 8,1895 
 
 W. D. Winsor Jan. 8, 1889 
 
 R. K. McNeely Oct. 5, 1891 *Jan. 10, 1905 
 
 Chas. H. Harding Jan. 8, 1895 
 
 Harry G. Michener. . ..Jan. 8, 1895 
 Lincoln K. Passmore. . Jan. 8, 1895 
 
 John P. Green Dec. 7, 1896 
 
 Wm. P. Henszey April 13, 1899 
 
 Wm. F. Read Jan. 14, 1903 
 
 Christian C. Febiger. ..Jan. 10, 1905 
 J. Howell Cummings..Oct. 4, 1906 
 
 * Resigned. f Died. 
 
 52 
 
DIVIDENDS PAID BY THE BANK OF NORTH 
 AMERICA 
 
 (a national bank) 
 From January 1, 1882, to December 31, 1906 
 
 1882 16 per 
 
 1883 16 
 
 1884 16 
 
 1885 16 
 
 1886 16 
 
 1887 16 
 
 1888 16 
 
 1889 16 
 
 1890 16 
 
 1891 16 
 
 1892 14 
 
 1893 12 
 
 1894 12 
 
 cent 
 
 1895... 
 
 . . . 12 per c 
 
 1896... 
 
 . . . 12 
 
 1897. . 
 
 ...12 
 
 1898... 
 
 . .12 
 
 1899... 
 
 . .12 
 
 1900. . 
 
 ...12 " 
 
 1901. . 
 
 . . . 12 " 
 
 1902. . 
 
 . . . 12 
 
 1903... 
 
 . . . 12 
 
 1904. . . 
 
 . . . 12 " 
 
 1905... 
 
 ..12 
 
 1906... 
 
 . . 12 " 
 
 cent 
 
 Total for 25 years— 342% $3,420,000.00 
 
 From Jan. 1, 1860, to Jan. 1, 1882—370% 3,700,000.00 
 From Dec. 31, 1781, to Dec. 31, 1859. . . . 6,410,450.00 
 
 $13,530,450.00 
 
 Surplus 2,000,000.00 
 
 Undivided Profits— Over 280,000.00 
 
 Total Earnings— Over $15,810,000.00 
 
 53 
 
I 
 
 II III 
 
 
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 I 
 
 III I