JANUARY 7, 1782 – BANK OF NORTH AMERICA OPENS

1782 – BANK OF NORTH AMERICA OPENS
This was the nation’s first private commercial bank. At that time, the nation’s constitution was the Articles of Confederation. Article 9 of the Articles gave Congress the power to “emit bills of credit” -- to create debt free money. By a single vote, Congress voted to transfer their authority to issue money to the The Bank of North America when it approved its charter on December 31, 1781. Thus, the Bank served as a quasi central bank (which created money as loans, called “debt money”). Why did Congress willingly give up their money power? The public argument was that the business of finance could not be competently conduced by a public body (Congress) — only by a small number of private financiers. The first head of the Bank was Robert Morris, the richest merchant in America.