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78-528: Characteristically, the issues were not extensive and, as it has been observed, "the polite fiction was always maintained that Treasury Notes did not serve as money when, in fact, to a limited extent they did." The value of these notes varied, being worth more or less than par as market conditions fluctuated, and they rapidly disappeared from the financial system after the crisis associated with their issuance had ended. The ante-bellum Treasury Notes did not have legal tender status, but financial innovation during

156-442: A $ 100 note), matured in one year, and were receivable in payment for public dues. While $ 37 million were issued, no more than $ 17 million were outstanding at any one time. Five acts authorized these Notes. The first, on June 20, 1812, authorized 1-year Treasury Notes at 5 + 2 ⁄ 5 % interest to fill out the unsubscribed portion of an $ 11 million loan in support of the war with Britain which had just been declared on

234-496: A bank, led by Republican nationalists John C. Calhoun of South Carolina and Henry Clay of Kentucky, was decisive in the successful chartering effort. The charter was signed into law by James Madison on April 10, 1816. Subsequent efforts by Calhoun and Clay to earmark the bank's $ 1.5 million establishment "bonus", and annual dividends estimated at $ 650,000, as a fund for internal improvements , were vetoed by President Madison, on strict constructionist grounds. Opposition to

312-656: A central bank with which to obtain emergency short-term financing, and it used its borrowing authority to issue short-term debt in the form of Treasury Notes receivable for public dues or bond purchases. Having thus set the precedent, the Treasury would go on to irregularly issue such notes up through the Civil War. Several issues of Treasury Notes were made during the War of 1812 from 1812 to 1815. Most of these notes paid 5 + 2 ⁄ 5 % interest (or 1 + 1 ⁄ 2 cents per day on

390-631: A central bank. Subsequently, the 1st United States Congress chartered the First Bank of the United States in 1791 to facilitate its financial operations, but in 1811 its charter was not renewed due to opposition from the Madison administration. Thus, when the declaration of the War of 1812 impaired the government's ability to raise money via the sale of long-term bonds, the United States had no paper currency nor

468-634: A decade earlier, the Treasury recognized the useful services it provided, and the American currency was healthy and stable. Public perceptions of the national bank were generally positive. The bank first came under attack by the Jackson administration in December 1829, on the grounds that it had failed to produce a stable national currency, and that it lacked constitutional legitimacy. Both houses of Congress responded with committee investigations and reports affirming

546-647: A former student of Benjamin Latrobe (1764–1820), the man who is often called the first professionally trained American architect . Latrobe and Strickland were both disciples of the Greek Revival style. Strickland went on to design many other American public buildings in this style, including financial structures such as the Mechanics National Bank (also in Philadelphia). He also designed the second building for

624-480: A lack of fiscal order; business interests sought security for their government bonds. A national alliance arose to legislate a national bank to address these needs. The political climate —dubbed the Era of Good Feelings —favored the development of national programs and institutions, including a protective tariff , internal improvements and the revival of a Bank of the United States . Southern and western support for

702-499: A large set of steps leading up to the main level platform, known as the stylobate . On top of these, Strickland placed eight severe Doric columns, which are crowned by an entablature containing a triglyph frieze and simple triangular pediment . The building appears much as an ancient Greek temple, hence the stylistic name. The interior consists of an entrance hallway in the center of the north façade flanked by two rooms on either side. The entry leads into two central rooms, one after

780-572: A lengthy liquidation process, complicated by lawsuits, that ended in 1852 when it assigned its remaining assets to trustees and surrendered the state charter. The bank maintained the following branches. Listed is the year each branch opened. The Second Bank was America's national bank, comparable to the Bank of England and the Bank of France , with one key distinction – the United States government owned one-fifth (20 percent) of its capital. Whereas other national banks of that era were wholly private,

858-469: A modern central bank : It did not set monetary policy , regulate private banks, hold their excess reserves , or act as a lender of last resort . The bank was launched in the midst of a major global market readjustment as Europe recovered from the Napoleonic Wars . It was charged with restraining uninhibited private bank note issue—already in progress —that threatened to create a credit bubble and

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936-428: A more favorable issue price. Thus, par value is the nominal value of a security which is determined by the issuing company to be its minimum price. This was far more important in unregulated equity markets than in the regulated markets that exist today, where stock issuance prices must usually be published. The par value of stock remains unchanged in a bonus stock issue but it changes in a stock split . In accounting,

1014-454: A new bank emanated from two interests. Old Republicans , represented by John Taylor of Caroline and John Randolph of Roanoke , characterized the Second Bank as both constitutionally illegitimate and a direct threat to Jeffersonian agrarianism, state sovereignty and the institution of slavery , expressed by Taylor's statement that "...if Congress could incorporate a bank, it might emancipate

1092-564: A new one). Par value also refers to the official gold content of a currency. The Act to Amend the Par Value Modification Act of 1973 of September 21, 1973 lowered the par value of the dollar against gold from $ 35 to $ 42.2222 where it remains today. This is why the face value of a 1 oz gold coin is $ 50, reflecting the par value of the dollar in gold. Second Bank of the United States The Second Bank of

1170-603: A penny ( USD $ 0.01) par value on a stock issued at USD $ 25.00/share. Most jurisdictions do not allow a company to issue stock below par value. Even in jurisdictions that permit the issue of stock with no par value, the par value of a stock may affect its tax treatment. For example, Delaware permits the issue of stock either with or without a par value, but by choosing to assign a par value, a corporation may significantly reduce its franchise tax liability. No-par stocks have "no par value" printed on their certificates. Instead of par value, some U.S. states allow no-par stocks to have

1248-634: A promise for immediate repurchase, principal and interest, by the sub-treasury in New York at par in specie. Some members of the Congress complained that such Notes were dangerously close to currency. Also controversial was the practice by the Secretaries to issue some Notes with only nominal interest, a mere 1/1000 of one percent per annum, to "deposit" in private banks and then draw upon the resulting funds via checks. Treasury Notes were again issued to help finance

1326-402: A protracted recession with mass unemployment and a sharp drop in property values that persisted until 1822. The financial crisis raised doubts among the American public as to the efficacy of paper money, and in whose interests a national system of finance operated. Upon this widespread disaffection the anti-bank Jacksonian Democrats would mobilize opposition to the bank in the 1830s. The bank

1404-506: A rate of 6%, and payable in one year or earlier at the option of the government. While these instruments were Treasury Notes in the pre-Civil war usage of the term, they were called Certificates of Indebtedness to distinguish them from Demand Notes, United States Notes and Seven-Thirties. While these certificates traded below par in the secondary market they could be used by merchants as collateral for obtaining bank loans. Authorized in 1898, Certificates of Indebtedness were issued during

1482-615: A short-lived financial crisis that was initially blamed on Jackson's executive action. By 1834, a general backlash against Biddle's tactics developed, ending the panic, and all recharter efforts were abandoned. In February 1836, the bank became a private corporation under Pennsylvania law. A shortage of hard currency ensued, causing the Panic of 1837 and lasting approximately seven years. The bank suspended payment from October 1839 to January 1841, and permanently in February 1841. It then started

1560-485: A single state, it was authorized to have branches in multiple states and lend money to the US government. A private corporation with public duties , the bank handled all fiscal transactions for the U.S. government, and was accountable to Congress and the U.S. Treasury . Twenty percent of its capital was owned by the federal government, the bank's single largest stockholder . Four thousand private investors held 80 percent of

1638-465: A slave." Hostile to the regulatory effects of the national bank, private banks—proliferating with or without state charters —had scuttled rechartering of the First Bank in 1811. These interests played significant roles in undermining the institution during the administration of U.S. President Andrew Jackson (1829–1837). The Second Bank was a national bank. However, it did not serve the functions of

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1716-453: A stated value, set by the board of directors of the corporation, which serves the same purpose as par value in setting the minimum legal capital that the corporation must have after paying any dividends or buying back its stock. Also, par value still matters for a callable common stock : the call price is usually either par value or a small fixed percentage over par value. The shares in a corporation may be issued partly paid , which renders

1794-411: A vast and profitable disbursement of bank loans to farmers, small manufacturers and entrepreneurs, encouraging rapid and healthy economic expansion. Historian Bray Hammond describes the mechanism by which the bank exerted its anti-inflationary influence: Receiving the checks and notes of local banks deposited with the [Bank] by government collectors of revenue, the [Bank] had constantly to come back on

1872-400: Is also embellished by Corinthian pilasters and a symmetric arrangement of sash windows piercing the two stories of the façade. The roofline is also topped by a balustrade , and the heavy modillions adorning the pediment give the First Bank an appearance more like a Roman villa than a Greek temple. Since the bank's closing in 1841, the edifice has performed a variety of functions. Today, it

1950-544: Is part of Independence National Historical Park in Philadelphia. The structure is open to the public free of charge and serves as an art gallery, housing a large collection of portraits of prominent early Americans painted by Charles Willson Peale and many others. The building was designated a National Historic Landmark in 1987 for its architectural and historic significance. The Wall Street branch in New York City

2028-503: Is priced at 100% of face value. Par can also refer to a bond's original issue value or its value upon redemption at maturity. The par value of stock has no relation to market value and, as a concept, is somewhat archaic. The par value of a share is the value stated in the corporate charter below which shares of that class cannot be sold upon initial offering ; the issuing company promises not to issue further shares below par value, so investors can be confident that no one else will receive

2106-537: The Baltimore office had engaged in fraud and larceny. Resigning in January 1819, Jones was replaced by Langdon Cheves , who continued the contraction in credit in an effort to stop inflation and stabilize the bank, even as the economy began to correct. The bank's reaction to the crisis—a clumsy expansion, then a sharp contraction of credit—indicated its weakness, not its strength. The effects were catastrophic, resulting in

2184-665: The Mexican–American War in 1846 and 1847. Including reissues, $ 33.8 of one year notes were issued with interest rates varying from 1 ⁄ 1000 of 1% to 6%. In 1857 federal revenues suffered from the lowered rates of the Tariff of 1857 and decreased economic activity due to the Panic of 1857 . At the same time outlays increased with the expensive Utah War . The government resorted to several issues of Treasury Notes from 1857 to 1860. The Morrill Tariff Act of March 2, 1861, signed into law by President Buchanan , authorized

2262-811: The 18th. Only about $ 6 of the loan was placed in the form of 6% interest bonds, and thus $ 5 of Notes were issued. The Notes were made receivable for all public dues owed the federal government and payable to the order of the owner by endorsement. A further $ 5 of similar Notes were authorized on February 25, 1813 to supplement additional loans which had not been fully subscribed. Only Notes of $ 100 denomination and greater were issued under these first two acts, and they sold at prices close to par. The next two acts, those of March 4, 1814 and Dec 26, 1814, called for Note issues both to independently raise revenue as well as to substitute for unsubscribed loans. A total of $ 18,318,400 were emitted under these acts which included Notes of $ 20 and $ 50 denominations in addition to

2340-699: The Act of July 17, 1861 and were a transitional issue connecting Treasury Notes to modern paper money. The denominations of the Demand Notes ( $ 5 , $ 10 and $ 20 ) complemented those of the Seven-Thirties ($ 50 to $ 5,000 ) – much in the way that the Small Treasury Notes of 1815 complemented the Large Notes. The Demand Notes had been intended to function as money, and were payable to bearer, but were authorized within

2418-601: The Civil War caused the term Treasury Note to become associated with legal tender instruments such as the United States Notes introduced in 1862 and the Compound Interest Treasury Notes introduced in 1863. The appearance of these new obligations, together with the changes brought about by the National Banking Act , effectively eliminated most of the uses of the old Treasury Notes as money and

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2496-497: The Continental Dollars were redeemed at a loss of over 99% vs. their face value, but the United States did choose to perform on revolutionary war bond obligations in full by pledging the publicly owned land and the credit of the new federal government against the bonds. As a result, America's early creditors had reason to be wary of a paper currency, but reason to respect its debt. The Founding Fathers were divided over whether

2574-507: The Panic of 1907 to serve as backing for an increased circulation of banknotes. The Aldrich–Vreeland Act soon followed and notes of this nature ceased to be issued. Par value In finance and accounting , par value means stated value or face value of a financial instrument . Expressions derived from this term include at par (at the par value), over par (over par value) and under par (under par value). A bond selling at par

2652-420: The Second Bank was more characteristic of a government bank. Under its charter, the bank had a capital limit of $ 35 million, $ 7.5 million of which represented the government-owned share. It was required to remit a "bonus" payment of $ 1.5 million, payable in three installments, to the government for the privilege of using the public funds, interest free, in its private banking ventures. The institution

2730-504: The Secretary of the Treasury to issue six percent interest Treasury Notes if he was unable to issue previously authorized bonds at par. Sixty-day and two-year notes were issued, payable to order, receivable in payment of all debts due to the United States, and exchangeable for bonds at par. They were first issued by President Lincoln's administration just after the Battle of Fort Sumter and until

2808-523: The Treasury Chase suggested this rate of interest in hopes that the ease of interest calculation (a $ 50 note would accrue interest at one cent per day) would allow the notes to circulate as money, but apparently this did not prove to be the case. Further issues of Seven-Thirties were made in 1864 and 1865. The issue of 1861, which preceded the First Legal Tender Act, paid interest in gold, but

2886-556: The United States was the second federally authorized Hamiltonian national bank in the United States. Located in Philadelphia , Pennsylvania , the bank was chartered from February 1816 to January 1836. The bank's formal name, according to section 9 of its charter as passed by Congress, was "The President, Directors, and Company, of the Bank of the United States". While other banks in the US were chartered by and only allowed to have branches in

2964-529: The United States needed a central bank similar to the Bank of England to issue currency and facilitate the government's use of credit. An early American attempt at central banking along these lines was the Bank of North America which played a meaningful role in helping the Congress of the Confederation to arrange its finances during the 1780s, but its rechartering in 1786 prevented it from continuing to act as

3042-526: The War of 1812 contributed to the Madison administration reversing its views on central banking and authorizing the chartering of the Second Bank of the United States for 20 years, 1816–1836. However, when the Jacksonian Democrats rose to power they strongly opposed the bank and began to dismantle its role in federal policy in the mid-1830s. Thus, when the Panic of 1837 struck the federal government

3120-453: The anti-bank forces persisted in their condemnation of the bank, provoking an early recharter campaign by pro-bank National Republicans under Henry Clay . Clay's political ultimatum to Jackson —with Biddle's financial and political support —sparked the Bank War and placed the fate of the bank at center of the 1832 presidential election . Jackson mobilized his political base by vetoing

3198-491: The bank failed to control paper money issued from its branch banks in the West and South, contributing to the post-war speculative land boom. When the U.S. markets collapsed in the Panic of 1819 —a result of global economic adjustments —the bank came under withering criticism for its belated tight money policies—policies that exacerbated mass unemployment and plunging property values. Further, it transpired that branch directors for

Treasury Note (19th century) - Misplaced Pages Continue

3276-459: The bank was authorized to establish branch offices where it deemed suitable, and these were immune from state taxation . The primary regulatory task of the Second Bank, as chartered by Congress in 1816, was to restrain the uninhibited proliferation of paper money (bank notes) by state or private lenders, which was highly profitable to these institutions. In this capacity, the bank would preside over this democratization of credit, contributing to

3354-413: The bank with its regulatory capacity. Modeled on Alexander Hamilton 's First Bank of the United States , the Second Bank was chartered by President James Madison , who in 1791 had attacked the First Bank as unconstitutional, in 1816 and began operations at its main branch in Philadelphia on January 7, 1817, managing 25 branch offices nationwide by 1832. The efforts to renew the bank's charter put

3432-468: The bank's capital, including three thousand Europeans. The bulk of the stocks were held by a few hundred wealthy Americans. In its time, the institution was the largest monied corporation in the world. The essential function of the bank was to regulate the public credit issued by private banking institutions through the fiscal duties it performed for the U.S. Treasury, and to establish a sound and stable national currency . The federal deposits endowed

3510-632: The bearer to an equivalent amount of silver Spanish Milled Dollars but were repeatedly devalued and were never redeemed in silver despite the American victory. With the fate of the Continentals in mind, the Founding Fathers embedded in the Constitution no provision for a paper currency, and they forbade the states to make anything but gold or silver a legal tender. As part of the Compromise of 1790 ,

3588-507: The bonds) as a way of supporting their value. Among the several issues of Treasury Notes of special note are the "Small Treasury Notes" authorized by the Act of February 24, 1815 which were intended to circulate as currency in the aftermath of the 1814 suspension of specie payment. The Act had been drafted during the financial disarray late in the War of 1812 and called for Notes of denomination less than $ 100 which would bear no interest. The issued denominations were as low as $ 3 , their size

3666-509: The building looked as if the marble statue of Don Guzman could alone have any business to transact within its gloomy walls. I hastened to inquire its name and purpose, and then my surprise vanished. It was the Tomb of many fortunes; the Great Catacomb of investment; the memorable United States Bank. The stoppage of this bank, with all its ruinous consequences, had cast (as I was told on every side)

3744-520: The federal government, which was its principal stockholder and customer." The chief personnel for the bank comprised 25 directors, five of whom were appointed by the President of the United States, subject to Senate approval. Federally appointed directors were barred from acting as officials in other banks. Two of the three Bank presidents, William Jones and Nicholas Biddle, were chosen from among these government directors. Headquartered in Philadelphia,

3822-411: The financing authorized by Act of July 17 became available. Only one example is known to have survived in issued and uncancelled form. Three year Treasury Notes bearing interest at a rate of 7.30% ( seven-thirty ) were first authorized by the Act of July 17, 1861 to help finance the Civil War. These notes were payable to order, but the Treasury would issue them in blank form if requested. Secretary of

3900-413: The government reserved the right to pay the interest of the 1864 and 1865 issues in either United States Notes at 7.3% or in gold at 6%. The option to pay in gold, however, was never exercised. The notes could be exchanged, at par, for 20-year United States bonds bearing interest at 6% in gold. When the 1861 issue was maturing in 1864 these bonds were trading at a premium to face value, so most holders of

3978-418: The historical precedents for the bank's constitutionality and its pivotal role in furnishing a uniform currency. Jackson rejected these findings, and privately characterized the bank as a corrupt institution, dangerous to American liberties. Biddle made repeated overtures to Jackson and his cabinet to secure a compromise on the bank's rechartering (its term due to expire in 1836) without success. Jackson and

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4056-454: The institution at the center of the general election of 1832 , in which the bank's president Nicholas Biddle and pro-bank National Republicans led by Henry Clay clashed with the " hard-money " Andrew Jackson administration and eastern banking interests in the Bank War . Failing to secure recharter, the Second Bank became a private corporation in 1836, and underwent liquidation in 1841. There would not be national banks again until

4134-460: The larger Notes. During 1814 federal finances deteriorated as the war dragged on, and banks outside New England suspended specie payment on August 31, 1814. The value of the Treasury Notes fell below that of specie. New England states were unsympathetic to the war and when the government attempted to withdraw deposits from a Boston bank to make interest payments on October 1, 1814, the bank took

4212-412: The larger the sums they had to settle in specie. This loss of specie reduced their power to lend. Under this banking regime, the impulse towards over-speculation, with the risks of creating a national financial crisis, would be avoided, or at least mitigated. It was just this mechanism that the local private banks found objectionable, because it yoked their lending strategies to the fiscal operations of

4290-482: The legal framework of Treasury Notes since the U.S. was not generally assumed to have the authority to issue banknotes at that time. Eventually the Demand Notes were granted legal tender status and were replaced in function by United States Notes . When the United States Notes were issued they were not receivable in payment of taxes. The 2-year Morrill Tariff act notes and the Demand Notes were outstanding at

4368-429: The local banks for settlements of the amounts which the checks and notes called for. It had to do so because it made those amounts immediately available to the Treasury, wherever desired. Since settlement by the local banks was in specie i.e. silver and gold coin, the pressure for settlement automatically regulated local banking lending: for the more the local banks lent the larger amount of their notes and checks in use and

4446-634: The main U.S. Mint in Philadelphia in 1833, as well as the New Orleans , Dahlonega , and Charlotte branch mints in the mid-to-late 1830s. Strickland's design for the Second Bank is in essence based on the Parthenon in Athens , and is a significant early and monumental example of Greek Revival architecture. The hallmarks of the Greek Revival style can be seen immediately in the north and south façades, which use

4524-415: The national government, requiring them to maintain adequate gold and silver reserves to meet their debt obligations to the U.S. Treasury. The proliferation of private-sector banking institutions – from 31 banks in 1801 to 788 in 1837 – meant that the Second Bank faced strong opposition from this sector during the Jackson administration. The architect of the Second Bank was William Strickland (1788–1854),

4602-512: The needs of the expanding American economy. Albert Gallatin , former Secretary of the Treasury under Thomas Jefferson and James Madison , wrote in 1831 that the bank was fulfilling its charter expectations. By the time of Jackson's inauguration in 1829, the bank appeared to be on solid footing. The Supreme Court had affirmed its constitutionality in McCulloch v. Maryland , the 1819 case which Daniel Webster had argued successfully on its behalf

4680-416: The notes could be issued, however, the war had ended – an occasion which led to the 7% bonds being worth more than par, and the Small Treasury Notes, of which $ 3,392,994 were originally issued, were rapidly exchanged for the bonds. In witness to the limited circulation achieved by these notes, only two issued uncancelled examples of the Small Treasury Notes are known today. The financial difficulties during

4758-401: The opposite side of the way, a handsome building of white marble, which had a mournful ghost-like aspect, dreary to behold. I attributed this to the sombre influence of the night, and on rising in the morning looked out again, expecting to see its steps and portico thronged with groups of people passing in and out. The door was still tight shut, however; the same cold cheerless air prevailed: and

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4836-451: The other, that span the width of the structure east to west. The east and west sides of the first large room are each pierced by a large arched fan window. The building's exterior uses Pennsylvania blue marble , which, due to the manner in which it was cut, has begun to deteriorate due to weak parts of the stone being exposed to the elements. This phenomenon is most visible on the Doric columns of

4914-565: The owner of those shares liability to the corporation for any calls on those shares up to the par value of the shares. The term "at par" is also used when two currencies are exchanged at equal value (for instance, in 1964, Trinidad and Tobago switched from the British West Indies dollar to the new Trinidad and Tobago dollar , and that switch was "at par", meaning that the Central Bank of Trinidad and Tobago replaced each old dollar with

4992-455: The panic turned into a depression which lasted through the early 1840s and several acts from 1838 to 1843 authorized further issues of Treasury Notes. Of note during this period were agitation by the Whig Party for a central bank and a flirtation with the Treasury Notes as currency. Particularly controversial was an issue by Secretary Spencer of about $ 850,000 of Treasury Notes endorsed with

5070-424: The par value allows the company to put a de minimis value for the stock on the company's financial statement. Par value is also used to calculate legal capital or share capital . Many common stocks issued today do not have par values; those that do (usually only in jurisdictions where par values are required by law) have extremely low par values (often the smallest unit of currency in circulation), for example

5148-459: The passage of the National Bank Act . The political support for the revival of a national banking system was rooted in the early 19th century transformation of the country from simple Jeffersonian agrarianism towards one interdependent with industrialization and finance. In the aftermath of the War of 1812 , the federal government suffered from the disarray of an unregulated currency and

5226-583: The position that it could tender Treasury Notes to the government which were then rejected by the holders of the government bonds who expected payment in specie. These developments led to changes in the final Treasury Note act of the era signed on February 24, 1815. These last notes were divided into large ($ 100 and over) and small (under $ 100 ) denominations, and did not expire at any predetermined time. The large notes paid interest as before, at 5 + 2 ⁄ 5 % per annum, but could also be used to purchase 6 percent interest bonds at par (i.e. were fundable into

5304-405: The recharter bill and, the veto sustained, easily won reelection on his anti-bank platform. Jackson proceeded to destroy the bank as a financial and political force by removing its federal deposits, and in 1833, federal revenue was diverted into selected private banks by executive order, ending the regulatory role of the Second Bank. In hopes of extorting a rescue of the bank, Biddle induced

5382-453: The risks of a financial collapse. Government land sales in the West, fueled by European demand for agricultural products, ensured that a speculative bubble would form. Simultaneously, the national bank was engaged in promoting a democratized expansion of credit to accommodate laissez-faire impulses among eastern business entrepreneurs and credit-hungry western and southern farmers. Under the management of its first president William Jones ,

5460-539: The seven-thirties exercised their right to make the exchange. Almost all of the 1864 and 1865 notes were similarly exchanged. The Seven-Thirties were issued in denominations of $ 50 , $ 100 , $ 500 , $ 1,000 , and $ 5,000 . The notes are similar in design to the Legal Tender notes of the Civil War era. Today these notes are collectors' items like U.S. paper money, though no more than two or three dozen surviving examples are known. The Demand Notes were also authorized by

5538-404: The south façade. Construction lasted from 1819 to 1824. The Greek Revival style used for the Second Bank contrasts with the earlier, Federal style in architecture used for the First Bank of the United States , which also still stands and is located nearby in Philadelphia. This can be seen in the more Roman-influenced Federal structure's ornate, colossal Corinthian columns of its façade, which

5616-598: The term Certificate of Indebtedness was introduced to apply to new notes which possessed the debt-like aspects of the pre-war Notes. Today the Treasury's short term debt needs are fulfilled by Treasury bills . The early finances of the central government of the United States were precarious. To help finance the American Revolution the Continental Congress had issued Continental Dollars between 1775 and 1779. The paper Continental Dollars nominally entitled

5694-530: The time and both were "Receivable in Payment of All Public Dues" and were sold at a premium to United States Notes for the payment of customs taxes. Litigation to secure a similar privilege for the Seven-Thirties was unsuccessful. The Act of March 1, 1862 authorized the Secretary of the Treasury to issue to public creditors certificates of denominations not less than $ 1,000 , signed by the Treasurer, bearing interest at

5772-401: Was again without the flexibility of a central bank for its short term finances and one result was several issues of Treasury Notes when federal revenues declined during the panic. The Act of Oct. 12, 1837 authorized $ 10 million of notes in denominations of at least $ 50 . During the economic recovery in 1838/39, outstanding notes were gradually retired but the recovery failed to take hold and

5850-418: Was answerable for its performance to the U.S. Treasury and Congress and subject to Treasury Department inspection. As exclusive fiscal agent for the federal government, it provided a number of services as part of its charter, including holding and transfer of all U.S. deposits, payment and receipt of all government transactions, and processing of tax payments. In other words, the bank was "the depository of

5928-671: Was converted into the United States Assay Office before it was demolished in 1915. The federal-style façade was saved and installed in the American Wing of the Metropolitan Museum of Art in 1924. The Second Bank building was described by Charles Dickens in a chapter of his 1842 travelogue American Notes for General Circulation , Philadelphia, and its solitary prison: We reached the city, late that night. Looking out of my chamber-window, before going to bed, I saw, on

6006-405: Was in general disrepute among most Americans when Nicholas Biddle , the third and last president of the bank, was appointed by President James Monroe in 1823. Under Biddle's guidance, the bank evolved into a powerful institution that produced a strong and sound system of national credit and currency. From 1823 to 1833, Biddle expanded credit steadily, but with restraint, in a manner that served

6084-494: Was typical of banknotes and, unlike the previously issued Notes, they were payable to bearer rather than to order. However, they were not a Legal Tender for private transactions. Like the larger Notes issued under the February 24, 1815 Act, this issue was also supported by the government's promise to receive them at face value for purchasing bonds at par, but in the case of the Small Notes the bonds were to yield 7% interest. Before

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