Bank of Baltimore

"For other banks with similar name see": Bank of Baltimore (disambiguation)

The Bank of Baltimore was chartered in 1795 with $1,200,000 capital in the city of Baltimore, Maryland. The bank was the seventh American bank to begin business in the United States and the Second bank in Maryland. [Mayer, "Baltimore:Past and Present: With Biographical Sketches of Its Representative Men", Richardson & Bennett, 1871, page 126]

During the years 1790 to 1800 the Bank of Maryland was in need of capital to meet demand. The Bank unsuccessfully attempted to double its capital in 1795. As a substitute the Bank proposed to the Maryland legistator to grant a charter to establish another bank which might late consolidate with the Bank of Maryland, upon consent of both parties. this clause was later stricken and the Bank of Baltimore was chartered as an entirely separate institution, receiving its charter in 1795. However, the Bank of Maryland later become a holder of the Bank of Baltimore stock.Alfred, Cookman Bryan, "History of State Banking in Maryland", Harvard University, 1899, page 16] The charter of this bank was 20 years and the state reserved the right to subscribe for 6000 shares at $300 each, and appoint two of seventeen directors annually. The first president of the bank was George Salman. [Col. J. Thomas Scharf, 'The Chronicles of Baltimore', Oxford University, 1874, page 260]

The capital of the bank was fixed by the Maryland Legislature at $1,200,000, though the petitioners wanted the limite placed at $3,000,000, with provision for increasing it ultimately to $9,000,000, as growth demanded.

In 1795, the two banks had an aggregate capital of $1,500,000 which was actively empolyed in the city of Baltimore whose export in trade was valued at more than $9,000,000 and which was rapidly growing in the area of Manufacturing. Maryland's total exports for 1799 were $16,300,000.

In 1802, Thomas Jefferson wrote to the Secretary of the Treasure, Albert Gallatin expressing concerns that the government was granting too many demands to the First Bank of the United States Lobby. This concerned Jefferson because this would grant the United States Bank the ability to "shallow up the other" smaller banks such at the Bank of Baltimore whose stock was owned by US citizens and create a monolopy over the entire US banking industry that would be controlled by foreign powers since the majority of stock of United States Bank was held by citizens of other countries. Jefferson was concerned that this situation would cause problems for the United States in the even of future conflict with a foreign power and as such he supported the Bank of Baltimore's application for a deposit of Government funds. [Thomas Jefferson, 'The Writings of Thomas Jefferson', G.P. Putnam's Sons, 1897, page 172.] The Bank of Baltimore Failed in 1857, during the Commercial Crises of 1857. [David Morier Evans, 'History of the Commercial Crises 1857-58 and the Stock Exchange Panic of 1859', Ayer Publishing, 1969, page 186]

The Bank of Baltimore is one of several predecessor banks that were eventually consolidated by Wachovia.

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