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.
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. 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.
The capital of the bank was fixed by the Maryland Legislature at $1,200,000, though the petitioners wanted the limit 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 employed 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 monopoly 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.
The Bank of Baltimore is one of several predecessor banks that were eventually consolidated into SunTrust.
- Mayer, Baltimore: Past and Present: With Biographical Sketches of Its Representative Men, Richardson & Bennett, 1871, page 126.
- Alfred, Cookman Bryan, History of State Banking in Maryland, Johns Hopkins Press, 1899, page 16.
- Col. J. Thomas Scharf, The Chronicles of Baltimore, Oxford University, 1874, page 260.
- Thomas Jefferson, The Writings of Thomas Jefferson, G.P. Putnam's Sons, 1897, page 172.
- David Morier Evans, History of the Commercial Crises 1857-58 and the Stock Exchange Panic of 1859, Ayer Publishing, 1969, page 186.