Short History of Bank

The History of JPMorgan Chase and Co. 200 Years of Leadership in Banking Table of Contents 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 This bronze figure, A River, is a cast of a well known work made by Jean-Jacques Caffieri in 1759. It portrays Oceanus, the Greek divine force of water. Oceanus was depicted in the bank’s first logo, speaking to its inception as a water organization. The Bank of The Manhattan Company utilized various renditions of Oceanus from its establishing in 1799 through the mid-1950s when it converged with Chase National Bank. Presentation The Beginning: The Manhattan Company Early Growth of Banks The Civil War and National Banking Origins and Influence of J. P. Morgan and Co. Financing Major Projects Banking toward the Beginning of the twentieth Century The World War I Years The Roaring ’20s The 1929 Market Crash and the Great Depression First-Class Business Glass-Steagall World War II Global Banking Industry Consolidation Development of Credit Cards ATMs and Debit Cards Home Banking by Computer Difficult Competitive Environment Erosion and Repeal of Glass-Steagall Deregulation and Industry Consolidation Key Mergers That Shaped JPMorgan Chase and Co. JPMorgan Chase and Co. Today Cover Image References 17 19 20 21 The History of JPMorgan Chase and Co. Presentation JPMorgan Chase and Co. is one of the world’s most seasoned, biggest and most popular money related foundations. Since our establishing in New York in 1799, we have succeeded and developed by tuning in to our clients and addressing their requirements. As a worldwide money related administrations firm with activities in excess of 50 nations, JPMorgan Chase and Co. consolidates two of the world’s chief money related brands: J. P. Morgan and Chase. The firm is a pioneer in speculation anking; money related administrations for shoppers, independent company and business banking; monetary exchange handling; resource the board; and private value. A part of the Dow Jones Industrial Average, JPMorgan Chase and Co. serves a great many customers in the United States and a significant number of the world’s most unmistakable corporate, institutional and government customers. JPMorgan Chase and Co. is based on the establishment of in excess of 1,000 ancestor organizations that have met up throughout the years to frame today’s organization. Our some notable legacy banks incorporate J. P. Morgan and Co. , The Chase Manhattan Bank, Bank One, Manufacturers Hanover Trust Co. Substance Bank, The First National Bank of Chicago and National Bank of Detroit, each intently tied in its chance to developments in fund and the development of the United States and worldwide economies. The pages that follow give features of the JPMorgan Chase and Co. story †our history, our antecedent establishments, our kin, our administrations and our way of thinking. The Bank of The Manhattan Co. , JPMorgan Chase and Co. ’s most punctual ancestor, authorized this striking silver Tiffany and Co. ashtray during the 1950s. 1 The Beginning: The Manhattan Company Commercial banking in the United States got its beginning following the Revolutionary War. The most punctual American banks assumed a focal job in the nation’s financial and modern development by loaning cash, defending stores and giving certified receipts that were utilized as money. The Bank of New York †established in 1784 by Alexander Hamilton, who became George Washington’s Treasury Secretary †was the primary business bank in New York City. It had no opposition until 1799 when Hamilton’s political adversary, Aaron Burr, a U. S. Congressperson and future VP of the United States, established The Bank of The Manhattan Co. JPMorgan Chase follows its beginnings to Burr’s youngster establishment. The Bank of The Manhattan Co. had a surprising start. Burr drove a gathering of New Yorkers, including Hamilton, in getting a state sanction for an organization to gracefully new water to the occupants of Lower Manhattan. At Burr’s activity, the contract incorporated an arrangement permitting the organization to utilize its overabundance capital in any movement â€Å"not conflicting with the Constitution and laws of the United States. † Burr at that point utilized that arrangement to begin a bank. The waterworks, called The Manhattan Co. , laid a system of funnels produced using emptied pine logs and dispersed water until 1842. The Bank of The Manhattan Co. outlasted the waterworks and got one of the main financial establishments in the country †loaning cash and guaranteeing bonds, for example, to help account the Erie Canal, which opened in 1825. The Manhattan Co. wooden channels conveyed water to in excess of 2,000 clients in Lower Manhattan for a long time until the formation of New York City’s metropolitan water framework. Wooden water pipes are as yet being uncovered by utility laborers today. Alexander Hamilton worked together with Aaron Burr and other urban pioneers to set up The Manhattan Co. Be that as it may, Hamilton contradicted Burr's addition of an arrangement in its sanction empowering the water organization to open a bank and pulled back his association with the new firm. Hostility between these two men over an assortment of issues seethed until 1804 when Burr provoked Hamilton to a duel; Hamilton was mortally injured. The guns were possessed by Hamilton’s brother by marriage, John Church, whose granddaughter offered them to The Bank of The Manhattan Co. in 1930. 2 The Chemical Bank in New York sold its manufacturing plant in 1851, proceeding exclusively as a bank. The bank utilized the etching appeared here of the production line on stock authentications during the 1950s. The recolored glass window and 25 penny partial note from 1817 are from The Western Reserve Bank in Warren, Ohio, Bank One’s most punctual ancestor. Early Growth of Banks As America extended and enhanced during the 1800s, new banks were shaped the country over. JPMorgan Chase has notable connects to a significant number of these early foundations, including The Western Reserve Bank, one of the main banks in Ohio when it was sorted out in 1812; Second State Bank of Indiana, shaped in 1834 when Indianapolis despite everything was a boondocks town with a populace of around 1,500; and Springfield Marine and Fire Insurance Co. which started activity in Illinois in 1851. Abraham Lincoln was one of its first clients, keeping $310. Each of the three banks are ancestors of Bank One, which converged with JPMorgan Chase in 2004. Singular states controlled the formation of banks in the mid 1800s, and a few states were exceptionally prohibitive in giving sanctions or granting them just to coordinators who had a place with the ideological group in power. Interest for banking administrations was so extraordinary, be that as it may, that business visionaries in some cases discovered approaches to get around such forbiddances. A portion of the banks were branches of mechanical or business organizations. New York Manufacturing Co. egan in 1812 as a maker of cottonprocessing hardware and changed to banking five years after the fact. It was a harbinger of Manufacturers Hanover Trust Co. on the JPMorgan Chase family tree. In 1823, the New York Chemical Manufacturing Co. started creating meds, paints and colors at a plant in Greenwich Village. It displayed its sanction on The Manhattan Co. , utilizing its abundance capital in 1824 to later open a bank called The Chemical Bank, which joined the JPMorgan Chase family in 1996. To evade Wisconsin’s preclusion against banking, Scottish outsider George Smith established the Wisconsin Marine and Fire Insurance Co. n 1839, whi ch, in spite of its name, worked like a bank by tolerating stores and giving certified receipts redeemable in gold. The notes, referred to famously as â€Å"George Smith’s money,† were utilized as cash all through the Midwest. By one gauge, they spoke to about 75% of the cash available for use in Chicago in 1854. Smith’s organization turned into the primary legitimately affirmed bank in Wisconsin following statehood and later was known as The Marine Corp. , converging with Bank One out of 1988. 3 The Baroque-time iron chest was utilized from 1809 to 1818 to move cash and resources between The Bank of The Manhattan Co. s Wall Street office and its branches in Utica and Poughkeepsie, New York. JPMorgan Chase and Co. has a broad assortment of early money, including the first $1 government â€Å"greenback† note, imprinted in 1862 by the U. S. Treasury with the picture of Salmon P. Pursue. Pursue National Bank’s first changeless office opened in 1878 at 104 Broadway †the primary New York City bank without a Wall Street address. The Civil War and National Banking By 1860, only preceding the Civil War, the country had in excess of 1,500 business saves money with about $700 million of advances exceptional. The war brought challenge and change. The United States didn't have a bound together national money when the war started. Rather, singular banks gave paper cash as notes. In spite of the fact that this framework had served the country well in its early stages, in excess of 7,000 distinct sorts of monetary certificates †of different shapes, sizes and hues gave by different financial establishments †were available for use, bringing about disarray and wastefulness. The circumstance changed in 1862 when the Union started printing â€Å"greenback† cash to help account the war. With the entry of the National Banking Act of 1863, the United States embraced a double arrangement of government and state sanctioned banks. One of the spearheading foundations was The First National Bank of Chicago, which got government sanction number eight out of 1863; First National turned out to be a piece of Bank One out of 1998. Different forerunners established or redesigned in the wake of the National Banking Act incorporate Hanover National Bank (New York), Indiana National Bank (Indianapolis), The National Bank of Commerce (New York), State National Bank (Evanston, Illinois) and Union National Bank (Chicago). At first, just a bunch of banks applied for national sanctions, yet the stream before long turned into a flood in 1865 when the government started forcing a 10% duty on certified receipts gave by state banks. By 1868,