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 lord of water. Oceanus was depicted in the bank’s first logo, speaking to its root 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 established, 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 necessities. As a worldwide budgetary administrations firm with activities in excess of 50 nations, JPMorgan Chase and Co. consolidates two of the world’s chief monetary brands: J. P. Morgan and Chase. The firm is an innovator in venture anking; money related administrations for purchasers, independent company and business banking; monetary exchange handling; resource the executives; and private value. A segment of the Dow Jones Industrial Average, JPMorgan Chase and Co. serves a huge number of purchasers in the United States and a considerable lot of the world’s most unmistakable corporate, institutional and gover nment customers. JPMorgan Chase and Co. is based on the establishment of in excess of 1,000 antecedent foundations that have met up throughout the years to shape today’s organization. Our some notable legacy banks incorporate J. P. Morgan and Co. , The Chase Manhattan Bank, Bank One, Manufacturers Hanover Trust Co. Concoction Bank, The First National Bank of Chicago and National Bank of Detroit, each intently tied in its opportunity to advancements in account 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 forerunner organizations, our kin, our administrations and our way of thinking. The Bank of The Manhattan Co. , JPMorgan Chase and Co. ’s most punctual antecedent, dispatched 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 Revolutio nary War. The most punctual American banks assumed a focal job in the nation’s monetary 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 opponent, Aaron Burr, a U. S. Representative and future VP of the United States, established The Bank of The Manhattan Co. JPMorgan Chase follows its beginnings to Burr’s juvenile organization. The Bank of The Manhattan Co. had an unordinary starting. Burr drove a gathering of New Yorkers, including Hamilton, in acquiring a state contract for an organization to flexibly new water to the occupants of Lower Manhattan. At Burr’s activity, the sanction incorporated an arrangement permitting the organization to utilize its abundance 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 channels produced using emptied pine logs and circulated water until 1842. The Bank of The Manhattan Co. outlasted the waterworks and got one of the main financial foundations in the country †loaning cash and guaranteeing bonds, for example, to help fund the Erie Canal, which opened in 1825. The Manhattan Co. wooden funnels conveyed water to in excess of 2,000 clients in Lower Manhattan for a long time until the making of New York City’s city water framework. Wooden water pipes are as yet being uncovered by utility laborers today. Alexander Hamilton teamed up with Aaron Burr and other urban pioneers to build up The Manhattan Co. Nonetheless, Hamilton contradicted Burr's inclusion of an arrangement in its sanction empowering the water organization to open a bank and pulled back his association with the new firm. Enmity between these two men over an assortment of issues seethed until 1804 when Burr moved Hamilton to a duel; Hamilton was mortally injured. The guns were claimed 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 processing plant in 1851, proceeding exclusively as a bank. The bank utilized the etching appeared here of the manufacturing plant on stock declarations during the 1950s. The recolored glass window and 25 penny fragmentary 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 broadened during the 1800s, new banks were framed the country over. JPMorgan Chase has noteworthy connects to a considerable lot of these early organizations, including The Western Reserve Bank, one of the principal banks in Ohio when it was composed in 1812; Second State Bank of Indiana, shaped in 1834 when Indianapolis despite everything was a wilderness 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, saving $310. Every one of the three banks are forerunners of Bank One, which converged with JPMorgan Chase in 2004. Singular states controlled the making of banks in the mid 1800s, and a few states were exceptionally prohibitive in conceding contracts or gran ting them just to coordinators who had a place with the ideological group in power. Interest for banking administrations was so incredible, nonetheless, that business visionaries once in a while discovered manners 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 precursor of Manufacturers Hanover Trust Co. on the JPMorgan Chase family tree. In 1823, the New York Chemical Manufacturing Co. started creating prescriptions, paints and colors at a plant in Greenwich Village. It demonstrated its contract 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 denial against banking, Scottish settler George Smith established the Wisconsin Marine and Fire Insurance Co. n 1839, which, notwithstanding its name, worked like a bank by tolerating stores and giving monetary orders 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 almost 75% of the cash available for use in Chicago in 1854. Smith’s organization turned into the primary legitimately endorsed bank in Wisconsin following statehood and later was known as The Marine Corp. , converging with Bank One of every 1988. 3 The Baroque-time iron chest was utilized from 1809 to 1818 to move cash and assets 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 cash, 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 perpetual office ope ned 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 before the Civil War, the country had in excess of 1,500 business saves money with about $700 million of advances extraordinary. The war brought challenge and change. The United States didn't have a brought 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 unique kinds of certified receipts †of different shapes, sizes and hues gave by different financial foundations †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 money 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 establishments 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 antecedents 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 contracts, 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,