Great efforts were necessary to recommend this plan to the public. Morris was enthusiastically zealous in favor of it. "I mean to render this a principal pillar of American credit, so as to obtain the money of individuals for the benefit of the Union, and thereby bind those individuals more strongly to the general cause by the ties of private interest." In this passage he uttered one of the favorite notions of the group of public men to which he belonged; that it was wise and necessary, by various devices and institutions, to enlist the interest of capitalists in the political system which had been founded. "When once by punctual payment the notes of the bank obtain full credit, the sum in specie which will be deposited will be such that the bank will have the interest of a stock two or three times larger than that which it really possesses." A reason for establishing the bank is "that the small sums advanced by the holders of bank stock may be multiplied in the usual manner by means of their credit, so as to increase the resource which government can draw from it, and at the same time, by placing the collective mass of private credit between the lenders and borrowers, supply at once the want of ability in the one and of credit in the other." In these passages he uttered the doctrines of bank inflation, which led Gouge to call him the "father of paper money banking in the United States."
In making some historical statements about this bank, in the debates of 1786, he said that, up to September 1st, the subscriptions had not exceeded $70,000. In that month, the French man-of-war "Magicienne" arrived at Boston with $462,862 in silver, which John Laurens had obtained from the French government. This was carted overland to Philadelphia and put in the bank, but half of it was drawn out and spent before the bank commenced operations.
In June, 1781, he reported to Congress that the chief hindrance to the organization of the new bank was that the amount due to the Bank of Pennsylvania had not been paid. He thought that if it could be paid, the persons entitled to it could be persuaded to subscribe it into a new bank. Congress was not willing to sell the bills lodged as security because of the annoyance that would be occasioned to the Envoys who were the drawees. Morris asked that the bills be put at his disposal, and proposed to arrange the transfer, and use the bills, so that they would not be presented for a long time, or not at all. In this he succeeded.[1]
A meeting was held, November 1st, to organize the new bank. It consisted of the members of the Bank of Pennsylvania and nine others.[2] The act of incorporation was passed by Congress, December 31st, and the bank commenced business January 7, 1782, on the north side of Chestnut street, a short distance west of Third. There was a clause in the charter that "This ordinance shall be construed and taken most favorably and beneficially for said corporation." This clause was copied into State charters and became a
