Perhaps a chronological arrangement of notes gathered to illustrate the progress and times of the Canal Bank, and to incidentally bring to memory some of the financial history of New Orleans, may serve better than a narrative for the purposes of this sketch. Nouvelle Orleans, capital of the French province of Louisiane, was itself founded by order of a banking corporation; the famed Mississippi Company, John Law, Director General. Bienville, governor, and now official manager, received orders in 1717 when this Company was organized, to remove his settlements from the gulf coast to the banks of the Mississippi. A trading post was set up in 1718, warehouses built, and a few years later, the infant capital came into existence and remained the governing seat for fortysix years thereafter under the French when the cession to Spain took place, and thence forward or through the American possession. The Mississippi Company issued stock in great quantity, the basis being largely their monopoly of the trading rights of the Mississippi Valley. Paper bills and copper coins were supplied to colonists as a circulating medium. In 1723 the "Mississippi Bubble," as it became known in history, had reached that point in its famous career where its embarassments were becoming known in Louisiana. The colonists who had been sent over by the Company soon found themselves participating in the general distress, resulting from having adopted an absurd system of credits among each other in imitation of the John Law Company, all differences and debts being paid with the paper of the Company which everybody believed in. The embryo city very soon found herself the natural deposit point of an agricultural province, extending almost to the Alleghanies and to the Illinois country. There were actually in the scattered colony some five thousand souls in 1725. When the financial collapse of 1726 took place, the colonists were roughly extricated from their mutual obligations by the very crude method of scaling-which was enforced by royal edict and repeated four times; rock-bottom eventually being reached, prosperity, though much shorn, was at least on a better foundation than before, and products increased in plenty. The Company of the Indies absorbed the Mississippi Company in 1727, and began active work in developing the trade and building up the little city. This concern surrendered its privileges in 1731, and New Orleans now became free from monopoly rights on its commerce. Good trade sprang up with the West Indies and the ports of France, immigration set in and the emission of paper money in increasing quantity year by year brought life into commerce which continued on through the Spanish Domination, although Spain had almost the same disregard for the integrity of its paper money as had been shown by the previous governing power. Those, however, were happygo-lucky days, and marketable products were abundantflatboats were regularly coming down from the Kentucky country, and trade was thriving. Banking proper in New Orleans began immediately after the Purchase of Louisiana. Before that time, during the latter part of the Spanish regime, there were, however, a few commission merchants, (prominent among them Oliver Pollock and Daniel Clark), who did private banking, and made advances to planters. Silver money was brought from Mexico by the Spanish governors, and whenever small change became scarce, these coins were cut into bits! A half-dollar was four bits, a quarter; two bits, this coin being further subdivided into five picayunes, etc. With the American possession came the cessation of imports of specie from Vera Cruz, which very soon brought about a great scarcity of money, and made it imperative to have local banks of discount and issue. The transfer of Louisiana to the United States was the signal for a large immigration of American merchants into New Orleans from Boston, Philadelphia, Baltimore and other Atlantic coast cities, Beverly Chew, Judah Touro, Maunsell White, John McDonough, Rezin Shepherd, Samuel Lockwood, Richard Relf, J. W. Zacharie and Geo. B. Ogden were of this number. 1804. This year the city was made a port of entry, and incorporated, there was also elected the first mayor of the American City of New Orleans-Etienne Bore. Thomas Jefferson at once influenced the establishment of a branch of the Bank of the United States at New Orleans, in 1804, and in the same year there began the organization of the Banque de la Louisiana, its Board being made up principally of New Orleans merchants, with Julien Poydras, the wealthiest planter in the Territory of Orleans, as president, and Stephen Zacharie, cashier. The directors included: John McDonough, Nicholas Girod, Richard Relf and Thomas Urquhart. This first local bank-the Banque de la Louisiana, was founded with a capital of $600,000, by the activity of Governor W. C. C. Claiborne, the charter being passed by the Orleans Territorial Assembly on March 4th, 1804. This was the first bank to issue paper notes to supply the increasing demands of trade. Its formal opening took place January 1st, 1805. It was with great difficulty that any headway was made because of a lack of confidence in this new paper money, begotten by two previous failures of a paper system: the first by the French Superior Council, and again by the Spansih Cabildo, which also proved exceedingly slow in redeeming its "liberanzas." In the year 1805, the Company of Navigation was or ganized to build a canal through Canal street, and were allowed by charter thirty years in which to complete their undertaking. After digging a great ditch, they abandoned their purpose and took charge of the Carondelet Canal, which had been completed by the Spanish Governor of that name in 1796. This old Canal street canal remained open for drainage use until after the Civil War. The population of New Orleans, approximately 10,000 at this time, increased to nearly 18,000 in 1810, and exports of cotton soon reached 100,000 bales. Bienville's original vieux carre could no longer hold the increasing population; Marigny's plantation below Elysian Fields, and the Gravier plantation above the Common, were cut into streets and lots. The first real boom now began in this newest American city; a university, a library, and several insurance companies were established, suburban lot-sales and the plentiful supply of money from the two banks in which the people now had confidence, all made for a brisk new trade. The batture landing in front of Tchoupitoulas road above and in front of the Common was filled with all kinds of curious river craft; flat-boats, arks, and rafts-trading was rifeNew England sailing vessels in a great fleet tied up before the city with all manner of goods ready to exchange for the Ohio and Mississippi Valley products. Commission merchants and brokers of all kinds coined money in this open air exchange. According to the Annuaire Louisianais, a little French directory printed in "Nouvelle Orleans for 1809," the personnel of the bank boards of that year, were: Banque de la Louisiane: Julien Poydras, president; Nicholas Girod, Richard Relf, Michel Fortier, Franc Duplessis, Thomas Urquhart, Paul Lanusse, J. B. Labatut, Francois Livaudais, Jas. Carrick, Jean Soulie, J. McDonough, Jr., Wm. Donaldson, Samuel Winter and Jas. Pitot directors, with J. B. Fitzgerald, cashier. The office was No. 18 Rue Royalle. Banque des Etats-Unis: Benj. J. Morgan, president; Di rectors-Geo. T. Phillips, Wm. Brown, Joseph McNeill, W. C. Mumford, Beverly Chew, Anthony Cavalier, Jr., John W. Gurley, Wm. Kenner, J. C. Wederstrandt, John G. Bartlet, R. D. Shepherd, J. Saul, cashier. There was a maritime Insurance Company and a Fire Insurance Company, the "Phenix." Thomas Jefferson was then President of the United States, W. C. C. Claiborne, Governor of Orleans Territory; Daniel Clarke, Delegate to Congress, and J. Mather, Mayor of New Orleans. 1810. By this year the population had been augmented by the immigration from San Domingo of some 6,000 Frenchspeaking people, most of whom brought money and slaves. There was also a continuous stream of Americans coming into the town, thus nearly doubling its population during the seven years after the Purchase. The Legislature established this year two new banks: The Orleans, 14 Conti St., capital $500,000, and the Planters, capital $600,000. This was made necessary by the scarcity of specie now no longer imported from Mexico. Canal street was laid out this year, and many stores were being erected on the lower side. The Gravier plantation above the commons was being sold into suburban lots. The United States Census gave the New Orleans population as 17,242. In 1811 Congress created the State of Louisiana, and the following year sanctioned the Constitution adopted by the people of Louisiana, now numbering 75,000, and the "Florida Parishes" north of the river Iberville, (Manchac), were annexed to the State. The first steamboat seen on the Mississippi made her appearance in 1812 at New Orleans, as if in celebration of the birth of Louisiana as a State. She came from Pittsburgh in seven days. |