Commercial NB of Pennsylvania, Philadelphia, PA (Charter 556)

Obsolete $5 Proof Commercial Bank, Haxby PA-410, 1830s-1840s. Courtesy of Heritage Auctions, www.ha.com

Commercial NB of Pennsylvania, Philadelphia, PA (Chartered 1864 - Liquidated 1898)

Town History

Needed: a contemporary postcard or photo of the bank.

Philadelphia is located in Philadelphia County, in the southeast corner of Pennsylvania. It is currently the sixth-most-populous city in the United States and the most populous city in the state of Pennsylvania. It is also the second-most populous city in the Northeastern United States, behind New York City.

Philadelphia is one of the oldest municipalities in the United States. William Penn, an English Quaker, founded the city in 1682 to serve as capital of the Pennsylvania Colony. It grew on the steep banks of the Delaware River into a hub of international trade and monetary influence. The royal post-office was established in this city by Franklin. Mail would pass uninterrupted from Crown to Republic, the one royal department which did so. The Colonies used the old expresses and mail routes leading up to and through the revolution. Philadelphia played an instrumental role in the American Revolution as a meeting place for the Founding Fathers of the United States, who signed the Declaration of Independence in 1776 in Carpenters' Hall, and the Constitution at the Philadelphia Convention of 1787 in Independence Hall.

Philadelphia was the second Capitol after New York City during George Washington's presidency. On April 2, 1792, the United States Mint opened its doors here with David Rittenhouse, former treasurer of Pennsylvania, the first director. The American Philosophical Society was the first scientific society in the land and still meets in the hall Franklin secured for it. Former townships and boroughs of Bristol, Richmond, Kensington, Germantown, Manayunk, Northern Liberties, Southwark, to name a few, were consolidated into Philadelphia in 1854 which then occupied all of Philadelphia County.

During the National Bank Note Era (1863-1935), the population of Philadelphia was 674,022 in 1870, growing to 1,950,961 in 1930. Its highest population was 2,071,605 in 1950, and the current population is estimated at 1,584,064 (2019).

Philadelphia had 70 National Banks chartered during the Bank Note Era, and 62 of those banks issued National Bank Notes. Philadelphia also had 27 Obsolete Banks that issued Obsolete Bank Notes during the Obsolete Bank Note Era (1782-1866).

Bank History

Organized October 22, 1864
Chartered October 27, 1864
Succeeded Commercial Bank
Liquidated May 31, 1898
Consolidated with 3557 (Fourth Street National Bank, Philadelphia, PA)

Starting in 1810, the Commercial Bank transacted a general banking business under articles of association for several years before becoming regularly incorporated. In 1814, it obtained a charter for ten years from the State of Pennsylvania, with a capital of $1,000,000. The first president was Andrew Bayard, a distinguished Philadelphia financier, who was also the first president of the Philadelphia Savings Fund Society. He served from the beginning of the bank, on February 7, 1819, until June 1, 1832, when he died. He was succeeded by another eminent financier, James Dundas, who served until January 2, 1849, when he resigned. Jacob Thomas was president from January 2, 1849. to October 6. 1853, when he died, and was succeeded by Mr. Wainwrlght, who resigned October 18, 1857. Joseph Jones, who succeeded Mr. Thomas, resigned March 1, 1868, since which date the presidency has been ably filled by James L. Claghorn, president of the Academy of the Fine Arts and an active director in various public institutions. The office of cashier was filled from 1810 until 1825 by Joseph Williams, then until 1843 by Benjamin P. Smith, then until 1855 by J.J. Cope, and from 1865 until a few years ago by S.C. Palmer. The charter of the bank as a State Institution was renewed from time to time until the national system was established, when, under the act of Assembly authorizing the banks of the Commonwealth to organize under the national laws, this institution organized in October, 1864, as the Commercial National Bank, with a capital of $800,000, at which amount it remained until its merger with the Fourth Street National. The contingent fund then was $220,737.10. In the following year, 1865, a defalcation of one of the bank tellers to the amount of several hundred thousand dollars made inroads upon the surplus and reduced the November dividend from the usual annual rate of 10% to 4%. The bank for many years occupied a marble building on Market Street, north side below Third, but the irresistible concentration of finance towards Third and Chestnut streets induced the removal of the institution to its present location at the southeast corner of Chestnut and Hudson Streets. The bank participated in the early loans to the national government in the war crisis of 1861, and its managers cheerfully sustained the war finances, and the bank participated In all the active business of that era. It sustained all the trials of Inflation and contraction, panics and crashes of many years.

In January 1865, the directors were: Joseph Jones, Hugh Craig, Samuel Baugh, Alfred G. Baker, Thomas Williamson, Thomas H. Powers, Leon Berg, Joseph Wm. Bates, Charles H. Baker, George Fales, Daniel Haddock, Jr., Joshua Lippincott, and Archimedes J. Bucknor.

On January 9, 1878, the following stockholders were elected directors of the bank for the ensuing year: James L. Claghorn, Samuel Baugh, Daniel Haddock, Jr., Thomas H. Powers, Leon Berg, Joseph Wm. Bates, George L. Knowles, Thomas S. Ellis, Alfred G. Baker, Charles S. Boyd, Joshua Lippincott, Henry Pratt Smith, and John Sellers, Jr. The directors met on the 14th and re-elected James L. Claghorn, president; Daniel Haddock, Jr., vice president; James W. Paul, solicitor; and S.C. Palmer, cashier. In May 1878, the Interior of the Commercial National Bank at the corner of Chestnut and Hudson streets was recently improved greatly by frescoing the walls and regraining the desks and counters. An extension was made in the rear of the building proper, which has been fitted up nicely as president and directors' room. This was nicely papered and carpeted and the walls hung with fine specimens of engravings. The improvements were very marked and add very much to the general attractiveness of the building. This site once housed the jewelry business of the firm of John C. Farr & Co. in the 1840s.

On January 12, 1898, the following gentlemen were elected directors: George L. Knowles, C. William Bergner, J. Dundas Lippincott, Herman B. Blumenthal, William P. Smith, Jr., Archibald C. Knowles, James C. Brooks, Stanley B. Haddock, James W. Cooke, Edward C. Napheys, Leon Loeb, George V. Cresson, and A.W. Von Utassy. At a meeting of the directors held on the 14th, Wm. P. Smith, Jr., Esq., was unanimously re-elected president. E.P. Graham was Cashier.

At the close of business on February 18, 1898, the bank listed Resources: Loans and discounts $1,526,405.90; U.S. bonds to secure circulation $50,000; Premiums on U.S. bonds $5,000 Stocks, securities, etc., $53,225.01 Banking house, furniture and fixtures $160,000, Other real estate and mortgages owned $32,478.61, Due from national banks (not reserve agents) $83,840.27, Due from State banks and bankers 26,863.99, Due from approved reserve agents $168,390.10, Checks and other cash items $3,912.82, Exchanges for Clearing House $148,182.56, Fractional paper currency, nickels and cents $262.92, Lawful money reserve in bank, viz: Specie $13,010 Legal tender notes $96,664, U.S. certificates of deposit for legal tenders $170,000, Redemption fund with U.S. Treasurer (5 per cent, of circulation) $2,250.00, Due from U.S. Treasury, other than 5 per cent, redemption fund $630.05. Total $2,540,616.18

In April 1898, negotiations were concluded whereby the Commercial National Bank would be merged with the Fourth Street National Bank. At the office of the Commercial Bank the officials declined to discuss the matter, and the directors of the Fourth Street would neither deny nor confirm the deal. It was stated that representatives of the Fourth Street Bank made the proposition to the leading interests of the Commercial Bank four months ago, but at that time some of the officials were averse to the merger. The Commercial was one of the oldest and strongest banks in Philadelphia, but for the same reason that prompted the merger of the Seventh National and the National Bank of the Republic, the tendency of business to move westward, it was deemed judicious to liquidate.

On April 11, 1898, the absorption of the Commercial National Bank by the Fourth Street National was accomplished in a quiet manner. The depositors of the old bank appeared at the Fourth Street National and completed the transfer of their accounts without any more ado than if the transaction was of the most ordinary character. The Fourth Street National took charge of all the assets of the Commercial National Bank during the day, excepting the capital stock and as soon as it reimbursed itself for the assumed liability of the depositors, it would return all that remained to the stockholders for their benefit. It was expected that a considerable sum would be left after paying everything. The liquidation of the Commercial National Bank was not the act of the stockholders, but of the Board of Directors by the power vested in it. Some of the stockholders were consulted, but the full sentiment would not be heard until April 26, at a special stockholders' meeting. The extension on the west side of the Fourth Street National Bank was being pushed as rapidly as possible to enable the bank to carry on its increased business. At present there was considerable crowding, which the expansion would alleviate. The necessary increase in clerical force at the Fourth Street National was made up as far as practicable from the staff of the Commercial National Bank.

In December 1898, in the process of liquidation, the Commercial National Bank which in the spring turned its business over to the Fourth Street National, paid a 50% dividend, or $25 per share to stockholders.

Official Bank Title(s)

1: The Commercial National Bank of Pennsylvania, Philadelphia, PA

Bank Note Types Issued

1882 Brown Back $5 bank note with pen signatures of E. Graham, Cashier and George L. Knowles, President. Courtesy of Heritage Auctions, www.ha.com

1882 Brown Back $10 bank note with pen signatures of E. Graham, Cashier and Wm. P. Smith, Jr., President. Courtesy of Lyn Knight Auctions, www.lynnight.com

A total of $2,089,020 in National Bank Notes was issued by this bank between 1864 and 1898. This consisted of a total of 118,144 notes (118,144 large size and No small size notes).

This bank issued the following Types and Denominations of bank notes:

Series/Type	Sheet/Denoms	Serial#s	Sheet Comments
Original Series	4x5	1 - 9150
Original Series	3x10-20	1 - 6200
Original Series	50-100	1 - 6300
Series 1875	4x5	1 - 3876
Series 1875	3x10-20	1 - 1926
Series 1875	50-100	1 - 1765
1882 Brown Back	4x5	1 - 2900
1882 Brown Back	3x10-20	1 - 1124
1882 Brown Back	50-100	1 - 655

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1864 - 1898):

Presidents:

Cashiers:

Other Bank Note Signers

There are currently no known Vice President or Assistant Cashier bank note signers for this bank.

Wiki Links

Sources

Philadelphia, PA, Wikipedia, https://en.wikipedia.org/wiki/Philadelphia,_Pennsylvania
Don C. Kelly, National Bank Notes, A Guide with Prices. 6th Edition (Oxford, OH: The Paper Money Institute, 2008).
Dean Oakes and John Hickman, Standard Catalog of National Bank Notes. 2nd Edition (Iola, WI: Krause Publications, 1990).
Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project
The Philadelphia Inquirer, Philadelphia, PA, Thu., Jan. 12, 1865.
The Philadelphia Times, Philadelphia, PA, Tue., Jan. 15, 1878.
The Philadelphia Inquirer, Philadelphia, PA, Mon., May 27, 1878.
The Philadelphia Times, Philadelphia, PA, Sun., Sep. 25, 1881.
The Philadelphia Times, Philadelphia, PA, Mon., Jan. 17, 1898.
The Philadelphia Times, Philadelphia, PA, Sun., Apr. 10, 1898.
The Philadelphia Times, Philadelphia, PA, Tue., Apr. 12, 1898.
The Philadelphia Times, Philadelphia, PA, Thu., Dec. 8, 1898.