Girard Bank
Encyclopedia
Girard Bank was a Philadelphia based bank, founded by Stephen Girard
in 1811. The bank was acquired by Mellon Bank in 1983 and then two decades later by Citizens Bank
.
In its early years, the bank was variously known as “Girard’s Bank,” or as “Girard Bank.” or also as “Stephen Girard’s Bank” or even the “Bank of Stephen Girard.” By the end of the 19th century the bank was known as The Girard National Bank. Girard's bank became the Girard Trust Company, and later Girard Bank.
expired in 1811, Stephen Girard
purchased most of its stock as well as the building and its furnishings on South Third Street in Philadelphia and opened his own bank. Girard was the sole proprietor of his bank, and thus avoided the Pennsylvania state law which prohibited an unincorporated association of persons from establishing a bank, and required a charter from the legislature for a banking corporation.
Girard hired George Simpson, the cashier of the First Bank, as cashier of the new bank, and with seven other employees, opened for business on May 18, 1812. He allowed the Trustees of the First Bank of the United States to use some offices and space in the vaults to continue the process of winding down the affairs of the closed bank at a very nominal rent.
Girard's Bank was a principal source of government credit during the War of 1812
. Towards the end of the war, when the financial credit of the U.S. government was at its lowest, Girard placed nearly all of his resources at the disposal of the government and underwrote up to 95 percent of the war loan issue, which enabled the United States to carry on the war.
After the war, Girard became a large stockholder in and one of the directors of the Second Bank of the United States
. In September 1833, Secretary of the Treasury Roger B. Taney
transferred the government's Pennsylvania deposits in the Second Bank of the United States to the Bank of Girard.
In February 1903, Girard acquired the business of the Mechanics National Bank
.
In 1908, the bank constructed a new heaquarters on Broad Street, known as the Girard Trust Building, designed by Frank Furness
. In 1930, the bank began construction of a new tower adjoining the domed 1908 building, designed by McKim, Mead & White and completed in 1931. The tower was located on the site formerly occupied by the West End Trust Building (1898-1928). The 1908 domed building today serves as The Ritz-Carlton Philadelphia
hotel.
two decades later. Its monumental headquarters building still stands at Broad and Chestnut Streets in Philadelphia.
Following the acquisition of Girard, the bank was immediately renamed Mellon Bank (East). The century-old Girard lost its corporate identity, creating integration issues between Mellon and Girard's employees and customers.
In the 1970s, Girard became one of the pioneers of automated banking, launching a proprietary network of automated teller machine
s in 1978. In response, Philadelphia National Bank (PNB) launched its own network of ATMs, the precursor of the MAC system in 1979 with the support of 13 other financial institutions. After Girard's acquisition in 1983, Mellon Bank joined the MAC network.
Stephen Girard
Stephen Girard was a French-born, naturalized American, philanthropist and banker. He personally saved the U.S. government from financial collapse during the War of 1812, and became one of the wealthiest men in America, estimated to have been the fourth richest American of all time, based on the...
in 1811. The bank was acquired by Mellon Bank in 1983 and then two decades later by Citizens Bank
Citizens Bank
Citizens Bank may refer to:Financial institutions:*Citizens Bank of Canada, a virtual bank headquartered in British Columbia*Citizens Bank International Ltd., a bank in Nepal...
.
In its early years, the bank was variously known as “Girard’s Bank,” or as “Girard Bank.” or also as “Stephen Girard’s Bank” or even the “Bank of Stephen Girard.” By the end of the 19th century the bank was known as The Girard National Bank. Girard's bank became the Girard Trust Company, and later Girard Bank.
Founding and early history
After the charter for the First Bank of the United StatesFirst Bank of the United States
The First Bank of the United States is a National Historic Landmark located in Philadelphia, Pennsylvania within Independence National Historical Park.-Banking History:...
expired in 1811, Stephen Girard
Stephen Girard
Stephen Girard was a French-born, naturalized American, philanthropist and banker. He personally saved the U.S. government from financial collapse during the War of 1812, and became one of the wealthiest men in America, estimated to have been the fourth richest American of all time, based on the...
purchased most of its stock as well as the building and its furnishings on South Third Street in Philadelphia and opened his own bank. Girard was the sole proprietor of his bank, and thus avoided the Pennsylvania state law which prohibited an unincorporated association of persons from establishing a bank, and required a charter from the legislature for a banking corporation.
Girard hired George Simpson, the cashier of the First Bank, as cashier of the new bank, and with seven other employees, opened for business on May 18, 1812. He allowed the Trustees of the First Bank of the United States to use some offices and space in the vaults to continue the process of winding down the affairs of the closed bank at a very nominal rent.
Girard's Bank was a principal source of government credit during the War of 1812
War of 1812
The War of 1812 was a military conflict fought between the forces of the United States of America and those of the British Empire. The Americans declared war in 1812 for several reasons, including trade restrictions because of Britain's ongoing war with France, impressment of American merchant...
. Towards the end of the war, when the financial credit of the U.S. government was at its lowest, Girard placed nearly all of his resources at the disposal of the government and underwrote up to 95 percent of the war loan issue, which enabled the United States to carry on the war.
After the war, Girard became a large stockholder in and one of the directors of the Second Bank of the United States
Second Bank of the United States
The Second Bank of the United States was chartered in 1816, five years after the First Bank of the United States lost its own charter. The Second Bank of the United States was initially headquartered in Carpenters' Hall, Philadelphia, the same as the First Bank, and had branches throughout the...
. In September 1833, Secretary of the Treasury Roger B. Taney
Roger B. Taney
Roger Brooke Taney was the fifth Chief Justice of the United States, holding that office from 1836 until his death in 1864. He was the first Roman Catholic to hold that office or sit on the Supreme Court of the United States. He was also the eleventh United States Attorney General. He is most...
transferred the government's Pennsylvania deposits in the Second Bank of the United States to the Bank of Girard.
In February 1903, Girard acquired the business of the Mechanics National Bank
Mechanics National Bank
The Mechanics National Bank was a Philadelphia, Pennsylvania, bank founded by and geared toward mechanics.-History:In 1809, Philadelphia was already known for both skilled workers and as America's main financial center, but the merchants who controlled its banks had little interest in lending to...
.
In 1908, the bank constructed a new heaquarters on Broad Street, known as the Girard Trust Building, designed by Frank Furness
Frank Furness
Frank Heyling Furness was an acclaimed American architect of the Victorian era. He designed more than 600 buildings, most in the Philadelphia area, and is remembered for his eclectic, muscular, often idiosyncratically scaled buildings, and for his influence on the Chicago architect Louis Sullivan...
. In 1930, the bank began construction of a new tower adjoining the domed 1908 building, designed by McKim, Mead & White and completed in 1931. The tower was located on the site formerly occupied by the West End Trust Building (1898-1928). The 1908 domed building today serves as The Ritz-Carlton Philadelphia
The Ritz-Carlton Philadelphia
The Ritz-Carlton Philadelphia is a 394 feet 30-storey skyscraper located south of City Hall in the Center City of Philadelphia, Pennsylvania. It was built in 1930-1931 as the Girard Trust Building. The tower was actually an addition to a domed low-rise building which was constructed in 1908. It...
hotel.
1970s and 1980s - Acquisition by Mellon Bank
Girard merged with Mellon Bank in 1983, in a deal valued at $220 million, following a change in Pennsylvania law that allowed local banks to operate statewide. The bank was largely sold to Citizens BankCitizens Bank
Citizens Bank may refer to:Financial institutions:*Citizens Bank of Canada, a virtual bank headquartered in British Columbia*Citizens Bank International Ltd., a bank in Nepal...
two decades later. Its monumental headquarters building still stands at Broad and Chestnut Streets in Philadelphia.
Following the acquisition of Girard, the bank was immediately renamed Mellon Bank (East). The century-old Girard lost its corporate identity, creating integration issues between Mellon and Girard's employees and customers.
In the 1970s, Girard became one of the pioneers of automated banking, launching a proprietary network of automated teller machine
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s in 1978. In response, Philadelphia National Bank (PNB) launched its own network of ATMs, the precursor of the MAC system in 1979 with the support of 13 other financial institutions. After Girard's acquisition in 1983, Mellon Bank joined the MAC network.