Historic Moments

Charter Number 1

In the 1860s, the federal government created a new type of bank to provide standardization for bank customers. The First National Bank of Philadelphia in Pennsylvania was the first of its kind.
A tan check with red lettering from The First National Bank of Philadelphia. A red illustration of two women representing liberty and justice is on left margin of check.
Featured photo caption: Check for payment on the First National Bank of Philadelphia, 1865. Photo Credit: Wells Fargo Corporate Archives.

In the early 1800s, Americans navigated a patchwork financial system. Some banks had authorization, or a charter, from a state government and followed the state’s rules and regulations. Other banks, called private banks, operated outside of state bank systems. Many of these banks issued paper money, called bank notes. This money was not always accepted at its face value. When someone tried to pay with an unfamiliar bank note, the payee had to evaluate if the money came from a stable bank, a risky bank, or even a bank that no longer existed.

A tan check from the Bank of Florence with black lettering and a large orange word THREE. Featured on the check are illustration of a young women, a farm scene, and wild birds.
Bank of Florence and many other similar “wildcat” financial institutions went out of business. When that happened, people holding their bank notes discovered that their money was worthless. Photo Credit: Wells Fargo Corporate Archives.

During the Civil War, the federal government addressed the chaos caused by unregulated banks and currency. In 1861, Secretary of the Treasury Salmon P. Chase proposed a system of federally chartered national banks. Each bank would have the power to issue bank notes backed by funds invested in federal government bonds. This proposal offered multiple benefits of creating a uniform national currency while providing a ready market for the sale of bonds needed to finance the war. The National Currency Act, later amended as the National Bank Act, laid the foundations for our modern national banking system. It also established the Office of the Comptroller of the Currency to oversee this new banking structure.

On the top, a green national currency bill for $5 issued from the Northwestern National Bank of Minneapolis. The bill has the image of Secretary of the Treasury Salmon P. Chase. On the bottom, a green national currency bill for $5 issued from the Wells Fargo Nevada National Bank of San Francisco. The bill has the image of Secretary of the Treasury Salmon P. Chase.
The Treasury Department printed and issued national currency to charter holding banks. Each bank received bills marked with its own name as these $5 bills for First National Bank of Minneapolis, Minnesota, and Wells Fargo Nevada National Bank illustrate, both are now part of Wells Fargo. Photo Credit: Wells Fargo Corporate Archives

On June 20, 1863, the Office of the Comptroller of the Currency issued the very first national bank charter, number 1, to the First National Bank of Philadelphia in Pennsylvania (today Wells Fargo). It opened for business July 11, and started circulating the federal currency as soon as the Treasury Department had it printed and shipped. The honor of the first national bank charter came to the Philadelphia institution in part because its lead organizer was financier Jay Cooke, who had successfully marketed and sold millions of dollars of government bonds. He was also a strong advocate of the banking legislation.

A white document with black lettering that reads: Treasury Department Office of the Comptroller of Currency Washington, June 20th 1863.
Charter #1 issued to the First National Bank of Philadelphia by the Treasury Department. Photo Credit: Wells Fargo Corporate Archives and Rob Prideaux.
A tan check with red lettering from The First National Bank of Philadelphia. A red illustration of two women representing liberty and justice is on left margin of check.
Check for payment on the First National Bank of Philadelphia, 1865. Photo Credit: Wells Fargo Corporate Archives.

Although it was not the largest bank in Philadelphia, First National proudly embraced the distinction it had by holding national bank charter 1. That status symbolized longevity and stability, characteristics of particular value to bank customers looking for a secure place to put their deposits. Because the Civil War-era legislation limited initial bank charter periods to twenty years and Congress failed to pass an extension bill; First National Bank of Philadelphia had to reorganize itself under charter number 2731 and remained operating under that charter until 1902, when it re-claimed its original charter number 1.  The bank proudly touted its unique status on statements of condition, advertisements, stationery, and even through its cable address as “Firstbank.”

Today, Wells Fargo operates under this charter, honoring the legacy of the nation’s first national bank.

A two-story building with arched windows and entrance. A horse and wagon pass by in front of the building.
First National Bank of Philadelphia building on Chestnut Street. Opened in 1863, this picture was taken about 1901 when it temporarily operated under charter number 2731. Photo Credit: Wells Fargo Corporate Archives.
A green advertisement with black lettering for the First National Bank of Philadelphia that reads: The first bank chartered under the National Bank Act.
First National Bank of Philadelphia bank ad from 1926 featuring its historic role as the first national bank in the U.S. Photo Credit: Wells Fargo Corporate Archives.

Marianne Babal

Marianne Babal is a Corporate Historian for Wells Fargo.

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