The First National Bank of Davenport: First to Operate Under 1863 National Bank Act

The First National Bank of Davenport, Iowa, became the first bank to operate under the National Bank Act of 1863. The bank, Charter Number 15, opened for business on June 29, 1863. Under the National Banking Act of 1863, banks that obtained federal charters were required to purchase U.S. government bonds.

Establishment and Early Operations

On May 25, 1863, the general subscription lists were opened to the public, and within three days, $100,000 in capital was subscribed. On June 22, 1863, the Comptroller of the Currency assigned National Bank Charter 15 to the Davenport stockholders. The First National Bank of Davenport began business in the old 3-story Marble Bank on West Second Street, and Austin Corbin was named its first president. On its first day, the bank recorded deposits of $80,000, and a $12.60 check written by Henry Hess became the first check in the country to clear under the new banking system.

Note Issuance and Financials

On January 21, 1864, the bank received and issued the first issue of notes from the U.S. Treasury Department’s Bureau of Engraving and Printing; the first notes received were 5,200 $5 bills. A year later, in January 1865, the Davenport bank received and circulated the first $1 and $2 bills. National Bank notes were commonly issued in denominations of $5, $10, $20, $50, and $100. Official records show that by late 1864, the bank’s circulation was $18,500 and total resources were $629,814.14. By the first quarter, shareholders earned a 5% dividend.

Charter History and Total Issuance

Original national bank charters were granted for a 20-year period. Upon its expiration in 1882, The First National Bank of Davenport’s Charter 15 was succeeded by Charter 2695. On May 22, 1911, The First National Bank of Davenport retook Charter 15. A total of $2,924,170 in National Bank notes was issued by Charter 15 between 1864 and 1931. This consisted of a total of 215,236 notes, which included 185,428 large-size and 29,808 small-size notes. In April 1931, The First National Bank of Davenport was officially absorbed by the Union Savings Bank and Trust Company.

Context of the National Banking Era

The first institution to receive a National Charter, Number 1, was the First National Bank of Philadelphia, which opened for business on July 11, 1863. From 1863 to 1935, National Bank Notes were issued by thousands of banks throughout the U.S. As of January 1, 1929, there were roughly 7,600 National Banks of about 24,000 banks in operation. Davenport, Iowa, had five National Banks chartered during the Note Era, and all five issued National Bank Notes.