Mr. Burr's Joker

The proposed merging of the First Federal Foreign Banking Association with the Bank of the Manhattan Co., will, if ratified by stockholders of the first-named, unite one of the oldest with one of the newest American banks. The First Federal Foreign Banking Association was created under the Edge Act to specialize in foreign banking, and opened June, 1920.

The Bank of the Manhattan Co. was chartered in 1799 through the efforts of Aaron Burr. Previous to that date, the N. Y. State Assembly had allowed only one bank to be created--the Bank of New York, sponsored by Alexander Hamilton. Burr wished to create a rival bank, but owing to political conditions he knew he could not get a charter directly. He accordingly organized the Manhattan Co., ostensibly to engage in supplying fresh water to New Yorkers. A "joker" in the company's charter, overlooked by the Assembly, permitted it to enter the banking business as a sideline. Promptly when the charter was granted, the water business was abandoned and the Bank of the Manhattan Co. was established. If the Manhattan absorbs the young foreign bank, it will widely extend its foreign service, since the Association has representatives all over Europe, and in Australia, New Zealand, Canada, Cuba, Mexico.