Chemical Bank Mortgage

Chemical Bank History

These mortgages from Chemical Bank are designed to simplify the construction process, with only one closing instead of separate meetings to fund each step of building the home. While the primary offerings are ARMs, Chemical Bank does note that fixed rates may be offered.

Chemical Bank was one of the largest banks in a nation of more than 10,000 banks. But when it was established by six merchants in 1824, it was one of only a handful of banks in the country.

John C. Morrison, James Jenkins, Charles G. Haynes, Balthazar P. Melick, Mark Spencer and Gerardus Post formed what was to become Chemical Bank as the New York Chemical Manufacturing Company on February 24, 1823. William A. Seely served as notary public and William Stebbins was company agent.

While the Greenwich Village Company was formed to produce a variety of chemical solutions, dyes, drugs and paints, there is reason to believe that at least three of the organizers were more intent from the start on forming a bank.

As a result of the financial ambitions and lobbying efforts of Messrs. Melick, Spencer and Post, a year later the Chemical Manufacturing Company had its original 21-year charter amended to allow for banking privileges in addition to its manufacturing arm. (Banks, as quasi-public institutions, had to be chartered by the State Legislature.)

Because the legislature in the 1820s was anti-banking, many individuals found it easier to begin a business and later lobby to amend its charter.

Mr. Morrison, a druggist who was primarily interested in running the chemical end of the new company, began those operations with his own workmen and equipment. He initially supervised the manufacturing operation.

Meanwhile, Mr. Melick, a wholesale grocery and a director on the boards of several New York City insurance companies, was named as the first president of the Bank. He served in that capacity from April 1824 to April 1831.

Only 12 other banks were doing business in New York City when Chemical received its bank charter from the State. Some, like Chemical, existed as part of a more general business.

Banks at this time functioned as arms of import-export merchant businesses, offering such banking services as the exchanging of bonds, stocks and banknotes.

At the time of its formation, Chemical’s assets were gold, silver and New York State bonds. The Bank invested these assets in such projects as the Erie Canal and new roads. By 1829, Chemical had more than $216,000 on deposit, more than $20,000 in specie (gold and silver) and a surplus profit fund of $4,000.

In 1853 Chemical became a founding member of the New York Clearing House, an association of banks formed to help members clear banking transactions. During the recession of 1857 many banks newly incorporated under the banking act of 1838 were hard hit.

Eighteen New York City banks closed in a single day; some 985 banks throughout the country closed during a six-month period. Chemical Bank earned the nickname “Old Bullion” during the crisis by continuing to redeem bank notes in specie for several days after all other financial institutions had started issuing paper loan certificates.