It was authorized on the 10th of April, 1816, the
Act permitting the formation of a Company, with a capital of
$35,000,000, divided into 350,000 shares of $100 each, of which the
Government took 70,000 shares and the public 180,000 shares. These last
were payable in $7,000,000 of gold or silver, of the United States of
North America, and $21,000,000 in like money, or, in the funded debt of
the United States either in the 6 per cent. Consolidated Debt at par,
the 3 per cent. at 65, or the 7 per cent. at 106-1/2 per cent.; upon
subscription $30 was payable, of which at least $5 had to be in gold or
silver; in six months after, $35, of which $10 had to be in metal, and
twelve months after the same amount was to be paid in the same manner.
The directors were authorized to sell shares every year to the amount of
$2,000,000, after having offered them at the current price to the
Secretary of the Treasury for fourteen days. The Government reserved the
right to redeem the debt at the subscription price.
The charter, made out in the name of the president, ran until March 3,
1836. There were twenty-five directors of the concern, five of whom were
appointed by the President of the United States with the consent of the
Senate, and not more than three by the State; the stockholders chose the
others.
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