Note 785 — Chapter VI

Only one previous incident in Burr's public life can even be faintly criticized from the point of view of honesty. In 1799 there were in New York City but two banking institutions, and both were controlled by Federalists. These banks aided business men of the Federalist Party and refused accommodation to Republican business men. The Federalists controlled the Legislature and no State charter for another bank in New York could be had.

Burr, as a member of the State Senate, secured from the Legislature a charter for the Manhattan Company to supply pure water to the city; but this charter authorized the use by the company of its surplus capital in any lawful way it pleased. Thus was established a new bank where Republican business men could get loans. Burr, in committee, frankly declared that the surplus was to establish a bank, and Governor Jay signed the bill. Although the whole project appears to have been open and aboveboard as far as Burr was concerned, yet when the bank began business, a violent attack was made on him. (Parton: Burr, 237-40.) For charter see Laws of New York (Webster and Skinner's edition), 1799, chap. 84.