Driving down Chestnut Street in Philadelphia's "Old Town", you'd never guess that this cobbelstone street once had been the center of American Finance. Today many of the lots are vacant, and overgrown with uncut grass and trees in need of pruning. Gone are the banks and stock exchanges that once did a booming business along this very street. The First and Second United States Banks are the only buildings that remain, silent reminders that it was here the nation's money men once had congregated to make their fortunes investing in U.S. securities, and on investing in the stocks of booming industries, such as coal, oil, steel, transportation, and insurance.
Yes, Chestnut Street, once had been "The First Wall Street", which is the subject of Robert Wright's compelling and informative book. Using the early history of Philadelphia's financial institutions, Wright illustrates how a financial system developed to contribute to U.S. economic growth. Two of America's Founding Fathers figure prominently: Benjamin Franklin, with the startup of the insurance industry, and Alexander Hamilton, with creation of financial policies that made provision for paying off the crushing Revolut-ionary War debt. Indeed, it was Hamilton's brilliant financial system that not only lifted the nation out of recession, but led to American Capitalism. Also discussed are the financing of commercial ships, and the development of interstate roads and bridges, that would lead directly to the construction of a national network of railroad lines, and the coming development of steam power.
While informative on a variety of disparate financial matters, Wright is such a good writer that his book makes for easy understanding.
So when did Chestnut Street yield its role as America's financial capital? That mantel passed to New York City in 1836. If you want to understand American Capitalism, this book is the place to start.
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