Pennsylvania goes bankrupt in 1780 due to …

Years: 1780 - 1780
July

Pennsylvania goes bankrupt in 1780 due to Constitutionalist policies which mandate state-controlled markets and self-imposed embargoes.

Ultimately, the state calls on Morris to restore the economy.

He does so by opening the ports to trade, and allowing the market to set the value of goods and the currency.

Robert Morris subscribes 10,000 pounds sterling to fund the Bank of Pennsylvania, established on July 17, 1780 by Philadelphia merchants.

Modeled after the (also privately held) Bank of England, it is not a bank in the ordinary sense but an organization formed for the purpose of financing supplies for the Continental Army.

Morris’s longtime business partner Thomas Willing becomes its first director; he precedes John Nixon in this position.

The United States, in 1780, has two interest-bearing banks.

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