The Morris Canal series of caches are placed along the canal towpath in partnership with the Waterloo Village Historic Site and the Canal Society of New Jersey to showcase the important early transportation across New Jersey. The Morris Canal connected the Delaware and Hudson Rivers and facilitated development of cities and industry in New York and New Jersey.
The State of New Jersey did not build the canal. This was accomplished by private investors, incorporated as the “Morris Canal and Banking Company”. A bill was introduced in the 1824 session of the New Jersey Legislature in an attempt to obtain State funds for building the canal. The legislature did nothing about it. The canal backers, however, got a charter authorizing them to build a canal with private funds, if the money could be raised.
The original charter of the “Morris Canal and Banking Company” granted the right to condemn land for canal purposes. Another provision granted the heirs of the original owners the right to repossess the land that they had given or sold in case the canal was abandoned. Some of the land was given outright. Some was bought for the nominal sum of 6 cents an acre, and some was seized without due process of law.
The “Morris Canal and Banking Company” issued 20,000 shares of stock at $100 a share to provide $2,000,000 of capital - $1,000,000 for building the canal and $1,000,000 for banking privileges.
Stock Certificate for the Morris Canal and Banking Company
As was common for other banks at the time, the “Morris Canal and Banking Company” could also issue its own currency.
$2 Bill issued by the Morris Canal and Banking Company
$5 Bill issued by the Morris Canal and Banking Company
One of the provisions of the charter was that the State could take over the canal at the end of 99 years. If the State did not desire to take over the canal, the charter remained in effect for 50 more years, after which the canal became the property of the State without cost.
The corporation was launched in a spirit of speculative enthusiasm. The charter was so liberal that it even permitted the company to issue its own currency.
Banking privileges were to remain in effect for thirty-one years. In 1844, however, the company was forced into bankruptcy as a result of the privileges which seemed so desirable when it began.