The oldest reference regarding the establishment of a bank in Haiti, just after its independence, resides in a time of a brief correspondence exchange around September 1825, between a foreign businessman, Mr. Nicholas M. Kane, and the Secretary of State, Balthazar Iginac.  It dealt with a proposition made by Mr. George Clark in the name of a German group, Hermann Hendrick and Co., of establishing a bank in Haiti.

In spite of the benefits that the creation of such an institution, for a country that had been totally devastated for about (15) fifteen years in the war of independence, the proposition did not succeed.  Above all, it was necessary to understand that, at the time, every form of foreign presence, which came to conquer the old slave presence on its soil, was inconceivable.  There was not more than one bank that could facilitate the process of the mobilization of the necessary resources to reimburse the important financial obligations that the Haitian government, upon signing the accord with Charles X, was involved in paying France in recognition of national independence.

In 1826 the President Jean-Pierre Boyer pondered the creation of a financial institution that could issue banknotes, thus permitting the cash in circulation to amortize the debt.  Such was the purpose of the law dated April 26, 1826, that created the Bank of Haiti (Banque d'Haiti) whose statutes have been, in part, inspired by those of the Bank of France (Banque de France).  With a capital of six million gourdes, its principal activities must be the discounting of securities and titles to two signatures and 90 days due date, and the maximum of a 6% rate.  That bank never saw the light of day.

This project was revived at the moment of the definitive agreement with France regarding the reimbursement terms of the debt.  On July 5, 1838, The Chamber of Commons received from the President a new law proposal that never was voted upon up to the close of the session.

Towards the middle of the month of September 1838, two individuals with "the consent of the government" tried in vain to create an Agricultural, and Commercial Bank (Banque Agricole, Industrielle et Commerciale).  This effort was going to establish branches in Jeremie, aux Cayes, Jacmel, Santo Domingo, St. Yague, orto-Plata, Cape Haitian, and aux Gonauives (the reader is reminded that Boyer governed the entire island of Santo Domingo).  The capital was sized at 500,000 gourdes divided into 5,000 shares.  According to its statues, the bank could begin its operations as soon as 1,000 shares were subscribed.  Unfortunately, only 619 shares were sold.

In 1859 under the auspices of the government of President Fabre Nicolas Geffrard, a new law was voted on by the Legislative Body to the effect of creating a bank.  Due to a lack of financial means, this project was consigned to the dead letter box.

Fifteen years later a purely legislative stage was set and passed.  In October 1874, the Haitian government agreed by a notarized contract with a certain Lazarre, an American, to a concession and right to establish the National Bank of Haiti (Banque Nationale d'Haiti) with a social capital of three million piastres, alloting a third of this sum to the government, and the remaining two-thirds to the agent.  The length of the contract was thirty years, after which at its expiration the whole enterprise would be turned over to the Haitian State.

The first step was taken on June 8, 1875, when "imposing ceremonies" took place.  Work was carried out at a rapid pace, and, on September 1, 1875, according to the terms of the contract, the location was ready.  But the institution was not able to open its doors due to a three-month postponement requested by the agent so that it could allow him to carry out certain letters of credit, which was said that he carried.

Fourty-five days were agreed on, and the opening of the bank was set back to October 15.  A few days before the expiration of this time period, Mr. Lazarre proposed to carry out his payment in bank drafts rather than in cash.  His proposal was naturally rejected.  On the determined date the government deposited in the vaults of the bank 500,000 piastres, representing one-half of its share and forcibly summoned Mr. Lazarre to carry out his commitments.  This setting remained without a result, and, at the end of the day, a verbal agreement certified the failure of the agent; the contract was terminated.  The government decided then to address itself to the Haitian public to obtain the rest of the financing.

Invited to subscribe by the minister Septimus Rameau, the principal businessmen of the area became reluctant.  The officials of the entrepreneurial governments then made an appeal to the patriotism of Haitians of all social levels, inviting them to exchange their savings for bank stock.  The resident of the Republic and his ministers were to serve as an example by pledging one month's wages.  The members of Parliament and other officials were forced to imitate them.  However, the revolution that overthrew the government of Michel Domingue took away the bank creation project whose funds and furniture were looted.  The place later on had a new location.

This bank occupied a part of the present day site of the Port-au-Prince cathedral.  In 1898, General Badere made a gift of land of his own property of the Champ Vert (nowadays Post Marchand) for the erection of a chapel in honor to Saint Antonione de Padoie.  Father Pouplard requested from the then Ministry of the Interior, Mr. Tancrede Auguste, the old site.  His request was granted and on March 20, 1900, The Counsel of the Secretaries of State authorized the demolition of the old Domingue Bank (Banque Domingue) so that the materials could be used for the building of the present day church of Saint Antoine on Pouplard Avenue.

It had to wait for the arrival to power of President Lysius Felicite Salomon Juene to see the country endowed with a genuine banking institution.

In fact, on June 30, 1880, the Haitian Minister of Finance, Charles Laforesterie, signed in Paris a contract granting to the Societe Generale de Credit Industriel et Commercial the concession of the National Bank of Haiti (Banque Nationale d'Haite).  According to the terms of the contract, the new bank would enjoy the exclusive privilege of issuing banknotes.  It could also put into effect all of the commercial operations of the bank to guarantee the service of the treasury.

As soon as the National Bank of Haiti began its operations, the public demonstrated a surprisingly hostile attitude towards it.  It was criticized for not having contributed to the economic start-up that the country was waiting for, and it was delayed in getting going.  Its activities were limited to money speculaton and to the progress of the government.

The main leader of the opposition was Frederic Marcelin.  For about twenty years, he supported the idea that the bank should extend credit to production or disappear.  In spite of many scandals and a process that recognized the guilt of its directors in the mismanagement of the government debt, the institution kept its issuing privileges and those of the State treasury.  No means, not even the opposition of the Chamber, began to assault this "financial Bastille."

In September, 1893, Frederic Marcelin, now Minister of Finances of the Florvil Hyppolite government, forwarded to the Chamber legislation authorizing the creation of a second bank, the Port-au-Prince Bank (Banque de Port-au-Prince) The contract was agreed upon among a group of businessmen of the country that were involved with supplying a million dolars, representing one-half of the social capital and reserving for the state a share of the ownership and the other profits of the undertaking.  It was in charge of the floating debt, the stamping of metallic money, the discount of the drafts and of other affected values of the payment of foreign debt, the setting of drafts, etc.  It could also excercise the role of issuing bank drafts in gold, being an "optional rate."

The National Bank of Haiti protested against this plan, saying that it violated terms of its concessionary contract.  The deputies opposed this "dual system," voting on an amendment applying to every bank that, in the future, it must be set up in Haiti and the privileges granted to the Bank of Port-au-Prince.  One after another in the vote, the misters carried out the retirement of its plan.

The consolidation matter, the retirement of the treasury service, the reduction of the interest rates of domestic loans, political trouble, and above all, the absolute opposition of the President Nord Alexis against foreign loans considered to be a direct menace against national independence, had much weakened the young institution.  In October 1910, the concession contract was terminated in favor of a consortium made up of Frenchmen, Germans and Americans through the creation of a new bank: The National Bank of the Republic of Haiti
(La Banque Nacionale de la Republique d'Haiti) or BNRH.

At the beginning of 1911, the government of President Antoine Simon, Mr. George Neuba, the old director of the National Bank of Haiti, and a group of Belgium businessmen signed off on a new contract for the creation of the Agricultural and Industrial Bank of Haiti (Banque Agricole et Industrielle d'Haiti).  The contract, settled in front of the Legislative Chambers, was never approved until the assuming of power of the government of Cincinatus Leconte, whose demands discouraged the investors.

The BNRH pursued its operations until 1934 under the shared direction of the Americans and the Haitians.  In 1947 it became entirely Haitian, assuring all of the financial services of the State.  During the course of the '70's, the establishment in Haiti of several private banks with as many foreign as well as Haitian assets forced the BNRH to forge out a new direction.  It was replaced in 1979 by two independent, autonomous financial institutions: the National Bank of Credit (Banque Nationale de Credit) (BNC) which fulfilled the function of a commercial bank and the Bank of the Republic of Haiti (Banque de la Republique d'Haiti, which plays the role of a central bank.

Researched and translated from the French by James S. Cameron

Source: www.brh.net/historique.htm