The national era. [volume] (Washington [D.C.]) 1847-1860, 1857-11-12
For the National Era.
BRIEF NOTICES OF BANKS AND BANKING

The first institution to which tie name of
bank has been applied, was the Bank Of Venice,
in the twelfth century. i was q Chamber Of
Loans. This wcs followed b. the Table If En-
change at Barcelona, and .he Chamber If 81.
George at Genoa, about the beginning Of tho
fifteenth century. These were banks Of deposit,
and supported by buying and selling exchange.
The necessities Of trade compelled the crea-
ton of the Bank of Amsterdam, in the begin
ming of the seventeenth century. Its profits
were made by the sale Of bullion, coin and GER
tifcates of deposit called bank money. In
1894, the Bank of England was chartered, and
is the grand exemplar of all modern banks.
The capital was 9l,20O,O0O sterling. This
capital was made up of Government stock, is,
sued to stockholders, for loan of this sum at
eight per cent interest, besides an annuity of
ga, 900, and the privilege Of acting as bank.
ing company for twelve years. AS there was
no coin in the vaults, the Bank issued its own
notes, payable on demand at the Bank and
this was the origin of bank notes.
In 1896, the amount of circulation was about
equal to the capital of the Bank, to redeem
which large amount of coin was left on hand.
The difference between the circulation and the
coin, was the profit of the Bank. The last in
crease of the capital took place on the renewal
of the charter, in 1884, when it was raised to
100000, or fify-six millions of dollars.
The whole of this capital is lent to the Govern
ment, and so its capital has been ever since
the Bank commenced business.
In 1881, the first bank in the United States,
established in PhiIadelph ia, was formed upon
the principle of the Bank of England. Robert
Morris was its chief manager. There was then,
as now, an anti bank party but such was the
prudence and integrity of the management Of
the Bank Of North America" as it was called
that its charter was renewed by the State Of
Pennsylvania for fourteen years, on the 18th
"a marcn, 1900.
The success Of the bank led TO the formation
of the Massachusetts Bank" in Boston, in
1884, with a capital of 81, 100000, and in the
same year of the Bank Of New York" in New
York, with a capital of S950,OOO.
The frat Bank of the United States - was
projected by Alexander Hamilton, and was
chartered by Congress in 1891. 1. had cap
ita of ten millions of dollars, one.fifth of which
was owned by the United Statea. Its notes
were received in payment of all public dnes.
and it had the keeping Of the public treasure
1t was opposed by Mr.. Jefferson and his party,
though when rechartered or recreated. in 1916.
the bill was voted for by his friends, and ap.
proved by Mr.. Madison. Then it was regarded
as State necessity, as it may be once again.
and at no distant day; for then, as row, there
was a suspension of specie payments. The
suspension Of 1915 was followed by a saturna
liza of non-specie paying banks, and has beer
called the jubilee of swindlers. All banks out
Of New England, except the Bank Of Nash.
vile" went in for making money plenty. We
may see like result when the panic now upoD
the banks has passed away, and they come to
understand one another. In those days of de.
probation, all sorts Of speculatious were brisk.
prices rose, and all went on cheerly as mar
riage bells. 1t was easy to make money in
those days, and banks made enormous divi
dends to their rich stockholders, Mt the cost Of
tie working classes. The depreciation of pa
per on an average amounted to twenty. i've per
cent, and return to specie values was the
breaking of all the bubbles of a speciou7 pros
perity. y general bankruptcy was over all the
land, except New England, where the differ.
eLce5 Of condition was that Of Goshen in the
days of Egyptian darkness. THE Bank Of the
United States sustained fearful run in the
winter Of l8l8-'l9, and was saved, iuss ~ the
New York banks have lately hoped to save
themselves, by running their customers. Mr..
Secretary Crawford, in his report to Congress
for l8l9-'20, says: Few instances are on rec.
ord of suferings 80 deep and so extensive as
those which have overspread the United States"
Then the miserable shaving shops of banks
in the West uttered cries Of distress, that thew
we're broken down by the Colossus bank of Phil
adelphia. They we're thea, az now, managed by
men who as bank directors traded on the cupidi'y
of the public, and had no other capital than the
brass Of their own foreheads but the hue and
cry they raised helped them to throw dust in
the eyes of the few people who found it hard to
believe that country squires and rich merchants
were the cause of all Che public calamities.
One thing was certain-the notes Issued to rep
resent dollars at this time represented no sort
of dollar, and were purchased at heavy dis
count 80 far as needed by these capitalists to
take up their own notes to the Bank; and as
for the rest they were good for nothing. As
New England had not gone into the witchery
of the dance, 30 they had not no to pay the fid-
dler. In Kentucky, they had all manner OF
contrivances to stave off the demands of the
people upon the bsnks-such as stop lave, re
lief laws, and tender lsws-laws anything but
tender to the claims of the honest men swindled
by promises to pay on demand" issued BY
these banks.
The stock of the Bank of the United States,
with all other bank stock and its circulation.
in 1923, did not exceed four millions and half
The harmony existing between the bank and
the Government was perfect till towards the
end of its charter, when certain great capital.
lists in New York, who wanted the bank to be
seated there, and not in Philadelphia, aided by
General Jackson, made war upon the bank;
and this ended in the entire loss of the capital
of the bank, (which was squandered to pay a