The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1868-07-11
CHICAGO. SATURDAY, JULY IL, 1868
THE SPIRIT OF THE AGE..-v.

Bank Of Amsterdam. This was established
in January, 1909, under the guaranty Of the
government and its,mAgistrStes. The avow-
ed object was, to get rid Of the intolersble
nuisance of worn and defaced coin. This
coin currency had long been at discount
Of from eight to ten per cent, and bills of
exchange drawn, payable in were it at like
discount The bank owed its origin to the
fact that all bills Of exchange exceeding 800
forms were payable only at the bank. This
neeessitated the opening Of an account at
the bank and deposit Of coin by the payOr,
10 meet bis payments. These deposits were
scrutinized, tested, valued, and credited to
the depositor, less five per cent, and
charge Of ten forms for opening the account.
The transfer Of the credit was by check,
thus:
Folio 1909.
ItSSrs Commissioners Of The Bank:
Please to pay 10 Isaac Jones the sum OF
one tuo lsand forms, four soils and six de-
nlers. SAMUEL MOSES.
Ans .erdam, 25 March, 1903.
On presentation, the sum expressed was
debited to the drawer, and credited to the
payee. This could not be again transferred
until the next day, and the book was closed
fifteen days in January and July, in which
time the books and accounts were all closed
and opened anew. The books Of the bank
and the depositors were examined and COM
pared in their turn, and errors, il any,
corrected. The money thus deposited
was tied up in little bags, and never res
tored again to circulation. When there
were too many bank credits in circulation for
the demand, which would be evidenced by
their being offered for sale too freely, the
bark employed brokers 70 purchase them in,
at four per cent. premium. Brokers were
always furnished with coin, to purchase
them in at four, and with bank credits TO
sell at five. This kept the price at one per
cent, and always at a premium, The bank
always received on special deposit, all coin
and bullion offered. The amount was weigh
ed, put into a sack-if gold, the depositor
-'-r his seal on the sack to Identify it. A
it was then given, thus:
Amsterdam, March /, 1900.
Joon Jones has deposited in Bank one
thousaDd Louis dor, at the rate Of ten for
ms and fourteen soils each, upon condition /
thst he may withdraw them within six |
months, paying one quarter per cent, or in |
default thereof, that they shall be taken BY |
the Bank, at the rate above named,
Folio 10, TOO N. n, for the Bank.
For about two centuries the bank enjoyed
unimpeached credit, but in 1890 it was dis
covered that a large portion Of tie gold had
been distracted from the bank. 1t had been
lent to the East Indian Company and to
the city Of Amsterdam. No evil, or disturb
ance to business or depreciation of the
paper 7cnrred until after the discovery of
the dishc nesty Of the managers. The Bank
Of Hamburg 7-as established q l6ls-upon
a similar principle, ana il in full yigor to-day.
II oncc over-extended its loans on Pledges,
and the French, under Napoleou's Marshall,
Devaust, took all the money Tor the army.
But the French Government afterwards
made retribution, and the bank resumed its
position AMI operations. One popularity OF
this bank is, that no broker or employer OF
the bank IS permitted to open an account.
There are five Directors, and the vaults have
each FIVE locks, 0, one OF which each direct
or holds a single key. The treasure cannot
be distracted without tie consent Of the
whole five directors.
These examples have been given, to show
that any amount Of business may be done
by paper, without depreciation, and that
this paper may and will, il rightly instituted,
bear premium over gold, for the reason
that il il much more convenient. 1t may be
said, however, that in the two last examples
the paper bore a premium because based
upon gold. That question will hereafter be
mere critically examined. The next and
last example Of paper which usually per-
forms the uses Of gold, and without material
depreciation, and without gold, are the
banks Of Scotland. No examination Of this
subject would be satisfactory which should
omit the Scotch system. 1t IS not based upon
col !, and is not pretended to be, and yet it
is much safer system than the English-
pretended to be based on gold-at much
lower rates, with less auctuatiens of the
currency, and with no government god-sus-
pension tinkeTs to aid the system, the Scotch
bankers have continued to manage their
paper banks without gold base, with such
success that they have wrung unwilling en-
comiums from Parliament committees and
golj-base nostTum doctors, that could not
have been done were not these paper banks /
admirably conducted. +.
The Bank Of Scotland owes its origin to
William Patterson, the most fruitful schemer
Of the seventeenth century, and be was also
the protector Of the Bank Of England, but
its constitution was the work Of John Hol-. /
land and some other merchants Of London ,
and Edinburgh, who were dissatisfied with
the Bank Of England. Holland engaged in I
could have an "Act Of Parliament on his
own conditions" Terms which are not even I
demanded can be had without asking. The ,
Bank # England bad its origin In the press- !
ing demands Of the government for money ,
the Bank Of Scotland originated With men i
who we're merchants, and their plans had res
pecs to banking for their own business; they
" TODD the nature and character
ol I'D had advocated AM inssituticu
Of th.r ID before the crsgtis6 of the Bank
Of England. They wefsWelI verssd in the H
history Of the BANKS Of Venice, Gsnoa and
s-istsrdaru, and knew the functions and
raetices Of these banks. Knowing that