The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-11-07

tions of credit were entered on the
books in favor Of the lenders, the
government agreeing to pay four per
cent. interest. These inscriptions
were made transferable in whole or
in part on the books Of the bank. The
government entered into no Obliga-
ton to return the loan, but to quote
Caldwell reimbursement of the loan
soon ceased to be regarded as either
necessary or desirable" Every cred
itOr was reimbursed when he trans
ferred his claims on the books of the
bank. From being convenient and
valuable as an investment, readily
obtained and as readily disposed of,
it became, by natural process, a
medium of payment in transactions
in commerce. If individuals could
make purchases and pay debts by
transfers in bank, the public treasury
| could we'll afford to receive in pay
ment Of it's dues credits in bank, as
that would only be taking mp it's own
obligations. Thus the more these
credits were employed, the more the
demand for them increased, the more
rapidly money flowed into the treas
ury, and the more rapidly the gov
eminent could afford to receive pay
ment of it's revenues in the funds of
the bank.
The way opened by the experience
of two and half centuries, is the
next chief characteristic of the Bank
Of Venice. In the year 1923 it was
decreed that all bills of exchange pay
able in Venice, whether domestic or
foreign, should be paid, unless other
wise stipulated, in the bank, and that
all payments in gross, or wholesale
transactions, should be effected in the
bank. This at once brought the mass
of the commercial transactions of
that great commercial city, to the
bank. This measure created at once
Il great demand for the funds of the
bank and brought large sums into the
public Golfers. The government,
however, no longer paid interest on
the sums received from the bank.
| The funds obtained in this way were
brought to the bank for the payment
| of bills of exchange, and were paid
in for that purpose, and not with any
view of interest. AS all payments OF
| the kind above designated were by
law to be made in bank. unless other
wise agreed, and as that mode was
| far more convenient. it became
almost the exclusive means of pay
ment.
The facility of payment furnished
| by the banks, which made it the adj
miration of Europe, honorable at
once to the government and merchants
of Venice, and support to the power
Of the people, consisted in substitute
ing rs medium of payment the debt
Of the Republic, for current coin.
| The government took the coin, once
| for all, giving therefor Il correspond.
I ing credit in the bank, and allowed
the depositor or lender. to transfer
his claim upon the Republic, in pay
ment of his debt, in place OF transfer
ING over the coin in each payment.
Whatever men can employ in pay
meht of their debts they will be will
ing to receive in payment, and this
independent of any legal compulsion.
Mr.. Colwell further says, Experience
soon evinced the power and conve.
nience of this mode Of payment.
| These bank credits were divisible by
every desirable degree, land they could
be transferred with readiness, speed
and safety, beyond all comparison,
superior to any mode Of paying coin.
The same sum of credit might be
kept in such rapid circulation as to
effect an amount of payments, in 4
specified time, far beyond any posi-
| BILE movement CT coin.
This system of payments was SC
well adapted to the lexigencies OF
commerce that it was.1lhaintaied in
in full vigor. in the great commercial
city of Venice for four hundI ed
years. 1t wasa an institution or device
of the credit system, for by its aid
payments were effected and that to 9
vast amount annually, without any
use of coin or bullion. 1t only perish
ed when the city itself fell at the
conquest of Italy by Napoleon; bal
the conquerer carried off no coin, nc
penny OF prey. The credits of the
bank were crushed under the rude
tonch of an invading foe"
Such was the bank Of Venice
| Who can fail to see the similarity tc
this in our greenback systemt The
greenback takes the place Of the in
scription to the bank, more conve
nient in form, bat both systems are
based upon the superior credit of the
nation TO the individual or individual.
banking institutions, assuming thai
such credit is more safe and certain
IS basis of currency than coin
| which il ever fuctuating and liable K
be withdrawn when most needed
OF the bank of Venice. Burky in hi.
| work on money says:
The history IF the bank of Venice
establishes several important facts t.
the American people. The inscrip.
tions to the bank were simSly cviden
ces Of the Indebtedness Of the govern
ment, bearing no interest. which con
stitu ed a medium of exchange. The
evidences which the government re
| CURED it's creditors to take In thu
first instance. it did make legal ten
der for private debts, which was NJ
more than Just. The large premium
which these inscriptions bore. va:
not due TO any act of government. buI
to the value attached 20 them by the
pil,lic. These bank inscriptions rose
- high as 30 per cent above gold
! when the government fouI.d it n.ces
sary 10 impose a Limitation To the pre-
q n n.