Omaha daily bee., 1888-11-04

!.~ u duced into Italy by
No. the dominant Ger
MHIII J.. mans in the twelfth
MM -, scM.-,5 century and ltal-
2&EsHX~ ianized into the
T word "banco,"
which was used interchangeably with
the word "monte," to mean collection
of credit or money. .
During researches among the ruins OF
Babylon, tablets were found which had
been used us the checks or notes of IA
Babylonian banking firm trading under
the name Of the founder Egibi. This
firm did an extensive business, and
Egibi was succeeded by his grandson,
Sula, who appeared at the head of the
firm in the third year of Nebuchadnez-
Ear, and continued until the twenty
third year of that potentate's reign,
when he was succeeded by his son
Nabuakhi-idin. and the business of the
bank. grew and prospered for over a
century. Then, a revolt against the
government of the country closed its
doors.
In Greece, money changers were a
distinct class of business men as early
as the Fourth century, b. G. 1t was
their custom to receive money on de-
posit and reloan it at from 10 per cent
to 36 per cent, (nearly as good rates as
some modern bankers obtain). From
Plutarch it is learned that discount was
known to the Athenians, and the rate
of the same was often made so excessive
as to bring some. money changes into
disrepute. This happens nowadays
as we'll. OF forms of bust
ness, more nearly approaching the
state banks of later times, we are not
without examples in Greece. The Bank
of New Ilion transacted business for the
state in the third or second century b.
c., paying 10 per cent on money for
public use. Under the Romans. the
business of banking was much extended
and improved, being fully developed
in the time of Cato, l49 b. c., and with
the activity Of commerce which Rome
enjoyed, bankers spread rapidly
throughout the provinces and dependent
states.
In Italy the money changers were es
tablished at very early period of the
middle ages, and the city of Florence
became IL recognized money center. In
-DD, tHe llOHcy vi UllttU ClJN
formed themselves into guild. In
1900, the Mozzi and Spirie families are
mentioned as the bankers of the popes,
and the last named as having ~ branch
at Rome under the management of
Nero Cambi. BY 1873, banking opera
tions in Italy had attained great i'm
portance, due to the necessary
tranmission on money from distant
parts of Europe to the pope's court at
Rome and Avignon, and most of the
banking business was in the hands of
Florentine citizens. The Strozzi were
in later years, 1913 to 1884, bankers to
wealth by their sagacity, which is still
enjoyed by their defendants. In 1916,
the failure of Edward Ill, of England,
to pay l,S65,00O golden forins, bor-
rowed from the Florentine bankers,
caused bankruptcy which seriously
disturbed the entire commercial sys-
tenn of Europe. Later, the StrOzzi
suffered serious losses by the
king of France and the papers,
but, in spite of these the profits
of the business were so great that the
wealth of the bankers was not impaired.
From 14l4 to 1923 times We're good in
could be counted in the streets
surrounding the Mercato Nuovo
Mr.. Henry Mann attributes the in
ventiOn of bank notes to the republic of
Carthage, but his testimony is not con-
elusive enough. being based on this
statement of Eschines. the Socratic
| philoso pher: "In "a small piece Of
leather is wrapped substance of the
size of piece of four drachms, but
| what this substance is no one knows eX-
cept the maker. After this it is sealed
and issued for circulation; and he who
| possesses the most of this is regarded as
having the most money and as being
| the wealthiest man." Jevons shows
| that leather was one of the earliest cir
| culating mediums.
| AS early as SO7 A. D., the Chinese are
credited with the invention of the bank
| note. In that year the emperor eX-
| changed all the money deposited in the
| public treasury by merchants and rich
| persons for notes, tened flying
| money" 1t remained in circulation
but three years in the capital, and be-
came current only in the provinces.
| In 960, A. d., an emperor revived the
| practice of giving notes for money de-
| posted by merchants, and so great was
the convenience OF the notes that their
circulation increased rapidly. In 997,
| A. D.. there had been | l,7UO, 900 ounces
of silver exchanged for paper, while in
1927 the paper in circulation had in
creased to the value of 2,S30,OO ounces.
| A company of sixteen rich merchants
was then formed. which was allowed to
issue notes payable in three years. The
company was bankrupt upon the expira-
tion of that time, and much suffering
was caused thereby. The emperor
then abolished the notes of this
company and prevented the formation
of other joint stock companies. After
that the government only possessed the
power to issue notes, which were made
i Of the value OF one ounce of silver. In
| 1882 these notes were circulating to the
value of 5,256, ,ai0 ounces. Banks of
this nature were subsequently, estab-
lished in every province, but the notes
did not have interprovincial circula-
tion. To these notes, exchangeable for,
and convertible into money, is given
| the credit of being the first on record.
| DIR. GefcGen Described. O..
| Pail Mall Gazette: One OF the Lon
don correspondents gives the following
description of DR.. Geffcken: "A small
| man with quick, excitable gestures. He
| wears a dark beard and rough mus
tache, the bristly appearance OF which,
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