Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1889-05-10
BANK or AMSTERDAM.
Interesting sketch OF "a Famou, Monetary
Institution.

AIL0rtatluK FkttCu Oh u ENmOuR monetary
Institution.
Far back ia the middle ages says
Prof. Thornold Rogero In 'Ihe Story
OF the Nations Holland" Non.ce had
established bank which should receive
the coins OF all nations, and give war
rants to those persons who deposited
: such coins, which warrants should cir
culate from hand TO hand. just as bank
notes do now. Three centuries after the
/ Bank OF Venice was founded, similar
institution was established at Genoa.
on a somewhat similar basis. In 1909,
the year OF the truce. the bank Of
Amsterdam was founded, and before
the end OF the century was known to
have metallic deposits with II
TO the amount OF $3.50, 00o, 00)-a
treasure more prodiglous than
any European iinancier at that
time thought could be possibly ac-
cumulated. The notes issued by tho
bank were supposed to be, and In the
DRY were exactly equal in amount to
the specie or metallic money deposited
dn the strong room OF the bank. But
the notes OF the bank always bore a
premium, due to the convenience OF
the absolutely-guarded security which
the holder OF the note possessed. Then
the bank charged small sum on every
account which was opened with 1t, a
small sum for negotiating bills and
transferring balances, besides a profit
which they derived from their own
subscribed capital and their customers
money at call.
The bank was under the manage
ment OF the Amsterdam corporation,
the chiefs OF which examined the treas
ure annually. and made oath that 1t
was OF the full amount at which the
managers OF the bank affirmed it to be.
1t was seen that the well-being OF this
great commercial center was 50 much
the interest Of the Amsterdam munich
pality that they could be more safely |
trusted with the control OF the institu-
tuition than any State official could be.
When nearly century afterward the
project OF starting great central bank
In England was entertained. 1t was
for a long time that the system
under which the Bank OF Amsterdam
was managed should be the model OF a
bank to be established in London. In
the end. and fortunately so, other
prevailed, for in the seven
teenth century London had not
been so completely educated in
the principles OF commercial hon
Dr. as to make the Amsterdam ex-
pertinent Il safe or convenient mode
Ior English practice. 1t is remarka-
Bile that not a few OF the first directors
of the Bank of England were Flemish
settlers in London. who driven out for
their religion, brought over with them
The intelligence, sagacity and integrity
n Netherland finance.
The reputation OF the Bank OF Am
'terdam received remarkable con-
irmation IN 1872. In this year Louis
XIV, having secured by heavy brides
he completely and assistance OF
Charles Ii. OF England, declared sud-
len war on the Dutch. 1t was per-
laps the most infamous war ever
waged, the most unprovoked and the
most unexpected. The King OF France
was at this time at the height OF his
power The King of England had
,een in what was supposed to be firm
alliance with Holland, whose Stadt-
iolder. afterward William III. OF En-
gland, was his nephew. The admin.
stration OF Holland was in the hands
If the brothers De Witt, who were
TO have been willfully
negligent OF affairs when the war
broke out. The Dutch were panic
struck at the calamity which came on
hem, and the political enemies OF the
De Wits goaded the populace on into
the two statesmen-a crime
o which it is to be feared William was
,rivy, aud by which he certainly prof.
ted. The Dutch saved themselves
rom permanent ruin by u prodigious
calamity. They cut tho
lykes, laid the country under water
md baflled the invader. They punish
ID Charles, or rather his people, for
he Kings perfidy. Now, in that crisis
here was run on the Bank OF Amster-
lam. But the city magistrates took
he alarmed depositors into the treas
Try OF the bank and showed them its
tore untouched. Among the pieces
Il money which lay there were masses
i coin which had been scorched and
lalf melted in the great fire which
many years before had occurred in the
The panic was allayed,
he merchants were satisfied, and the
equation of the bank became higher
nd higher.
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A d.