The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1889-01-31
BANK OF AMSTERDAM.
Interesting sketch Of Famous Monetary
Inatttutl0n.

Interesting Sketch Of Famous Monetary
Institution.
Far back in the middle ages. says
Prof. Thornold Rogers in "The Story
of the Nations Venice 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, o similar
institution was established at Genoa,
on 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 1t
to the amount OF $3.50, 900, ,0O0-a
treasure more prodigious than
any European financier at that
time thought could be possibly ac-
cumulated. The notes issued by the
bank were supposed to be, and in the
ory were exactly equal in amount to
the specie or metallic money deposited
the notes of the bank always bore
premium, due to the convenience of
the acknowledgements security which
the holder Of the note possessed. Then
the bank charged u small sum on every
account which was opened with it,
small sum for negotiating bills and
transferring balances, besides 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 it
was of the full amount at which the
managers of the bank affirmed it to be.
It was seen that the well-being of this
| great commercial center was so much
the interest of the Amsterdam munici-
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 q great central bank
in England was entertained, it was
thought fora long time that the system
under which the Bank of Amsterdam
was m anaged should be the model of q
bank to be established in London. In
the end, and fortunately so, other
counsels prevailed, for in the seven
teenth century London had not
been SO completely educated in
the principles of commercial hon.
or as to make the Amsterdam ex-
pertinent safe or convenient mode
for English practice. 1t is remarlsa-
BILE that not 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
Of Netherland finance
The reputation Of the Bank of Am
sterdam received remarkable con-
firmation IN 1872. In this year Louis
XIV, having secured by heavy brides
the completely and assistance Of
Charles II. of England, declared sud-
den war on the Dutch. 1t was per-
haps 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
been in what was supposed to be firm
alliance with Holland, whose Stadt-
holder, afterward William III. of En-
gland. was his nephew. The admin
istration of Holland was in the hands
OF the brothers De Witt, who were
supposed to have been willfully
negligent Of affairs when the war
broke out. The Dutch were panic
struck at the calamity which came on
them, and the political enemies of the
De Wits goaded the populace on into
numbering the two statesmen---a crime
to which it is to be feared William was
privy, and by which he certainly prof
tied. The Dutch saved themselves
from permanent ruin by prodigious
self.inflicted calamity. They cut the
dykes, laid the country under water
and baffied the invader. They punish.
ed Charles, or rather his people, for
the Kings perfdy. Now, in that crisis
there was a run on the Bank Of Amster.
dam. But the city magistrates took
the alarmed depositors into the treas
ury of the bank and showed them Its
store untouched. Among the pieces
of money which lay there were masses
of coin which had been scorched and
half melted in the great fire which
many years before had occurred in the
Stadthouse. The panic was allayed,
the merchants were satisfied, and the
reputation of the bank became higher
and higher.