The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1889-02-23
The Bank of Amsterdam.

Far back in the middle ages, says Pro
fessor Thorold Rogers, in ''The Story ot
the Nations" Venice had established &
bank which should receive the coins of all
nations and give warrants to those persons
who deposited such coins, which warrants
should circulate 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 depos-
its with it to the amount of $3.50, 900, 600,
treasure more prodigious than any Euro
pean fnancier at that time thought could
be possibly accumulated. The notes issued
by the bank were supposed to be, and in
theory, were exactly equal in amount to
the specie or metallic money deposited in
the strong room of the bank But the
notes of the bank always bore premium,
due to the convenience and absolutely
guarded security which the holder of the
note possessed. Then the bank charged a
small sum on every account which was
opened with it, small sum for negotiating
bills and transferring balances, beside a
profit which they derived from their own
subscribed capital and their customers
money at call.
The bank was under the management of
the Amsterdam corporation, the chiefs of
which examined the treasure annually, and
made oath that it 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 centre was so
much the interest of the Amsterdam NUM-
eipality that they could be more safely
trust ID with the control of the institution
than any State official could be- When,
nearly a century afterward, the project of
starting a great central bank in England
was entertained, it was thought for long
time that the system under which the Bank
of Amsterdam was managed should be the
model of bank to be established in Lon
don In the end, and fortunately so.
other counsels prevailed, for in the seven
teenth century London had not been so
educated in the principals of
honor as to make the Amster-
dam experiment safe or convenient mode /
for English practice. 1t IS remarkable /
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,
sagaeity, and integrity of Netherland e.
nance.
The reputation Of the Bank of Amster- /
lam received remarkable confirmation in (
l672 In this year Louis XIV, having
secured by heavy brides the completely aud 1
Of Charles III =, of England, declar- I
d sudden war ON the Dutch. 1t was, per
iaps, the most infamous war ever waged, (
he most uuprovoked, and the most unex-
1ee;ed. The King of France was at this 4
ime al the height Of his power The
King of England had been in what was
opposed To be firm alliance with Holland,
Shose stakeholder, affcrward William III.
Il England. was his nephew. The admin.
straiion Of Holland was in the hands Of
he brothers Dewitt, who were supposed
o have been wiltally negligent Of affairs
ghen the war broke out. The Dutch were
'anic stricken at the calamity which came
"a them, and the political enemies of the
)eWitts goaded the populaee on into muir
lering the two Statesmen--a crime 20 which
, is to be feared William was priyy, and
y which be certainly prohted The
butch saved themselves from permanent
uin BY selfinfieted calamity. They cut
be dykes, laid the country snder water,
sd bafiied the invader They punished
'harles, or rather his people. for the lat I
sr's per6dy Now, in that crisis there :
Tas run on the Bank of Amsterdam, but {
be city magistrates took the alarmed de-
ositors into the treasury of the bank and
bowed them It's store untouched Among !
be pieces of money which lay there were
iaSses of coin which had been seorehed
nd half melted in the great FIRE which
lany years before had occurred in the
he Stadthouse The panic was allayed,
be merchants were satisfied, and the rep
tatiou of the bank became higher and ,.
igher.