The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-23

this book is that giving the history OF the
Bank OF Venice, an account which is consid-
cred the best in the English language of that
institution. and the reader will please note
the fact that this Bankers Magazine does not
hesitate to say that this account is considered
the best in the English language" l can
make only few brief quota tions from it.
"In the year I'LL q Venetian feet of 100
galleys was sent to avenge an outrage perpe-
trated by the Grecian Emperor. Manuel, upon
Venetian merchants doing business in his en-
pre-. "Ihe contest is memorable Tor having
given origin TO the Bank of Venice" So great
an undertaking required large sum OF gold
and silver to carry on the war in foreign
country, and in order to raise it Immediately
'the Great Council" or Congress of the Vene-
tian Republic, established the Chamb Der of
Loans" sort OF national treasury, and forced
the wealthy merchants, the mobiles and capt.
tailsts to make a loan of their gold. silver,
plate and ornaments for which they were TO be
paid per cent annual interest
On this foundation arose the Rank CT Ven-
ice, which became, as Colwell says, ''for many
ages the administration OF Europe and the
cheap facility of a commerce not surpassed by
any other nation Purchases were made by
venetian merchants in all parts OF the world,
ana settlements were made by transfer CT
credits in the bank. Indeed, bank credits in
time practically became the only means OF
paying debts, and they were accordingly in
universal demand Hence these bank credits
soon went to premium of 20 per cent over
gold coin and interest ceased on deposits,
which leads Mr.. Colwell to remark thet IF the
chilS luOuc Oh al uSDtS were IcSOIteu 10
now the res ult would be that inconvertibe
bank credits would frequently go to q high
premium over gold and siiver.h
one other quotation must be made in ex-
PLANTATION of this system of finance, p. 639,
Arena: ."To comprehend this extraordinary
TACT of g credit on the books of a bank wi b no
money in Its vaults and not bound TO make
that credit good in later times even by the
payment OF the interest, or to redeem 1t IN
any way, having Tor hundreds ct years been at
a high premium over gold and silver, we need
only remember that these credits were the
funds in which debts were chiefly paid"
wish affrightened ignorance, which takes
alarm at the bare suggestion of ontroverti-
Die Government money, would read and duly
ponder the following words OF the historian:
III credits had to be convertible at will into
the precious metals the premium could never
have arisen, much less attained so high
point" And (page 640): ''Venice WAS for CEN
turtles the great entrepot of commerce in
lquidated by bank credits, land for more than
400 years precious metals were at a discount
as compared with these bank credits"
But l must close without attempting to
elucidate the system of the Bank of Venice and
contrast 1t with our own so-called National
banking scheme, based on Government
"bonds," our Government credits, which are
US ed TO rob the Nation and despoil the people.
l must also defer answers to my questions as to
etc. will add that if President Cleveland had
recommended to Congress and the people q
full investigation of the system of the Bank of
Venice as means OF escape from the ma
tional" banks he would have earned the graf
itude of his country.
JOSEPH AsBURY JOHNSON.
IL Essex street, Dec. IL, 1896.