Okolona messenger. (Okolona, Miss.) 1900-current, 1908-03-18

G8y W Of Venice lived and Aourshed for 626
years.
An institution which thus living to the age
OF Methusaeh deserves considerable notice.
In LII there between Venice and the
Roman empire Of the East.
Venice being hard up for cash borrowed 100000
ducats from her rich citizens.
In for this loan the government simp gave the
lenders credit the nment books for the amount
loaned.
In other words it a citizen loaned 100 ducas to the
government he entered the books
creditor that He held receipt certificate
against the government Tor the amount OF his claim.
Now the Venetian republic succeeded in its with
Consaninople captured that city, and became very rich
and powerful
Hence a claim against the government was perfectly
good and people doing business with each other preferred
claims against the government to gold or silver.
For instance, suppose merchant OF Venice held
claim for 100 ducas against the government he wished
to buy goods from merchant in Cons antnople to the
Of 100 ducats; send gold silver was danger
and costly to send transfer of his claim against the
government safe and cheap; the merchant in Con-
stantnope preferred the claim against the
gold or silver because was equally valuable and much
easily kept hence the transaction between the two
merchants closed. to their mutual satisfaction and
benefit by the transfer Of the debt which Of them held
against the government
These government credits perferred by Venetian
traders for many Of the which this day
such hunger for bonds
Bonds government Credits yet have just seen
how eagerly gold is exchanged for them.
The bank of Venice founded upon this loan Of So
100000 ducats was government bank. At the begin
ming it merely chamber Of loans.
he credits have spoken Ut supplied the circulating
medium The transfer Of these credits upon the books of
the bank equivalent to much money changing
hands,
In 1923 cash Office was added, and the Bank of
Venice received and returned cash deposits
In 1887, discount Office added.
Thus see the great republic of the Venetian cities
running TOR hundreds Of years, bank which had the
three departments OF the modern characterization, de-
post and discount
But the two latter departments nterfered with the
original system Of transferable credits used in the payment
Of debt
At first the government allowed four per interest
on the loans. 1923 the interest abolished and there
after paid.
At first the loan made the promise OF repay
ment Soon the transfer system became much
convenient and desirable circulating medium that
one wished for repayment All preferred to hold the
claims against the government Consequently in l423 all
promise OF repayment abolished
After l423 whenever citizen gave his gold in
change for government credit, he could demand
the gold again.
No coin was kept as a specie basis OF credit No
Gold Reserve maniac had then been discovered and
worshipped as a statesman
The bank lived 400 years after it ceased promise
return gold for gold 1t lived the strength Of the gov
ernment and the demand for cheaper and con-
venient way OF making settlements than with gold and
silver coins.
The credit money Of the Bank Of Venice was not only
as good god all the republic and throughout the
territory its invaded but commanded premi-
OF ~ per cent. gold.
The amount Of credit money which was worth fifth
more than gold reached $4,000
The population OF Venice proper was 100000, but she
ruled Of territory both land and sea- which
was equal nearly one-half Of what the Roman Empire
had been in its best days.
At the time Napoleon conquered Venice its merchants
the richest in the world and the government bank
was vital part OF their magnificent commercial system.
In 1923 the government abolished the interest as we
have said thus saved to the taxpayers four per cent.
interest for 400 years On each million ducats this little
saving amounted to 0000O00000O00
The merchants could we'll afford to have the interest
abolished because the government credit really a
money they could interest private parties, and
as long their wealth represented BY government
credit could only be lost when the perished
By getting the bank hold his cash the citz-
en- insured it against all risks far human prudence
could do it. and saved it from taxation.
After 1923 the Bank Of Venice issued its credits with
out any promise Of redemption. Hence a government
deenabe pspsr money" Yet il not only ans cred all the
purposes Of gold for four hundred years. but commanded
premium Of twenty per cent
Why?
Because the credit Of great government is always bet
ter than temporary and perishable lot Of coin.
Why do United States bonds bring premium over
roldp
Because they constitute government credit