New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-11
FINANCE & INVESTMENT
THIRD ARTlcLE)
\ BY Marc NJ Reynolds.

The REORGANIZATION Of modern monetary
and banking systems has given gem
sral classification Of the various forms of
nancy and simplified an understanding OF
che legal divisions of metal and paper
,roney. These divisions may be classified
90 cold. in coin or bars; silver. in coin or
Sars. certificates Of deposit for gold or
liver kept in reserve; base metal pieces,
Sa,rnotes and government notes. The
r,ost important question regarding any
form of money is whether 1t mas Iegai
,.rder power; or in other words, whether
tov has made II acceptable as pay
mi Of all debts. taxes and duties Every,
|or,r Of money has a comparative com
tel and legal tender power, but the
=. universal legal tender power OF
-.,nev Is gold. Definitions OF the terms
"a g., connection with money and itS
~I,ss,ecation are necessary to impart
-. understanding OF the subject.
rates for coinage is the actuai Eaiue
rslation between gold and silver
(. rrae coinage is term used 10 convey
,ha tact that a mint is open to the puono
,rbo NAV desire to bring bullion 10 DC
lid Sometimes a government pur-
ohases the bullion and profits oy the
s.Jrro-ave which otherwise would go 70
n.rson bringing the bullion TO inc
mint. -. hs,wesr
or,,ot value Of the bullion ana us
coming value. ,.e,,.,or 90
the free and unlimited coihaee Va 'o'',
gold and silver into money OF Kun ieea'
tender power in the payment VI III ''''
cations. =. ,,n5ar-
panar money, ordinarily is uhaer-
,,oo5 "a be for circulation Wlthih tne
BOUNDARY lines Of the country IN "nicn
=, =. Is.vad There are two forms Oh
r,o-ev--notes and certificates. Ger
i'sootss are issued against deposits OF
-. A. bullion. Notes, as rule, are Is
80 against the credit Of either the gov
-r-,.nt or the bank whose name they
nav hear. As they are promise 70 pay
,bav NAV be exchanged for coin at any
,tr,s So long as the government or banks
issuing them may remain solvent NoteS
-. ,ssued TO increase the circulating
r,edia Of a country, consequently the vol
,,,ne NJ issue is in excess Of metal hello
for their redemption.
Government notes are such notes as
NAV. he issued by the government only
q few nations have issued such notes
Ranknotes are those issued by banks
IN practically every civilized country
The names of coins used as money IN
modern times have an entirely different
meaning than in ancient periods Orls-
,na1v all precious metals passed accord
ing to their weight The shekel OF the
biblical DAYS was a weight. The original
EprI,sb mound, as used by the Romans
weighed a full pound. The origin OF the
dime is traced 10 the denarius or the
Romans. meaning one-tenth OF the prlh-
cipaI whole other names OF coins were
derived from the power that issued thenl'
For instance, a ducat was from a DUKE a
sovereign. crown, louis or napoleon came
fron, the king or ruler. Then another
series Of coins were named after the en-
blens stamped on them, as the horin, LOT
q flower: the escudo, a shield; the con-
don Of South America, and the eagle Oh
the United states. The dollar was taken
iron, the German thaler. but the form OF
the American dollar was based on the
Spanish milled dollar.
The MONEYS OF the world in use to-day
are so closely associated with the oanK-
ing systems OF each country that snort
history Of their banking ORGANIZATIONS
will include all necessary information re-
garding the different divisions OF money
The origin OF banks is not definitely
known. but they are Of remote antiquity
Long before the Christian era they ex-
isted in China Babylon, Greece Rome
and other ancient nations. There were
banks OF deposit, loan and exchange IN
Babylon, Greece and Rome In the very
early periods, but there seems to be no
record Of those banks having been banks
Of issue. In the Metropolitan Museum OF
New York there are Babylonian tablets
OF banking transactions which occurred
during the reign Of Nebuchadnezzar. On
these tablets are memoranda OF loans
made IN silver.
The earliest known banking house is
recorded as that of Egibi & Co.. when
appears TO have acted as an imperial
banking institution in Babylon from the
time of sennacherib, about 100, b. u
down 10 the reign Of Darius, through nVe
generations. In the British Museum are
clay tablets which were discovered IN an
earthen Jar in Babylon bearing records OF
this banking house.
The earliest records of European banks
are those Of the Bank Of Venice. founded
a. D. III. the Bank Of Barcelona, found
ed in l4Ol: the Bank Of Geneva, founded
in 1907, and the Bank of Amsterdam
founded in 1909.
Ito be continued in The Tribune on
Monday, November 49,