Evening journal., 1914-12-18

clally valuable TO the students.
Superintendent OF Schools Clifford |
]. Scott and John Kendrick Bangs. |
who addressed the members of the
Primary Teachers Association at
o'clock. were among those who heard
the lecture.
"It will interest you to know that
banking Is OF very ancient origin and
is co-extensive with the development
of trade and commerce." said Mr..
Rossell at was we'll conducted by
the ancient Greeks and Romans, and
indeed with them banks exersiced
nearly the same functions as those Of
the present day, except that II does
not appear that the ancient banks is
sued currency.
"In the fourteenth century the
money dealers of Florence attained a
great reputation as receivers Of de-
posits and lenders OF money and II
was with them that the methods of
modern banking would seem to have
had their origin. Some historians say
that Florentine banking dates back
to the twelfth century.
"The goldsmiths OF London did
very large business In receiving de-
posits and in lending money and we're
so thrifty in this line that they aroused
the hostility Of many prominent per-
sons. This was in the Seventeenth
Century and during this period the
great Bank of England was founded.
sometimes called the old Lady of
Thread-Needle Street, doubtless be-
cause Of the location of the bank and
the amiability of the management. IL
is one of the worlds great institutions
and it is hardly likely that any con-
vulsiou that might occur in the worlds
affairs. would affect II very materially,
so solid and enduring is its foundation
So you sec that the necessities of bus
mess as the worlds civilization has
extended. have required the services
OF banker in ono capacity OF another.
"The history Of banking in our
own country is most interesting.
Prior TO the Civil War the State
banks. acting under local charters.
controlled almost the entire finan-
cial operations of the country. They
/ received deposits. discounted notes
and issued their own currency. which
was, unfortunately in too many in
stances, OF doubtful value. lmper.
/ feet as was this system OF banking
II did aid very largely in the devel.
opment Of the country and at the out.
break Of the Civil War. the Stat,
banks we're the strong support of tn,
Federal Government.
"In this day the state banks con.
tinue TO flourish and under better
\ regulations and closer supervision
they are doing a great work. There
are nearly $4,000 Of these banks now
in existence as against 1900 fifty
years ago.
"Nou should be told something Of th'
4 two United States banks that were or
ganized under acts of Congress. the frs
in 1901 and the second IN 1916. Th'
idea Of government bank originates
with Alexander Hamilton. Secretary o
the Treasury in the cabinet of presi
dent Washington. He had firm con
,iction that bank Of this characte
would be q powerful engine in the ad
ministration Of the finances of the coun
try and in aiding the government in IL
fiscal affairs. His plan WIS oppose
very strongly ON the ground that it wa
not within the power of Congress 10 in
corporate n bank and this question Wa
fought out with great earnestness.
Edmund Jennings Randolph. the AT
torney general of the nted States. an
Thomas jefferson, the Secretary ,
state, opposed It vigorously, but th
earmestness aud zeal with which Hami
ton pressed his point finally convince
President Washington and he signed h
bill. This led TO the establishment
The first United States bank. whie
after twenty years of successful bus
ness, aud in spite Of much opposition
was liquidated TO the great advantsg
of its stockholders who received, in az
dition 10 an average annual dividend {
5 per cent, 100 per cent. for each shar
of stock. The second United State
bank had a somewhat more exciting ca
reer and was the object of persistent al
tack. Of men prominent in national al
fairs, conspicuous among whom wa
President jackson. who in the convi,
tion that the bank was a political ma
chine and was unsound, finally remove
the government deposits therefrom, an
Notwithstanding most determined effort
Of its friends to have its charter r,
newed, the bank went out of existcn,
. upon the expiration Of its charter
: 1886
I I'm your study Of the Constitutlo
OF the United States, you have, doubt
less. observed that there is no express
ed power given to Congress to Great
bank or to engage in the bankin
business. Some strict Constitutions
lists have contended that in respect
banking, Congress is limited 10 Al
thorizing the coinage OF money an
regulating the value thereof. Other
hold that under the power Of Congres
TO provide for the general welfare .
the country, II may properly provid
as it has done, for the establishmel
or national banking system. All ,
II these questions are now we'll settle
The diversified interest Of the cour
try and its sectional division reauil
strong support. This could not |
given by local institutions, and, hen,
II is a matter OF congratulatiop IN,
we now have a system of nationl
banking that inspires confidence @
erywhere and extends its operation Ii
TO every part of the country.
THE national banks were esta
lished under an Act of Congress
passed in 1863. Under this act five pc
sons may organize a national bar
with capital of 100000. cxcept
cities with less than 5000 inhabitani
where the capital required is $50. .O(
In the larger cities the capital mn
be 100000. These banks are authc
lied TO issue their own notes. bas
upon government bonds deposit
L with the United States Treasury. a
i they are also required 10 maintain
certain reserve TO protect their Z
/ DogifOrg Alfhouob fbn -,-.t~... 4.