Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1914-01-16
ORIGIN OF

1890 |
icoin he received, some badly wsrn. som,
clipped, and much OF 1t foreign, and Their.
IL would be weighed as bullion and thu
actual value credited to his account. tt
pay an amount to another, q merchan,
had but to go to the bank or give a writ.
ten order to have the sum desired sub.
tracted from his account and added to that
or his creditor. AS the bank was allowed
TO pay out only money Of uniform stand.
ard weight. this transfer was eouivalen,
to a payment in coin of full value, and
was beyond cavil.
Goldsrniths Invented Bank Notes.
Inc time came when foreign business
was practically all done by transfer at a
bank. These banks were under govern
ment control. but the goldsmiths in
various lands also, had been %conductins
q private business of this character. al
though In a smaller way fer generations
before public banks were ~naugurated
Ihey issued a form of promissory note
Or which the modern bank note or bank
Dill appears to be a gradual DEVELOPMENT.
|, Inc TACT that they worked and kept on
hand the precious metals and were ex-
perts IN weighing and judging the value
OF foreign and mutilatea csin, early led
persons to resort to them beth to sell de-
1lased money and to take advantage of
l1heir strong boxes for safe deposit.
england was much behind Italy, Hol-
iand and other continental countries in
.he early development Of systematic hank
ing ana commerce, and general business
Tor many years felt keenly the need Of a
responsible banking institution. At the
beginning OF the Seventeenth century.
when Great Britain was in transition from
Ieudal 10 modern methods Of Carrying on
pubic affairs OF q fiscal nature. James /
made himself many bitter enemies
through his attempts to raise money by
seiiing titles and by the levy Of unaccus-
toned taxes. The proposition to estab-
lssn q government banking system met
win successful opposition fer years.
BUSINESS men carried their Money heme
at night or left 1t with the gsldsmith's
or deposited it at the mint in the Tower
OF London under the guardianship Of the
crown. We are told by Macaulay that
eir dudley North. pen being asked by
a soitcitous goldsmith where he kept his
money. replied. Where should I keep it
but In my own house?"
Bank DEVELOPMENT in England.
But in 1910 Charles I, being in great
STRAITS for money following wars with
france and with Spain, and having sum-
marily dismissed the short parliament be-
Iore IL had taken any action regarding the
raising OF funds, suddenly seized Elm, 600
from the money while merchants had de-
posted for safe keeping at the mint.
owing to the strenuous activity Of the VIC
tims this money was repaid, but only
after long delay.
The goldsmiths profited by this affair,
Tor public confidence in the government
was gone and the mint was Stunned. The
absolute Charles II in his quest for funds,
borrowed from the goldsmiths until they
dared lend to him no longer, when he is
sued a proclamation. January 2, 1872, re-
Iusing to repay the money they had all
advanced the government and ap-
propriating Ell. 32S, 526 Of the sum on hand
to his w uses.
This money had been received by the
goldsmiths in varying amounts from up
ward of 10000 depositors, and ruin to
many followed its loss. After years of
litigation extending into the reign of
William III, this indebtedness was con-
with the other portions Of a per-
manent national debt. In the meantime
the goldsmiths and their customers were
evolving a system of notes and checks
limited circulation. but then thought
most convenient in commercial circles.
In his interesting history. 1.-THE Grass
hopper in Lombard Street, Mr.. Martin
shows the following examples of checks
given on London gOldsmiths at about his
Their courtly style contrasts
with that Of present-day paper:
Bolton, 4th March, 1884.
At sight hereof pray pay unto--
or order, the sum of four hundred
pounds and place it to the account Of
your
assured friend