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

The First National bank. Of Boston
q concern carrying $3.50 o. 900 of de
posts. sent to The Tribune the follow
ing little history of the origin and de-
vel0pment of the banking business. Or
the title page is q steel engraving o,
Lorenzo de- Medici, 1448-1492. famous
banker of Florence.
Six centuries before tho Christian era
the banking house of Egibi & Co.. Baby
Ion, carried on an extensive business
which was continued for a term OF y
years. It's checks, notes and records may
now be seen among the treasures of thu
British museum. This paper" owes It's
Ions existence to the fact that 1t Is moi
paper at all but clay in tablet form
originally stored in earthen jars which
have preserved the indented writing
without change.
Centuries before Christ the Romans
were skilled in business. and in then
bookkeeping made use of day-book and
ledger. All roads indeed led to Rome M
these early times. and every kind of con-
t~emporancous coin poured into the Guy.
For the convenience of both strangers and
citizens, the government built several
shops around tine Forum and let them
TO individuals for the purpose of exchang
ing foreign for Roman money. These
money changers were at first termed
Argentarii.
Soon 1t became customary for persons
to leave money with the Argentarii UNI
TIL called for. but merely for the sake OF
security. Such money was called deposi-
tum. and was retained by the broke just
AZ various articles are now held In safe
deposit vaults. But In course of time the
ATgentarii came to receive money with
the understanding that they might do
busine with 1t, and for such they paid
interest. Terence in his comedy Of
"Phormio' (B. C. 1851 brings in the fol-
lowing dialog:
Demipho-"But Phormio. pray go over
to the Forum and order that money
Phormio-"What! that for which 1
have already given checks to m
creditors?"
Other old Latin comedies contain many
illusions to wealthy banker and their
customers. And this from Cicero looks
s%tartlingly modern: "Of the remaining 400
sestertia I have paid 200 in cash and 1
shall send a check for the rest" There
- no evidence that the checks Of this
period were transferred by Endorsement
or were negotiable in the modern sense.
When Cicero sent his son to athens.
about GO B. c., he wrote to a friend In
that city and asked II 1t would be posi-
BILE for him to procure a letter of credit
for the young man hat woul be honored
by some Athenian banker.
According to Xenophon. who lourished
four centuries before Christ, the bankers
or money changers of Athens in his day
were accustomed to pay a per cent per
annum on deposits and charge from 10
per cent per annum to Is per cent month
~ for loans, the rate undoubtedly being
based ON the probable risk.
That the public money changers carried
ON their business in many countries-per-
maps accepted and gave promises to pay.
or bills of exchange in some fo4n-for
centuries before the Christian era there
= no doubt, but although they are termed
bankers" their transactions were Of a
simple and rudimentary character and
continued until the middle or latter part
or the middle age with little broadening
OF scope. But even this crude banking
service was of great benefit to a locality
IN which 1t was available. for when bank
ers began in q systematic way. to lend
the money left in their charge to manu-
and merchants they quickened
the pulse of general business. enabling
OF Initiative and energy to expand
Cfemped industries or to enter upon
fresh enterprises without ruinous delay.
In fact. the effect Upon a community was
like that following ar nlux of new capt.
tai, for the former habit of the people
had tended toward boarding with no
further object than that OF security.
Beyond all this. though unrcalized at the
time. the foundation was being laid for
the great system Of commercial credit
TO which the business of today owes
Of Its magnitude and more OF its
facility In execution. But It required the
trying exigencies OF long and exhaust
ing wars to bring into being the real en-