The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-05-30
MODERN BANKING HAD
ITS BIRTH IN VENICE
Chinese Had Notes of Exchange As
Early as S00--Evoiution 10 The
Trust Company.


Trust Company.
With Venice are naturally asscciat-
ed thoughts of song and story, art and
literature. romance and the culture
Of the earlier period of European
civilization, yets Ii was in this quain.
italian city that modern banking had
its birth Banking. as we of today
know it, was known prior 20 the lat
ter part of the sixteenth century, al
though mediums of financial and com
mercial exchange have existed since
before the Christian era. There rs
the very best OF authority for the
presence of the money changers In
the temple of Jerusalem. and ii is
not necessar, TO recall the summary
fate they met. But banking of the
sort we of today understand began In
Venice by acts of the Venetian Senate
OF 1884 and 1897 Thus was founded
the first bank OF Venice and stimuli
taneously the first bank of Europe.
Chlna--ancient and somnolent as we
so often decalre her to be--had banks
and bank notes so early as 500. and
IL was from the Celestial Empire that
the Bank OF Sweden. established in
1855. got its idea of bank notes and
the issue of this bank appeared two
years later. III Is 1fttdaH tEidk EsHE
land had banks almost contemporane-
Gus with those of Venice, but Eng
land banking has been so greatly In
fluenced by the workings of the Bank
of England and by acts of Parliament
connected Herewith that the history
Of Britajn's banks prior to the estab-
iishment OF the Bank OF England Is
perforce fragmentary and not well
authenticated.
Founded in the summer Of 1924.
the Bank OF England had for It's
origin a loan to the government Like
wise. banking in the United States
NAV be said to have begun with the
foundation 81 the Bank OF Penssyl-
vania and this primitive bank also
came into teing through a loan to
the government struggling fedora
ton whose continental army was In
desperate need of rations. The first
bills. issued in 1850. were nothing
more than Understanding notes,
payable at a future time. The ad-
vances in continental money made by
the areholders-citizens of Phila-
delphia--were secured by bills OF ex-
change for 10000 pounds, drawn
on the American ENJOYS In Europe,
but not intended to be negotiated.
An outgrowth OF the continental
government necessities was the Pank
OF North America, authorized by Con
gress. May IS. 1871. The act gave
Robert Morris power to create a bank.
with q capital of 100000. Mr.. Nor
ris virtually liquidated the Bank of
Pennsylvania by taking over its hold
ings OF foreign exchange and he paid
In cash its claims against the fedora
ton. Such was the beginning of what
liz the oldest organized banking irsti-
tuition In the United States. having
actually begun business January Z.
17se Because of the doubt relative
10 the power OF the Continental Com
gress to charter bank, Pennsylvania
gave a State charter and the Bank of
North America remained State in
stitution until 1853.
To Alexander Hamilton belongs the
credit of esta hl!shing n national bank
of issue in 1871, and TO President
Andrew Jackson ~ due that banks
suspension IL. 1883. During Its life
the Bank OF the United States found
powerful rivals In banks established
by the States: these institutions be-
carte It's successors. The NEST sue
cessful systems were in New York ana
New England where the surplus cap
itai in tho early days az the country.
tust as at present. was chiefly con-
csnfrated. The older banks were es-
sentiaily commercial in Character.
The modern trust com pany, with It's
IT ms ralleiad facilities far the .admin.7
;stration Of estates dates only from
Ix0a, yet IN their little more than a
century OF progress and prosperity.
The trust companies hay. won place
AZ the top OF the financial ladder of
this richest Of nations. With advan-
tages OF corporate responsibility. fr-
voiying continuous lifc--with fire.
proof safes and specially trained of
lficials and employees in each depart
merit. devoting their time and asten-
tion exclusively to their particular
and well defined functips,s---the trust
companies have advanced to point
in Americas marshalliny OF wealth
tina. Is practically unrivaled. $685.
00O, 0oo. 900 OF trust funds are their
practical evidence of the most adj
vnnced and highly successful form OF
ba mixing. AS the Scotch might say
at 10 far cry from the money
changers of. the temple and the Bank
of Venice 20 the trust companies or
America. Ammo Domini ADCCCC<iIi.