The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-03-19
.DAMkIne'S BEGINNING,
INTERESTING STORY
First In Europe Were In Venice. Yet
the Chincse Had Notes OF Exchange
a. Early as s0o-Evoiution From
the Bank OF Pennsylvania TO the
Modern Trust Company.


With Venice are naturally asscci-
ated thoughts OF song and story. art
and literature. romance and the cul-
ture of the earlier period Of European
cfvf1isat ton, yet It was In this quaint
italian city that modern banking had
its birth. Banking as we today know
it. was unknown prior to tile Inter
part of the sixteenth century. although
mediums of financial and commercial
exchange have existed since before the
Christian era. There is the very best
OF authority for the presence OF the
money changers in the temple of Je-
rusalem, and Il Is not necessary TO re-
call the summary fate they met. But
banking Of the sort we of today under
stand began In Venice by acts OF the
Venetian Senate of 1854 and 1887
Thus was founded. the first bank OF
Venice and simultaneously the first
somnolent as we so often declare her
to be---aad banks and bank notes so
early as 500. and 1t was from the Ce-
festial Empire that the Bank of Swe-
den, established in 1856. got its idea
of hank notes, and the issue OF this
bank appeared two years later. 1t is
certain that England had banks all
most contemporaneous with those Of
Venice, but English banking has been
so greatly Influenced by the workings
OF the Bank of England and by acts
of Parliament connected Herewith
that the history of Britain's banks
prior to the establishment OF the Bank
OF England Is perforce fragmentary
and not we'll authenticated.
Founded in the summer of 1894. the
Bank of England had for it's origin a
loan to the government Likewise
banking in the United States may be
said to have begun with the founda-
ton OF the Bank of Pennsylvania, and
this primitive bank also came into be-
ing through loan to the government
IA struggling federation whose con-
tinental army was In desperate need
1850. were nothing more than inter-
st-bearing notes. payable at future
.tirae The advances in continental
m oie- made by the Shareholder
citizens Of Philadeiphia--were secured
by bills of exchange for 10000
pounds, drawn on the American en-
voys in Europe. but not intended to
be negotiated.
An outgrowth OF the continental
governments necessities was the Bank
OF North America, authorized by Con-
ETGa3, ADst tAoJs itC dtL NAt0
Robert Morris power to create a bank
with capital of 100000 Mr. Nor
ris virtually Hquidated the Bank of
Pennsylvania by taking over it's hold
ings OF foreign exchange, and he paid
in cash Its claims against the Fedora
ton. Such was the beginning OF what
Is tho Oldest organized banking insti-
tuition in the United States. having ac-
tualiy begun business January 7, 1892.
Because of the doubt relative to the
power of the Continental Congress TO
State charter, and the Bank of North
America remained a State institution
until 1853
To Alexander Hamilton belongs the
credit OF establishing national bank
of issue I'm 1871 and to President An
drew jackson IL due that hanks sus-
pension in 1888. During its life the
Bank OF the United States found pow
erfui rivals in banks established by
the States: these institutions became
Its successors. The most successful
institutions were in New York and
New England. where the surplus capt.
tai in the early days of the country.
Just as at present, was chiefly concen-
trated The older banks were essen
TALLY commercial in character. The
modern trust company. with Its un-
paralleled facilities for the admins
tratien of estates. dates only from
1909. vet in their little more than
century of progress and prosperity
the trust companies have won place
at the top of the financial ladder OF
this richest Of nations. With advan-
tases of corporate responsibility. in
voiyins continuous iife--with fireproof
safes and specially trained officials and
employees in each department. deyot-
Ing their time and attention. exclu-
siyeiy 10 their particular and wel1-de-
fined functions--the trust companies
have advanced TO a point in Ameri.
cas- marshalling of wealth that is
practically unrivaled. Thirty-five bill
lion dollars OF trust funds are their
practical evidence of the most adj
eaneed and highly successful form Of
banking. As the Scotch might say,
ut is far cry" from the money
changers of the temple and the Bank
OF Venice TO the trust companies of
America. Ammo Domini MDCCCCxIII.