Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-02-06
LOGAN TELLS Of
BANKING HISTORY
At kIWANIS LUNCH
Head Of Citizens Bank Gives
Able and Instructive Ad-
dress; Business Is Traced
Back 600 Years B. C,

The feature of a largely attended
luncheon of the kiwanians yesterday
at the ~, was an address by w. G..
Logan of the Citizens bank ON the
history and practical work of bank
ing.
Perhaps altogether unconsciously,
Mr.. Logan, at the beginning of his add
dress, sprung an excellent pun. After
stating that there is not much ro-
nance about banking and it does not
furnish a very great theme for ora
tors, poets and artists, he said. Il
believe you viii agree with me when
say that there IS no other business
in the world that attracts SO much
interest
Mr., Logan traced the banking busi-
ness back to very ancient times and
said there was a national bank in
Babylon coo years before Christ,
which did a business that would not
reflect discredit on the Bank of Eng
land today. The first great exchange
bank of modern times was that of
Amsterdam, founded in 1909, because
of the necessity for standardiZing
monies which came there from the
ends of the earth, much of it in clipped
or alleged coins, This bank issued
for probably the first time in history
what was known as bank money
Because of its large holdings in specie
this bank was allowed to issue its own
currency based upon its reserves in
gold and silver. This bank was in
operations for 1872 years, and came to
grief finally because of lax methods of
doing business IN issuing 100 much
paper money. in exchanging its money
tIfs mn MT ri t1IS M in
back .ng the Dutch East India com
pany.
Mr.. Logan pointed out that every
practice of the Eank of Amsterdam
which led to it's ruin might lead to
the wrecklng of any modern banking
institution.
Speaking of the Bank of England,
Mr.. Logan facotiously remarked that
he sometimes had wondered if the
quest on who struck Billy Patter-
SOM" did not relate to some bank ex-
perienco of William Patterson. who
founded the Bank Of England i'll 1894,
for the purpose of financing the war
against France. The Bank of Scot
land was established a short time
later, and the Bank of Vienna was
soon to follow, governments finding
that big banks were essential to ma
tional prosperity
Mr. Logan then told of banking in
the United States, beginning with the
first United States bank, founded in
1890, with a capital of 1000, 600
under a charter for twenty years. and
how the bank was finally liquidated,
at the expiration of its charter, be-
cause of politics. The second United
States bank was organized IN 1876
and after doing prosperous business
met the same fate as the first venture
and for the same reasOn--politics.
Then came the era of state banks.
They were allowed to issue money,
and a period of "wildcatting' ensued
which brought business disaster in
many sections of the country
The establishment in 1863 of the
national bank system and the refor-
nation of that system by the present
federal reserve system in 1913. were
dealt with fully Mr.. Logan then ex-
planned the system of banking, as
now conducted under state charters
and Inspection, aud how the money
Of the country is kept at par by re-
serve stocks of the precious metals
and hy the national banks being COM
PEELED to invest in government bonds
which are placed with the govern
ment as security for bank note issues
T.. p. Schwentker presided at t.,
luncheon. DR.. Wedge gave the at
tendance prize, 4 protectosraph,
which was won by General Robinson.
The silent booster was the Guarantee
Clothing company. Miss Prichard
gave vocal solo which was enthus-
astiCally applauded.