Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1922-02-02

Banking, It's world, national and local
history. was the topic taken for discus
sion by Nathan A. Gibbs, cashier of the
Thames National bank, at the hoonday
luncheon of the Norwich Rotary club at
the Wauregan hotel on Wednesday. Mr.
Gibbs dealt largely with the national
banking system in Norwich but In lead
ing up to this he gave brief review Of
the banking business from early days
when a bank was Simply a place where
money was stored Mr.. Gibbs said in
part:
National Banking.
bank is an establishment having
power to receive deposits, discount bus
mess paper, loan and remit money, pay
checks and make collections. 1t may al
so deal in notes, foreign and domestic
bills of exchange, coin, bullion and cred
its. Originally, banks were used only as
places for the safe keeping of money
bullion. plates or the like, which was
left unused and unproductive in the
vaults of the bank until the depositors
should call for it.
Modern banking may be traced to the
money lenders of Florence as lenders of
money and receivers of deposits in the
fourteenth country. The Jews of Lom-
hardy, Italy, are supposed to be the first
ey. They had benches or tables upon
which they exchanged money and bills.
These benches were called bancos, The
word banco, is supposed to be the orig
inal Of the word bank. Some claim it
came from banco when applied to a
heap, "a heap of money"
The Bank of Venice was established
in III. The republic wanting funds
compelled each citizen to contribute one
per cent. of his possessions to the state
At four or five per cent. interest. They
received certificates Of stock which were
bought and sold on the open market
The Bank Of Amsterdam founded in 1909,
was the first bank organized for the pro-
motian of commerce.
The Bank of England was chartered in
1894. This bank has two separate de-
partments, one for note issue and one
for general business, Up to the time
CT the world war It governed commerce
and credits over all the world. Since
then the United States has taken an i'm
| portant part in this world busine ss.
The ba nix of North America was the
| first authorized bank in the United
| States. Robert Morris was a leader il
| Its orga nization. It was started in 17S1
and aided greatly IN establishing Amer
| lean independence.
The First bank OF the United State.
was founded by Alexander Hamilton IL
! 1871, with a fixed capital Of $4,000, 900
| and expired at the termination of ii
charter in 1911. The Second Bank o
the United States was cha rtered in 1871
| with a capital OF $50, 010, 0Oe which ex
pired in 1895, when congress refused
to renew its charter. "Wld Ca
Banks" were old state hanks organic
ed under state charters by private in
dividuals
The National Bank System was start
ed by the passage Of the Nationa
| Bank Act IN 1858. and are now the onl
banks issuing bank notes, outside of tn
Federal Reserve Banks. These Nations
Banks are under the direct control 0
the comptroller of the currency. The
are subject to not less than two examin
atoms by his department and two by It
own directors in each year. Not les
than five reports Of condition are re
CURED from them each year.
The National Bank System was es
talished to % provide a market for gov
eminent bonds; (9) give the country
; unified currency system. The growth
= the system has four periods. From 1876
+ to 1882 was the formative perio'
Throughout the earlier period Of banl