The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1922-04-14

1856. and In 1868 the flrst bsnk-ncte was
issued through this institution. =
In England, private banking with fhe
goidsmiths developed to g very conndS
cradle extent during the 18th centursl
Bank-notes, in fact, originated In the
goldsmiths' receipt of that day. But IL
was not until l6es that the Bank OF
England, probably the most famous
bank in the world TODAY, was founded
BY 1776, the clearinghouse had been
established in England and the primes
pies of modern banking had become
pretty well established. In the mean
time, Scotland had established her frat
National Bank in 1855, ireland in l7o3i
and France In 1915. The present Bank
of France was established In the year
1900.
In the American colonies many crude
banking experiments were made, includ,.
ing numerous projects for issuiug
paper money. But banking In the
United States did not begin until the
founding by a number of Philadelphia
citizens of the Bank of Pennsylvania.
Its purpose was to supply the CONT
mental Army with rations. It's first bills
issued in 1880 were simply interest-bear-
ing notes made payable at future time.
The first public bank In this country,
was the Bank of North America pro-
NOTED by Robert Morris and authorized
by the Continental Congress on MAY g.
1874. Because confidence in the pro-
visional government of the Confederation
was lacking, this bank began business
in 1882 under charter issued by Shs
State of Pennsylvania. -0
In 1871, the Bank Of the United
States was Incorporated under the di-
recting genius of Alexander Hamilton.
This bank did business until 1911, when.
owing to political reasons, its charter
was not renewed. In 1916, the second
bank of the United States was founded.
This bank fourished until 1888, whed
Andrew Jackson suspended deposits,
and in 1881 II finally went out of BUSH
ness.
In the meantime, beginning with the
Bank of North America, State Banks
had been founded in many places, par-h
ticularly after the closing OF the First
Bank of the United States. They alone
furnished the banking facilities of the
country until the establishment In 1868
of a National Banking System. Thus
began the fundamentals of our present
National Banking System, eliminating
in the founding Of the Federal Reserve
Bank In 1914.
A minor but important phase of de-
post bank development Is the Savings
Banks, created to receive the savings
of small depositors. They were found
ed generally by benevolent persons for
the purpose of promoting thrift among
the poorer classes. These banks, under
proper legal safeguard, invest their de-
posts at compound interest. 1t is in
teresting to note that this form of bank.
ing was first suggested by Daniel Defoe
IN 1897, but none were actually estab-
lished until the latter part Of the 1sth
century. 4
The final development Of the modern
banking system Is the trust companY,s
which is confined almost exclusively to
the United States and is a growth. of
the last half of the 10Th century. The
trust company differs from the ordinary
bank of deposit in numerous features
1t is incorporated only under State Law.
1t must invest capital in frst-class Sc
curities and deposit large amounts in.
United States or city bonds with Statee.
banking superintendents. 1t does not
issue circulating notes. 1t pays interest
On deposits. 1t makes loans on real es-
tate. 1t acts in Aduciary capacity as
trustee, receiver, agent for
fiscal agent, agent hand
ling securities, and depository of Sc
curities.