The Washington times., 1925-04-10
FALL Of ROME
LAID To CHECK
On BANKS
Prospered Until Government
= Interfered With Finance,
Says Writer
By RICHARD HATTON.


Bank of PENNSYLVANIA, in $780, to
TODAY. Yet. through all of the cen.
tiIries since the wall Street" OF
Rome. called Janus, ran alongside
the Forum, down through the day
OF the bankers Of Venice and other
financiers of the Dark Ages, right
UP to the present moment there Is
4 clear and distinct history of the
development of banking.
1T is also noticeable that with the
deyeJopment of banking, civilization
has developed. There may be an
open question as to whether civIil-
zaffon led in the development, or
whether banking, expanding trade,
commerce, business, did not lead
civilization on through the CEN
turtles from the days of the money
changers of the ancients TO the
ciear-headed. keen financial advls-
ors and custodians who today Oh
rect the financial affairs OF the
world through the banking 1nsu-
buttons of the world.
Viewing the modern banking
structures of today it is hard TO
Flioture the crude, poorly lighted
APARTMENTS In Rome where the
money changers, sat on high stools
and performed the functions OF the
present-day receiving and. paying
tellers for the merchants, the house
wives and the gilded youth of the
Imperial City. Yet. the functions
of the bank of ancient times were
not unlike those of today and the
money changer and the money lend
or were, in those days as now. the
backbone of commerce, trade and
material progress. Rome would
have no more been world power
without her bankers than she would
have been master Of the world with
out her legions.
Paid No Interest.
1t is evident, also. that the
bankers of ancient Rome were not
unlike the modern banker in that
they preached thrift, they fostered
saving. and they provided means
for the safe investment Of Roman
funds. It is notable, however, that
tie Roman banker, while he,
guaranteed the safekeeping Of his
clients funds, paid no interest upon
DEPOSITS, and, in this the modern
bank performs a higher service
than did the ancient depository.
The Roman Empire, however, pros
pered so long as its banking and
financial system remained un-
Corrupted. Rome fell when the
government authorities undertook
to interfere with the business of
banking and finance. SThere is a.
lesson in this which is quite
applicable today.
In Venice between 1870 and 1913
the money changers began to de-
velop the business Of banking. The
same thing occurred in Amsterdam
two centuries later. In the early
days in Venice the government re-
quired the banker to give security
es condition to carrying on bust
ness, possibly the first real gov
eminent supervision of banking.
In an early Venetian law the
receipt and payment of deposits by
the bankers were recognized as a
part Of the business life Of the
state and the first bank in
Europe was created by the act of
the Venetian Senate In 1854. The
Bank Of Sweden was founded in
1856 by Palmstruck, who is credited
with inventing the banknote. The
Bank of England was founded in
1854.
The serious history OF banking in
the United States begins with the
foundation of the Bank of Penn
sylvania. This institution had its
origin in the project of a number
of Philadelphia citizens for supply
ing the Continental army with
rations. The first bills were issued
by this bank in 1880. They were
merely interest bearing notes pay
able at some future day.
In 1881. Congress authorized the
formation Of the Bank OF North
A nyfn - - TD-L.~
Morris. the financier, power to
create bank with a capital of
$500. 900, to be increased if desirable.
Morris bank arranged to take over
the holdings Of the Bank of Penn
sylvania. 1t paid In cash the
claims against the federation. This
bank was not disbanded until the
national banking system came into
being in 1863.
Development In America.
Since 1868 the American banking
system has developed and expanded
until. today, 1t covers q field so
wide and so intimately connected
with every great enterprise in the
country that. 1t is safe to assert,
the entire economic structure of the
country Is based upon the banks
and the power that is behind them.
Industrial activities, commercial ex-
panston, housing problems. the
home OF the individual and the
business of the individual all lead
directly into the banks and the
accommodation and assistance which
they Afford
The man who stands well with
his bank and who uses the facilities
of his bank for saving, for business
expansion. for home building, Is a
successful man. The days of the
money changes Of Rome have gone
and in their place there has arisen
a great worldwide financial sys.
tenn thar is behind and in every
human undertaking. From the
banks Of the Tiher to Timbuctoo
from Alaska to Punta Arenas, from
one end of the world to the other
there are today banks, solid finan
cial institutions, whose service
reaches around the world and whose
protection covers the individual
wherever he may chance to be.
The development of banks and
banking has been one of the torches
OF civilization. The history OF
banking is replete with accomplish
ment. There IS not today a great
nation. prosperous land, sue
cessful government, that has not
al some time during it's career
owed its salvation to its banks anc
the men who have guided then
Just as surely as the integrity anc
independence of these nations anc
governments have been due to theiI
armies and their navies. lit i.