[Illustration: The Bank of England, showing the Threadneedle Street
entrance.]
The world has had its bankers and money-changers for thousands of
years. Babylonian tablets have been found which record banking
transactions which took place in the reign of Nebuchadnezzar. Modern
banking institutions, however, had their origin in the twelfth
century. The first institution of this character in Europe was the
Bank of Venice, founded A. D. 1171. It was based upon a forced loan of
the republic. Funds deposited in it could not be withdrawn, but were
transferable on the books at the pleasure of the owners. The Bank of
Genoa was founded in 1407, and for many years was one of the
principal banks of Europe. It was the first to issue circulating
notes; these were negotiable only by indorsement--that is to say, they
were not made payable to bearer. This was a long step in advance of
the earlier system of deposit transfers which was also employed by
this bank. The Bank of Amsterdam, established in 1607, was the
earliest considerable institution of the kind which looked to the
promotion of commerce. The Bank of Hamburg, established in 1619, was a
bank of deposit and circulation based upon fine silver bars. The
deposits were confined to silver. The Bank of England is more than 200
years old and is to-day acknowledged to be the greatest financial
institution in the world. Nearly all the paper money of England is
issued by this bank. This currency is based partly upon securities
and partly upon deposits of coin. There are three or four banks in the
United States more than one hundred years old. In 1781 Robert Morris,
then superintendent of finance, submitted to Congress a plan for the
establishment of the Bank of North America at Philadelphia. In 1784
the State of Massachusetts incorporated the Massachusetts Bank. The
Bank of New York was chartered in 1791.