Excerpt from The History of Banks: To Which Is Added, a Demonstration of the Advantages and Necessity of Free Competition in the Business of Banking The first regular institution resembling what we call a Bank, was established at venice, nearly seven hundred years ago. In its origin it had nothing to do with the business of banking. It began in this way. The Republic being engaged in war, and falling short of funds, had recourse to a forced loan. The contributors to that loan, were al lowed an annual interest of four per ...
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Excerpt from The History of Banks: To Which Is Added, a Demonstration of the Advantages and Necessity of Free Competition in the Business of Banking The first regular institution resembling what we call a Bank, was established at venice, nearly seven hundred years ago. In its origin it had nothing to do with the business of banking. It began in this way. The Republic being engaged in war, and falling short of funds, had recourse to a forced loan. The contributors to that loan, were al lowed an annual interest of four per cent on the sums they had been obliged to lend; certain branches of the public revenue were assigned for the payment of that interest; and a corpo ration, entitled the chamber os loans, was created for the express purpose of looking after this business, managing those branches of the revenue assigned to the lenders and attending to, and securing the punctual payment of the interest, as it fell due.
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