Encyclopaedia Britannica, 11th Edition, Volume 3, Part 1, Slice 3

'Banks' to 'Bassoon'

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Author: Various Authors
Language: English
Wordcount: 236,959 / 741 pg
Flesch-Kincaid Reading Ease: 49.8
LoC Category: AE
Downloads: 1,509
Added to site: 2009.12.16
mnybks.net#: 26042
Origin: gutenberg.org
Genre: Reference
Excerpt

pound;50), or upwards--this limit was, in 1643, lowered to 300 gulden (£25)--should be paid through the bank, or in other words, by the transfer of deposits or credits at the bank. These transfers came afterwards to be known as "bank money." The charge for making the transfers was the sole source of income to the bank. The bank was established without any capital of its own, being understood to have actually in its vaults the whole amount of specie for which "bank money" was outstanding. This regulation was not, however, strictly observed. Loans were made at various dates to the Dutch East India Company. In 1795 a report was issued showing that the city of Amsterdam was largely indebted to the bank, which held as security the obligations of the states of Holland and West Friesland. The debt was paid, but it was too late to revive the bank, and in 1820 "the establishment which for generations had held the leading place in European commerce ceased to exist." (See Chapters on the Theory and History of

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