Show government loan without interest inhere st issued la in venicee hubof origin of hank checks by S W STRAUS new hew york ud nd chicago billiau Bill iku copyright 1917 W WiB torn newspaper Now paper union f I 1 the subscribers to one of the first i government ROV eminent bond issues ever put out were ero not so fortunate us its liberty bond investors notwithstanding tho the fact that bonds were now new and probably untried at that time the lonn loan bore no interest terest the success with hakli which tile the lonn met wider under these conditions should bean bo an inspiration to us lit in our present war ni financing it happe nul lit in voillie in 1100 the joge doge found himself that year 1 ili acute finati cInI embarrassment it t 1 was vas to raise balso n large laige sum suin of oe money immediately and tile the state lilt upon the plan of borrowing in its name from a i number of prosperous venetian merchants one hundred bundled and fifty thousand marls marks or of silver ans the allio of tile lonii loan and afie doge midi 1 lell fell himself was one of the subscribers iho efio loan ans as secured by A mort gage on tile the rialto and lilt all the revea ties arising from lt it during dining its life eleven years genri tle tile loan boro bore no interest in 1173 the public treasury was again nearly neaily lipty it having been found that the tha revenues derived from the hist I 1 loan oan were cro not sufficient sum clent accord bingly the dogo doge floated a n loan amounting to ono one per cent of tho the vall of the aggregate property lit in ev ery cry household tills this paid interest ingerl st tit at 4 1 per cent payable half yearly as lit in 1 most moat of our modern bond issues it was to ile be repaid in more prosperous unica tillier there was wai no paper or other mate it rial a for distributing evidences ot of tile indebtedness so tho the state ont ent t tred tied red tho records dr nto into bools books and three wro appointed to ley levy and collect he loan they were called call I 1 public find and the bure bureau cherp tile tho was as transacted mm chamber of imposts tile elti cna won began to sell tile credits credit among one another tills this was done in tile chamber of imposts where tile tho cla clavins lins were ure transferred it li Is stated that hint the trading was tile the beginning of uio ille modern stock exchange at tiny liny late into years later the chamber of imposts apost s became the bank of venice cl irlich Is generally supposed to bo be the first modern bank another interesting public loan even tarlten tarl tep was ins proposed by xenophon in atheni nia ills plan was vas to establish a joint block bunk bank to which all athenian people were cro in med to subscribe the proceeds were vero to he 16 expended in improving tile ports porta of athens At liens v a docks ex hanges barket licis li ois 4 ft italy Is oiso also distinguished for orl 1 l tinting the term blib bf ib 1 it Is supposed to lie be derived from banco meaning bench beach the lombards bombards Lom bards in italy exchanged changed money and bills tn in tho ilia market place over it bench when a banker tailed the bench banch was destroyed by the people and lie he was called bankrupt some authorities clalia this derivation ri of bank Is wrong it Is stated by them lint alint banco bai iso its in a heap or mound ana that the ilia resemblance it bore to a common fund formed by the contributions of many persons led to the tern term I 1 bank which of these Is the true derivation does not ni matter atter the word bank undoubtedly comes to us its from venlee nt lit one time the center of the worlds financial activities the same lonida bombards lombards Lom bards ads later settled in london will led to the naming of lombard street subsequently they gave way to the goldsmiths who finally developed into ilia modern english bank at first the goldsmiths owing to their superior facilities for safekeeping were In trusted with gold oil and othor other valuables by ilia people for a fee the alio receipts tile lie goldsmiths gave it c delivery of tho ilia gold especially ally lit in tile case of well known and responsible goldsmiths began to be traded an idea occurred to thu tho goldsmiths unit that the money lit in their vaults could be loaned out they reasoned that tf if they were allowed to do this deposIt depositors orn might not only bo be relieved of the fee they paid but bo be paid interest of course tile goldsmiths did not loan till all of tile the gilld lit in their possession A certain amount only of it was used suppose a safe proportion of deposits to lowns loans Is 25 per centha cen tho goldsmith for every in his coffers col could insua in not notes 1 as aa the receipts became known As longas there was waa it a continual inflow us its well as outflow of gold all demands for return of deposits were easily met besides tile tho security required of borrowers made the lie bank perfectly solvent As will readily be seen icon the procedure was essentially the same as ili modern banking this practice wasl was kept hept up tip until 1781 when check checkbooks bouks came into use they were substituted for the notes which the goldsmiths used thus when a borrower desired a loon loan and furnished tho the proper security ho he would bo be given give a checkbook and authorized tn n issue checks to the amount of ills loat |