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67

Banking existed in the era of the Romans and earlier. In ancient Greece and Asia Minor temples served as a sanctuary where individuals could make deposits for safekeeping. This practice continued with the Romans (see this article titled "Temple Banking In Rome"). For instance, the Temple of Artemis in Ephesus was the largest depository in Asia and served as ...


37

The actual quote which is attributed to Mayer Amschel Rothschild is: Permit me to issue and control the money of a nation, and I care not who makes its laws! A number of sources (such as this one) claim that this statement was made in 1838 (which would have been a difficult feat as he would have been dead for 26 years by then). Wikiquote claims that ...


24

This is an addition to Mike Rodney's answer. The Twelve Tables, traditionally written in 450 BC, were some of Rome's most ancient laws. The majority of Table III deals with banking. In particular Law I says that bankers can't steal deposits; Law II forbids usury†; Laws V through X concern treatment of delinquent debtors. So banking was common enough 2500 ...


19

They are still wealthy, here is an up-to-date business insider article on Rothschild's descendents. The reason they are not on the Forbe's list is because their wealth is diluted amongst many people; Forbes makes an effort to focus on individual wealth. Here's is a comment by Forbes employee Luisa Kroll: Thanks for your note. The Rothschilds are a large,...


18

The saying is apocryphal and was originated by the populist author T. Cushing Daniel, a Washington-based lobbyist and lawyer, in his testimony before the U.S. Congress in 1911 in hearings on House Resolution 314 (whether financiers were restricting trade by domination of the money supply). This is what Daniel said: William Pitt made this statement: "Let ...


10

Cosimo di Medici inherited a thriving "banking" business from his father Giovanni, who was the "Fred Trump" of the family, with Cosimo being like the current President of the United States. Most people "get into" something by starting small; a smart or lucky few get "big" and become very successful. Giovanni had inherited a small time moneylending business ...


9

There are several reasons: One was historical - this was where Buttonwood Agreement was signed in 1792, starting what would later become the New York Stock & Exchange Board and eventually morphed into NYSE. One was geographical. New York was one of the main Atlantic sea ports in USA, thus ensuring connections to European and especially London banking. ...


8

New York was a natural trade center for a few key reasons. Access to Upstate NY Upstate NY was very important place in commercial history. The settlement of New York was driven by access to beaver and other furs, and the Hudson River was the 16th century equivalent to an interstate highway, leading right to the port of New York City. Later, as fertile ...


7

The Wikipedia article is inexact. The TDB is the oldest existing commercial bank in Mongolia. Before 1990 all the banks in Mongolia (and the Soviet Union in general) were state-owned banks. The first bank in Mongolia was the Trade and Industry Bank of Mongolia, opened in June 1924. This bank became a possession of the Mongolian government in 1954 and was ...


6

As Semaphore points out, the UK is paying interest on consolidated annuities. His links are better, but here is a story from the New York Times. (Note: Semaphore corrected my quibble about UK vs GB; he was right, I've removed my text). France continues to pay on a debt from 1738. But the oldest active debt is Dutch: The very oldest active bonds, ...


6

They would have gotten their money back. Legally, client assets had to be segregated from the broker's own accounts. This isn't always strictly followed - MF Global notoriously dipped into customer accounts to cover trading losses before going bankrupt in 2011. In the case of Lehman Brothers, however, the Securities Investor Protection Corp (which insures ...


5

Specie Circular: The most direct and immediate effect of the Panic of 1837 was the repeal of the Specie Circular of 1836. The Specie Circular was a highly deflationary policy because it required that Western lands be purchased with specie that just wasn't available. Deflation exacerbates recessions: never good. In May 1838, the Senate repealed the Specie ...


5

The Panic of 1837 proved that the "cure was worse than the disease." Thus, it set the U.S. on the road to the passage of the 16th Amendment, and the establishment of the Federal Reserve some 76 years later, in 1913. The "disease" that Jackson fought was a centralized national bank along the lines of the Bank of England, advocated by banker Nicholas Biddle. ...


5

One unique characteristic of Hamilton's Bank of the U.S. (BUS) was that the government only had a 20 percent ownership of the bank, but the government had the right at all times for reports and status on the operation of the bank. Hamilton was concerned that government officials would be tempted to use the bank to give/gain favors politically...so he found ...


5

I think the best way to answer this question is to ask: Why did Philadelphia lose its position as the hub of American finance? Philadelphia had first mover's advantage over New York in terms of finance. Unfortunately for Philadelphia, national politics would erase Philly's advantage in the 1830s and 1840s, setting the stage for New York to begin to establish ...


5

I can' speak to the individual (see update at bottom of answer) you are referring to, but the practice of banks paying interest on deposits predates his birth date of 1869. An example illustrating this from a publication by the state of Indiana in 1836: Many banking institutions in other states, where such restrictions do not exist, allow a small ...


5

The answer is not so much a specific list of steps (task-list) but more Cosimo's political maneuvering, with family and friends, that propelled him leadership in the Republic of Florence. His political ability resulted in real political power, which propelled their name into history. What he actually did, in most observations, is not explicitly stated -- ...


4

SHORT ANSWER The French Assemblée nationale législative saw financial patents as 'dangerous' as they were open to abuse and could be used to exploit people. The issue of speculation was a major concern at the time, and the fear was that financial methods patents would encourage this. Thus, on the 20th of September 1792, following a debate, the assembly ...


4

tl;dr: France was going through a revolution and needed funds. Patenting financial schemes seemed like a way to spur interest in devising new ways of raising funds. Either due to ethics or effectiveness, post-revolution did not keep the practice going. The late 1780's were a time of economic struggles for the French. In particular, the Monarchy was ...


4

I think your first result is correct. The structural impediments to Mexican-Americans founding a bank were significant. There were no banks in the region during the Mexican period. After the Treaty of Guadalupe Hidalgo and through the turn of the century, many Mexicans lost their land to Anglo settlers. In the 19th century Mexican-Americans did not have ...


4

During wars, such as World War II, banking goes on as usual with a few differences: Enemy assets and bank accounts are seized; meaning if the address on the account is located in an enemy country, then the government takes the money in the account Non-sovereign accounts are frozen; what this means is that if a foreign country has a sovereignty problem, then ...


4

I would add that Holland was the financial centre of the Earth in 17-18th centuries. NY, having the best specialists in finances simply couldn't fail.


3

He pushed for a private and independent central bank, the First Bank of the United States. It was similar to the Bank of England, except he expected it to loan money to private institutions and businesses as well as perform its government duties. He also founded the Bank of New York, which was a private lending institution similar to modern commercial banks.


3

There may be differnet reasons. An extract from the German Wikipedia article about German gold reserves: Die Bundesbank hatte das Edelmetall an den führenden Goldhandelsplätzen New York, London und Paris gekauft und dort belassen Germany (or better the Bundesbank) bought the gold at the leading markets (NY, London, Paris) and never transported it away. ...


3

What he (probably) meant by it (who can say for sure now?) is that of all the possible means a government has to control and influence its people, the issueing of money is the most powerful one. Even more powerful than law. By creating new money, the government can decrease the value of the existing money in circulation, thereby lowering the buying power of ...


3

You are referring to 2 Mongolias. The State of Mongolia was formerly called the Mongolian People's Republic. Formerly a part of China, it proclaimed independence with the support of Russia. On March 13th 1921 a Provisional People's Government was established, and then on November 26th, 1924 the government proclaimed the Mongolian People's Republic. This was ...


3

The U. S. Post Office had instituted a system of money orders during the Civil War which became progressively less cumbersome as the 19th century ended. Western Union introduced its Money Order service in 1871, and Thomas Cook introduced the Traveller's Cheque in 1874. The Russian Post Office had also been a founding member of the Universal Postal Union ...


3

I have a business relation in Greece, and a Dutch bank account. Both countries use the Euro. Theoretically the Greek company can transfer the money from Greece to my Dutch account. In reality they can't. For each transaction out of the country they need to apply for a license from the Greek national Bank. For transfers in Greece they don't need approval. I'...


2

I suppose they used telegraph transfers (similar to Western Union in the West), where available. Telegraph transfer was the main tool of sending money in Soviet Union until 1980s. In places where there was no telegraph, there were also post office transfers. You come to the post office, give money, and the office sends a kind of check to another post office, ...


1

https://en.wikipedia.org/wiki/Medici_Bank#Founding The Medicis are said to originate in Mugello, north of Florence, where they were modestly wealthy land holders. A Medici was a Signori of Florence in 1301, though not of the same branch. The origins of the Medici bank can be traced to Viero de Cambo, a distant cousin of Giovanni. He became a successful ...


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