History of Bank and Banking System

HISTORY OF BANK
AND BANKING
SYSTEM
ATIQAH DALIK
AIDA ABIDAH
ULFA RAIYATUDIN
BA KI DEVI
NGUYEN HAZANAH
INTRODUCTION
Banking and
money
changing
appear to
have been
closely
centered
around
temples.
Great temples
served as
treasuries
holds vast
sums of
wealth
Temples
Receipts in
the form of
clay tablets
were used to
record
transfers
between
parties.
One of the
earliest
recorded laws
(Code of
Hammurabi),
pertain to the
regulation of
Transactions
Banking Profession
The third
oldest known
in mankind.
Banking
appears to
have
originated in
Ancient
Mesopotamia
.
HISTORY OF BANK-EARLY
CIVILIZATION
Greek and Roman financiers: from the 4th century BC
Banking activities in Greece are more varied and sophisticated than in any
previous society. Private entrepreneurs, as well as temples and public bodies,
now undertake financial transactions. They take deposits, make loans, change
money from one currency to another and test coins for weight and purity.
Rome, with its genius for administration, adopts and regularizes the banking
practices of Greece. By the 2nd century AD a debt can officially be discharged
by paying the appropriate sum into a bank, and public notaries are appointed to
register such transactions.
Religion and banking: 12th - 13th century
The Christian prohibition on usury eventually provides an opportunity for bankers
of another religion. European prosperity needs finance. The Jews, barred from
most other forms of employment, supply this need. But their success, and their
extreme visibility as a religious sect, brings dangers.
Bankers to Europe's kings: 13th - 14th century
During the 13th century bankers from north Italy, collectively known as Lombards,
gradually replace the Jews in their traditional role as money-lenders to the rich and
powerful.
The business skills of the Italians are enhanced by their invention of double-entry bookkeeping. Creative accountancy enables them to avoid the Christian sin of usury; interest
on a loan is presented in the accounts either as a voluntary gift from the borrower or as
a reward for the risk taken.
Bank notes: 1661-1821

Paper currency makes its first appearance in Europe in the 17th century. Sweden can
claim the priority (as also, a few years later, in the first national bank).
IMPORTANT WESTERN PEOPLE AGAINST BANKING SYSTEM

Napoleon Bonaparte-(1769-1821) Emperor of France(1804-1815)
Had a free hand in Europe as long as he borrowed from the Bank of
Rothschilds. When he quit borrowing he was attacked by the English.
Napoleon, a sympathizer for the international bankers, turned against them
in the last years of his rule. He said: "When a government is dependent
upon bankers for money, they and not the leaders of the government
control the situation, since the hand that gives is above the hand that
takes... Money has no motherland; financiers are without patriotism and
without decency; their sole object is gain."
Andrew Jackson, 7th U.S. President, 1829-1824
When the 1816 charter expired in 1836, Andrew Jackson vetoed its renewal.
See Jackson's Veto Message to Congress It was then that he made two
famous statements: "The Bank is trying to kill me - but I will kill it!" Later he
said "If the American people only understood the rank injustice of our
money and banking system - there would be a revolution before morning...
Abraham Lincoln-(1809-1865) the 16th President of the U.S.-Assassinated while in Office.
Lincoln spoke on finances and government: "In his First Annual Message to Congress, December 3, 1861,
Abraham Lincoln stated: "Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and
could never have existed, if labor had not first existed. Labor is the superior of capital, and deserves much
the higher consideration. Capital has its rights, which are as worthy of protection as any other rights."
President Lincoln needed money to finance the Civil War, and the international bankers offered him loans at
24-36% interest. Lincoln balked at their demands because he didn't want to plunge the nation into such a
huge debt. Lincoln approached Congress about passing a law to authorize the printing of U.S. Treasury
Notes. Lincoln said "We gave the people of this Republic the greatest blessing they ever had - their own
paper money to pay their debts..." Lincoln printed over 400 million "Greenbacks" (debt and interest-free)
and paid the soldiers, U.S. government employees, and bought war supplies. The international bankers
didn't like it and wanted Lincoln to borrow the money from them, so that the American people would owe
tremendous interest on the loan. Lincoln's solution made this seem ridiculous. Shortly after Lincoln's death,
the government revoked the Greenback law which ended Lincoln's debt-free, interest-free money. A new
national banking act was enacted and all currency became interest-bearing, debt instruments, again.
John F. Kennedy -(1917-1963)-35th President of the United

StatesAssassinated in Office.
On June 4, 1963, President Kennedy issued Executive Order 11110.
This Executive Order called for the issuance of new currency - the
United States Note. At the time, $4,292,893 of this currency was put
into circulation. This new currency was to be distributed through the
U.S. Treasury and not the Federal Reserve System. Furthermore, it
was to be issued debt and interest-free.
Upon Kennedy's assassination, this currency was withdrawn from
circulation, never to be issued again.

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HISTORY OF BANK

Greek and Roman financiers: from the 4th century BC

Bankers to Europe's kings: 13th - 14th century

Bank notes: 1661-1821

IMPORTANT WESTERN PEOPLE AGAINST BANKING SYSTEM

Abraham Lincoln-(1809-1865) the 16th President of the U.S.-Assassinated while in Office.

John F. Kennedy -(1917-1963)-35th President of the United

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