BANKOK OR BANGKOK

capital of Siam, on Menam river. Built partly on rafts; many temples. Area 10 sq. m. Pop. about 650,000, BANKS. A crude system of banking appears to have existed amongst the ancients several centuries before Christ, while among the later Greeks and Romans the regulation of banks was' established upon a well-defined basis. These early banks received money, sometimes, but not always, at interest, and repaid it at their customer’s written order, or at a stipulated time, charging a commi ion like all modern ‘banks, But banking, as it is now understood, first came into existence in 1157, when the Bank of Venice was established. Other early banking establishments were the Bank of Barcelona (1401), the Bank of Genoa (1407), the Bank of Amsterdam (1609), the Bank of Hamburg (1619), and the Bank of Stockholm (1688). The Amsterdam Bank, during the century following its foundation, became the world’s central depository. The foundation of the Bank of England in 1694 was due to a Scotsman, William Paters on, who was also the promotor of the Darien Scheme. Fora long period the London goldsmiths had changed foreign money and lent at interest. James I., Charles I., and Charles II. borrowed from the goldsmiths, and the account of James I.’s relations with George Heriot, in Scott’s Fortunes of Nigel, is familiar. 'The Bank of Scotland was established in 1695. These banks secured the privilege of i uing notes, being the first banks to i ue paper on their own credit. The Bank of [Ireland was established in 1783. ae were first i ued in England in 1781. The U.S. National Banking System arose out of the large credit i ues of the Civil War. National banks are controlled by Treasury. Cities of over 6,000 inhabitants may have no National bank with le than $100,000 capital, and this varies to $25,000 in cities of le than 3,000; half capital must be paid in before busine can commence, and 25 per cent. must be transferred in government bonds to Treasury, which authorizes i ue of notes to full par (not exceeding market) yalue of bonds. County banks must maintain reserve of 15 per cent. of outstanding notes and _ deposits, three fifths of which can be redeposited in seventeen large (reserve) city banks, Reserve banks must keep 25 per cent. reserye, but half can be in National banks in New York, Chicago and St. Louis. Bank-note, promi ory note i ued by a bank, and payable on demand; in England the lowest note is of £5 value; in Scotland and Ireland notes of £1 are i ued. In U.S. the lowest note i ued by National banks is for $5, but the government i ues them for $2 and $1. Bank of England notes are printed in black upon water-marked paper, and are legal tender except in Scotland and Ireland. After once being returned to the Beak they are not again put into circution. Bank-rate, rate of discount charged by the chief, or state, banks, as opposed to the market rate. In England it is fixed by the Bank of England, and constantly fluctuates according to the rsiresntad or abundance of money in circuation. Modern Banks.—According to their function banks are either banks of deposit or banks of i ue. A bank of deposit has power to receive money from depositors, but not to i ue notes. A 'pank of i ue has the right to receive deposits and i ue bank-notes. In England and Wales the right to i ue notes is confined chiefly to the Bank of England. The Bank of England is not a state bank, but it is a bank in which state revenue is deposited, and is the agent for the government in raising loans. On account of its peculiar busine , other banks have found it convenient to deposit a certain amount of their cash with it, and every bank which is a member of the clearing-house must keep an account at the Bank of England. Apart from these circumstances, the Bank of England is in the same position as all other banks, and conducts its busine like other banks. The original capital of the Bank of England was £1,200,000; in 1816 it amounted to £14,553,000, at which figure it has since remained. Private Banks and Joint-stock Banks. —The number of private banks is diminishing year by year. They cannot consist of more than ten partners, whose liability is unlimited. With regard to joint-stock banks, the legislation of 1826 prohibited the i ue of notes for le than £5 in England and Wales; but it expre ly permitted, outside a radius of 65 m. from London, the establishment of joint-stock banks with the right to i ue notes; and withheld this right from all banks within the radius, excepting the Bank of England. An Act was pa ed (1833) permitting joint-stock banks to carry on a deposit busine in London.