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Lesson 4—The Boy and the Bank Officer

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Lesson 4—The Boy and the Bank Officer

I. Author

II. Cultural Background

Background Background InformationInformation

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Lesson 4—The Boy and the Bank Officer

About the Author Philip Ross (1939— ) is an American writer based in

New York. After working as a newspaper reporter for four years, he turned to freelance ( 自由职业作家 ) writing. Many of his articles have appeared in the New Yorker ( 《纽约人》 ), Reader’s Digest ( 《读者文摘》 ) and New York Times ( 《纽约时报》 ). This text is taken from Strategies for Successful Writing: A Rhetoric and Reader, 3rd edition published by Prentice Hall, Inc. in 1993 in Englewood Cliffs, New Jersey.

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Lesson 4—The Boy and the Bank Officer

Italian Banking in the 14th Century

Banks first emerged in the Middle Ageswhen people grew tired of carrying aroundall their gold and began leaving theirmoney with the goldsmith. The Medicifamily, one of the most prominent bankingfamilies in Europe during this time, becamequite wealthy from its banking and moneylending practices. This 14th-centurypainting depicts people depositing and

withdrawing money in an Italian bank.

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Lesson 4—The Boy and the Bank Officer

HISTORY OF BANKS

Functions performed by banks today havebeen carried out by individuals, families, orState officials for at least 4,000 years. Clay Tablets dated from about 2000 BC indicatethat the Babylonians deposited personalvaluables for a service charge of one 60th oftheir worth. Interest charges on loans ran as

high as one third.

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Lesson 4—The Boy and the Bank Officer

The widespread commerce of Rome required a well-developed banking system. Roman authorities set aside the Street of Janus in the Forum for money changers. These individuals not only bought and sold foreign coins; they accepted deposits, made loans, issued bills of exchange and bills of credit (similar to today's checks), and bought mortgages.

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A 16th-century painting depicts a money changer and hiA 16th-century painting depicts a money changer and his wife.s wife.

The Justinian Code of the 6th century AD included laws tThe Justinian Code of the 6th century AD included laws that governed the lending and trading in money. Durinhat governed the lending and trading in money. During the Middle Ages banking activities were curbed by seg the Middle Ages banking activities were curbed by severe restrictions on lending practices. But during the evere restrictions on lending practices. But during the early Renaissance, as international trade revived, Italiaarly Renaissance, as international trade revived, Italian money changers once again appeared. They did busin money changers once again appeared. They did business in the streets from a bench (banca in Italian; hencness in the streets from a bench (banca in Italian; hence the word bank). Florence, Italy, became a great banke the word bank). Florence, Italy, became a great banking center, dominated by the Medici family.ing center, dominated by the Medici family.

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Built in the style of ancient Greek temple, the Bank of United States had its headquarters in Philadelphia. It was the nation’s first experiment with central banking.

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Lesson 4—The Boy and the Bank Officer

Banking as it is now practiced dates from the Banco di Rialto, founded in Venice in 1587. It accepted demand deposits and permitted depositors to transfer their credits by checks. It could not make loans, however, or pay intereston deposits. Its services were free since itsexpenses were paid by the city. The Banco Girowas formed in Venice in 1619. The two banksmerged in 1637 and continued to operate underthe name Banco Giro until Napoleon liquidated itin 1806.

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With the growth of commerce and trade in Northern Europe, the Netherlands became an international financial center. The Bank of Amsterdam was organized in 1609. A chartered public bank was opened in Sweden in 1656. It was probably the first financial institution in the world to issue standard-size payable-on-demand bank bills, which eliminated the handling of copper coins. This bank was merged with

the Bank of Sweden in 1668.

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Depositors besiege the Merchant Bank of Passaic, Depositors besiege the Merchant Bank of Passaic, N.J., after the bank was officially closed in 1929. N.J., after the bank was officially closed in 1929. Until the founding of the Bank of England in 1694, Until the founding of the Bank of England in 1694, England's goldsmiths were its first bankers. They England's goldsmiths were its first bankers. They kept money and other valuables in safe custodykept money and other valuables in safe custodyfor their customers. They also dealt in gold for their customers. They also dealt in gold

bullionbullionand foreign exchange. They profited fromand foreign exchange. They profited fromacquiring and sorting coins of all kinds. To attractacquiring and sorting coins of all kinds. To attractcoins, the smiths were willing to pay interest.coins, the smiths were willing to pay interest.

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The goldsmiths noticed that deposits remained at a fairly steady level over long periods of time. Deposits and withdrawals tended to balance each other because customers only wanted enough money on hand to meet everyday needs. This allowed the smiths to loan out at interest cash that would otherwise be idle. From this practice emerged the modern facets of banking: keeping deposits, making loans, and maintaining reserves. Another practice of the goldsmiths, by which a customer could arrange to transfer part of his balance to another party by a written order, was the start of the modern check-writing system.

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Banks of the 17th century also began to issue bank notes as a form of money. The notes had monetary value because they could be exchanged for specie: hard cash in the form of gold or silver. The amounts of the bank notes issued depended on a banker's expectation of public demand for specie and the bank's confidence in itself. Bank notes were probably first issued in the 1660s by the Bank of Stockholm in Sweden; the practice soon spread to England. The Bank of France was founded in 1800. For most of the 19th century the money markets of Europe were dominated by the House of Rothschild.

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Frankfurt House of RothschildThis photograph depicts the original banking

house opened by Mayer Amschel Rothschild in Frankfurt, Germany. The house was operated by Rothschild and his oldest son, Amschel Mayer,until its dissolution in 1901. The four otherRothschild sons opened bank branches in Vienna, Austria; Naples, Italy; London, England; and Paris, France. The London and Paris branches are still in operation.

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Churches and churchgoers

As for the British churchman, he goes to church as he goes to the bathroom, with the minimum of fuss and no explanation if he can help it.

—Ronald Blythe, British writer

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The British churchgoer prefers a severe preacher because he thinks a few home truths will do his neighbors no harm.

—Attributed to George Bernard Shaw, Irish playwright

A man who is good enough to go to heaven, is good enough to be a clergyman.

—Samuel Johnson (1709—1784), British lexicographer and writer

I had explained that a woman's asking for equality in the church would be comparable to a black person's demanding equality in the Ku Klux Klan.

—Mary Daly (1928— ), U.S. feminist and theologian

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If people want a sense of purpose they should get it from their archbishop. They should certainly not get it from their politicians.

—Harold Macmillan, British Prime Minister Nobody but poor folks get happy in church. —Richard Wright, U.S. novelist

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Lesson 4—The Boy and the Bank Officer

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