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Banking Taken Back In The Time Machine
The word “Banking” is a term we are all familiar with and indulge in. Even the most wealthy, are known to deal in loans or some transaction of sorts with bankers. But how well do we know the history that goes behind it.
Banking in the Olden Days – Banking has technically been around ever since the first currency was invented. When the first coin was made, the concept of safety also followed. Records suggest that temples in Rome, Egypt, Greece and Ancient Babylon used to loan money out and guarantee safe keeping too.
The Romans formalized the concept of the bank and brought it out of the temples. Julius Caesar changed the law by allowing bankers to confiscate land in lieu of loan payments. Even though, the Roman Empire crumbled, its banking institutions survived in the form of papal bankers.
The several monarchs that ruled over Europe started taking note of the banking institutions. Royal Powers began to take loans during difficult times usually on the King’s conditions. This led to expensive wars and debts. In 1557, King Phillip II of Spain made his kingdom fall under severe debt and thus came about the world’s first national bankruptcy.
Banking during the World Wars – From there it was just a matter of time travel from British to American Banking. There was the era of monopoly of J.P.Morgan and Company among Merchant Bankers. The panic of 1907, allowed J.P.Morgan to come to the save. This led to the formation of the Federal Reserve Bank. During the period of the World War I, came the depression and the Black Tuesday in 1929. It was World War II that saved the day. The industriousness it created; brought the American and world economy back on track. Companies with large credit requirements led banks to merge which spanned global markets. Finally the world of banking settled into the new era as we know today.
The Current Day Scenario – Today, Banking has traveled a long and difficult path from the temples to today’s Modern Online Banking. However, their basic business has not changed. They still issue credit to people in need with interest. Time has changed the finer points of doing banking. However, a bank’s basic purpose is still to give out loans and to protect depositor’s money. San Francisco Banking offers all the services that a bank must provide.