The word 'bank' is derived from the Italian word 'banco' signifying a bench, which was erected in the market-place, where it was customary to exchange money. The Lombard Jews were the first to practise this exchange business, the first bench having been established in Italy a.d. 808. The Lombards were a German people of Suevic origin, who, though not numerous, played a distinguished part in the early history of Europe. Lombard is derived from Longobardi or Langobardi, which in its Latinized form seems to have reference to the length of the beard worn by that people. Some authorities derive it from parta or barte, signifying a battle-axe. Some authorities assert that the Lombard merchants commenced the business of money-dealing, employing bills of exchange as remittances, about the beginning of the thirteenth century; and that such a practice was also known in the south of France about the same period. Other authorities give these benches the name of cambii, informing us that they were placed before the church doors for the purpose of exchanging the money of foreigners. These moneychangers were called Lombards, or Cahoursini, the latter from a celebrated money-changer who flourished in the south of France. They spread themselves far and wide, finding their trade very profitable, and soon became established in every country. The tendency to impose upon people caused them to be placed under the supervision and control of the magistrates, who obliged the bankers to deposit a certain sum as a guarantee for their good faith. Besides other countries, these Jews found their way to England, and carried on their trade in the city of London; the street which they selected for their operations having borne the name of Lombard Street ever since, where some of the principal banks in London still carry on their business. These Lombard merchants were believed in England to have been natives of one of the four republics of Genoa, Lucca, Florence, or Venice,* and were supposed to have been sent to England by Pope Gregory IX to provide such convents and other societies with money as were unable to pay the 'tenths,' which were rigorously enforced that year, 13 Henry III, 1229. The Lombard Jews were notorious for their usurious transactions, and they carried them to such an extent that they were expelled from the country in the reign of Queen Elizabeth.

When these Jews failed in Lombardy, their benches were broken by the populace. The stigma bancorotto henceforth adhered to them, and from that term is derived our word bankrupt.

We find that 'argentaria' was the ancient Latin name for a bank or money-changer's shop, and that the banker or money-changer was called 'argentarius.' As these Lombard Jews came into such disrepute for their usurious dealings, they subsequently changed their name for 'cam-biator' or 'cambitor,' meaning an exchanger. We learn that Philip the Fair formed these money-dealers into a corporation, and security was demanded by James II of Arragon, previous to their commencing business, according to the statutes of Marseilles. Persons about to travel, instead of encumbering themselves with coin, applied to a cambitor and received in exchange for their specie a bill of exchange drawn upon another cambitor, as near as possible to the place where they were going. These letters were Anderson,'On Commerce.' called literae caynbitoriae. Some have recorded that these bills were drawn payable to a certain person; others assert that they were payable to bearer, and circulated from one to the other like our bank-notes.

About the middle of the twelfth century it became evident, as the advantage of coined money was gradually acknowledged, that there must be some controlling power, some corporation which would undertake to keep the coins that were to bear the royal stamp up to a certain standard of value; as, independently of the 'sweating '*-which invention we may place to the credit of the ingenuity of the Lombard merchants-all coins will, by wear or abrasion, become thinner, and consequently less valuable; and it is of the last importance, not only for the credit of a country, but for the easier regulation of commercial transactions, that the metallic currency be kept as nearly as possible up to the legal standard. Much unnecessary trouble and annoyance has been caused formerly by negligence in this respect. England has, at more than one period of her history, suffered the most humiliating degradation by the neglect, not only to keep her coinage up to the standard, but by failing to insure the employment of persons to superintend the operations of the mint, whose integrity could not be purchased by the State. Large sums were obtained for royal purposes in the reign of Henry VIII by falsifying the silver standard; and it fell to the lot of a woman, in the person of Queen Elizabeth, together with her advisers, to stamp the debased coins with their real value. These practices, however, we shall have occasion to investigate further, in a subsequent chapter.

The gradual merging of the business of a goldsmith into a bank appears to have been the way in which banking, as we now understand the term, was introduced into England; and it was not until long after the establishment of banks in other countries-for State purposes, the regulation of the coinage, etc.-that any large or similar institution was introduced into England. We subjoin a table of the principal banks in the order in which they were established in different parts of the world.

* A term given to various processes invented by the Jews for obtaining a small quantity of gold from each sovereign, or other gold coin, without the loss being perceptible.

Branch banks were commenced in England in the year 1828.

Between the dates of the establishment of the bank at Rotterdam and that at Stockholm, Mr. Francis Child started a bank on the eastern side of Temple Bar, London. He had for many years previously adopted the armorial bearings of the Lombards, and pursued the respectable vocation of a goldsmith, or what we understand to be a pawnbroker. This business he merged into a banking-house, which is still in existence. The banking firm of Child & Co. still carries on business under the same name; and as a proof of how people will adhere to ancient customs, it is only within the last twenty years that printed cheques have been in use in that establishment. The banking-house of Child & Co. was established in 1663, Hoare & Co. about 1675, and Snow & Co. 1680; this last having had thirteen years' experience before the Bank of England was established. The Bank of Scotland was established one year later, and it was not till 1783 that the Bank of Ireland commenced operations at St. Mary's Abbey, Dublin.