Bank of Amsterdam

The Amsterdam Exchange Bank ( ndl: Amsterdamsche Wisselbank ) was the first municipal Exchange Bank in Western Europe.

It was their task to promote the payment, which was made ​​more difficult because of the different time in circulation currencies. The Amsterdam Exchange Bank took money of the various currencies and wrote the deposit in bank guilders well. Thus, the basis for cashless payment transactions was laid.

Although Previously, in 1587 in Venice ( Banco di Rialto ) and 1593 first in Milan exchange banks were established, but it was the Exchange Bank of Amsterdam, which opened its doors on January 31, 1609, the first public bank, a cash compensation of claims between accounts undertook. It is thus the world's first bank, which can be called a central bank.

Background

Due to the extensive trade in the Golden Age, Amsterdam came into contact with many foreign coin types. With the consent of the sovereign, every country, every community, every city could beat their own coins. Therefore, were within the Republic of the Seven United Netherlands, as in the countries of its trading partners a variety of different coins in circulation, the value of which was not immediately obvious. Even were often inferior coins in circulation, in which the amount indicated on them differed greatly from the actual value of the precious metal from which they were produced. That's why there have always been disagreements and kept the merchants and money changers in voluminous books the exchange rates of the individual coins firmly.

Money changers and foreign exchange were indispensable at this time. There, the absolute and relative value of different coins could face a charge brought in experience and coins to be converted. But the money changers were not always trustworthy.

Establishment and operation

1609 founded the municipality of Amsterdam their first exchange bank, which was on the ground floor of the Town Hall housed ( shown above the Oude Stadhuis). Their duties to accept deposits and to allow cashless transfers between merchants from account to account belonged. Furthermore, precious metals and coins should not viable and bought it new, value -resistant coins are minted.

The Bank participated in coin types almost all kinds in cash as well as gold and silver, and " replaced" it by appraising the value and credits in " Bank Gulden " (bank money) issued with a fixed silver content, based on which the customer could have his deposit. Since the bank's customers could trust, so that international trade was greatly facilitated and stabilized the European Münzchaos of the early 17th century. In this way also the basis for cashless payment transactions was laid.

The Amsterdam Exchange Bank had a far greater than mere local significance. In its heyday it enjoyed a worldwide reputation. As a clearing bank, the bank took principal to cashless transfers from a prior to the account of another customer. So you brought this not a bank or securities in circulation, but gave credit in the form of Giral or bank money, cash in the bank, of which the customer may at any time have. The city of Amsterdam acted as guarantor for the amount paid, the value was stored in silver. Furthermore, the services offered were reliable and inexpensive, sometimes even free. So the bank, won very fast the confidence of the citizenry.

The Exchange Bank had a large staff of officials. Until 1686 when it was led by three, later four Commissioners, members of the Vroedschap were often ( Council of Elders ). Two of them had to always be present during the opening times of the Exchange Bank. They led the supervision of four chief accountant, the service operations carried out with four against accountants, three cashing, diverse employees, servants, messengers and the " Essayeur ". The latter held a very important position. He examined the evidence room in the material content of coins. Mostly, he was also responsible for the purchase of precious metals and ordered the master of the mint certain coins.

Each of the accountant had his very specific task: the first took the written payment orders in receiving, the second led the journal, the third, the accountants and the fourth the general ledger.

This provides the basis for the Netherlands were created to be able to develop into a capital-exporting country; the bank guilders unfolded quickly to key European currency in the 17th century. 1615 a branch was established in Middelburg, 1635 another in Rotterdam.

Of great importance was the provision that all bills of more than 600 guilders, that had gone to Amsterdam and negotiates or otherwise adversely and become due in Amsterdam, had to be handled by the Amsterdam Exchange Bank. This provision meant that the bank, that soon became the " Head Cashier " in the Amsterdam trading. However, the granting of loans was not part of their business purpose and the discounting of bills, then the most common form of the merchant's credit, was forbidden to her.

Decline and closure

Amsterdam is the financial center was the scene of the first securities trading, but also the first international stock exchange crash 1637th Another scandal shook the Amsterdam Exchange Bank in 1794 when it was announced that the bank had spent millions of guilders illegal unsecured loans to the Dutch East India Company. This scandal was the beginning of the end of the bank, finally had to close their doors in 1820. It was another sign that the Netherlands was no longer the financial capital of the world.

On 5 April 1814, the Netherlands Bank ( De Nederlandse Bank, DNB) was built by King Willem I, who was given the monopoly to issue banknotes Dutch.