Stockholms Banco
Palmstruch Bank (Swedish: Palmstruchska banks, also of Stockholm Banco ) was founded in 1656 by Johan Palmstruch and is considered the first central bank in the world.
Type
The Palmstruch Bank was a change and Leihbank modeled after the German and Dutch banks. Johan Palmstruch financed the Swedish state budget and got in return the right to establish its own bank and lend money. 50 % of the income he had to give to the Treasury.
History of the Bank
Johan Witmacker was born in 1611 in Riga, the son of the merchant Reinholdt Witmacker and traveled as a young man to Amsterdam, where he developed an extensive business until he was arrested in 1639. It should have gone there to unpaid debts. He was released only in 1646 and moved a year later to Sweden. He was then charged in 1651 with the name Palmstruch to the peerage. In 1656, the then Palmstruch Bank, which should be received as the oldest central bank in the world in the history founded. Johan Palmstruch was from July 16, 1661 from the first paper money, which was supposed to be backed by gold. Sweden's money consisted of large bulky copper coins until then. 1661 was the bank at the time of the Swedish copper crisis yet in bankruptcy, as holder of the notes in the face of falling note rates the equivalent return demanded in gold, and it was found that the precious metal reserves in the bank to cover the note circulation was not sufficient. Palmstruch was sentenced to death in 1669. The sentence was soon converted into a prison sentence, was released from the Palmstruch shortly before his death.