ppears to have been called
into existence by the natural developments of trade, but some banks have
been established by governments and have been of great service to the
development of the countries in which they have carried on their business.
Of these, the Bank of Sweden (the _Riksbank_), established in 1656, is the
earliest. This bank still exists and has always been the state bank of
Sweden. It was founded by a Swede named Palmstruck, who also invented the
use of the bank note--perhaps adapted for use in Europe is the better
expression to employ, as notes were current in China about A.D. 800. The
first bank note was issued by the _Riksbank_ in 1658. An _enquete_ made by
the French government in 1729 recognizes the priority of Sweden in this
matter, and declares the bank note to be an admirable Swedish invention,
designed to facilitate commerce.

EUROPEAN COUNTRIES

[Sidenote: Foundation of the Bank of England.]

_United Kingdom_.--English banking may be traced back to the dealings in
money carried on by the goldsmiths of London and thus certainly to the 16th
century; but it has been so greatly influenced by the working of the Bank
of England and by the acts of parliament connected with that institution,
that a reference to this bank's foundation and development must precede any
attempt at a detailed history of banking in the United Kingdom. The Bank of
England was founded in 1694.[2] As in the case of some of the earlier
continental banks, a loan to the government was the origin of its
establishment. The loan, which was L1,200,000, was subscribed in little
more than ten days, between Thursday, 21st June, and noon of Monday, 2nd
July 1694. On Tuesday, 10th July, the subscribers appointed Sir John
Houblon the governor, and Michael Godfrey (who was killed during the siege
of Namur on the 17th of July 1695) deputy-governor. Michael Godfrey wrote a
pamphlet explaining the purposes for which the bank was established and the
use it would be to the country. The pamphlet supplies some curious
illustrations of the dangers which some persons had imagined might arise
from the establishment of the bank and its connexion with William III.,
deprecating the fear "lest it should hereafter joyn with the prince to make
him absolute and so render parliaments useless."

The governor and the deputy-governor, having thus been appointed, the first
twenty-four directors were elected on Wednesday, 11th July 1694. Two of
them were brothers