Fall of The Bank
The bank, administered by a committee of city government officials concerned to keep the bank's affairs secret, initially operated on a deposit-only basis, but by 1657, was allowing depositors to overdraw their accounts, and was providing large loans to the Municipality of Amsterdam, and the Dutch East India Company. While initially this had remained confidential, it became public knowledge by 1790, in consequence the premium on the bank money dropped from around 6.25% at its peak to a 2% discount, and by the end of the year, the bank declared itself insolvent, offering to sell silver at a 10% discount to depositors. The City of Amsterdam took over direct control in 1791, before finally closing it in 1819.
Read more about this topic: Bank Of Amsterdam
Famous quotes containing the words fall and/or bank:
“Listen to me. You come into this town, and you think you’re headed somewhere, don’t you? You think you’re gonna get there with a gun, but you’re not. Get me. You know why, ‘cause you got thousand dollar bills pasted right across your eyes. And someday you’re gonna stumble and fall down in the gutter, right where the horses have been standin’, right where you belong.”
—Ben Hecht (1893–1964)
“That strain again, it had a dying fall;
O, it came o’er my ear like the sweet sound
That breathes upon a bank of violets,
Stealing and giving odor. Enough, no more,
‘Tis not so sweet now as it was before.”
—William Shakespeare (1564–1616)