Tag Archives: History

Finance

The Details Of Frank Mcnamara, By Bob Jain

It’s easy to take credit cards for granted, seeing as how we’ve had them handy for so long. As a matter of fact, you may not know that credit cards date back as far as the mid-1900s, which is where a bit of history can come into play. As a matter of fact, the man who was responsible for creating the credit card in the first place went by the name of Frank McNamara. Here are just a few of the important details about him, courtesy of Bob Jain.

The details of Frank McNamara’s personal life are few and far between, but what matters is the interesting way that the credit card that we use today came to be. A story came out that, in 1949 in Manhattan, he was enjoying a nice dinner out with someone from work. When the bill came, McNamara came to the realization that he didn’t have money to pay. Even though his wife came to the restaurant with money to cover the bill. Even though this isn’t the real story – it was a hoax that people still believe to this day – it was arguably more entertaining than the truth.

For those who want the true story, McNamara was once an executive at the Hamilton Credit Corporation. As he saw that business wasn’t exactly on an uptrend, he proposed the credit card concept to his friends. What it would do, essentially, is allow people to cover restaurant bills via charge, with the amounts being paid off later. To say that this revolutionary would be an understatement, as I’m sure reputable authorities such as Bobby Jain CS can agree. It wasn’t long until the first American credit card company, the Diner’s Club, came to fruition.

When the Diner’s Club was first erected, 27 participating restaurants worked with it. If you were a member of this organization, not only would you be given a credit card but you’d be able to use it at the restaurants in question. The company made money by issuing fees on the cards, which are quite common with many credit options used today. This was a revolutionary concept and one that would start an undeniable trend, as the likes of Bobby Jain Credit will be able to tell you.

The Diner’s Club is not only an interesting piece of history, but the start that other companies needed in order to form. Years after the formation of the aforementioned credit card company, American Express would throw its hat into the ring; it’s still a prominent credit issuer to this day. Nowadays, it’s almost impossible to meet an adult that doesn’t have a credit card in their possession. This might not have happened without the work of Frank McNamara.

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Money

Asia and the History of Money

 

In recent years many investors have looked to Asia for their financial investments. The growth in population and the expansion in business and industry of many countries in Asia have made it an attractive destination for investment. While most of the world was hit hard by the recent economic climate, Asian markets have remained relatively strong. Many Asian countries have very little deficits and have larger cash reserves than the US and the UK. Equally, many investors are looking to diversify where they invest their money – rather than simply investing within Europe they are looking further afield towards Asia. As countries such as India and China continue to expand they are challenging the economies of established ‘super powers’ such as the United States and are enticing ever more investors from around the world. What is interesting, however, is though countries in Asia are only now being considered future economic and financial powers, the roots of some of today’s systems of currency and banking originated in Asia.
 
Some of the earliest origins of currency can be found in China. Cowrie shells were used as an early form of currency in China between 3000 to 45000 years ago. This was not anything particularly special as in many countries different items were used in trade – they could be anything from beads to livestock – in Japan rice was used as a form of currency. However, the Chinese cowrie shells can arguably be seen as a forerunner of coinage as representations of the shells began to be used instead of the shells themselves. These could be made of wood, bone and stone but were also made from metals, including lead and copper. Bronzed shells were also found in the Ruins of Yin. 
 
The first proper coinage, however, is often attributed to the Lydians who were from Asia Minor. According to Herodotus the Lydians were the first to introduce the use of gold and silver coins – some people have disputed whether Herodotus meant that the Lydians were the first to introduce coins of gold and silver or precious metal coins in general. Either way, the usage of coins quickly spread soon after from Asia Minor to the rest of the world.
 
As well as coins, the origins of bank-notes can also be found within Asia. The first banknote was used in China in the 7th century Tang Dynasty. Before this the Chinese used circular coins with a hole in the middle that could be strung on a rope – inevitably the very rich soon found it difficult to carry around their strings of money. To remedy this they could leave their coins with someone they trusted, in return they would get a ‘promissory note’ that would indicate how much money they had given the person. Upon showing the note to the person they had left the money to they would be able to have it back. 
 
It was a long process that developed the ‘promissory note’ into printed money. The need for something lighter and more easily transferable, along with a shortage of copper led to this development. By the 10th century the Song Dynasty government began to circulate notes and granted several shops the monopoly of issuing the notes. By the 11th century the government had taken over and begun to produce its own state issued currency using woodblock printing. The printing of this paper money did, however, end in inflation which led banknotes to fall into disuse. They were later ‘reinvented’ in the 17th century.
 
There has even been evidence to suggest that early cheques were used in the Mauryan period in India (321-185 BC). These were called ‘adesha’ and was basically an order on a banker to pay the money specified on the note to a third person – much like a cheque as we see it today. Early banking even had its roots in the Asian continent with records of ‘banks’ of merchants in 2000 BC who would make grain loans to farmers and traders. Evidence has also been found that suggests that money lending was taking place in India and China around the same time as the lenders of Ancient Greece and Rome. With such a rich history of innovations in currency and finances, it is hardly surprising that Asia has become a choice destination for many investors in today’s economic climate.
 

© Izzy Evans 2012

If you are interested in finding out more about investment in Asia you can visit Asian Investment for more information.

Banking

The History and Evolution of Private Banking

There is absolutely no doubt about the fact that more and more people are now interested in private banking. Simply put, private banking is all about offering custom-designed banking services to wealthy clients. Although servicing corporate clients has always been the core business area for banks, more and more banks are now also paying more attention to managing the assets of wealthy individuals. It is worth mentioning that there is an increased demand for these private banking services because households are now also expressing their interest in getting tailored financial advice.

Since private banking has become a lucrative banking segment, you can see several asset management firms entering the industry. However, it’s important to mention that things haven’t been so good for these private banks in the past. It has taken many years for banking services to attract people. But these services have a rich and interesting history.

The services most private banks offer trace their roots back to 2,000 B.C. The industry was then taken over by the ancient Greece. That was the time when government and private bankers specialized in changing of coins, money lending, letters of credit, and paying interest on deposits. Here, it is important to point out that in ancient Rome banking was always a private enterprise that was carefully regulated by law. It went like this until Augustus, who was the first emperor of Rome. He changed everything and cornered the market.

The next phase started with the fall of the Roman Empire when private moneyed individuals were asked to deal with all matters related to money. This was the time when “poverty banks” came into being and lasted until the 8th century. However, there was another change around the corner with the churches taking control and monopolizing the banking sector. It stayed like this from the 8th to the 13th century.

It was in 14th century when Switzerland, which is still considered a banking hub, started taking part in the evolution of private banking. It didn’t take long for Geneva to become an important trading center in the 14th century, which was mainly due to its perfect geographical position in the center of Europe.

Things continued to evolve like this and more and more private banks started offering unique services to affluent clients. These services were different from what you expect from a typical banker. The assistance they offered was to deal with different tasks such as assisting a trustee likely to violate the terms of trust due to family pressure, overseeing the restoration of a client’s vacation home, delivering currencies and passports to rich travelers, and so on.

Today, most private bankers are only concerned about helping their clients manage their wealth in the right way. That’s why they call their profession “wealth management”. But you will also find some private bankers metaphorically typify themselves as boards of directories for affluent clients and families.

The fact of the matter is that private banking has gone through some interesting phases and the history is full of vicissitudes. But one thing is for sure that the availability of these services is nothing less than a blessing for affluent clients who find it difficult to manage their wealth.

Get more information about Alfredo Piacentini and how he has helped develop Banque Syz. Alfredo Piacentini Banca Albertini Syz & C. S.p.A. is one of the top private banks in Switzerland.