A. It is not our practice to do so.
Q. To what extent does bank rate govern your discount and loan transactions?
A. In ordinary transactions, altogether. In all transactions the bank rate governs as regards the minimum.
Q. Explain the phrase "cash credits," and upon what conditions are they given?
A. A cash credit account is an operative current account in security of which the principal debtor and two or more co-obligants have granted a personal bond in favor of the bank. The account is operated upon by the principal debtor, but all the parties are bound as principals and are jointly and severally liable to the bank.[163]
Q. Is the bank, through its branches, employed by other banks to any considerable extent for the transfer of funds from one city to another?
A. We act as correspondents for the large English and Irish banks and for colonial and foreign banks.
Q. Do you favor the issue of £1 notes? Why?
A. Yes; under the Scottish system, as it enables the banks to plant branches at little expense and so to open up the trade of the country in all districts and directions.
Q. It is your practice to employ your surplus funds in the purchase of prime bills through bill brokers?