AUTHOR'S PREFACE
The purpose of this book is to supply the general reader with a simple statement of the principles and problems of banking. Since it is designed primarily for American readers, special attention has been given to conditions in this country. An effort has been made clearly to draw the line between commercial and investment banking and to indicate the problems peculiar to each. That it may assist the average person in understanding present-day banking problems and thus contribute towards the formation of a sound public opinion regarding them, is the author's hope and desire.
Wm. A. Scott.
University of Wisconsin.
CONTENTS
| PAGE | |
| Chapter I. The Nature, Functions, and Classification of Banking Institutions, | [1] |
| 1. Services Performed by Banking Institutions, | [1] |
| 2. The Economic Functions of Banks, | [4] |
| 3. Classification of Banking Institutions, | [6] |
| Chapter II. The Nature and Operations of Commercial Banking, | [11] |
| 1. Commercial Paper, | [11] |
| 2. The Operation of Discount, | [13] |
| 3. The Conduct of Checking Accounts, | [15] |
| 4. The Issue of Notes, | [19] |
| 5. Collections, | [22] |
| 6. Domestic Exchange, | [25] |
| 7. Foreign Exchange, | [31] |
| Chapter III. The Problems of Commercial Banking, | [35] |
| 1. The Supply of Cash, | [35] |
| 2. The Selection of Loans and Discounts, | [40] |
| 3. Rates, | [44] |
| 4. Protection against Unsound Practices, | [46] |
| (a) Capital and Surplus Requirements and Double Liability of Stockholders, | [46] |
| (b) Inflation and Means of Protecting the Public against It, | [49] |
| (c) Other Means of Safeguarding the Interests of the Public, | [59] |
| 5. Adequacy and Economy of Service, | [62] |
| Chapter IV. Commercial Banking in the United States, | [68] |
| 1. State Banks, | [68] |
| 2. National Banks, | [70] |
| 3. The Independent Treasury System, | [75] |
| 4. The Interrelations of These Institutions, | [78] |
| 5. Operation of the System, | [82] |
| (a) Conflict of Functions and Laws, | [82] |
| (b) Loan Operations, | [85] |
| (c) Treasury Operations, | [88] |
| (d) Operation of the Reserve System, | [91] |
| (e) Lack of Elasticity in the Currency, | [95] |
| 6. Plans for Reform, | [97] |
| Chapter V. Commercial Banking in Other Countries, | [101] |
| 1. Common Features, | [101] |
| 2. The English System, | [104] |
| 3. The French System, | [111] |
| 4. The German System, | [119] |
| 5. The Canadian System, | [126] |
| Chapter VI. Investment Banking, | [136] |
| 1. Saving and Savings Institutions, | [136] |
| 2. Trust Companies, | [141] |
| 3. Bond Houses and Investment Companies, | [144] |
| 4. Land Banks, | [147] |
| 5. Stock Exchanges, | [163] |
| 6. Some Defects in Our Investment Banking Machinery, | [166] |
| References, | [171] |
| Index, | [173] |