modern business volume 16 banking

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There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030174431 [...]... without any disbusiness — Source of authority In America, banking was, at first, a common law right No special charter was needed to begin the banking business any more than one is needed now to enter the grocery business At one time notes were issued and a regular banking business carried on by merchants, bridge and turnpike companies, or by anyone who chose The peculiarly public nature of banking was... 9 10 11 Government Aid Control of Banking in the United States 164 * 165 167 168 170 171 172 173 174 175 CHAPTER XI AMERICAN BANKING BEFORE THE CIVIL WAR 1 2 3 4 Bank Bank Bank Bank of North America of Massachusetts of New York of the Manhattan Company 7 Bank Second Bank of The Bank War 8 Suffolk System 9 Safety-Fund System Free Banking or Bond-Deposit System Indiana and Ohio Louisiana 5 6 10 11... European Systems 15 16 17 IS Bank of Germany CHAPTER • 199 201 201 203 204 205 207 209 210 212 213 215 216 217 218 219 220 221 XIII CANADIAN BANKING SYSTEM S Banks and the Government Note Issue Emergency Circulation 1 2 4 Central Gold Reserve 5 Seasonal Fluctuations 6 Security of Bank Notes 223 224 225 226 227 229 BANKING xlv PA«= SECTION 8 9 The Line 2^0 Dominion Notes Branch Banking 7 2^1 233 234... Assignments 12 Substitution 13 Call 10 Loans 14 Bank Examinations 15 Shareholders' Audit 16 Other Financial Institutions CHAPTER XIV THE NATIONAL BANKING SYSTEM 1 Origin of the National Banking System 2 Secretary Chase's Plan Early History of the Act 3 5 Comptroller of the Currency Summary of the National Banking Act 6 Reserve Requirements Development of Bank Deposit Currency Circulating Notes... larger cities a bank today is as highly specialized as any other organization in the business world An interesting development of more modern times the is the grovpth of mammoth banks in the larger cities Such banks as the National City Bank of New York and the Canadian Bank of Commerce do almost every- 4 BANKING thing in the banking field The various special func- grouped together again as they were in... financial banking this sort of loan from capital subscriptions, from its CLASSES OF BANKS 5 own surplus earnings and from deposits left with it for a long time Obviously, a deposit that is liable to withdrawal at any minute cannot safely be loaned to a railroad for twenty years Many do both a commercial and a fi- nancial banking business, but a conservative house al- institutions ways limits the financial business. .. corporate trusts and to act in certain fiduciary capacities In some cases, they also carried on a surety and an insurance business Nearly all modern trust companies have dropped the insurance business and, in Canada and some of the — states, they have branched out into the mercial and financial banking portant fimctions of the One field of com- of the most im- modem trust company is that of acting as trustee... market, to make regular comturity The mercial loans and, finally, to bid for demand de- This reaching over into the field of commerbanking has not always been happy posits cial danger in the temptation to mix commercial with financial banking business The assets There is real : BANKING 6 of trust companies, especially in Canada, are based largely on real estate and other non-liquid securities Millions of... 14 National Banks Federal Reserve Banks 15 Individual and Private Bankers 16 Choosing Your Bank 13 CHAPTER 1 2 2 4> 5 6 6 8 9 10 12 13 14 14 14 16 II OPERATIONS OP A COMMERCIAL BANK ,1 Commercial Banks 2 Capital 3 Liability of Stockholders 4 Opening for Business 5 Is Capital a Liability.'' 6 A peposit ^ vii 18 18 20 21 21 22 BANKING viii PAQE SECTION 7 8 9 10 11 12 13 A A 22 23 Loan Discount Undivided... found who would set a price on his vote Finally, the states passed general banking laws BANKING 14 The law now states certain conditions which must be complied with before a new charter is granted Any group of reputable men who will comply with these general provisions, which apply to all alike, may engage in the business of banking This plan is evidently much better In addition to taking the banks . h5" alt="" Modern Business A SERIES OF TEXTS PREPARED AS PART OF THE MODERN BUSINESS COURSE AND SERVICE OF THE ALEXANDER HAMILTON INSTITUTE ALEXANDER HAMILTON INSTITUTE NEW YORK Modern Blisiness Editor4n-Chief JOSEPH. Jeremiah W. Jenks BANKING BY MAJOR B. POSTER, A.M. Secretary of the New York University School of Commerce, Accounts and Finance MODERN BUSINESS VOLUME 16 ALEXANDER HAMILTON INSTITUTE NEW YORK 4- EL Ha A.3?aiol COPYBIGHT, 1918, BT ALEXANDER. Figuring Required Reserves 159 CHAPTER X BANKS AND THE GOVERNMENT 1. Degree of Control 162 2. Capital and Surplus Requirements 164 * 3. Stock Notes 165 4. Restrictions on Loans 167 5. Usury Laws 168 6. Deposit Regulations 170 7. Restrictions on Note Issue 171 8. Investments 172 9. Examinations and