BANKING

BY
William A. Scott, Ph.D., LL.D.
Director of the Course in Commerce and Professor of
Political Economy in the University of Wisconsin

CHICAGO
A. C. McCLURG & CO.
1914


Copyright
A. C. McCLURG & CO.
1914

Published April, 1914

Copyrighted in Great Britain


W. F. HALL PRINTING COMPANY, CHICAGO

EDITOR'S PREFACE

In Europe the average man looks upon thebank as a benefactor. Through its agencyhe secures capital at low rates for his business.In America the bank is too often regardedas a necessary evil, certainly not withaffection. Yet it plays a most important rôlein the nation's economy. Our banking lawsare obsolete, unsatisfactory, and actually insome instances detrimental to the best andwidest use of the nation's resources. Europehas many lessons for us in the problem of howbest to use our accumulations. With agriculturedemanding and the railroads calling formore capital, the question of scientific bankingassumes new proportions. This book, withits chapters on commercial and investmentbanking, will help to a better knowledge.

F. L. M.


AUTHOR'S PREFACE

The purpose of this book is to supply the general reader with a simplestatement of the principles and problems of banking. Since it isdesigned primarily for American readers, special attention has beengiven to conditions in this country. An effort has been made clearlyto draw the line between commercial and investment banking and toindicate the problems peculiar to each. That it may assist the averageperson in understanding present-day banking problems and thuscontribute towards the formation of a sound public opinion regardingthem, is the author's hope and desire.

Wm. A. Scott.

University of Wisconsin.

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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. Dome
...

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