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The English Manual Of Banking | by Arthur Crump



The following pages are the result of a revision and enlargement of a small book on banking and kindred subjects which was published in 1866 under the title of ' Banking Currency and the Exchanges' Exceedingly imperfect as that little work was in many respects, the public absorbed nearly one thousand copies, and that satisfactory result, all things considered, has been we think due almost entirely to the fact that it was a book about banks and banking, written after going over the ground and ascertaining by years of experience among bankers what the uninitiated wanted to know on the subject.

TitleThe English Manual Of Banking
AuthorArthur Crump
PublisherLongmans, Green, & Co.
Year1879
Copyright1879, Longmans, Green, & Co.
AmazonThe English manual of banking

Fourth Edition, Revised And Enlarged.

The English Manual Of Banking
-Preface
The following pages are the result of a revision and enlargement of a small book on banking and kindred subjects which was published in 1866 under the title of ' Banking Currency and the Exchanges' Ex...
-Chapter I. The Origin And Uses Of Banks
The word 'bank' is derived from the Italian word 'banco' signifying a bench, which was erected in the market-place, where it was customary to exchange money. The Lombard Jews were the first to practis...
-The Origin And Uses Of Banks. Part 2
Concerning the invention of Venetian banks, there appear to be several opinions. Some say the first was founded in 1150, others in 1157. There was no doubt a sort of bank established at one or other o...
-The Origin And Uses Of Banks. Part 3
One can hardly expect even so deep thinking a philosopher as Lord Bacon to foresee the absolute necessity which banks would become with the development of commercial necessities, flourishing as he did...
-The Origin And Uses Of Banks. Part 4
The use of a bank, then, is not only to take care of people's money, but to give them something for the use of it. It would, no doubt, seem natural when society was not so respectful to the laws of th...
-The Origin And Uses Of Banks. Part 5
The ruin and disaster that can be brought about by an absence of proper control over banks of issue-whether exercised by the State or a distinct corporation-is proved by the crash which took place amo...
-The Origin And Uses Of Banks. Part 6
The real usefulness of a bank has been carried farther in Scotland than in any other country, so much encouragement having been given to the poorer classes to place their small earnings upon deposit; ...
-The Origin And Uses Of Banks. Part 7
Doctor Adam Smith says that the advantages to be derived from the establishment of banks may be compared to the profit which would be obtained from converting our highways into corn fields, and procur...
-Chapter II. Private Banks And Joint-Stock Banks
Private banks conduct a large part of the banking business of the country, as may be seen by reference to the Banker's almanac, the most complete work of reference on the subject, as might be expected...
-Private Banks And Joint-Stock Banks. Part 2
Private banks have formerly been worked with capital subscribed by not more than six persons, which, in case of death, has undergone a proportionate diminution unless some other person should purchase...
-Private Banks And Joint-Stock Banks. Part 3
The want of this confidence, to a sufficient extent, and for a sufficiently long and uninterrupted period, has done more to injure the business of banking in England than any other circumstance. In t...
-Private Banks And Joint-Stock Banks. Part 4
Date. Paid-up capital. Surplus fund. Profits of the year. Dividends. s. d. ...
-Chapter III. Banker And Customer
1. What a Banker should be. - 2. Selection of a Banker . -3. Joint-stock versus Private Bankers. - 4. Opening Accounts. - 5. Accounts with Firms, Executors and Administrators, Trustees, Assignees, Mar...
-Banker And Customer. Part 2
Bankers before opening an account with a stranger, usually require an introduction from some person of standing, who is expected to be able to speak not only on the point of solvency, but of respectab...
-Banker And Customer. Part 3
Recent events in London have called attention to the fact that the accumulation in the hands of a single bank, of enormous sums payable at call or short notice, and bearing interest, may be a source o...
-Banker And Customer. Part 4
It has been laid down that the working expenses of banking amount to 2 per cent. on the balances. This seems to us to be very fallacious, as it must be obvious that a banker who has two millions of de...
-Banker And Customer. Part 5
The assignment of policies of life assurance is so important where the question of an advance against this kind of security is under the consideration of the banker that we print below the Act of 1867...
-Banker And Customer. Part 6
A banker has no right to detain, or appropriate to the liquidation of an advance or overdrawn account, property of any kind that has been deposited with him for safe custody. It must be given up to th...
-Banker And Customer. Part 7
6. Power under order of court to inspect boohs and, take copies.-On the application of any party to any legal proceedings who has received such notice, a judge of one of the superior courts may order ...
-Chapter IV. Cheques
What is a Cheque? - How it should he drawn. - Dates-Post dating. - As to Stamps. - Must be payable to Order, or Bearer. - May be drawn for any sum in sterling Money. - Indorsement. - Presentation....
-Cheques. Part 2
By the last stamp Act (33 & 34 Vict., cap. 97) this was altered, and all orders to pay money on demand wherever dated, are subject to the uniform duty of one penny. Cheques to be valid must be paya...
-Cheques. Part 3
1st. In every case where a draft on any banker, made payable to bearer or to order on demand, bears across its face an addition in written or stamped letters of the name of any banker, or of the words...
-An Act for Amending The Law Relating To Crossed Cheques
[15th August, 1876.] Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, ...
-An Act for Amending The Law Relating To Crossed Cheques. Continued
It is somewhat difficult to see what is meant in the ninth clause by the banker paying a crossed cheque, (according to the crossing) in good faith and without negligence.It is his duty to pay, and t...
-Chapter V. Bills Of Exchange
The use of a Bill of Exchange - The form of drawing-Respecting alterations - Agreement of body with figures - Bills of Exchange drawn in sets -Presentation at maturity; before maturity; after maturity...
-Bills Of Exchange. Part 2
Foreign bills are the same in form as inland bills, but they will sometimes be drawn at longer dates, according to the distance of the countries from one another between which they are to operate; the...
-Bills Of Exchange. Part 3
Bills and notes demand payment in specie or Bank of England notes only; other descriptions of goods are not considered payment, and if drawn to include other than specie payment, are invalid. Byles, p...
-Bills Of Exchange. Part 4
7. Mode of Proceeding with a Dishonoured Bill. In case a bill should not be paid when presented, it is customary and necessary to leave a written notice, containing the particulars of the bill, so ...
-As to Bank Notes, Bills of Exchange, and Promissory Notes
45. The term banker means and includes any corporation, society, partnership, and persons, and every individual person carrying on the business of banking in the United Kingdom. The term bank no...
-As to Bank Notes, Bills of Exchange, and Promissory Notes. Part 2
(2.) Provided that if any bill of exchange for the payment of money on demand, liable only to the duty of one penny, is presented for payment unstamped, the person to whom it is so presented may affix...
-As to Bank Notes, Bills of Exchange, and Promissory Notes. Part 3
Indorsement by executors or administrators answers the same purpose as an indorsement by the deceased. 13. Bankruptcy of Acceptor. When an acceptor becomes bankrupt, the holder can claim a divid...
-As to Bank Notes, Bills of Exchange, and Promissory Notes. Part 4
It was formerly held that where a bill was accepted without consideration for the accommodation of the drawer, the drawer was to be considered the principal debtor and the acceptor as his surety; and,...
-Chapter VI. Bills Of Lading
In one sense a bill of lading is at common law assignable, that is to say, its indorsement assigns the property, but does not transfer the contract. Now, however, rights of action pass to the indorsee...
-Chapter VII. Conditions On Which The London Joint-Stock Banks And The Scotch Banks Do Business With The Public
Subjoined are the conditions upon which some of the leading London joint-stock banks engage to do business with the public. It was our original intention to contrast the conditions of the joint-sto...
-Incorporated By Royal Charter
Rangoon Agency. - The bank undertakes the agency of parties connected with India, makes investments for constituents in the public funds and other British and foreign securities, and receives pay, pen...
-Table of Interest, Discount, and Charges
1. Interest on money lodged.-The rates to be fixed, from time to time, at meetings of the Banks to be held in Edinburgh. Note. - No interest to be paid on other than regular operative accounts, unl...
-The Cheque Bank Limited
This bank, in many respects unique in its character, is of comparatively recent origin. It was founded to give greater facilities to that numerous class who make remittances by means of bank-notes, po...
-Chapter VIII. Bank Management
Every element of which matter is composed possesses some virtue; every individual has some good qualities; and every nation is known for some excellence or special aptitude. The world silently, but su...
-Bank Management. Part 2
It is quite clear in such a state of things that a decided and very serious falling away would be witnessed in the efficiency of the system upon which the business generally of the country was conduct...
-Bank Management. Part 3
Great catastrophes we know are now and again occur-ing in all departments of this world's affairs, but very often old, obsolete, slipshod systems are kept going in spite of the warnings which are thus...
-Bank Management. Part 4
Then, again, the large amounts of deposits which the modern joint-stook bank accumulates, encourages the management to develop the business unwisely, that is, in dangerous directions. The modern bank ...
-Bank Management. Part 5
When all has been said, bank management is summed up in this-It is a question of names. With a horse-dealer it is a question of being able to judge of horseflesh; with a butcher it is a question of ox...
-Chapter IX. Discount And Loan Business
The current rate of discount charged for the negotiation of mercantile bills, and the rate of interest demanded by lenders generally for loans or advances against the security of bills of exchange or ...
-Discount And Loan Business. Continued
It is not difficult to understand that the available supply of money can by such operations be not only withdrawn from the market, but to a large extent entirely lost. In the meantime the importation ...
-Chapter X. Credit
Credit means trust, from creditus, part, of credo. From the moment the interchange of commodities on the barter system was broken in upon by one individual not immediately giving the other what had be...
-Credit. Part 2
The simplest form of credit took the shape in the beginning of a mere verbal promise. Two people approached each other to deal. One, we will assume, would beg to be allowed to postpone completing the ...
-Credit. Part 3
1. By issuing paper as the representative of money to excess. 2. By making undue advances on fixed capital. 3. By making the deposits in bank the basis of too many distinct obligations. 4. By...
-Credit. Part 4
The Imperial Bank of Germany goes half way as regards restriction by the innovation of a tax of 5 per cent. to be paid to the State on all issues beyond 385,000,000 of marks for the whole empire. This...
-Credit. Part 5
One of the great dangers to which banks and discount houses are exposed in their business, and especially new banks, is that they are too eager to lend, too anxious to see profits made on paper. The m...
-Credit. Part 6
The French economists have declaimed against the danger of banks holding such large amounts of deposits because it involves the danger of their being tempted to make undue advances on commodities. The...
-Chapter XI. The Foreign Exchanges
Transactions between two or more countries are settled either by specie payments or by bills of exchange; as a rule the latter are employed. The price which is paid in the money of one country for tha...
-The Foreign Exchanges. Part 2
If a loan when taken up acts as an export from the borrowing country, the interest due thereon will, when payable, be equal to an import into the country which contracted the liability. These permanen...
-The Foreign Exchanges. Part 3
First, a bill at short date or at sight, provided it be of first class, will command a better proportionate price than one drawn at a long date, on account of its more speedy realisation, also the con...
-The Foreign Exchanges. Part 4
The other circumstance referred to is that, as regards its lending and discount business, the Bank has lost ground while the large joint-stock banks have gained ground, and wield a heavier weapon in t...
-Chapter XII. The Next Step In The Improvement of The System of Settling International Debts
The theory of foreign exchanges has been made the subject of many most valuable works, and little or nothing that is new can be said about it. The influences, however, which are at work and which dete...
-The Next Step In The Improvement of The System of Settling International Debts. Part 2
The improved facilities for transporting specie, and the greater security of shipments have latterly brought the 'specie points' nearer together, and at present they may be taken as follows: ...
-Improvement of The System of Settling International Debts. Part 3
It may be objected that those banks require the money in their own vaults to meet their notes. A great part of it, no doubt, they always require for that purpose, but there will be no danger of having...
-Chapter XIII. Coins
A coin, derived by some from the Latin ' cuneus,' a wedge, by others from the Greek common, may be broadly defined as a piece or lump of metal or other substance generally accepted by the community...
-Coins. Part 2
* Some few very early Danish coins are also preserved. + Utuntur aut aere aut annulis ferreis, ad certurn pondus exaniinatis, pro nummo.-Caesar, ' De Bell. Gall.,' v, 12. The passage is, however,...
-Coins. Part 3
The right of declaring at what nominal value the coins of a country shall pass is reckoned by Sir Matthew Hale inter Jura Majestatis (' Pleas of the Crown,' vol. i, chapter xvii (Anglo-Indian Banki...
-Coins. Part 4
The gold coins issued by Edward III in 1344 were valued at 6 shillings,* and weighed 4 dwts. 19 1/5grs. The Tower Pound was therefore coined into 50 pieces and was worth in tale 15 of the money of th...
-Coins. Part 5
* Sir William Davenant's 'Discourses,' pp. 33-39; cited by Lord Liverpool, p. 67. + The guinea was so called because great quantities of them were coined out of gold brought from the Guinea coast b...
-Coins. Part 6
* This agreement is given in extenso by Ruding, vol. ii, p. 447. + Harleian MSS., No. 660, Ms. 31 b and 34. * Harleian MSS., No. 6364. + Ruding, vol. i, p. 16. * This year is also notable as the...
-Coins. Part 7
s. d. To the moneyers for every pound weight of melted silver ... 0 9 To the master-worker... ... ... ...
-Coins. Part 8
In 1853 a Branch of the Royal Mint was established at Sydney in New South Wales, and another in 1869 at Melbourne. Gold coins issued at these places are legal tender throughout the British dominions...
-Coins. Part 9
Denomination. Standard weight. Least current weight. Imperial weight. Metric weight. Imperial weight. Metric weigh...
-Coins. Part 10
(8.) The silver currency is thus distributed:-It is paid in exchange for gold coins at par at all the mints in sums of not less than $100. It is given in payment for silver parted from gold bullion by...
-Coins. Part 11
Thus the weight of the gold coins is as follows : Denomination. Weight. Grains. Grammes. Twenty-crown piece. ...
-Coins. Part 12
(3.) The standard fineness of gold coin and of the five-franc silver coin (other silver coins being subsidiary) is 900 per mille; the remedy of the fineness is 2 per mille. (4.) The standard weight...
-Coins. Part 13
(7.) Worn coins appear to be purchased by the mint by weight at the price paid for bullion. The expense of recoinage is borne by the government. The following has been the monetary system of Turkey...
-Coins. Part 14
In the year 1707 the pillar dollar contained 386 7/8 gr. troy of pure silver, as assayed by Sir Isaac Newton, Master of the Mint; as the pound troy of English standard was at this time divided into si...
-Coins. Part 15
A comparison of the foregoing regulations leads to the following general questions : First, should there be more than one standard of value? This question has already been discussed in these pages;...
-Coins. Part 16
* 'Report of the Director of the United States Mint for the year 1873-4,' p. 8. + This estimate is, however, very uncertain, and a statement of the Master of the Mint, which appears in the ' Report...
-Coins. Part 17
* The precise standard weight of a half-sovereign is 3.99402 grammes; hut a half-sovereign weighing 4 grammes would still be within the remedy of weight, and the alteration of the present coin would t...
-Chapter XIV. Currency
In these enlightened times it is hardly necessary to enlarge upon the evils attending a forced or inconvertible currency. When a firm in business cannot meet their acceptances and are compelled someho...
-Currency. Part 2
From the time of Solon for a period of about 200 years prices were continually rising, and though they fluctuated with the productiveness of the seasons they were never so low again as in the time of ...
-Currency. Part 3
Although the action taken by Germany in 1873 was the primary cause of silver falling to so low a price in the early months of 1876, it must be borne in mind that there were other powerful influences g...
-Currency. Part 4
The following figures, which have been compiled by a very competent authority, show at a glance what were the prospects of the silver market from the point of view of supply from the mines. * The q...
-Currency. Part 5
The subjoined extract from Professor Raymond's report for 1874 shows his figures for the States and Territories west of the Rocky Mountains : Production of Gold and Silver in the United States for ...
-Currency. Part 6
So far as our own understanding of this subject goes we take it to be proved that the only difference in the changing proportions of the money in circulation to commodities in existence, as compared w...
-Chapter XV. Bank Notes
Preliminary remarks. - Establishment of the Bank of England. - Suspension of Cash Payment in 1696. - Increase of the Capital of the Bank. - Acts creating the Bank monopoly. - Issue of Notes for 15 an...
-Bank Notes. Part 2
Shortly after the establishment of the Bank, its credit, by no fault of the management, sustained a most severe shock. For some years previously the scandalous practice of clipping the silver coin ...
-Bank Notes. Part 3
* Sinclair's 'History of the Revenue,' vol. ii, p. 307. + Francis, ' History of the Bank,' vol. ii, p. 261. 18 In June, 1799- 10 per cent. bonus in ...
-Bank Notes. Part 4
It may be mentioned that prior to 1765 it had been customary to issue notes under 1 in Scotland, but in that year they were forbidden. The following figures, extracted from the 'Appendix to the Re...
-Bank Notes. Part 5
It is said that the accidental discovery of a number of 1 notes at the Bank ready for circulation, and the issue thereof with the consent of the Government, aided very materially in restoring confide...
-Bank Notes. Part 6
The United States government were at this time reestablishing a metallic currency, and drawing large sums of bullion from this country in exchange for securities. An Irish bank, the Agricultural an...
-Bank Notes. Part 7
9th. That it should be lawful for the Bank to compound with banks of issue to discontinue their own notes and substitute those of the Bank, for a payment of 1 per cent. per annum, up to the 1st August...
-Bank Notes. Part 8
Banking authorities are almost unanimous in asserting that with a paper currency payable in gold on demand it cannot be forced into circulation beyond the requirements of trade, as it will either be e...
-Bank Notes. Part 9
Table VI.-Annual average circulation of Bank of England Notes for the years 1844-76, also the proportion in each year to 1844. Year. Amount. Proportion to 1844. 18...
-Bank Notes. Part 10
1st. An unprecedented extension of our foreign trade. 2nd. An importation of gold and silver on a scale unknown in history since the period which immediately succeeded the first discovery of Americ...
-Bank Notes. Part 11
True, it would have been a great national calamity to have had the Bank of England note inconvertible for ever so short a time; but it is doubtful whether it would have materially affected its value. ...
-Chapter XVI. The Progress of Banking In The United States
A country which is peopled by a greater variety of races than any other is sure to suffer materially by comparison with other nations as regards homogeneity. The different races which have come togeth...
-Bank of North America
The first bank organized in the United States was the Bank of North America, at Philadelphia, in 1781. This institution was established under the auspices of Mr. Morris, Superintendent of Finance, an...
-Bank of New York - 1784
This was the first organized bank in New York. Its business was commenced as an association without charter on 9th of June, 1784, under the name of ' The President, Directors and Company of the Bank ...
-The Bank of the Manhattan Company
in the City of New York, was organized under an act of the Legislature of the State of New York, passed April 2nd, 1799, with a capital of $2,000,000. The chief object of the act appearing on its face...
-Bank of Massachusetts
The Bank of Massachusetts at Boston was the first bank organized in the New England States. During the latter portion of the year 1783 a movement was made in the town of Boston, Mass., to obtain ...
-Second United States Bank, 1816
On April 3rd, 1816, however, another bill for a Bank of the United States, which had previously passed the House of Representatives, was adopted by the Senate. The corporate title of this institution...
-Second United States Bank, 1816. Part 2
On the 9th of January, 1832, Mr. Dallas petitioned for a re-charter which was referred to a committee and favorably reported on. After protracted discussions on the subject, however, the President ref...
-Second United States Bank, 1816. Part 3
The Bank of Commerce in the city of New York organized under the provisions of this act, January 1st, 1839, with a capital of $5,000,000, which was afterwards increased to $10,000,000, and was among ...
-Chapter XVII. Anglo-Indian Banking
Any treatise on the banking system of this country-would be incomplete without a reference to the constitution and operations of those important institutions usually termed the Anglo-Indian banks, who...
-Anglo-Indian Banking. Part 2
The Government has also acted wisely in establishing savings banks in India, and although the aggregate of the deposits at present received is not large, there is little doubt that in course of time t...
-Anglo-Indian Banking. Part 3
The Presidency banks were formerly officially connected with the Government, who appointed directors to look after the national interests at the respective boards; but after the disasters consequent o...
-Anglo-Indian Banking. Part 4
On the other hand it occasionally turns out, and notably so last year (1876), that the amount required is underestimated, and before the season is half over, the banks are found to be impoverished. La...
-Anglo-Indian Banking. Part 5
We have now traced the operations of the banks in India and China, and have seen how their funds are invested and brought home to Europe. It remains to be shown in what manner these funds are replaced...
-Anglo-Indian Banking. Part 6
Statement C. Showing Exports and Imports of India, and proceeds of Council Bills drawn from 1870-71 to 1875-76. Year. Value of merchandise exported. Treasure expor...
-Chapter XVIII. Short Account Of The Origin And Constitution Of The Bank Of France, And The Imperial Bank Of Germany, With The Conditions Upon Which They Transact Business, The Number Of Branches, Etc
The Bank of France was founded by Napoleon I at the beginning of this century, and an institution then existing, and called Caisse d'escompte, which was established in 1776, was amalgamated with ...
-The German Imperial Bank (Reichsbanh)
Is the successor of the Bank of Prussia. The latter was founded in 1765 by Frederic II as a state bank. In 1846 it was reorganized, the state ceasing to be the only proprietor and the public taking up...
-Chapter XIX. The Different Systems Pursued In The Negotiation Of Public Securities At London, Paris And Berlin Contrasted
The London Stock Exchange Transactions in public securities take place in London in the Stock Exchange, composed of about 1500 members, which alone have the right of entering the building and of cl...
-The Paris Bourse
The 'bourse' at Paris is divided into two parts; the 'parquet' and the 'coulisse.' The 'parquet' is the meeting of the official brokers (agents de change) whose number is limited by law to sixty. A...
-The Berlin Borse
The ' Borse' at Berlin, the place where the public securities are negotiated, is a meeting of bankers and merchants as well as of the brokers, official and non-official. The official hours are from 12...
-The Berlin Borse. Continued
The continental banks which issue notes more closely resemble the English banks as regard their manner of conducting their business. The nature of the transactions of these institutions is limited in ...
-Works By Arthur Crump
Fourth Edition. The Theory Of Stock Exchange Speculation. By Arthur Crump. If a man is blindly bent on speculation, we strongly recommend bis taking this treatise as bis guide to the phil...









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