While banking methods are in their essential nature the same in all countries, there are differences of detail which exist as between the principal commercial nations, and which must be understood by those who are either familiarizing themselves with banking methods in general or who have business to transact with foreign countries. It would be impossible to furnish in great detail the points at which variations of practice exist. Some of the chief lines of difference must, however, be set forth. In what is here said it must be remembered that "foreign" methods are by no means uniform, but that the various foreign countries differ much among themselves, while on the other hand business practice is itself unstable and changes from time to time, so that only broad generalizations can be made.

Perhaps the most striking difference in the relationship between the business man and the bank is noted when comparison is made between American practice and the practice which prevails in Great Britain and other English-speaking countries. Whereas an American establishment may, and indeed usually does, maintain several bank accounts, borrowing from a variety of banks and at times also selling paper in the open market, the British business man feels constrained to confine himself ordinarily to one or, under unusual conditions, two banking establishments. There is an important application of theory which underlies this difference in practice. Foreign and especially British banks hold to the view that there is a close affiliation between the business establishment and the bank, and that the bank should be prepared to sustain and support the business establishment in all legitimate operations which fall within its general scope. In these circumstances it has a right to know intimately the condition of the business and to keep a constant check upon the uses made by the business house of its funds. This is hardly practicable where the business establishment deals with many banks. On the other hand, the lower degree of publicity with respect to bank accounts which exists in England and in English colonies would practically prevent the bank from keeping as close touch with the affairs of the individual business house as it could were that house to deal with it and with it alone. The branch system of banking, which prevails in most foreign countries but is not permitted under the banking laws of the United States, renders this close relationship between the bank and the business house feasible. It certainly could not exist in that form in any country where the business establishment maintained many offices or branches and the bank had but one office. The different character of the relationship which thus exists between business and banking in the United States and in other countries furnishes an influence which ramifies broadly into many fields and produces alterations of practice that are often regarded as merely accidental, notwithstanding they grow out of the condition just described.