The question of security is also largely determined for the banks by the habits of the customers. While it is practicable for the banker to exact in many cases special security from borrowers, this is by no means always good business policy. In some cases, in fact, it is not practicable. Good banking is not pawnbroking or collateral lending, but is the recognition or cashing of current titles based upon values growing out of ordinary trade and unaccompanied by detailed or particular evidence of ownership of goods. Many bankers who have not enjoyed a very broad experience seem to suppose that good banking lies in making sure that every loan is protected by a claim upon property which can unquestionably be realized upon in an amount equal to the sum technically "advanced." Banking, however, in order to be sound calls for liquidity as a primary element in lending, and it is not always true that such liquidity implies or carries with it the idea of security. In such cases security is furnished by the general flow of commodities in business, and the effort to tie transactions down to a basis of direct protection is not feasible, or results in so great a delay and so much detail in connection with the advance that the assistance obtained from the loan is greatly reduced - sometimes rendered almost valueless to the recipient.

It might be supposed from what has been said that the banker had no control over the forms of security which his customer offered, but that is far from being the case. The general conditions are practically established for the banker as a result of custom or habit in the particulars already set forth, but the banker can do much to encourage the business public in improving its methods of borrowing, protecting its advances through conservative and wise management, and as opportunity offers strengthening and modifying business practice where such practice is open to doubt or criticism. Every banker owes a first duty to his stockholders and to those who have intrusted him with funds for current use. He must not unduly hazard these funds. For his own sake, as well as for the business prosperity of his bank, he must be as useful as he can to the community, but in the main he must try to reconcile these different requirements with one another.