History Of Banks And Banking

A knowledge of the history of banks is desirable because it gives a clearer understanding of the essential principles on which modern banking systems are founded. The time spent in studying the historical sections of this volume will therefore be well spent, and these sections will be found extremely interesting in their presentation of the subject.

Classes of Banks.The various classes of banking institutions in all parts of the world are dealt with. Un-der this heading, we note the distinction between public and private banks and deal with the national banks and state banks in the United States, and with the Canadian banking system. The subject of savings banks receives due attention, and the modern development of loan and trust companies is fully treated.

Deposits And Depositors

In this branch of the general subject, the student will learn how bank accounts are opened; how checks are drawn, indorsed, certified, etc.; and how the deposits are handled by the bank; also the rights and duties of depositors.

Laws Of Banking

It will be advisable to obtain some knowledge of the laws under which banks are organized and operated, and these are presented in convenient form for study and reference.

Bank Organization

The various steps attending the organization of a bank, particularly in the United States and Canada, are clearly shown, also the duties of directors and officers;the functions, rights and obligations 6f shareholders; requirements as to meetings, etc.

Bank Circulation

As part of the monetary system, bank circulation is treated at length. The principles and methods of making bank note issues in the United States and Canada receive particular attention.

Negotiable Paper

The manner in which a bank handles commercial paper and other negotiable instruments is not only an important but an interesting feature of the subject of banking, hence it should and does receive considerable attention. In this connection the subject of bank collections is also dealt with.

Loans

One of the most responsible duties of a banker is the making of loans. The methods used in banks to judge of the reliability and credit of applicants for loans will well repay study, and all engaged in business should have considerable knowledge on the point.

Bank Credits

In recent years, bank credits have been reduced practically to a science. We shall see how this has been brought about, and incidentally study the whole question of commercial reports in connection with bank credits.

Collections

The methods by which a bank makes its collections on commercial and other negotiable paper are discussed. These too have been systematized within the past few years and the student of business can assimilate with advantage all the information given on the subject.

Clearing Houses

The study of banking would be incomplete without some knowledge of the system whereby the work of banks is facilitated by means of clearing houses. The clearing house is remarkable among modern developments of business as an institution for the exchange and settlement of checks drawn on a variety of banks. It greatly economizes time, money and labor. The methods, membership, authority, and organization of clearing houses are discussed, and the operations of clearing and payment of balances are fully described.