In the discussion in the previous sections, White has been doing business entirely on his customers' money and his own credit. No mention has been made of any direct contribution of funds by himself; he started with a deposit transfer business, and later developed a loan and discount business and a bank note issue business. Undoubtedly any person who deposited money directly with White, or who borrowed from or sold discounts to White and left the proceeds on deposit with him, or took his notes in payment, that is, any person who became his creditor, would more readily become creditor if White himself were willing to put up a guaranty fund and thus increase the assets out of which the creditor could recover. Such contributions by A are generally made from the very start; they give confidence to would-be creditors that he will be willing and able to repay and make good his promises, and, of course, the greater such contributions the greater the security to the creditors, for they can collect, not only against the assets procured by White through their own cash deposits, but also against the assets procured by White through his own contributions.

Such original contributions are called "capital." White usually associates with himself other persons who likewise contribute capital. Ownership of the assets of the association is then in proportion to the contributions; profits, losses, and responsibilities are proportioned upon the same basis. The association may be incorporated under the laws of the state and capitalized at, say, $100,000, the capital contributions and ownership being evidenced by $100 shares of capital stock. Subscriptions (contributions) to the capital stock may be in cash, real estate, securities, promissory notes, or other assets. If the subscription is paid in cash, some of it would be immediately invested in a bank building, furniture, and fixtures, and the rest of it, along with funds deposited by depositors, gradually absorbed in investments, loans, and discounts, real estate, cash reserve, and so forth.

As a result of all this White has now become a full-fledged banking company.