The three fundamental functions of commercial banking are, then, discount, deposits, and note issue; discount (and loan) is, in practice, but one method of creating deposits and note issue; and the three functions readily reduce themselves to one, namely, the guaranty of the credit of individuals. The guaranty is effected by a highly developed, specialized, and well-known institution, holding a liquid cash reserve, as well as quickly convertible assets, and standing ready to exchange its own credits for those of customers.