When all has been said, bank management is summed up in this-It is a question of names. With a horse-dealer it is a question of being able to judge of horseflesh; with a butcher it is a question of oxen and sheep; with a corn merchant, a hop merchant, and the endless variety of dealers in the products of the world, successful trading is alone possible where the traders understand the articles in which they deal. A banker deals with money, but he is not concerned to know the quality of that; the quality of money will take care of itself, but he must know the quality of those to whom he is going to lend it. To know people, therefore, is the knowledge which he requires above everything else. And he must always be knowing the changes in their condition, so far as he can get to know it. Every name he has to do business with must be written large on a card, and the cards should be kept sorted in drawers in alphabetical order, so that they can be easily taken out and addenda made as information pro or con. may reach him, or be obtained by direct inquiry. If this is not constantly looked after with searching accuracy things are sure to go wrong.

Some banks are always in the van regarding failures, and have got out before the crash; others are always behind, and are the best customers to the accountants, or financial tugs, whose useful office it is to try and get firms afloat which have run aground.

"2. Per-centage of net business profits (after payment of expenses, bad debts, and charging interest on capital and reserved profits at 4 per cent. per annum) to capital paid up :

" 3. Per-centage of net business profits to cash deposits :

The following contrasted results of banking in Scotland, London, and Provincial England, are taken from the published balance-sheets of the banks, and form a paper handed in by Mr. Gairdner on the 10th May, 1875, to the select committee of the House of Commons on banks of issue :

" This statement as regards the returns of eleven Scottish joint-stock banks, and eleven London joint-stock banks, is made up from the annual resume of the ' Economist' newspaper. As regards the English provincial joint-stock banks, it embraces the return of ten banks of issue and eleven banks without issue, being all the provincial banks whose liabilities exceed £1,500,000 and whose balance-sheets appear to be published.

"1. Per-centage of capital and reserved profits to cash deposits:

"4. Per-centage of net business profits to total liabilities:

"Estimate of loss that would accrue to people of Scotland by adoption of English margin of banking profit.

"(a) Calculation based on the margin of profit earned by banks of issue on their cash deposits:

"This difference applied to the deposits amounting to £77,000,000, gives an estimated loss of £670,000 per annum.

"(b.) Calculation based on the margin of profit earned by banks of issue on their total liabilities:

"This difference applied to the total liabilities amounting to £91,000,000, would give a loss of £880,000 per annum.

"Estimate of gain to people of provincial England, by adoption of Scottish margin of banking profit.

"The cash deposits of provincial England are assumed on the basis of Mr. Palgrave's very moderate estimates to be £200,000,000.

"The margin of profit on 21 English provincial banks (10 with issue, and 11 without issue), whose aggregate liabilities on deposits are £78,000,000, is £1 13s. 2d. percent.

" This difference applied to the assumed amount of £200,000,000 of deposit, would give a gain of £1,125,000 per annum"