Trust companies, as a rule, and sometimes other banking institutions, allow interest to their depositors upon "daily balances" of over a certain amount, say $300 or more. This means that at the close of each business day, the total amount which each depositor has had to his credit unchanged for the last preceding twenty-four hours is ascertained, and if equal to or over the $300, or whatever the agreed sum may be, then interest is allowed for the day upon such amount, but only on sums divisible by $100; that is, no interest would be allowed for the fractional amounts greater than the even hundreds.3 If, however, the deposit is less than the agreed sum, no interest is allowed for that day. By this method, a depositor is encouraged to keep his deposit equal to, or greater than, the sum specified, and, furthermore, a lesser sum is not supposed to be profitable enough to a banking institution to warrant the payment of any interest upon it.

1 This word is from the Latin verb " currere," to run.

2 T. F. Woodlock.

3 This last, however, is subject to some flexibility, To illustrate: if the amount of the daily balance is $625, the institution would figure it as an even $600. On $699 it might figure it as $700. Some minimum amount, as, say. $90, in each $100 may be taken and any over $690 and less than $700, for instance, would be figured as the latter amount. It is also someis less than the agreed sum, no interest is allowed for that day. By this method, a depositor is encouraged to keep his deposit equal to, or greater than, the sum specified, and, furthermore, a lesser sum is not supposed to be profitable enough to a banking institution to warrant the payment of any interest upon it.