^ ( . UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY Digitized by the Internet Archive in 2007 with funding from Microsoft Corporation http://www.archive.org/details/bankingprinciple01westiala BANKING PRINCIPLES AND PRACTICE By RAY B.WESTERFIELD, Ph.D. Assistant Professor of Political Economy, Yale University; Secretary-Treasurer, American Economic Association IN FIVE VOLUMES VOLUME I ELEMENTS OF MONEY, CREDIT, AND BANKING i NEW YORK THE RONALD PRESS COMPANY 1 1921 Copyright, 192 1, by The Ronald Press Company All Rights Reserved *ft V3 4 TO My Mother and Father [...]... Trust Receipt for Goods Shipped Under Commercial Letter of Credit 44 45 10 90 11 61 11 73 11 78 12 68 12 69 12 70 12 72 Bank's Liability Ticket for Acceptances Under Commercial Letters of Credit in Foreign Currency Bank's Liability Ticket for Acceptances Under Dollar Credits 12 76 12 76 Banking Principles and Practice VOLUME I ELEMENTS OF MONEY, CREDIT, AND BANKING ... Second Rack 17 18 19 20 21 22 23 24 25 26 Teller's Proof Proof for Cash Letters M Assembly Rack Proof Mail Teller's Sectional Proof Fourth Teller's Proof A Check Clerk's Sectional Proof Check Clerk's Trial Proof The Boston Ledger 611 Third Teller's Proof Fifth Teller's Proof Proof of the Coupon Collection 376 m Deposit Slip 14 15 16 242 266 268 Department Exchange Charge Sheet Analysis Sheet of Transit... Items The Handling of Cash Items The Handling of Collection Items 12 31 CONTENTS xxix Chapter Page The Handling of the Discount Items The Collection of Foreign Items The Receipt and Entry of the Items The Tickets and Remittance Letter Record of the Items Between Transmission and Payment Payment LX of the Collection Commercial Letters of Credit 12 45 Nature of Commercial Letters of Credit Advantages of Their... Federal Reserve Banks, 19 1 Official Organization of the Federal Reserve Banks of New York Graphic Chart Showing Reserves of the Twelve Federal Reserve 8 Graphic Chart Showing Seasonal Variations in Federal Reserve Note 9 Graphic Chart Showing Earning Assets of the Federal Reserve Banks, 19 14 -19 20 4 5 6 Banks 363 Circulation 372 VOLUME 10 Ideal Chart of Typical 11 Paying Teller's Proof 12 13 Bank Organization... Department Overdrafts Disadvantages of Practice Prevalence of and Remedies for Overdrafts — — XLV The Law of Loans and Discounts and of Negotiable Instruments 887 Distinction Between Pledge, Mortgage, Relation of Pledgor and Pledgee and Lien What May Be Pledged Creation and Establishment of a Pledge Rights of Pledgor and Pledgee The Keeping of the Pledge Redemption, Termination, and Sale Warehouse Receipts... Act Classes of Receipts — Liability of Warehouseman Satisfaction of Warehouseman's Lien Negotiation and Tran-fer of Warehouse Receipts The United States Warehouse Act XL VI The Law of Loans and Discounts and of Negotiable Instruments (Continued) Bills of Lading — Terms of Issuance Classes of Bills of Lading 913 CONTENTS XXIV Chapter Page Liability of Carrier Negotiation or Transfer of Bills of Lading... Exchange Standard Exchange and the Paper Standard Exchange and Specie Embargoes Quotation of Exchange Rates Quotation of Sterling Exchange Quotation of Franc and Lira Exchange Quotation of Mark Exchange Recent History of the Foreign Exchanges —The Inflation Factor Factors Influencing Demand and Supply of Exchange The Balance of Exports and Imports of Merchandise Payments of Freight, Insurance, Bank...CONTENTS VOLUME I ELEMENTS OF MONEY, CREDIT, Chapter I Page Metallic Money Relation of AND BANKING 3 Money and Banking Principles The First Exchanges Primary Functions of Money Minor Functions Characteristics of Metals as Money of Money Commodities Used as Money Coinage Legal Tender Brassage and Seigniorage Bimetallism versus Monometallism Operation of Bimetallism Illustrated Effect of Two Legal... Essentials of Secondary Reserve Convertible Forms of Earning Assets Methods 14 5 CONTENTS Xli Chapter Page Liquidity for Banking System as a Whole Effect of War on Liquidity of Assets Protection of Acceptances and Letters of Credit Limitation of Acceptance Credit Difference between Accepting and Lending Protection of Bills Payable X Relation of Bank Credit to Prices 16 1 Marginal Utility and Price Basis of. .. XXXIX of Home Organization Travelers' Checks and Letter of Credit Depart- ment 727 General Duties and Organization of the Department Application for Letter of Credit Typical Letter of Credit Identification of Holder of Letter of Credit Methods and Terms of Issuance The Issuance of Travelers' Checks Letters of Credit and Travelers' Checks Issued by Interior Correspondents Method of Using Letters of Credit . Conn. December 6, 19 21.