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 0^^ ^^ _ f) 332, / NEW YORK THE RONALD PRESS COMPANY 1921 Copyright, 1921, by The Roxald Press Compaxt All Rights Reserved TO My Mother and Father [...]... Banking Principles and Practice VOLUME I ELEMENTS OF MONEY, CREDIT, AND BANKING ing — CHAPTER I METALLIC MONEY Relation of A bank Money and Banking is an institution Principles for the custody, loan, exchange, or money and credit, and for facilitating the transmission of funds by bills of exchange Banks deal in money and in credit, which is the deferred payment of money The principles of issue of banking. .. Exchange and Discount Markets Brokers, Dealers, and Discount Houses Commission Arrangements Between Banks The London Discount Market Discount Rates and Exchange Rates Rates Effect of Bank of England Rate on Discount The Control of Gold Movements ^ j j Standard The Gold Standard and the Gold Exchange Gold-Silver Exchanges The Gold Exchange Standard Exchange and the Paper Standard Exchange and Specie... Joint, and Other Accounts Certification Department Function and Organization Outstanding Certified Checks and Identification Receipt — System Precautions in Certifying Checks Day Loans and Certified XXX Overcertification Checks and Bookkeeper's Department The Receiving Teller 567 General Duties and Organization of Receiving Teller's Department Opening an Account and Making a Deposit Nature of Deposits and. .. Loans to Banks Collateral and Margins of Bank Loans Examination and Substitution of Collateral for Loans to Banks Handling Applications for Loans Ratio of Loans and Balances Forms of Loans Time Limit, Renewal, and Cancellation of Loans Records of the Loan Department Overdrafts Disadvantages of Practice Prevalence of and Remedies for Overdrafts — — XLV The Law of Loans and Discounts and of Negotiable Instruments... inextricably involved with the principles of money and Money of credit two kinds: metallic or commodity money, and Such metallic money as is not standard money is also fiduciary in character This and the next chapter contain a discussion of metallic money, which is followed in Chapters III, IV, and V by a discussion of fiduciary money a form of credit issued by governments and banks and characterized by general... related, it and seems money and banking are principles of study of banking to inquire logical in a closely first into the history of exchange and the functions of money The first This method, known as exchanges were probably in kind "barter," is very primitive, restrictive, Few and wasteful ex- changes can take place, for several reasons: the coincidence of mutual wants in amounts, time, and place is... Pa^^ments The Handling of Bought The Handling Contracts of Sold Contracts Investigations LIX Foreign Collections Classification of Foreign Collections The Collection of Home Items The Handling of Cash Items The Handling of Collection Items 1231 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... Relation of the Call Loan Rate and the Commercial Paper Rate of Interest The Collection and Computation of Interest XLIV The Loan Department —Other Loans 863 Merchandise Loans and Commodity Paper Legal Protection of Merchandise Loans Risks of Loans on Staple Commodities Substitutions of Collateral on Merchandise Loans Loans on Bills of Lading The Rediscount of Commodity Paper Handling the Collateral of... BANKING CASH AND DEPOSIT OPERATIONS XXVII B ANK Administration — Shareholders and Directors The Management of a Bank The Shareholders of National Banks Shareholders' Meetings Shareholders' Rights and Liabilities Election of Board of Directors Legal Qualifications of Directors Clayton Act — Amendments to Clayton Act and Services of Directors Functions and Powers of Boards of Directors Limitations and. .. especially proper and useful introduction to the discussion of bank operations and functions taken up in Chapter VI There it is explained how bank deposits and note liabilities arise in a variety of ways, but chiefly through loans and discounts By means of such loans and dis- Letters of credit of non-circulating counts the business of the world is 3 effectively carried on MONEY, CREDIT, AND BANKING 4 The . details of execution. 8. To present an intimate correlation of banking theory and banking practice, giving in the first volume the underlying theory of money, credit, and banking as a prerequisite to an effective presentation in the. Comptroller's Examiners National Bank Reports -Powers and Duties XVI Domestic and Foreign Branch Banking 296 Branch Banking Within the United States State and National Branch Banks Development of Branch Banking Need for Foreign. organi- zation and practice of the system as a whole and of the individual member banks of that system, and indicating at every op- portunity in the treatment of the internal and external operations of a