,,banks ,,& ,,_! ,,cu/om]s ,,banks ,,& ,,_! ,,cu/om]s ,a ,,practical ,,guide ,,= ,,all ,,:o ,,keep ,,bank+ ,,acc\nts ,,f ,,! ,,cu/om]s' ,,po9t ,,( ,,view ,,by ,,h5ry ,,w>r5 ,,an ,,entirely ,,new ,,& ,,enl>g$ ,,edition 7,,! ,,eigh?7 ,,) ,,introduction ,,by ,a ,,london ,,bank] ,illu/ration ,,london ,,rob]t ,,sutton #dc1 ,,! ,,ex*ange1 ,,s\?w>k ,,/reet1 ,s4,e4 #aijh ,banks & _! ,cu/om]s 7,,sev5? ,,edition7 ,by ,,h5ry ,,w>r5 ,! ,pall ,mall ,gazette says3-- 8,cau/ic & int]e/+40 ,! ,f9ancial ,news says3-- 8,conta9s a va/ am\nt ( useful in=mation intellig5tly discuss$4 ,to educate ! public on a te*nical subject calls = m ?an ord9>y k4 ,x ne$s :at ,mr4 ,w>r5 und\bt$ly possesses1 & t is a s\nd1 practical und]/&+1 & a ?or\gh common-s5se way ( sett+ =? 8 k 9 simple =m4 ,?is our au?or succe$s admirably 9 do+40 ,! ,scotsman says3-- 8,_c be too /rongly recomm5d$40 ,! ,drap]'s ,record says3-- 8,ma/]ly40 ,! ,birm+ham ,daily ,gazette says3-- 8,invaluable40 ,inve/or's ,review says3-- 8,mu* useful & accurate in=mation ab\t ! habits ( bank]s 9 deal+ ) _! cu/om]s4 ,especially we comm5d ! *apt] #8,h[ to ,*eck ,bank]s' ,*>ges1' :i* are (t5 curi\sly arbitr>y & caprici\s40 ,! ,city ,press says3-- 8,a cau/ic & =cible p540 ,! ,bookman says3-- 8,! wor? ( ! exp]t is prov$4 ,mr4 ,w>r5 on bank+ subjects enjoys our confid5ce & _m editions40 ,& ,! ,glasg[ ,h]ald says3-- 8,mr4 ,w>r5's cau/ic criticisms ( bank]s & _! peculi>ities h be5 widely appreciat$40 ,,introduction ,,by ,a ,,london ,,bank] ,i confess t :5 a publi%] ask$ me to write an introduction to ,mr4 ,w>r5's little book ,i exp]i5c$ "s surprise2 because1 9 ! pa/1 he h&l$ bank]s r r\ghly4 ,p]haps ! audacity ( ! reque/ appeal$ to me4 ,at any rate1 ,i cons5t$ to read ! pro(-%eets1 &1 f9ally1 p]haps a trifle reluctantly1 to /& sponsor = ! "w 9 a qualifi$ s5se4 ,i d n agree ) all he says1 by any means4 ,"h is ! eigh? edition ( a well-writt51 int]e/+ guide = ! cu/om]1 :o has obvi\sly f\nd x useful4 ,! book w\ld n h obta9$ a m>ket unless x 7 want$4 ,?is mu/ be grant$4 ,& ,i ?9k t x 0 want$ ev5 f ! po9t ( view ( a bank]4 ,! au?or 9 a %ort *apt] tells u h[ & :y ! jo9t-/ock bank came to dwell among u4 ,!n he plunges into 8 subject--! ,guide = ! ,cu/om]4 ,! *apt] on ! *eque & its v>i\s cross+s is admirable4 ,i only wi% t ! cli5ts ( my own bank w\ld read e ^w ( x1 & save ! "t ( our ca%i]s4 ,he :o keeps 8 acc\nt 9 cr$it is told mu* t he ought to "k2 ! depositor is %[n h[ to *eck 8 int]e/2 ! borr[] h[ to negotiate a loan or advance2 & ev]ybody is told ! mann] 9 :i* he may easily *eck ! *>ges debit$ 9 8 pass-book4 ,speak+ = my own bank1 ,i d n c>e :o makes use ( ?is cle>ly-put in=mation4 ,let our cli5ts obta9 ! book by all means4 ,we %all !n be sp>$ ! tr\ble ( answ]+ a ho/ ( /upid que/ions dur+ ! busie/ p>ts ( ! ye>4 ,t\*+ ^u 8unclaim$ balances10 ,i am ( ! op9ion t ! public c be v well tru/$ to look aft] its own int]e/s2 & aft] glanc+ ?r\gh my own l$g]s ,i ?9k t ^! unclaim$ sums w\ld n am\nt1 9 ! aggregate1 to a really l>ge figure4 ,mo/ ( ^! dormant balances are insignificant4 ,z to ! pay ( bank-m51 ,i d n feel ju/ifi$ 9 express+ an op9ion1 beyond ass]t+ t ! wants ( a bank-cl]k are small4 ,my advice to ! cu/om] is--8read ! book40 8,,city ,,manag]40 ,,cont5ts ,,*ap4 ,,page ,,preface v ,i ,,bank+ ,,evolution #a ,,ii ,,on ,,! ,,*oice ,,( ,a ,,bank] #ac ,,iii ,,! ,,*eque ,,& ,,its ,,v>i\s ,,cross+s #ai ,,iv ,,cr$it-,,acc\nt ,,cu/om]s #ch ,v ,,deposit-,,receipt ,,cu/om]s #de ,,vi ,,! ,,bank ,,rate ,,9 ,,relation ,,to ,,bank]s' ,,*>ges #fa ,,vii ,,loans ,,& ,,advances ,,9 ,,london #fh ,,viii ,,ov]drafts ,,9 ,,! ,,c\ntry #ge ,,ix ,,h[ ,,to ,,*eck ,,bank]s' ,,*>ges #hi ,x ,,bills1 ,,c\pons1 ,,=eign ,,drafts1 ,,etc4 #ajb ,,xi ,,unclaim$ ,,balances #aaj ,,xii ,,bank ,,%>es #aag ,,xiii ,,! ,,pay ,,( ,,bank-,,cl]ks #abh ,,banks ,,& ,,_! ,,cu/om]s ,,*apt] ,i ,,bank+ ,,evolution ,we owe a great deal to ! f9ancial in/9ct ( ! ,jew1 :o1 hav+ no c\ntry ( 8 own1 has develop$ an acquisitive mania = ! goods ( ^? p among :om he dwells1 ?anks to a progressive civilization ( :i* he 0 ! pione]1 9 comp>ative safety2 &1 by an irony ( fate1 we are also indebt$ to him = a religion1 :i* 8 m subtle m9d rejects2 yet1 /rang] /ill1 x is a civilization bas$ on comm]ce t keeps ! :ole _w mod]ately sane1 & t5ds to at lea/ hold 9 *eck ! lat5t savag]y ( ! bl9d en?usia/ :o w\ld /ill1 b = h] int]v5tion1 indulge 9 a bloody crusade aga9/ all :o hold opposite op9ions4 ,a true civilization spells tol]ation2 & ?\gh a cr$itor c sc>cely hope to be popul> ) 8 debtors1 he is at lea/ entitl$ to ! protection ( ! law ( ! l& 9 :i* he lives4 ,! ,jews1 :o are suppos$ to h come ov] to ,engl& ab\t ! "t ( ! ,conque/1 gradually possess$ !mselves ( ! great] "p ( ! co9 ( ! c\ntry2 & ! e>ly ,engli% k+s con/antly resort$ to !m = loans4 ,z x 0 ?\ght un*ri/ian to *>ge usury or int]e/1 ! bus9ess ( a money-l5d] 0 consequ5tly held 9 abhorr5ce1 ) ! result t ! ,jews monopoliz$ ! trade1 & acquir$ imm5se =tunes by _! deal+s4 ,_! weal? naturally excit$ ! int5se cupidity ( _! ,*ri/ian neighb\rs1 :o1 mak+ a pretext ( _! s-call$ abom9ations1 raid$ f "t to "t ! ,jewi% qu>t]s ( ! v>i\s t[ns1 9 ! hopes ( annex+ ! fabul\s treasure 9 ,jewry4 ,"u ! ban ( ! ,*ur*1 & dete/$ by ! p1 ! popul> feel+ aga9/ ! usur]s became s embitt]$ t ,edw>d ,i1 "u ^: protection !y liv$1 aft] hav+ 9 va9 attempt$ to p]suade ! ,jews to accept ,*ri/ianity1 0 compell$ to bani% !m f ,engl&2 & f #abij to ! "t ( ! ,commonweal? 7a p]iod ( ab\t #cfj ye>s7 ! prohibition rema9$ 9 =ce4 ,b ! money-l5d] is a necess>y evil2 & aft] ! dep>ture ( ! ,jews c]ta9 ,italian m]*ants1 kn[n z ,lomb>ds1 :o _h previ\sly settl$ 9 ,engl&1 imm$iately fill$ _! place2 & ,lomb>d ,/reet became z notori\s = usury z _h be5 ! ,jewry4 ,! ,jew may be describ$ z a money-l5d]1 & ! ,lomb>d z a m]*ant-bank]1 ?\gh nei!r 0 a bank] z ! ^w is n[ und]/ood4 ,bo?1 h[ev]1 l5t money at high rates ( int]e/4 ,a bank]1 9 ! ,engli% s5se ( ! ^w1 is a middleman :o borr[s f "o set ( p]sons at a rate 9 ord] to l5d to ano!r set at a great] rate1 ! diff]5ce betwe5 ! two rates be+ 8 m>g9 ( pr(it2 & bank+ 9 ?is s5se 0 n practis$ 9 ,engl& until q ! end ( ! fir/ ,*>les's reign1 :5 c]ta9 goldsmi?s1 :o 7 orig9ally deal]s 9 plate & 9 bullion1 became private bank]s4 ,! fir/ run ^u !m 0 made 9 #affg1 :5 a ,dut* fleet sail$ up ! ,m$way2 &1 lat]1 9 #afgb ,*>les ,,ii clos$ ! ,ex*equ]1 refus+ to pay ! bank]s ei!r _! pr9cipal or int]e/1 ) ! result t failures 7 num]\s4 ,we are n[ approa*+ a new bank+ era2 & 9 #afid ! ,bank ( ,engl&1 :i* 0 ! fir/ jo9t-/ock bank e/abli%$ 9 ! ?ree k+doms1 0 incorporat$4 ,! private bank]s1 in/antly recogniz+ 9 h] a =midable rival1 7 actively ho/ile2 b all to no purpose2 & 9 a v little :ile !y gr\p$ !mselves r\nd ! ,old ,lady1 :o r$uc$ _! rates & kept !m 9 ord]4 ,ho>es & ,*ilds 7 9 be+ be=e ! ,bank2 b ! goldsmi?s1 long be=e ! new movem5t 0 a brilliant success1 _h few direct desc5dants 9 ,london2 & ! majority ( ^? private bank]s :o oppos$ ! ,act ( #ahcc belong$ to ano!r g5]ation4 ,at its inception ! ,bank did n enjoy a monopoly2 b ^u ! r5ewal ( its *>t] 9 #agjh x 0 grant$ ! monopoly ( jo9t-/ock bank+ 9 ,engl&1 :ile ! p>tn]s 9 a private bank c\ld n exce$ six 9 numb]4 ,?is numb] 0 increas$ to t5 9 #aheg4 ,c\ntry bank+ develop$ sl[ly 9 ,engl&2 & x 0 n until t[>ds ! close ( ! eighte5? c5tury t private firms began to multiply 9 ! prov9ces2 b ! ,bank ( ,engl&'s iniquit\s monopoly kept !m small & weak1 & betwe5 #agib & #ahbj ov] "o ?\s& private bank]s came to grief1 :ile ! crisis ( #ahbe fur!r ?9n$ _! ranks & almo/ empti$ ! vaults ( ! ,bank ( ,engl&1 :5 x dawn$ ^u ! ,gov]nm5t t ! /ate ( ! money-m>ket 0 di/9ctly rott51 & t x w\ld rema9 s until ! ,bank's monopoly disappe>$4 ,! result 0 ! usual committee & ! usual compromise4 ,! ,act ( #ahbf all[$ jo9t-/ock banks ( unlimit$ liability to be =m$ 9 ,engl& & to c>ry on bus9ess at a great] di/ance ?an sixty-five miles f ,london2 b su* in/itutions c\ld n op5 an (fice 9 ,london4 ,nei!r c\ld !y issue notes at a place )9 sixty-five miles !re(1 nor draw any bills on ,london = a less am\nt ?an #ej4 ,9 #ahcc1 h[ev]1 !y 7 all[$ to make _! bills & notes = less ?an #ej payable on dem& at _! ,london ag5ts4 ,! dem& = ^! e/abli%m5ts 0 n at fir/ consid]able2 & v few 7 =m$ until aft] five or six ye>s ( ! pass+ ( ?is ,act2 b 9 #ahcj ! railway movem5t began 9 e>ne/1 & f #ahcc to #ahcf jo9t-/ock banks 7 e/abli%$ ?r\gh\t ! c\ntry 9 consid]able numb]s4 ,?is sudd5 boom 9 bank+ companies c\ld only h "o result2 & failures became s num]\s t ,sir ,rob]t ,peel1 9 #ahdd1 pass$ 8 ,jo9t-,/ock ,bank+ ,act1 :i*1 be+ f\nd worse ?an ! disease itself1 0 repeal$ 9 #aheg4 ,london1 we h se51 conta9$ only "o bank+ corporation & num]\s private bank]s1 :o1 =m+ a monopoly1 7 practically ri* m5's banks2 = !y w\ld only accept an acc\nt provid$ ! balance 0 n r$uc$ bel[ a c]ta9 sum1 :ile f #ahac to #ahcc "s tw5ty ( !m susp5d$ paym5t2 s /ability 0 n "o ( _! di/+ui%+ *>act]i/ics4 ,x soon became app>5t t ! ,bank ( ,engl& & ! private bank]s 7 q unable to m9i/] to ! gr[+ trade ( ! capital2 & 9 #ahcc jo9t-/ock banks 7 all[$ to be =m$ 9 ,london1 b ^u ! di/9ct und]/&+ t !y 7 to be banks ( deposit & n banks ( issue4 ,9 o!r words1 !y c\ld n issue _! own notes1 s 7 compell$ to use ^? ( ! ,bank ( ,engl&4 ,! fir/ ,london jo9t-/ock bank 0 ! ,london & ,we/m9/]1 ^: prospectus 0 issu$ 9 #ahcc2 b ! %>es 7 subscrib$ sl[ly1 & ! bank did n op5 its doors to ! public until ! ,m>* ( ! ye> foll[+4 ,!n came ! ,london ,jo9t-,/ock ,bank 9 #ahcf1 & ! ,union ,bank 9 #ahci4 ,x is usual1 9 ?is little isl&1 to h>k back to ! good old days1 & !n1 ) a sigh1 to regret t ! old ord] ( ?+s no long] exi/s2 yet x mu/ be confess$ t ! ,london private bank]s 7 ( no s]vice :atsoev] to ! small man ( bus9ess1 :om !y simply ignor$4 ,! jo9t-/ock banks h[ev]1 m9i/]$ to ! wants ( ! small trad]2 &1 by div+ into ! he>t ( ! masses1 prov$ t a l>ge numb] ( small balances are ev5 m desirable ?an a small numb] ( l>ge acc\nts1 :il/ 9 ! end !y practically drove ! private bank]1 h&icapp$ z he 0 by ! law ( ! l&1 out ( ! m>ket1 or1 at lea/1 r$uc$ him to impot5cy4 ,b ! ,london jo9t-/ock banks1 9 ^? e>ly days1 7 n )\t _! grievances2 & bo? ! private bank]s & ! ,bank ( ,engl& seiz$ ^u e pretext 9 ord] to h>ass !m4 ,be+ m]ely common law p>tn]%ips1 !y did n come "u ! #ahbf ,act2 & until ! ,act ( #ahdd !y 7 n reliev$ f c]ta9 re/rictions :i* ne$ n be discuss$ "h4 ,b ! ye> ( bank+ re=m 01 ( c\rse1 #ahdd1 :51 =tunately = ! trade ( ! c\ntry1 ! ,bank ( ,engl& 0 /ripp$ ( all its privileges except t relat+ to ! issu+ ( notes4 ,! ,bank ,*>t] ,act ( #ahdd gave ! ,bank ( ,engl& ! monopoly ( issu+ notes 9 ,london & )9 sixty-five miles ( x4 ,no new bank ( issue 0 to be =m$1 :ile a prov9cial bank1 ^u op5+ 9 ,london1 =feit$ its issue4 ,! *eque1 h[ev]1 soon became m p[]ful ?an ! note2 & ! l>g] prov9cial bank+ companies gladly made ! sacrifice 9 ord] to e/abli% !mselves 9 ! capital4 ,! next /ep =w>d 0 :5 ! jo9t-/ock banks broke up ! cabal ( private bank]s & 7 admitt$ to ! ,cle>+ ,h\se 9 #ahed2 ?\gh x is a little rem>kable t1 hav+ pos$ z m>tyrs & vigor\sly d5\nc$ _! oppressors1 !y %\ld n[ take ^u !mselves to exclude c]ta9 companies :i* h z good a "r z !y to ent] ! sacr$ portals ( ! ,h\se2 b ! mote 9 "o's neighb\r's eye is always s mu* m app>5t ?an ! beam 9 "o's own4 ,by ! ,act ( #aheh a jo9t-/ock bank 0 all[$ to limit ! liability ( its %>ehold]s2 b ! ,act1 0 n made compulsory2 & ?\gh all ! companies =m$ subsequ5tly regi/]$ "u ?is ,act ! memb]s ( ^? 9 exi/5ce prior !reto 7 liable = ! debts ( ! company 9 :i* !y held %>es to _! la/ %ill+4 ,!n came ! failures ( ! ,we/ ( ,engl& ,bank & ! ,city ( ,glasg[ ,bank 9 #ahgh2 & %>ehold]s 9 banks ( unlimit$ liability1 ) ! fate ( ! memb]s ( ^! two in/itutions be=e _! eyes1 began to weigh _! responsibilities1 ) ! result t _m sold out at panic prices 9 ha/e & regrett$ at leisure4 ,! m prud5t1 ?\gh !y held _! %>es1 began an agitation = re=m1 :i* gave bir? to ! ,act ( #ahgi4 ,we ne$ n discuss ?is ,act2 ?\gh x may j be said t e jo9t-/ock bank 9 ! ?ree k+doms :i* is n limit$ by its *>t] is n[ a bank ( limit$ liability "u ! ,companies ,acts4 ,at ?is juncture1 p]haps1 a few words may be said ) ref]5ce to ! ,bank ( ,engl&1 :i*1 ) a contempt = evid5ce t is truly ,briti%1 ! public is conv9c$ _c susp5d paym5t2 yet ! ,bank's c>e] has be5 decid$ly *eck]$2 & ev5 aft] ! pass+ ( ! ,act ( #ahdd ! ,old ,lady 0 only sav$ by ! int]v5tion ( ! ,gov]nm5t 9 #ahdg1 #aheg & #ahff1 :ile dur+ ! ,b>+ crisis ( #ahij %e 0 compell$ to borr[ f ! ,bank ( ,france2 s1 evid5tly1 h] sy/em is n by any means a p]fect "o2 b "o does n expect p]fection 9 f9ance4 ,! p]fect f9ancial ma*9e & ! p]fect man are alike impossibilities4 ,z to ! latt]1 did he exi/1 he w\ld seem positively inhuman4 ,x ne$ n be said t ?is sket* ( ! ,engli% bank+ movem5t is necess>ily imp]fect1 if only because ( ! small space into :i* x is cond5s$2 b ! av]age read] c]ta9ly w\ld n tr\ble to dige/ two hundr$ pages on ! subject ( bank+ evolution2 s possibly x may prove acceptable 9 ?is =m4 ,we h se5 t ! ,london private bank] 0 a ri* man's bank]2 b x 0 o!rwise ) ! c\ntry private bank]1 :o 0 (t5 ( great assi/ance to ! small trad]1 at :om ! jo9t-/ock banks w n n[ look unless he approa*es !m ) 8 pockets /uff$ ) securities :5 anxi\s to ov]draw 8 acc\nt4 ,! maxim ( ! companies is3 8,let ! cu/om]s take all risks40 ,& if ?is rule is brok51 !n ! case is an exceptional "o4 ,we ne$ n discuss "h :e!r or n ?is policy be ess5tial to mod]n bank+2 b x is q evid5t t ! small man ( bus9ess has lo/ a good fri5d 9 ! old-fa%ion$ c\ntry bank]1 ^: place has n be5 tak5 by t p]son ( peculi> views & tra9+--! bank-manag] or cl]k-9-*>ge1 ^: urbanity mu/ be m ?an pa9ful to ^? w\ld-be borr[]s )\t security :o ask = bread & are politely (f]$--a /one4 ,:at we h to discov] is :y ! c\ntry bank] has be5 practically =c$ out ( ! m>ket by ! jo9t-/ock sy/em2 & ! reason is n difficult to expla94 ,9 ! fir/ place we "k t1 s9ce #aheg1 ! p>tn]s 9 a private bank h be5 limit$ to t52 consequ5tly1 h[ev] anxi\s a bank] may h be5 to ext5d 8 sy/em ( bran*es & develop 8 bus9ess1 ! difficulty ( insuffici5t capital pres5t$ itself2 :]eas 8 rivals1 :o c appeal to ?\s&s ( small inve/ors1 c\ld1 once hav+ e/abli%$ _! cr$it1 easily obta9 z mu* capital z !y requir$4 ,! private bank]1 !re=e1 m9i/]$ to ! wants ( a c]ta9 t[n1 di/rict1 or c\nty2 b ! jo9t-/ock banks spread _! t5tacles ?r\gh\t ! l5g? & bread? ( ,engl&2 &1 l an octopus1 ev5tually /rangl$ him 9 a mann] :i* w be expla9$4 ,9 ,london & ?r\gh\t ! prov9ces !re 7 num]\s small firms ( private bank]s--small1 t is to say1 :5 contra/$ ) _! jo9t-/ock competitors4 ,! banks 9 a manufactur+ di/rict or 9 a busy city w\ld1 especially dur+ p]iods ( active trade & ris+ prices1 be call$ ^u to advance l>ge sums to _! cu/om]s2 b if a bank] collect$ 8 deposits f a few bran*es )9 ! di/rict :5ce ! dem& arose1 he w\ld soon f9d himself unable to meet ! requirem5ts ( 8 cu/om]s4 ,b ! jo9t-/ock banks1 :i* h bran*es 9 _m c\nties1 c p\r _! deposits into ^? c5tres :]e dem& is active2 & x is obvi\s t a small private bank] _c hope to compete successfully aga9/ ! sup]ior organization ( ! companies4 ,) ! private bank] x soon became a "q ( re/rict+ advances2 & 8 cu/om]s1 f9d+ t !y c\ld n obta9 all ! accommodation !y requir$1 naturally appli$ to 8 rivals1 :o1 if tangible securities 7 =?com+1 met _! dem&s ) ease4 ,! ,london & prov9cial bank+ companies1 :i* f>m bo? ! agricultural & ! manufactur+ di/ricts1 by p\r+ _! surplus capital into ! ,london money-m>ket1 spe$ily obta9$ all ! be/ bus9ess2 & ^? private bank]s :o did n ei!r amalgamate )1 or adopt ! sy/em (1 _! successful rivals f\nd !mselves hopelessly out-di/anc$4 ,h5ce ! triumph ( jo9t-/ock bank+ & ! adv5t ( ! director & 8 humble1 mo/ ob$i5t s]vant1 ! cl]k-9-*>ge1 :o 8manages0 a c\ntry bran*1 b ^: p[]1 9 reality1 is ( ! smalle/1 all ! applications = advances above a c]ta9 sum hav+ to be submitt$ to ! *ief (fice1 :ile he himself is p[]less to act until he receives 8 in/ructions f headqu>t]s4 ,?is =m ( competition w\ld be felt less 9 an agricultural c\nty :]e ! deposits a bank] collects are greatly 9 excess ( ! dem& made ^u him = advances2 b ev5 !re ! private bank]'s luck has des]t$ him2 = ! agricultural depression ?9n$ ! ranks ( 8 be/ cu/om]s1 &1 ( c\rse1 left him a legacy ( bad debts4 ,we %\ld1 !re=e1 expect to see ! private bank]s disappe> f ! great t[ns fir/1 &1 f9ally1 f ! agricultural c5tres4 ,! law ( ! l& has kept !m small2 & ! t5tacles ( ! jo9t-/ock companies h almo/ ext]m9at$ a class ( m5 :o enjoy$ ! fri5d%ip & confid5ce ( _! cli5ts to an ext5t t a cl]k-9-*>ge ^u a sal>y ( f #bjj to #ejj a ye> c nev] ev5 approa*4 ,?\gh we live 9 an age ( great ma*9es1 :i*1 = reasons t w be expla9$ lat]1 c decl>e huge divid5ds1 e n[ & aga9 we he> ( ! inception ( a new bank+ company4 ,! new arrival1 p]haps1 waxes m ?an eloqu5t ^u ! l>ge divid5ds paid by ! exi/+ companies1 & !n dwells en?usia/ically ^u ! imm5se pr(its x hopes to e>n2 b c a small company ev] e/abli% its cr$it 9 face ( ! network ( bran*es :i* n[ cov] ! l&8 ,! p]son :o applies = its %>es mu/ c]ta9ly be ( a mo/ sangu9e disposition4 ,x is ! p[]s t be t always excite ! ke5e/ int]e/1 d\btless because ( ! possibility t a k ( _! habits & ways may prove ( pecuni>y b5efit to ! /ud5t2 & ?is object has be5 kept well 9 view ?r\gh\t ! foll[+ *apt]s4 ,,*apt] ,,ii ,,on ,,! ,,*oice ,,( ,a ,,bank] ,!re is an op9ion :i* is v preval5t to ! effect t1 provid$ "o's acc\nt be an ov]drawn "o1 x does n matt] :]e x is kept2 &1 ( c\rse1 if x 7 possible to f9d a nice1 philan?ropic bank] :o w\ld all[ "o a big ov]draft )\t ev5 h9t+ at security1 !re w\ld be mu* tru? 9 ! ass]tion2 b 9 view ( ! exi/+ relations betwe5 bank] & cli5t1 ! idea is bo? un=tunate & fallaci\s4 ,we h se5 h[ ! l>ge jo9t-/ock banks1 by develop+ _! sy/em ( bran*es1 lit]ally smo!r$ ! private bank]2 & ! small] companies1 :i* possess b few bran*es1 are n[ be+ =c$ to amalgamate ) ! l>g] = ! same reason4 ,if1 !re=e1 a man has a l>ge advance f a small prov9cial bank+ company1 x may occur t1 j :5 he is anxi\s to disc\nt m bills or to increase 8 ov]draft1 ! bank w be unable to accommodate him2 & x !re=e foll[s t a l>ge bank1 ^: res\rces are abundant1 is z ess5tial to ! really great borr[] z x is saf] = ! depositor4 ,a p]son ^: acc\nt is 9 cr$it or :o leaves money ) a bank] at int]e/ naturally atta*es ! great] importance to ! safety ( 8 balance or pr9cipal2 &1 secondly1 he endeav\rs to obta9 z high a rate z possible2 b he w\ld n be s fooli% z to sacrifice security to a high rate ( int]e/2 ?\gh1 :]e ! banks are equally well manag$1 he w\ld select ! "o t (f]$ him ! high] rate or ! *eap] facilities4 ,conv]sely1 ! p]son ^: acc\nt is ov]drawn w\ld1 o!r ?+s be+ equal1 *oose ! bank t (f]$ to "w 8 acc\nt ! *eape/4 ,n[1 a bank]'s liabilities to ! public are due on dem&1 & at %ort notice2 & !y w\ld consi/ pr9cipally ( 8deposit & curr5t acc\nts1 & notes & drafts 9 circulation40 ,^!1 ( c\rse1 w be f\nd on ! left-h& side ( ! balance-%eet4 ,z ! bank]'s deposits may be dem&$ f him at any unlucky mom5t1 x foll[s t he is compell$ to hold a c]ta9 sum ( ca% 7legal t5d]7 9 res]ve2 & ! l>g] t sum1 ! saf] are ! cu/om]s' balances4 ,a p]son1 !re=e1 :o is look+ = a safe bank]1 %\ld see t ! firm or company :i* he selects possesses at lea/ f #ab to #ah 9 co91 bank-notes & ca% ) ! ,bank ( ,engl& aga9/ ea* #ajj x owes to ! public4 ,he w f9d ! public liabilities on ! left-h& side ( ! balance-%eet & ! ca% 9 h& on ! "r2 & a proportion sum w soon give him 8 answ]4 ,b a really /rong1 well-manag$ bank only advances to1 & disc\nts bills ( ex*ange =1 its cu/om]s to su* an ext5t z w enable x to hold f #de to #ej 9 ca%1 money at call & inve/m5ts to e #ajj ( its public indebt$ness4 ,ca%1 ( c\rse1 is its vital asset2 & aft] ca% comes ,consols & o!r ,briti% ,gov]nm5t securities 9 :i*1 except at ! v height ( a panic1 !re is always a m>ket4 ,^! are a bank's s-call$ liquid assets2 & x may j be add$ t :5 a bank mixes its ca% & money at call & notice toge!r1 & an accommodat+ auditor decl>es t su* a m$ley 8exhibits a true & correct view ( ! /ate ( ! company's affairs10 ! bank is probably s weak 9 actual ca% z to deem x wise n to publi% ! figures4 ,money at call & %ort notice w\ld repres5t advances to ! bill-brok]s & to ! ,/ock ,ex*ange2 & ?\gh su* loans c\ld d\btless be easily call$ 9 dur+ normal times1 !y w\ld be difficult to collect :5 ! money-m>ket 0 9 a turmoil4 ,a great] "p ( ! advances made to ! ,/ock ,ex*ange1 ?\gh class$ z liquid assets1 are 9 reality loans 9 disguise2 = if ! banks 7 to sudd5ly ask ! /ockbrok]s to r$eem _! pl$g$ /ocks & %>es1 ^? g5tlem5 w\ld be hamm]$ 9 clu/]s2 & ! %>es1 :5 flung ^u ! m>ket to be sold at :at !y w\ld fet*1 w\ld rapidly depreciate4 ,x w\ld c]ta9ly be int]e/+ 7 ! banks to specify ! am\nt ( _! s-call$ %ort loans to ! ,/ock ,ex*ange2 &1 ) a lively recollection ( #ahij1 x is to be hop$ t !y are kept )9 b\nds1 z1 ^u t occasion1 ?is class ( advance hung l a mill-/one r\nd _! necks4 ,su* liquid assets1 x is to be fe>$1 are m likely to s9k ! good %ip ?an to save h] 9 a /orm4 ,hav+ asc]ta9$ ! ratio p] c5t4 ( a bank's ca% 9 h& to its public liabilities1 & glanc$ at ! call-money1 ! li/ ( inve/m5ts %\ld be c>efully criticiz$4 ,:5 a bank+ company describes its li/ ?us3 8,consols & o!r securities10 x may be tak5 = grant$ t its hold+ ( ,consols is a small "o4 ,?is description1 9 fact1 is tak5 f ! balance-%eet ( an ,engli% prov9cial bank+ company1 :i* holds ab\t #ai 9 ca%1 call-money & securities to ea* #ajj x owes to its cu/om]s2 & yet x c f9d p :o are fooli% en\gh to d bus9ess ) x4 ,consid]$ z a f9ancial in/itution1 x is practically bankrupt2 yet its deposits am\nt to ov] #d1jjj1jjj4 ,=tunately1 h[ev]1 ?is in/itution is "o ( ! few exceptions :i* are be/ avoid$4 ,ano!r v weak jo9t-/ock bank describes its inve/m5ts z consi/+ ( 8,engli% ,gov]nm5t & railway /ocks40 ,its ca% & call-money are consolidat$ into "o total2 b1 m rem>kable /ill1 an auditor actually has ! impud5ce to decl>e t ! balance-%eet 8exhibits a true & correct view ( ! company's affairs10 :51 ( c\rse1 x is n wor? ! pap] ^u :i* x is pr9t$4 ,a well-manag$ bank1 z a rule1 /ates its hold+ ( ,consols di/9ctly1 &1 sometimes1 ! figures at :i* !y h be5 tak54 ,if x d n1 !n ! value ( its ,briti% ,gov]nm5t securities is giv5 sep>ately4 ,next1 x usually specifies its ,india ,gov]nm5t ,/ock1 & s on2 &1 f9ally1 8o!r securities10 :i*1 assumably1 are ( a non-liquid nature1 are giv5 la/ because !y are ( ! lea/ value f a bank]'s po9t ( view4 ,naturally1 if a bank possess a gilt-edg$ li/1 x adv]tises ! fact 9 its balance-%eet2 & ^? companies :i* indulge 9 ambiguity are1 9 n9e cases out ( t51 ! banks to avoid4 ,= in/ance1 y w n f9d any evasions ( ?is nature 9 ! balance-%eets ( su* p[]ful companies z ! ,london & ,c\nty ,bank1 ! ,union & ,smi?s1 ! ,london ,city & ,midl&1 & o!r really fir/-rate in/itutions1 = ! simple reason t !re is no occasion = !m4 ,z a rule1 ! cle>] ! balance-%eet1 ! /rong] is ! bank2 & ! s9n]s1 consequ5tly1 are ! small] banks1 :i*1 situat$ 9 a manufactur+ c5tre1 are unable to collect suffici5t work+ res\rces to f9ance _! cu/om]s4 ,_! ultimate fate1 x ne$ n be said1 is amalgamation ) a m p[]ful rival4 ,:5 *oos+ a bank]1 !re=e1 "o %\ld fir/ asc]ta9 t he has an abundant res]ve ( ca% 9 h&1 &1 secondly1 t 8 s-call$ liquid assets 78 ca%1 call-money & securities7 am\nt to f #de to #ej aga9/ ea* #ajj to :i* he is indebt$ to ! public4 ,& z to ^? private bank]s :o d n issue a balance-%eet1 !y are1 9 ! fir/ place1 guilty ( ! s9 ( omission2 &1 9 ^! days1 :5 fai? is n ! pr$om9ant note1 !re seems b little inducem5t to buy a pig 9 a poke :5 a l>ge bank]'s balance-%eet may be _h = ! ask+4 ,,*apt] ,,iii ,,! ,,*eque ,,& ,,its ,,v>i\s ,,cross+s ,a *eque is (t5 describ$ z a bill ( ex*ange1 drawn by a cu/om] on 8 bank]1 = a sum c]ta9 9 money1 payable on dem&4 ,9 ^! days1 :5 ! m]e babe produces 8 *eque-book on ! slighte/ provocation1 x seems unnecess>y to describe h[ a *eque %\ld be drawn2 ?\gh x may j be add$ t x mu/ be> a /amp ( "o p5ny1 & t ! /amp may be ei!r impress$ or adhesive4 ,a cu/om]1 !re=e1 c draw a *eque on 8 bank] ^u a %eet ( notepap]2 b he w\ld be well advis$1 except "u exceptional circum/ances1 to use ! =ms suppli$ to him4 ,ord] or ,be>]4 ,a *eque is payable ei!r to 8ord]0 or to 8be>]02 &1 if ! latt] ^w be us$1 !n x does n require indors+1 :ile %\ld nei!r ^w be ^u ! docum5t1 ! *eque is held to be an 8ord]0 "o4 ,ei!r ! p]son to :om x is payable or ! draw] may *ange a *eque f be>] to ord]2 & ?is he w\ld d by runn+ 8 p5 ?r\gh ! =m] ^w2 b ! draw] alone c alt] an ord] *eque by writ+ ! ^w 8be>]0 9 full & initiall+ ! alt]ation4 ,if ! *eque be sign$ by m ?an "o draw]1 !n all %\ld add _! initials to any correction x may be desirable to make4 ,date ( a ,*eque4 ,any p]son :o receives an undat$ *eque is entitl$ to fill 9 :at he believes to be ! correct date1 & ne$ n tr\ble to return x to ! draw] = t purpose4 ,he _c1 ( c\rse1 make any alt]ation 9 ! date1 b %\ld1 9 ! ev5t ( a mi/ake on ! draw]'s "p1 return x to him = correction1 :5 he 7! draw]7 w\ld make ! desir$ alt]ation & write 8 initials aga9/ x4 ,x is1 p]haps1 z well to rememb] t a c]ta9 class ( debtors1 :o may be describ$ z ei!r 8h>d up0 or 8%ady10 h _! little peculi>ities2 & "o ( !m is to po/-date _! *eques :5 !y "k t !re is n suffici5t money at ! bank to meet !m4 ,_! object1 ( c\rse1 is to ga9 "t2 & %\ld a payee1 ^u receiv+ su* a *eque1 h cause to ?9k t he is deal+ ) "o ( ^! g5tlem51 he might pay 9 ! *eque to 8 own bank] = collection1 & write pretty pla9ly to ! draw]1 reque/+ him to call at 8 bank]'s & put ! *eque 9 ord]4 ,?\gh a *eque be ei!r po/-dat$1 t is to say1 dat$ s t x falls due aft] ! day ^u :i* x is drawn1 or dat$ on a ,sunday1 ! docum5t is n invalidat$ !reby4 ,a ,/ale or ,out-(-,date ,*eque4 ,mo/ bank]s w\ld probably decl9e to pay a *eque :i* _h be5 out/&+ m ?an six mon?s4 ,! draw]1 h[ev]1 does n cease to be liable ^u ! in/rum5t until six ye>s aft] ! date !reupon2 ?\gh he may claim damages aga9/ ! payee if he c prove t he has suff]$ loss ?r\gh 8 delay4 ,cross$ ,*eques4 ,?\gh ?is practice orig9at$ 9 ! ,unit$ ,k+dom1 ! ,fr5* banks h n[ adopt$ ! idea1 :i* is z simple z x is und\bt$ly useful & protective to ! cu/om]4 ,a *eque may be cross$ ei!r g5]ally or specially--specially1 t is to say1 to "s bank or to ! acc\nt ( an individual :o keeps an acc\nt ) a bank]4 ,if a cu/om] draw two p>allel l9es across ! face ( a *eque1 ?us1 _/ _/1 he has in/ruct$ 8 bank] n to give ca% 9 ex*ange = x to ! payee across 8 c\nt]4 ,x foll[s t a *eque s m>k$ mu/ be pass$ ?r\gh a bank+ acc\nt4 ,! words 8 ,co40 are sometimes writt5 betwe5 ! l9es2 b ?is addition is almo/ mean+less1 ! simple cross+ be+ all t is requir$4 ,a p]son :o draws two p>allel l9es across 8 *eque1 gives ! foll[+ in/ructions to 8 bank]3 8,d n pay ca% ov] y\r c\nt] 9 ex*ange = ?is *eque1 :i* mu/ rea* y ?r\gh a bank]1 & be paid to him alone40 ,:51 !re=e1 y wi% a p]son to :om y\r *eque is made payable to g to y\r bank]'s & draw ! money1 y w be c>eful n to cross x4 ,practice1 someh[1 always seems at w> ) !ory1 & x is n by any means an unusual occurr5ce = a lady1 aft] hav+ delib]ately told h] bank] n to pay ca% = h] *eque to ! pres5t]1 to indignantly inquire :y he did n disobey h] behe/ & d s4 ,a prud5t tell] seldom desc5ds to ei!r argum5t or explanation1 b calmly accepts su* repro( z "o ( ! am5ities ( 8 call+1 & resigns himself philosophically to ! inevitable4 ,n ,negotiable ,*eques4 ,?is description is some:at mislead+1 = a *eque cross$ _/n negotiable_/ is 9 reality negotiable1 ?\gh n s fully z is ! "o t has be5 discuss$ 9 ! =ego+ division4 ,! di/9ction1 h[ev]1 is n difficult to grasp4 ,take a *eque ) two p>allel l9es across ! face simply4 ,n[1 if su* a docum5t be lo/1 & f9d its way into di%one/ h&s1 a ?ird p>ty1 :o gives value 9 ex*ange = x1 provid$ he h no guilty k1 has a good title aga9/ all ! _w1 & c compel ! draw] to pay him ! sum = :i* x is made out4 ,= in/ance1 ,a draws a *eque = #bj payable to ,b1 & crosses x _/ ,co_/4 ,b1 ! payee1 aft] hav+ writt5 8 "n on ! back ( ! *eque1 loses x4 ,c picks x up & passes x on to ,d1 :o gives him ca% or goods 9 ex*ange = x4 ,z ,b has indors$ ! *eque he w h to be> ! loss1 ev5 ?\gh he has got ,a1 ! draw]1 to /op paym5t ( x at 8 bank]'s4 ,b _h ! words 8n negotiable0 be5 add$1 ,d c\ld n h en=c$ 8 claim1 al?\gh he 0 a bon-fide hold] = value4 ,a 8n negotiable0 *eque w>ns any hold] = value ?us3-- 8,y mu/1 if y "p ) ei!r ca% or goods 9 ex*ange = ?is docum5t1 be prep>$ to take all risks ^u y\r own %\ld]s4 ,! cross+ h]eon gives y due notice t y mu/ act ^u y\r own responsibility1 & ! law1 !re=e1 af=ds y no protection40 ,a bus9ess man _c be too c>eful 9 deal+ ) a *eque ?us m>k$2 & unless he be well acqua9t$ ) ! hold]1 he %\ld decl9e to "p ) ei!r ca% or goods 9 ex*ange = x4 ,"o %\ld nev]1 ev5 if "o "k t ! draw] is a man ( means1 & t ! signature ^u ! *eque is g5u9e1 give value = x to a /rang]1 z !re is always ! dang] ( "o's hav+ to make good ! loss ( any prior hold]1 :o may h be5 defraud$1 :il/ if ! payee _c en=ce 8 claim aga9/ ! draw]1 !n a hold] = value _c4 ,a 8n negotiable0 *eque1 9 %ort1 is analog\s to an ov]-due bill4 ,any p]son :o may deal ) a a bill aft] its maturity does s ^u ! und]/&+1 or1 bett]1 supposition1 t he is acqua9t$ ) any flaw !re may be 9 ! title4 ,he may n "k ( any2 b ! law holds t he does4 ,x is precisely ! same ) a 8n negotiable0 *eque4 ,*eques1 :i* are cross$ 9 ! mann] already describ$1 are said to be cross$ g5]ally4 ,*eques ,cross$ ,specially4 ,a *eque is said to be cross$ specially :5 "o writes across ! face ( x1 say3-- 8,a_/,c ,john ,smi?1 ,provid5t ,bank ( ,london40 ,"o may "n1 9 ! cross+1 any p>ticul> bank1 & ! bank] ^u :om ! *eque is drawn w take c>e t x comes ?r\gh ! *annel indicat$ !reupon4 ,9 ! above illu/ration1 = in/ance1 y\r bank] w see t ! *eque has ! "n ( ! 8,provid5t ,bank ( ,london0 /amp$ ^u x2 & %\ld he n f9d x !re1 !n he w\ld decl9e to pay ! docum5t4 ,ei!r ! payee or ! hold] ( an uncross$ *eque may cross x g5]ally or specially2 & if x be already cross$ g5]ally1 !n ei!r c cross x specially1 or add ! words 8n negotiable40 ,h[ to ,cancel a ,cross+4 ,! draw] alone c d ?is by writ+ ^u ! *eque ! words 8pay ca%10 & sign+ 8 "n b5ea? !m 9 full4 ,h[ to ,indorse or ,back a ,*eque4 ,= all practical purposes "o _c d bett] ?an sign "o's "n ^u ! back ( a *eque exactly z ! draw] has writt5 x ^u ! face1 )1 ( c\rse1 ! omission ( any c\rtesy title1 su* z ,miss1 ,mr4 or ,esquire1 :i* are m]ely !re z a m>k ( civilization & progress4 ,if "o's "n be spelt incorrectly1 !n "o %\ld back ! *eque j z x is drawn1 & write "o's correct "n und]nea? ! misspelt signature4 ,fur!r1 d n bully ! ca%i] if he make ?is reque/ ( y1 = to d s is ! sign ( a weak m9d4 ,a *eque payable to ,john ,smi?1 ,esq41 or to ,mr4 ,john ,smi?1 %\ld be indors$3-- 8,john ,smi?40 ,doctor ,john ,smi? may sign 8,j4 ,smi?1 ,m4,d402 & ,colonel ,john ,smi?1 8,j4 ,smi?1 ,colonel40 ,^! embelli%m5ts1 h[ev]1 are z unnecess>y z a fl\ri% w\ld be on ! f9al h ( ,smi?1 &1 9 a busy age1 ! s>ca/ic p]son1 l ! law1 reg>ds !m z sup]flu\s4 ,a ,miss ,m>y ,smi?1 :o has m>ri$ a ,mr4 ,john ,br[n1 w\ld indorse a *eque made payable to h] 9 h] maid5 "n3-- 8,m>y ,br[n1 ne ,smi?40 ,if ! *eque be made out to ,mrs4 ,john ,br[n1 !n %e signs3-- 8,m>y ,br[n1 wife ( ,john ,br[n10 or 8,m>y ,br[n 7,mrs4 ,john ,br[n70 9 brackets4 ,c]ta9 ladies ( a ma/]ful temp]am5t appe> to ent]ta9 a /rong objection to sign+ !mselves 8! wife (0 su*-&-su* an individual1 z ?\gh ! designation smacks ( an inf]iority ( :i* !y are n consci\s2 & su* susceptibilities may at lea/ be soo!d by plac+ ! opprobri\s t]m )9 brackets4 ,a *eque payable to ,mrs4 ,br[n or be>] w\ld n1 ( c\rse1 require h] "n ^u ! back4 ,b if x 7 to ord]1 !n %e w\ld indorse x ei!r ,m4 ,br[n or ,m>y ,br[n4 ,:5 ! draw] omits "o's initials1 "o %\ld write "o's usual signature ^u ! back ( ! *eque2 & ?\gh x is n necess>y to sign *ri/ian names 9 full1 ev5 :5 !y are s writt5 ^u ! docum5t1 ! capital lett]s mu/1 ( c\rse1 agree ) ^? ^u ! face4 ,a *eque drawn 9 fav\r ( ,messrs4 ,rob9son is obvi\sly payable to two or m p]sons ( t "n1 s x may be indors$3 8,a4 ,c4 ,rob9son10 8,rob9son ,son10 8,rob9son ,bro!rs10 or 8,rob9sons40 8,rob9son & ,nephew0 w\ld n1 h[ev]1 meet ! case1 = x by no means foll[s t ! nephew is a ,rob9son4 ,x is equally z probable t he may be a ,smi? or a ,jones--or a somebody else4 ,9 practice1 provid$ ! *eque be = a small am\nt1 ! pay+ bank] is seldom squeami%1 b :5 a l>ge sum is 9 "q he naturally takes c>e t he is ^u ! safe side1 = ! good man is v human4 ,:]e a *eque is payable to two or m p]sons1 :o are n p>tn]s1 !n all %\ld indorse4 ,a payee :o is unable to write mu/ make 8 m>k or cross 7! trade-m>k ( ! illit]ate7 9 ! pres5ce ( a witness1 :o atte/s x ?us3-- 8 ,george ,x ,br[n4 m>k ,witness3 ,rob]t ,:ite1 #ee1 ,high ,/reet1 ,birm+ham4 ,:5 ! payee 7! p]son to :om a *eque is payable7 writes 8 "n ^u ! back ( an 8ord]0 *eque ! docum5t is said to be indors$ 9 blank1 & becomes 9 effect payable to be>]4 ,he c1 h[ev]1 make x payable to ano!r p]son by writ+ above 8 signature3 8,pay ,?omas ,br[n or ord]40 ,?omas ,br[n mu/ !n indorse ! *eque4 ,fur!r1 any hold] may write ?is reque/ above ! indors]'s signature1 !reby conv]t+ an indorsem5t 9 blank into a special indorsem5t4 ,a re/rictive indorsem5t gives ! indorsee no p[] to transf] 8 rights4 ,h5ce a *eque indors$ to 8,john ,smi? only0 prev5ts fur!r negotiation ( ! in/rum5t4 ,:]e a *eque is payable to1 say1 ,john ,smi? = ,r4 ,jones1 ! payee simply has to write 8 own "n on ! back4 ,%\ld ! "n ( a fictiti\s or non-exi/+ p]son be ins]t$ z payee 9 an ord] *eque1 ! docum5t may be treat$ z payable to be>]4 ,*eques drawn to 8ca%10 8h\se10 etc41 are s treat$4 ,x is usual1 h[ev]1 = ! draw] to indorse !m1 j z he w\ld a *eque payable to 8self or ord]40 ,any executor or adm9i/rator c indorse a *eque made payable to a deceas$ p]son1 b all tru/ees mu/ sign4 ,9 practice1 a bank] usually gu>antees or confirms ^! indorsem5ts4 ,f9ally x may be add$ t x is n illegal to indorse a *eque 9 p5cil1 ?\gh a bank] w\ld probably decl9e to hon\r x on ! plea t x becomes fa9t] z "t progresses4 ,aga91 too1 an indorsem5t may be made on ! face z well z ^u ! back ( a *eque1 b ! cu/om]1 unless he be ( a peculi>ly combative temp]am5t1 m]ely wi%es to "k :at is usual1 & we are all aw>e ( ! accept$ rule 9 ?is in/ance4 ,ag5ts & 8,p] ,pro0 ,indorsem5ts4 ,a signature by procuration indicates t ! ag5t's p[] to b9d 8 pr9cipal may be1 & probably is1 limit$4 ,= in/ance1 ! ag5t may only h au?ority to indorse *eques & bills1 & if he sign z ei!r draw] or acceptor1 he _c b9d 8 pr9cipal4 ,moreov]1 z a procuration signature op]ates z notice ( 8 limitations1 a hold] has no claim ^u 8 pr9cipal1 z he %\ld h protect$ himself by dem&+ to see ! ag5t's lett] ( au?ority4 ,a cu/om]1 :5 he wi%es ano!r p]son to draw *eques on 8 behalf1 gives a lett] ( au?ority to 8 bank]1 & /ates !re9 exactly :at 8 nom9ee or ag5t may d4 ,! au?ority may only all[ a c]ta9 p]son to sign *eques on 8 behalf up to1 say1 #ajj1 & ! bank] w\ld1 ( c\rse1 refuse any *eque drawn 9 excess ( t sum4 ,mo/ bank]s keep pr9t$ =ms ( ?is description1 & ! cu/om]1 if he obta9 "o1 c1 by cross+ out :at ! ag5t may n d1 limit 8 p[] to any ext5t he ?9ks necess>y4 ,^! lett]s ne$ n be /amp$1 &1 unless previ\sly revok$1 !y cont9ue 9 =ce until ! bankruptcy1 insanity1 or dea? ( ! pr9cipal4 ,we c n[ see t deal+ ) an ag5t is n unatt5d$ by c]ta9 risks4 ,! bank] always protects himself by asc]ta9+ t an ag5t really has au?ority :5 he signs ! "n ( a cli5t 9 ! capacity ( ei!r draw] or indors]1 b z he 7! pay+ bank]7 is n liable ^u ei!r a =g$ or an unau?oriz$ indorsem5t1 p] pro indorsem5ts are univ]sally accept$ by ! banks 9 ! ord9>y c\rse ( bus9ess4 ,!y are n1 h[ev]1 legally oblig$ to pass !m1 & a bank] may dem& to see an ag5t's au?ority or insi/ ^u hav+ a confirmation ( ! indorsem5t4 ,an ag5t usually signs3-- 8p] pro 7or p4p47 ,john ,br[n1 ,rob]t ,smi?40 ,x has be5 held t 8p4p4 ,mr4 ,john ,br[n1 ,rob]t ,smi?10 is a good dis*>ge1 b ! =ego+ me?od is ! m g5]al4 ,!re h also be5 decisions 9 fav\r ( ! prefixes 8pro0 & 8=10 ?\gh mo/ bank]s refuse to pay *eques s indors$4 ,procuration indorsem5ts are n accept$ on divid5d-w>rants4 ,a *eque payable to ,br[n's ,drap]y ,/ores may be indors$3-- 8p4p4 ,br[n's ,drap]y ,/ores1 ,?omas ,br[n1 ,proprietor40 ,aga91 %\ld ,?omas ,br[n receive a *eque1 :i*1 he kn[s1 is int5d$ = him1 ?\gh made payable to ,?omas ,bright1 he might sign ^u ! back3 8p4p4 ,t4 ,bright1 ,?omas ,br[n40 ,he c expla9 ! reason = ?is to 8 own bank]1 b ! pay+ bank] w n "q ! indorsem5t4 ,*eques :i* are drawn 9 fav\r ( an e/abli%m5t "o owns1 or ( a commodity "o sells1 c always be back$ 8p] pro40 ,a *eque to ! ord] ( a limit$ or unlimit$ company is g5]ally indors$ p] pro ! company1 & ! sign] %\ld !n /ate ! position he occupies1 :e!r director1 secret>y1 manag] or ca%i]1 z 9 ! foll[+ illu/ration3-- 8p4p4 ,! ,hull ,%ipp+ ,company1 ,limit$1 ,walt] ,wilson1 ,manag]40 ,x is always advisable to sign = or on behalf ( a company1 & to /ate 9 :at capacity "o signs1 s z to avoid a p]sonal liability4 ,an ag5t :o signs "u a p[] ( attorney1 usually indorses3 8,?omas ,br[n by 8 attorney ,william ,smi?40 ,x is z well to rememb] t a p[] ( attorney (t5 conf9es ! ag5t's p[]1 z 9 ! case ( a lett] ( au?ority1 )9 v n>r[ limits1 & t ! pr9cipal is only b\nd by its provisions4 ,bank]'s ,liability on ,=g$ ,indorsem5ts4 ,! pay+ bank] is n liable ^u a =g$ or unau?oriz$ indorsem5t1 b ! collect+ bank] is 9 ! case ( uncross$ *eques1 &1 accord+ to a rec5t decision by ! ,h\se ( ,lords1 may be ^u cross$ ones4 ,if a bank] cr$it 8 cu/om]'s acc\nt ) ! am\nt ( a cross$ *eque aft] x has be5 cle>$1 he is protect$ by ,section #hb ( ! ,bills ( ,ex*ange ,act2 b %\ld he cr$it 8 cli5t's acc\nt ) ! said *eque be=e he himself has collect$ x1 !n he ceases to be a m]e ag5t1 & becomes a hold] = value1 &1 consequ5tly1 liable ^u a =g$ indorsem5t4 ,z x is usual1 bo? 9 ,london & ! prov9ces1 to cr$it a cu/om]'s acc\nt ) *eques on ! day t he pays !m 91 x foll[s t an employ]1 if 8 ag5t h indors$ cross$ *eques )\t au?ority & plac$ !m to an acc\nt 9 8 own "n1 c recov] _! am\nt f 8 ag5t's bank]4 ,bank]'s ,liability :]e ,draw]'s ,signature is ,=g$4 ,! bank] is liable to a cu/om] ^u any =g$ *eque he debits to 8 acc\nt4 ,:5 a ,*eque is ,legally ,paid4 ,a bank]1 hav+ pass$ ! ca% across 8 c\nt]1 _c legally dem& x back aga91 & ! pres5t] may please himself :e!r or n1 if ask$1 he w return ! money4 ,! bank] has no p[] to compel him4 ,/opp+ ,paym5t ( a ,*eque or ,bill4 ,?is mu/ be done by ! draw] or acceptor1 z ! case may be1 & by him alone4 ,he %\ld write a note to 8 bank]1 giv+ an exact copy ( ! *eque or bill he wi%es return$1 & ! bank] w !n m>k 8 l$g] & in/ruct ! ca%i]s to refuse paym5t ( ! docum5t1 if pres5t$4 ,%\ld he pay ! in/rum5t 9 spite ( ! cu/om]'s ord] to ! contr>y1 he w h to make good any loss occasion$ by 8 neglig5ce4 ,lo/ ,*eques4 ,! payee or ! hold] :o loses a *eque c1 ( c\rse1 give notice ( 8 loss to ! bank] ^u :om x is drawn1 & ! bank] w\ld d\btless "q any pres5t]1 b he1 ! payee or hold]1 mu/ obta9 an ord] f ! draw] in/ruct+ 8 bank] to /op paym5t4 ,! draw]1 ?\gh he _c refuse su* a reque/1 may insi/ ^u receiv+ security be=e he issues a fre% *eque4 ,fur!r1 if ! draw] employ ! cu/om>y means ( communication1 su* z1 = in/ance1 s5d+ 8 *eque ?r\gh ! po/1 or %\ld ! payee himself select a p>ticul> *annel1 !n any loss falls ^u ! latt]4 ,a hold] = value1 h[ev]1 provid$ ! *eque be n ta9t$ ) =g]y1 & t x be n cross$ 8n negotiable10 c compel paym5t f ! draw]1 :o mu/ !n fall back ^u 8 indemnity %\ld he h issu$ a duplicate *eque4 ,s5d+ ,*eques ?r\gh ! ,po/4 ,:5 remitt+ *eques to "o's bank] = ! cr$it ( "o's acc\nt x is advisable to write across ! face ( ea*3 8,a_/,c ,payee1 ) ---- ,bank ( ,london40 ,9 ! ev5t ( a *eque ?us m>k$ gett+ into di%one/ h&s no bank] w\ld c>e to collect x4 ,:]e ! s5d] is ! hold]1 & n ! payee1 he w\ld1 ( c\rse1 cross ! *eque 8,a_/,c ,john ,jones10 etc4 ,z ! pay+ bank] is n liable on a =g$ indorsem5t1 x is always desirable to receive an ackn[l$gm5t f ! payee ( a *eque po/$ to him4 ,%\ld n ?is come to h& 9 prop] "t1 !n paym5t ( ! *eque might be /opp$ at ! bank1 & ! /op remov$ :5 ! receipt arrives4 ,x is1 p]haps1 z well to rememb]1 :5 s5d+ a cross$ *eque ?r\gh ! po/1 t ! addition ( ! words 8n negotiable0 less5s ! risk ( bo? payee & draw]4 ,paid ,*eques4 ,^! are ! legal prop]ty ( ! draw]2 b a bank] is entitl$ to an ackn[l$gm5t f ! cu/om] be=e he surr5d]s !m4 ,provid+ = ,*eques ,specially4 ,a cu/om]1 :e!r 8 acc\nt be ov]drawn or n1 may pay 9 a c]ta9 sum to 8 cr$it1 & reque/ 8 bank] to pay a p>ticul> *eque aga9/ x4 ,! p]son :o adopts ?is proc$ure is inv>iably some:at 8h>d up02 & hav+ issu$ *eques :i*1 9 ! aggregate1 am\nt to m ?an ! balance at 8 cr$it1 or :i* w\ld1 if pres5t$1 ov]draw 8 acc\nt beyond ! agre$ sum1 he is naturally n]v\s le/ 8 bank] %\ld return "o or two ( !m4 ,assum+ t he has "s half-doz5 *eques 9 circulation1 b is p>ticul>ly anxi\s to pay "o to ,john ,smi?1 :o has ?reat5$ to sell him up1 = #cj1 & ano!r = #dj to ,william ,james = r5t1 !n he %\ld pay #gj to 8 cr$it1 & write across 8 pay+-9 slip3 8,to provide = my *eques ( #cj to ,john ,smi? & #dj to ,w4 ,james specially40 ,! bank]1 if he accept ! slip1 is b\nd to hold ! money aga9/ ! *eques 9 "q4 ,pres5t y\r ,*eques at ,once4 ,a bus9ess man1 9 ord] to give himself e *ance1 w pay all *eques to ! cr$it ( 8 bank+ acc\nt ^u ! day he receives !m f 8 cu/om]s4 ,he has1 9 ! legal s5se1 until ! close ( ! fir/ bus9ess-day foll[+ ! day he gets ! *eque1 :51 if he l1 he c po/ x to 8 ag5t1 :o has ! same "t-all[ance = pres5tm5t1 provid$ ! *eque be n drawn ^u a bank 9 8 own t[n4 ,if he delay long] any loss incurr$ by ! draw] ?r\gh non-pres5tation w fall ^u ! payee's %\ld]s4 ,= in/ance1 %\ld ! bank fail1 ! payee might be saddl$ ) a bad debt ?r\gh 8 delay4 ,a cu/om] :o has a d\btful *eque 9 8 possession1 & :o is anxi\s to "k :e!r ! draw] has funds to meet x1 c in/ruct 8 bank] to =w>d ! *eque 9 "q direct to ! draw]'s bank]s1 ) ! reque/ t !y telegraph back :e!r or n ! *eque is paid4 ,or he may ask !m to wire only 9 case ( non-paym5t1 & s save himself ! exp5se ( a telegram4 ,"s companies1 :5 !y ?9k a cu/om] w /& x1 *>ge #as4 = do+ ?is2 b "o %\ld decl9e to pay m ?an ! price ( ! telegram1 viz41 #f;d4 ,return$ & ,di%on\r$ ,*eques4 ,x does n foll[ t1 because a bank] returns a *eque1 ! money is n !re to meet x1 z1 m (t5 ?an n1 a *eque is s5t back = "s irregul>ity 9 ! indorsem5t1 :i* c be at once put "r4 ,x is necess>y1 !re=e1 be=e jump+ to conclusions1 to c>efully exam9e ! words writt5 ^u ! docum5t4 ,! foll[+ are ! usual answ]s giv5 by bank]s1 ) _! abbreviations3 8,r_/,d0 7ref] to draw]74 ,su* an answ] cle>ly implies t ! *eque has be5 di%on\r$ = lack ( funds4 8,effects n cle>$40 ,"h ! cli5t1 assumably1 has en\gh money to meet ! *eque1 b ! bank] has n yet cle>$ or realiz$ ! docum5ts he has paid 91 & ! draw]'s cr$it is s poor t he w n hon\r 8 *eque until ?is has be5 done4 ,a *eque ?us m>k$ is usually re-pres5t$1 b1 obvi\sly1 ! draw] is weak4 8,n_/,s0 7n suffici5t74 ,we ga!r f ?is t ! draw] has "s money /&+ to 8 cr$it1 ?\gh n en\gh to meet ! *eque4 8,words & figures diff]0 does n require an explanation1 ?\gh1 p]haps1 x may be rememb]$ t weak draw]s h a trick ( mak+ mi/akes 9 ord] to ga9 "t4 8,paym5t /opp$10 8,po/-dat$10 8,incomplete10 8,ano!r signature requir$10 8,indorsem5t irregul>10 & o!r answ]s t might be giv51 are self-explanatory4 ,*eques return$ = ^! reasons naturally d n reflect any discr$it ^u ! draw]s4 ,( c\rse1 a p]son ) an op51 *>itable m9d is free to make 8 own d$uctions4 ,occasionally a bank] returns a cu/om]'s *eque :5 he is 9 funds4 ,su* a mi/ake g5]ally occurs ?r\gh a cr$it hav+ be5 po/$ to ! wrong acc\nt1 & z (t5 z n ! two cu/om]s are bless$ ) ! same surname1 ?\gh n ) an equal am\nt ( ?is _w's goods4 ,br[n1 = in/ance1 is n an uncommon "n1 s we w assume t a cr$it ( poor ,br[n's has be5 po/$ to ri* ,br[n's acc\nt by mi/ake1 & t ! bank] returns ! =m]'s *eque = #ej m>k$ 8ref] to draw]40 ,n[ poor ,mr4 ,br[n has a good case aga9/ 8 bank]1 & %\ld at once consult 8 solicitor1 :o w see t he gets comp5sation = ! damage done to 8 cr$it4 ,mo/ bank-directors1 :o are mode/1 retir+ g5tlem51 pref] to settle su* a case privately1 z x is n ?\ght desirable to adv]tise ! fact t a mi/ake ( ?is nature1 ) _! p]fect sy/em ( book-keep+1 is possible4 ,draw] too ,ill to ,sign4 ,9 ! above in/ance ! cu/om] makes 8 m>k1 :i* is usually witness$ by 8 doctor4 ,sometimes he au?orizes a p]son to draw *eques ^u 8 acc\nt up to a c]ta9 sum1 & cancels ! au?ority ^u 8 recov]y4 ,back+ a ,*eque = a ,fri5d4 ,! man :o backs a *eque 9 ord] to oblige a fri5d %\ld rememb] t he makes himself responsible = its paym5t1 & t %\ld 8 fri5d h no money to meet x1 he1 ! indors]1 w be call$ ^u to make good ! loss4 ,he does n m]ely v\* = ! respectability ( 8 fri5d1 b he also gu>antees t 8 *eque w be duly hon\r$ ^u pres5tation1 :i* is q ano!r matt]4 ,"o %\ld1 !re=e1 decl9e to back a *eque = a /rang] ^u any consid]ation4 ,,*apt] ,,iv ,,cr$it-,,acc\nt ,,cu/om]s ,z by f> ! great] numb] ( a bank's cu/om]s keep _! acc\nts 9 cr$it1 we w beg9 ?is *apt] by consid]+ :at av]age balance %\ld entitle a p]son to h 8 acc\nt work$ free ( *>ge4 ,9 ,london1 a man :o op5s a small acc\nt ) a bank1 & ^: cr$it balance av]ages #ajj1 w n be debit$ ) any commission at ! end ( ! qu>t] or half-ye> :5 ! companies rule (f _! books1 :ile 9 ! suburbs an appreciably small] balance is accept$1 &1 occasionally1 int]e/ is all[$ !re ^u curr5t-acc\nt balances1 ?\gh "o w h to press pretty h>d = x4 ,competition is n[ s ke5 betwe5 bank & bank t x is sometimes possible to make v close t]ms4 ,9 ! c\ntry x is consid]$ t an av]age balance ( #ej ^u a small acc\nt pays exp5ses4 ,h[ev]1 ! bank-manag]1 :o is z human z ! g5tleman :o sells "o a dog1 seldom neglects to make a small *>ge ^u ^! acc\nts :5 he consid]s t _! own]s w /& #ajs4 a ye> or s4 ,broadly speak+1 y c please y\rself :e!r y pay x or n4 ,?is class ( bus9ess1 ( c\rse1 is absolutely safe2 s ! cu/om]1 if he _c come to t]ms ) ! manag]1 is able to take 8 acc\nt to ! *eape/ m>ket1 always rememb]+ t x is nev] wise to bank ) a second-rate firm1 :atev] advantages may be (f]$4 ,?\gh a man keep a balance ( #aj1jjj to 8 cr$it1 he w n receive "o p5ny 9 ! %ape ( int]e/ unless he ask = x1 &1 ev5 aft] hav+ arrang$ a rate1 x is advisable to *eck ! bank]'s figures & asc]ta9 t y are gett+ x1 z1 sometimes1 !y are apt to err 9 8 fav\r1 ?r\gh small debits t h be5 d$uct$ f ! int]e/1 & :i*1 consequ5tly1 d n appe> 9 y\r pass-book4 ,! foll[+ illu/ration1 p]haps1 w %[ h[ matt]s /&3-- ,a keeps an av]age balance ( #aej ,b 0 0 0 0 #fjj ,c 0 0 0 0 #e1jjj ,! bank]1 if ,b & ,c are easy-go+ m51 ^: f9ancial exp]i5ce is small1 w conduct _! acc\nts on ! same t]ms z he does ,a's4 ,he w1 t is to say1 "w ea* acc\nt free ( *>ge4 ,b su* treatm5t is evid5tly unfair1 = if ,a's acc\nt is work$ free1 !n assum+ t ^? ( ,b & ,c give b little m tr\ble1 ea* is entitl$ to "s all[ance ^u 8 av]age balance4 ,!y %\ld c]ta9ly endeav\r to obta9 x4 ,if ! manag] be int]view$1 he may endeav\r to conv9ce ei!r ,b or ,c1 by a process ( reason+1 :i* is m p]suasive ?an sci5tific1 t money is s *eap t1 really1 a high rate is out ( ! "q4 ,he w fur!r expla9 t 8 directors1 z a rule1 d n make an all[ance ^u cr$itor curr5t acc\nts2 b %\ld ei!r j h9t at remov+ 8 acc\nt1 a rate w be in/antly all[$1 = competition among ! banks = a l>ge cr$it acc\nt is s active t ! cu/om] has only to be firm & fairly reasonable 9 8 dem&s4 ,! manag]1 ( c\rse1 w endeav\r to pay z little z possible4 ,( t we may be q sure4 ,! cu/om]1 on 8 side1 %\ld try to obta9 ! maximum rate1 :i* is #a p] c5t4 bel[ ,bank rate 9 ,london1 & 9 ! prov9ces ! usual c\ntry rate4 ,orig9al s91 n be+ yet eradicat$ f our race1 a bank-manag]1 :o is end[$ ) 8 full %>e1 sometimes endeav\rs to p]suade a cu/om] to transf] sums f 8 curr5t acc\nt to deposit receipt1 b x is always prud5t to rememb] t 8 advice is n dis9t]e/$1 & t he is act+ 8^u in/ructions40 ,exp]i5ce proves t1 aft] a little :ile1 a cu/om] becomes tir$ ( cont9ually transf]r+ sums f 8 runn+ acc\nt to deposit1 & !n1 :5 8 acc\nt is gett+ l[1 pay+ ! deposit-receipts to 8 cr$it4 ,f9d+ ! process a we>9ess to ! fle%1 he (t5 ends by giv+ x up 9 disgu/1 :5 once aga9 ! wily bank] is a ga9] at 8 exp5se4 ,by obta9+ a rate ( int]e/ ^u 8 daily curr5t-acc\nt balances ! cu/om] is sp>$ ?is tr\ble2 &1 if he fail to induce 8 bank] to grant x1 !n :5 8 acc\nt is 9 cr$it beyond a c]ta9 agre$ sum1 he %\ld take c>e to get a deposit-receipt4 ,bank]s1 l individuals1 are ! slaves ( _! environm5t1 & 9 ! ,midl&s & else:]e1 :]e x is usual to all[ a rate on ! daily balances1 commission is also *>g$ on ! turn-ov] or sums debit$4 ,int]e/ ^u ! daily cr$itor balances is all[$ at1 say1 #a p] c5t4 bel[ bank rate1 & a commission ( p] c5t4 is *>g$ on ! *eques a cu/om] draws4 ,! l[] ! rate ( int]e/ & ! high] ! commission rate1 ! m pr(itable1 ( c\rse1 is ! acc\nt to ! bank]4 ,! cu/om]1 !re=e1 :5 *eck+ 8 bank]'s *>ges & all[ances1 w take c>e t he is receiv+ ! maximum rate ( int]e/1 & pay+ ! m9imum or l[e/ commission rate1 :i* v>ies f to _/ p] c5t41 :ile x is sometimes possible to arrange = a r$uc$ & m]ely nom9al *>ge4 ,a p]son1 :5 he sees a 8little int]e/0 cr$it$ 9 8 pass-book1 is dispos$ to increase 8 balance1 on ! assumption t he is be+ all[$ a rate2 b be=e do+ s he %\ld c]ta9ly asc]ta9 :at ! rate w be1 =1 ^u exam9ation1 ?is all[ance is occasionally f\nd to appeal m /rongly to "o's s5ses ?an to "o's critical acum54 ,hav+ dispos$ ( ! pay+ av]age cr$it balances we c n[ discuss ^? acc\nts t h a l>ge turn-ov]4 ,a trad]1 = in/ance1 :o draws a consid]able numb] ( *eques dur+ ! c\rse ( a half-ye>1 & ^: balance is small1 _c expect 8 bank] to "w 8 acc\nt free ( *>ge2 b x is difficult to draw up a table %[+ :at he ought to pay1 = ! simple reason t "s bank-manag]s debit him ) a rate :i* !y ?9k he w /&4 ,a _/ p] c5t4 commission1 t is to say1 #as4 #c;d4 ^u ea* #ajj he draws out by *eque1 seems a v full rate2 & z !re is a good m>ket = ?is class ( acc\nt he %\ld n disburse "o p5ny m4 ,! own]1 :o always has a balance on ! "r side1 c1 if he f9d 8 bank] unreasonable1 easily negotiate ) 8 rivals1 :o are delight$ to see fre% faces4 ,inde$1 x is q possible t he may succe$ 9 gett+ 8 acc\nt work$ free1 or = a nom9al fee ( half a gu9ea or s1 if ! turn-ov] is n v l>ge4 ,x is n[ "t1 p]haps1 to give a brief sket* ( ! mann] 9 :i* a manag] *>ges 8 l$g]s at ! end ( ! qu>t] or half-ye>4 ,z a rule he & ! acc\ntant g ?r\gh ! books toge!r2 & z !re is no recogniz$ scale by :i* ! *>ges are regulat$ x foll[s t !y consid] ! man z well z ! nature ( 8 acc\nt4 ,! bus9ess ( ! manag] is to make 8 bran* pay2 !re=e1 if y d n criticize y\r commission rate1 y may re/ assur$ t he w succe$ brilliantly at y\r exp5se4 ,%\ld he ?9k t ! cu/om] lacks exp]i5ce1 & is n acqua9t$ ) ! fact t competition betwe5 bank & bank = cr$itor acc\nts is active1 !n he *>ges him p] c5t4 ,:51 on ! o!r h&1 he is aw>e t ! cli5t *ecks 8 exp5ses1 caution is ex]cis$2 & if ! manag] decide to claim commission ! sum debit$ w be extremely small4 ,aft] all1 9 ! ord9>y affairs ( life "o does n accept )\t "q ! price ( ! sell]2 & if a cu/om] be s unwise z to ?9k t a bank-manag] has a high] s5se ( hon\r ?an 8 k9d1 !n he mu/ be prep>$ to take ! natural consequ5ces4 ,= in/ance1 ,d & ,e keep an av]age balance ( #ajj 9 _! bank]s' h&s1 & ! turn-ov] ( ea* acc\nt is ab\t #a1ejj = ! half-ye>4 ,! manag]1 kn[+ t ,d is n critical1 *>ges him _/ p] c5t4 commission1 or #ahs4 #i;d4 ,e1 he ass]ts1 is a mo/ unpleasant man1 :o1 :5 *>g$ ^u a previ\s occasion1 ?reat5$ to remove 8 acc\nt unless ! sum 7 giv5 back to him2 ,e1 !re=e1 :o is aw>e t competition is "o ( ! factors t det]m9e price1 has 8 bus9ess done free4 ,a l>ge trad] or m]*ant1 z a rule1 does n all[ 8 bank] to h ! use ( a consid]able am\nt ( money free ( int]e/2 & ^? acc\nts t are f1 say1 #a1jjj to #aj1jjj 9 cr$it1 usually belong to wom51 :o are n accu/om$ to ! managem5t ( money4 ,! manag]1 anxi\s to /& well ) 8 directors1 "s ( :om increase 8 sal>y if he add to ! pr(its ( 8 bran*1 does n1 ( c\rse1 sugge/ to ^! ladies ! advisability ( receiv+ int]e/ ^u at lea/ a portion ( _! balances1 b1 on ! contr>y1 be+ wise 9 8 g5]ation1 endeav\rs1 by resort+ to ^? social am5ities t raise him high] & high] 9 _! e/imation1 to hide ! awkw>d ^w f _! view1 :ile laugh+ 9 8 sleeve at _! excessive cr$ulity4 ,! cu/om] :o keeps 8 acc\nt 9 cr$it %\ld ask 8 bank]3 8,:at av]age balance mu/ ,i ma9ta9 9 ord] t y\r p w "w my acc\nt free80 ,t sum asc]ta9$1 he c act ^u ! advice conta9$ 9 ?is *apt]4 ,,*apt] ,v ,,deposit-,,receipt ,,cu/om]s ,a deposit-receipt1 :i* is n a negotiable in/rum5t1 _c be transf]r$ by "o p]son to ano!r4 ,:]e ! receipt is issu$ 9 m ?an "o "n1 in/ructions %\ld be giv5 to ! bank] z to :e!r1 9 ! ev5t ( )drawal1 ! note is to be sign$ by all or by any two or any "o ( ! depositors4 ,%\ld no in/ructions be giv51 !n all mu/ sign :5 a )drawal is made1 or :5 ! int]e/ is tak54 ,^! receipts1 z a rule1 are issu$ subject to ei!r sev5 or f\rte5 days' notice ( )drawal2 b ! notice1 9 practice1 is n en=c$1 bank]s m]ely writ+ x ^u ! note 9 ord] to protect !mselves 9 ! ev5t ( a run4 ,mo/ banks1 h[ev]1 decl9e to pay int]e/ unless ! sum has rema9$ 9 _! possession = at lea/ "o mon?4 ,! l>ge ,london banks1 ?\gh !y compete eag]ly ! "o aga9/ ! o!r = well-secur$ advances & loans1 h clos$ up _! ranks aga9/ ! depositor1 _! practice be+1 bo? 9 ,london & ! suburbs1 to all[ #a p] c5t4 bel[ ,bank rate ^u money left ) !m on deposit1 e alt]ation 9 ! rate be+ adv]tis$ 9 ! lead+ pap]s4 ,all "o has to d1 !re=e1 9 ord] to asc]ta9 ! ,london rate = money on deposit-receipt is to d$uct #a f ! ,bank ( ,engl& rate :i* may be se5 9 ! city-article ( e newspap]4 ,:e!r or n c]ta9 banks (f] special rates to fav\r$ individuals is a matt] ( op9ion2 or1 aga91 !y may bid high] = l>ge sums = fix$ t]ms2 b ! small depositor may take x = grant$ t1 ) _! rates on loans & advances r$uc$ by competition among !mselves1 ! banks are det]m9$ to keep d[n ! deposit rate4 ,9 fact1 ! l>ge ,london bank]s h unit$ = ?is v purpose1 ?\gh x mu/ be rememb]$ t ! agreem5t is n b9d+ at ! c\ntry bran*es ( ! ,london & prov9cial in/itutions4 ,a bank] is a middleman :o borr[s f depositors at a rate 9 ord] t he may l5d to o!rs at a high] rate1 ! diff]5ce betwe5 ! two rates be+ 8 m>g9 ( gross pr(it4 ,a c]ta9 portion ( 8 deposits1 we "k1 he obta9s 9 ex*ange = grant+ bank+ facilities1 & ^u ! re/ he all[s a rate ( int]e/1 :ile he has to ma9ta9 a res]ve ( s-call$ ca% & gilt-edg$ securities aga9/ ! dang] ( sudd5 )drawals & panics4 ,at ! mom5t ! companies _c control ! advance rate1 or fix f "t to "t a m9imum rate = secur$ advances2 b 9 ,london we see t !y h succe$$ 9 gett+ ! depositor "u _! ?umb1 !reby1 ( c\rse1 increas+ _! pr(it m>g9 at 8 exp5se4 ,_! next move w probably be an attempt to corn] ! borr[] aga9/ tangible securities1 z has be5 successfully accompli%$ by ! banks 9 ,scotl&4 ,! numb] ( ,engli% banks is rapidly decreas+ ?r\gh absorptions & amalgamations1 s1 9 ! end1 x is m ?an probable t we %all see a monopoly1 & t all ! l>ge banks w "o day unite = ! purpose ( fix+1 at ea* *ange ( ! ,bank rate1 _! deposit rate1 &1 also1 _! l[e/ or m9imum rate = secur$ advances4 ,9 ! prov9ces ! banks1 :5 loanable capital is *eap1 are able to l5d & to disc\nt at high] rates ?an 9 ,london1 s ! c\ntry deposit rate nev] falls s l[ z t ( ,london4 ,nei!r1 h[ev]1 does x advance s high :5 loanable capital is de>1 because ! prov9cial banks !n f9d "s difficulty 9 increas+ _! rates ^u bills & loans proportionately4 ,! foll[+ table w enable "o to see ! diff]5ce betwe5 ! rate all[$ 9 ,london & ! c\ntry3-- ,london ,deposit ,rate1 ,bank ,rate4 #a bel[ ,bank ,rate4 ,c\ntry ,deposit ,rate4 #e #c #c #d #c #b to #c #d #b #b to #b #c #b #b #c #a #a to #b #b #a #a #b #a ,9 ! c\ntry1 we mu/ rememb]1 !re is no comb9ation or r+ ( bank]s :o meet to decide ! rate1 :i*1 !re=e1 is n 8fix$0 f "t to "t on ! basis ( ! ,bank rate1 ?\gh1 ( c\rse1 ! c\ntry deposit rate moves up & d[n 9 sympa?y ) ! ,bank ( ,engl&'s publi%$ rate ( disc\nt or (ficial m9imum1 z x is call$4 ,!re is1 moreov]1 "s competition = deposits 9 ! c\ntry1 b x is v slight2 &1 unless ! bank] ?9k t a man may be useful1 he seldom bids appreciably high] ?an 8 rivals = 8 money4 ,! small private bank]1 x is true1 may (f] m int]e/1 b a depositor %\ld take c>e to exam9e 8 balance-%eet be=e he entru/s him ) ei!r 8 sp>e capital or 8 sav+s4 ,a few ( ! purely prov9cial jo9t-/ock banks1 ^: bran*es are situat$ 9 a manufactur+ c5tre1 & :i*1 9 consequ5ce1 are nev] ov]burd5$ ) work+ res\rces1 (f] high] rates ?an ! great companies1 b !y are ! weak] ( _! k9d1 & x is !re=e que/ionable :e!r "o %\ld l5d to !m4 ,9 e probability "o's pr9cipal w\ld be safe1 b x w\ld n be s safe z 9 ! h&s ( ! really l>ge ,london & prov9cial in/itutions1 ^: res]ves af=d ! cu/om] a mu* bett] gu>antee2 consequ5tly x is always wise to consid] :e!r ! additional risk1 be x nev] s small1 is wor? tak+ = ! slight increase 9 ! rate4 ,( c\rse ! c\ntry depositor w take c>e to inquire :at rates ! o!r l>ge banks 9 8 t[n are grant+1 s t he may judge :e!r 8 own bank] is all[+ him a fair rate4 ,aga91 if ! am\nt ( 8 deposit be1 say1 ov] #a1jjj1 he c sometimes obta9 a special rate2 & he may re/ q assur$ t1 if he d n int]e/ himself 9 ! matt]1 ! bank-manag] w all[ him ! l[e/ rate possible1 = z !re is n a fix$ m9imum x foll[s t "s1 m especially dur+ c]ta9 conditions ( ! m>ket1 are obta9+ bett] rates ?an o!rs4 ,a little pressure w occasionally induce ! manag] to quote1 z he qua9tly calls x1 a 8special0 rate ( int]e/1 if he consid] ! cu/om]'s "n be wor? keep+ on 8 books4 ,x may be add$ t "s p1 9 ord] to m9imize _! risk1 keep _! curr5t acc\nts ) "o bank] & deposit ) ano!r4 ,we c n[ ref] to ! table ( rates on page #dh4 ,! c\ntry rate1 ( c\rse1 is /at$ approximately1 = we h se5 t "u c]ta9 conditions ! cu/om] may possibly obta9 m4 ,glanc+ at ! table1 we f9d t :5 ! bank rate is at #b1 ! ,london depositor receives p] c5t4 & ! c\ntry depositor #a4 ,if ! ,london cu/om] deal ) a ,london & prov9cial bank1 x w obvi\sly pay him bett] to deposit at "o ( ! c\ntry bran*es4 ,he %\ld1 !re=e1 if he consid] t money is likely to be *eap = "s consid]able "t1 give notice 9 ,london & transf] 8 deposit to ! c\ntry4 ,if 8 bank] object1 he c deposit ) any l>ge1 well-manag$ prov9cial bank4 ,) ! ,bank rate at #b ! move w\ld pay him1 b :5 x rises above ^! figures ! rate is ei!r equal or 9 8 fav\r4 ,a p]son :o keeps two bank+ acc\nts1 "o 9 ,london & ! o!r 9 ! c\ntry1 c make ?is move ) ! greate/ ( ease2 & by transf]r+ 8 deposit f ! "o to ! o!r z ! rate fav\rs him1 he may easily increase 8 int]e/4 ,conv]sely1 ) a high bank rate x may pay ! c\ntry depositor to transf] 8 pr9cipal to ,london4 ,!re is no occasion to let ! bank] see ! move4 ,9 ,london & ! great cities a l>ge proportion ( ! deposits at int]e/1 especially dur+ p]iods ( depression1 w\ld repres5t capital tempor>ily )drawn f trade1 & await+ ei!r m pr(itable inve/m5t or an increas$ dem& & ris+ prices4 ,x is ?is accumulation ( idle capital t tempts ! company-promot] f 8 lair1 & sometimes results 9 a ,/ock ,ex*ange boom1 :il/ x always produces an increas$ dem& = ! s-call$ gilt-edg$ v>iety ( securities & a consequ5t rise 9 _! price4 ,! c\ntry depositor1 h[ev]1 ev5 :5 he leaves fairly l>ge sums at int]e/1 is g5]ally wait+ to inve/ 8 money 9 h\se prop]ty1 :i* w return him f #e to #f p] c5t41 or to place x out on a fir/ mortgage at f #c to #d p] c5t4 ,9 ! fir/ in/ance1 he is c>eful n to pur*ase old prop]ty t w swall[ up mu* ( 8 r5t 9 repairs4 ,cauti\s by nature1 he %akes 8 head dubi\sly at ! gl[+ prospectus ( ! promot]1 & refuses to believe 9 ! high-ton$ & cunn+ly tun$ leaflets ) :i* ! bucket-%ops fav\r him1 = he likes to see 8 inve/m5t1 to feel x1 to walk ^u x4 ,pap] does n satisfy 8 s\l2 he is n ev5 )\t 8 suspicions ( bank]'s pap]2 b :5 he possesses h\se prop]ty1 !n all he has to fe> is ! ,almighty & a bad e>?quake1 & he c sleep com=tably on ^? risks4 ,c\ntry depositors consi/ l>gely ( work+ m51 cl]ks1 artisans1 small %opkeep]s1 dressmak]s1 wom5 ( sl5d] means1 & s on1 toge!r ) ! banks' curr5t-acc\nt cu/om]s4 ,! huge aggregate ( deposits is made up pr9cipally ( small sums1 s x is easy to keep d[n ! rate1 because ! great majority are ignorant ( ! condition ( ! money-m>ket1 & h>dly seem to be aw>e t ! ,po/ ,(fice gives #b p] c5t4 ^u small sums left ) x4 ,! companies trade ^u ! ignorance ( _! depositors2 & ?\gh a few ( ! bett]-in=m$ cu/om]s )draw _! sav+s :5 ! rate is extremely l[1 exp]i5ce has taught ! banks t ! great bulk ( !m simply grumble & take :at is (f]$4 ,see+ t ! deposits are spread ov] s great an area1 & among m5 & wom5 :o h n suffici5t bus9ess k to inve/ _! sav+s advantage\sly1 ! banks h be5 able to keep d[n rates )\t r$uc+ _! own res\rces2 & ! few :o d )draw _! sav+s :5 ! deposit rate is at #a p] c5t4 are practically ( small acc\nt :5 contra/$ ) ! alt]native policy ! companies w\ld h to adopt 9 ord] to reta9 !m1 = x obvi\sly pays bett] to lose a few receipts ?an to raise ! rate to #b = ! :ole ( ! deposits4 ,= in/ance1 a bank w\ld r lose #ajj1jjj by )drawals :5 ! rate is at #a ?an pay #b p] c5t4 on #e1jjj1jjj = ! purpose ( prev5t+ ! dra91 #be1jjj be+ too l>ge a premium to sacrifice = ! purpose ( reta9+ its connexion intact1 :51 p]haps1 money is be+ employ$ 9 ! ,london %ortloan m>ket at #a p] c5t4 & "u4 ,aga91 v _m ( ! c\ntry depositors look ^u ! deposit-receipt z an inve/m5t1 & ! banks1 q naturally1 d n wi% to in=m !m t ev5 ,consols are a m pr(itable "o4 ,n s v _m ye>s ago ! c\ntry m9imum deposit rate 0 #b1 & x 0 n )\t c]ta9 misgiv+s t x 0 r$uc$ to #a2 b1 z we h se51 ! exp]im5t prov$ safe1 ?\gh ! banks1 giv5 ano!r long p]iod ( a #b p] c5t4 ,bank rate1 w h>dly c>e to risk #a p] c5t4 9 ! prov9ces1 z x seems pretty c]ta9 t1 7 ! m9imum fur!r r$uc$1 disgu/$ depositors w\ld inve/ _! sav+s ei!r 9 ! ,po/ ,(fice or ! gilt-edg$ class ( securities4 ,hav+ once turn$ ?is /ream ( deposits into ano!r *annel1 x is improbable t a high] rate w\ld tempt !m back aga92 & z ! depositor is ess5tial to ! mod]n bank+ sy/em1 ! prov9cial banks w ?9k _m times be=e !y risk a rate bel[ #a1 ev5 :5 *eap capital is aga9 r$uc+ _! divid5ds "r & left4 ,a cu/om]1 be=e leav+ 8 money ) a bank]1 w be c>eful to inquire :at rate he is to receive1 & if ! rate be n writt5 ^u ! receipt1 !n he might p5cil ! answ] he gets ^u ! back ( ! docum5t4 ,if !re be ?ree good banks 9 8 t[n1 & he has1 say1 #bjj to deposit1 !re c be no h>m 9 8 go+ to all1 & ask+ ! highe/ rate ea* is all[+4 ,john ,jones1 we w assume1 holds a deposit-receipt = #bjj dat$ #aj? ,june & he takes x to ! bank on #i? ,decemb] foll[+ 9 ord] to draw ! int]e/ at ! rate ( #b p] c5t4 p] annum4 ,betwe5 #aj? ,june 7exclud+ ! fir/ day7 to #i? ,decemb] 7inclusive7 !re are #ahb days1 s ! bank] owes him #b p] c5t4 p] annum on #bjj = #ahb days4 ,h5ce ! foll[+ sum3-- 7#bjj #b #ahb7_/7ajj #cfe7 #a #ais4 #aj;d4 ,! ca%i]1 !re=e1 pays ,john ,jones #a #ais4 #aj;d4 9 ca%1 & gives him a new receipt1 dat$ #i? ,decemb]1 = #bjj4 ,a depositor1 z a rule1 draws 8 int]e/ twice a ye>4 ,"s p]sons1 h[ev]1 leave _! receipts f ?ree to five ye>s )\t di/urb+ !m2 & ! bank-manag]1 always anxi\s to swell ! pr(its ( 8 bran*1 is c>eful1 :5 !y are pres5t$1 to make 8 calculations at simple int]e/ in/ead ( at comp\nd4 ,deposit cu/om]s1 !re=e1 ev5 :5 !y d n require ! int]e/ due to !m1 %\ld pres5t _! receipts six mon?s aft] date 9 ord] to h ! int]e/ add$ to ! pr9cipal1 :5 bo? be> int]e/ toge!r4 ,= in/ance1 assum+ t ,john ,jones _h n requir$ 8 int]e/1 !n he w\ld h tak5 a new note = #bja #ais4 #aj;d42 b ,mr4 ,jones1 :o is acqua9t$ ) ! int]nal economies ( a bank1 & :o is also aw>e ( ! int5se frugality ( ! ag5t1 kn[s t ! companies d n all[ int]e/ ^u ! odd %ill+s ( a deposit-receipt2 s1 giv+ ! ca%i] an additional twop5ce1 he takes a fre% note = #bjb1 & walks away v well satisfi$ ) himself4 ,7 he to omit tak+ ?is precaution ea* half-ye>1 & to hold 8 receipt =1 say1 five ye>s1 !n1 :5 he took x 91 he w\ld m]ely get c]ta9 rates ^u #bjj = five ye>s4 ,! l>g] ! pr9cipal ! great]1 ( c\rse1 is ! loss ( int]e/ to ! depositor4 ,%\ld n ! depositor reside 9 ! neighb\rhood he c1 aft] ! expiration ( six mon?s1 write 8 "n on ! back ( ! note & s5d x ?r\gh ! po/ to 8 bank]1 ) ! reque/ t a new receipt be return$ to him = ! am\nt ( ! pr9cipal & int]e/4 ,9 ! ev5t ( 8 wi%+ to draw ! int]e/1 a bank] w s5d him ei!r a draft or po/al ord]s = ! am\nt due to him1 z he may direct4 ,( c\rse1 if he at any "t require "p ( ! pr9cipal1 he w /ate :at am\nt1 & give directions :e!r ! int]e/ is to be add$ to ! new receipt = ! balance or to be includ$ ) ! sum he is )draw+1 :ile he w take c>e to write 8 "n ^u ! back ( ! note be=e despat*+ x4 ,:5 s5d+ a receipt by a mess5g] x is usual to write a note to ! bank]1 tell+ him j :at "o requires & reque/+ him to pay ! be>] ( ! lett]4 ,:]e int]e/ am\nt+ to #b & ov] is )drawn1 ! deposit-receipt mu/ h on ! back a p5ny po/age /amp1 :i* ! depositor %\ld cancel by writ+ 8 "n across x4 ,?is mu/ be done ^u ea* note :5 ! depositor has a plurality ( receipts4 ,:]e1 h[ev]1 ! int]e/ ^u any "o is less ?an #b1 a /amp is unnecess>y4 ,nor is x requir$ :5 ! depositor adds pr9cipal & int]e/ toge!r & takes a fre% note = ! aggregate1 b :]e pr9cipal & int]e/ or pr9cipal or int]e/ am\nt+ to #b or ov] is )drawn1 ! receipt mu/ be> a p5ny /amp4 ,we n[ come to ! "q ( ! sev5 or f\rte5 days' notice on ^! receipts1 &1 z previ\sly /at$1 ! bank] seldom or nev] en=ces 8 claim1 ?\gh1 :5 notice is n giv51 he occasionally d$ucts f\rte5 days if ! :ole ( ! pr9cipal be )drawn4 ,:5 ?is is contemplat$ x is bett]1 p]haps1 to give ! necess>y notice1 b ! manag]1 %\ld ! cu/om] prote/ aga9/ ?is d$uction1 g5]ally gives way4 ,aga91 if ! note be = #ajj1 & ! depositor )draw #ej1 & take a new receipt = ! balance1 ! bank] may d$uct a c]ta9 numb] ( days f ! t]m on #ej 7! sum )drawn )\t notice74 ,! cu/om]1 by *eck+ 8 int]e/1 w discov] ?is loss1 :i* ! tell]1 if he remon/rat$ ) him1 w oblig+ly make good4 ,x is also z well to be> 9 m9d t "s banks h two rates4 ,! ,london depositor1 we "k1 receives #a bel[ ,bank rate2 s assum+ t ,mr4 ,jones1 ( ,:ite*apel1 held a note = #bjj1 dat$ #e? ,febru>y1 #aijc1 & took x to ! bank to draw ! int]e/ on #e? ,july ( ! same ye>1 he w\ld want to "k h[ mu* 0 due to him at ! latt] date4 ,fir/1 !re=e1 he mu/ asc]ta9 :e!r any *anges 7 made 9 ! ,bank rate dur+ ! p]iod 9 "q2 & ^u inquiry he f\nd t ! 8(ficial m9imum0 0 rais$ to #d p] c5t4 on #bnd ,octob]1 #aijb1 & l[]$ to #c on #ba/ ,may foll[+1 & to #c ^u ! #ah? ,june next4 ,n[1 f #e? ,febru>y 7exclusive7 to #e? ,july 7inclusive7 !re are #aej days4 ,8 bank]1 !re=e1 ow$ him3-- ,bank ,rate 0 f #aje days' int4 at #b p4c4 p4a4 on #bjj ,feb4 #e to ,may #ba #d p4c4 #bh 0 0 #b 0 0 0 ,may #ba to ,june #ah #c p4c4 #ag 0 0 #a 0 0 0 ,june #ah to ,july #e #c p4c4 -------- #aej days ,"h we get ?ree rule-(-?ree sums1 &1 p]haps1 x 7 z well to give a /atem5t ( ! fir/1 viz43-- 7#bjj #b #aje7_/7ajj #cfe7 #a #h #i #bh days at #b p4c4 p] annum on #bjj #j #f #a #ag 0 0 #a 0 0 0 0 0 #j #b #i ------------- ,int]e/ due #a #ag #h ,mr4 ,jones1 ( ,:ite*apel1 !n1 %\ld h receiv$ #a #ags4 #h;d4 f 8 bank] 9 ca% & a fre% deposit-receipt1 dat$ ! #e? ,july1 #aijc1 = #bjj4 ,at ea* *ange ( ! bank rate ! ,london depositor1 :5 calculat+ 8 int]e/1 mu/ make a fre% sum1 z 9 ! above illu/ration1 & s1 too1 mu/ ! c\ntry depositor :5 ! fluctuation ( ! ,bank ( ,engl& rate is suffici5tly wide to influ5ce ! rate ( int]e/ all[$ 9 ! prov9ces1 ?\gh ! latt] mu/ rememb] t he c only asc]ta9 ! rate by mak+ inquiries ( ! bank]s !mselves or among ^? ( 8 fri5ds :o deposit ) !m4 ,adv]t+ to ! dates 9 ! =ego+ illu/ration1 a few words ( explanation are p]haps necess>y1 = x w be se5 t "u ! head+ 8,bank rate 010 #ba/ ,may & #ah? ,june1 ! days ^u :i* ! (ficial m9imum 0 *ang$1 are plac$ opposite diff]5t rates4 ,! ,bank ( ,engl& directors exam9e _! weekly return or balance-%eet1 :i* is made up to ! close ( bus9ess ea* ,w$nesday on ! ,?ursday foll[+1 & 9 ! aft]noon ( ! latt] day any *ange 9 ! ,bank's rate ( disc\nt is ann\nc$4 ,( c\rse1 dur+ abnormal times ! rates may be *ang$ on any day z ! exig5cies ( ! mom5t may direct2 b1 =tunately1 ?\gh ! money-m>ket is subject to fits1 its surface1 z a rule1 is seldom s viol5tly p]turb$ z to call = dra/ic rem$ies1 & we %all f9d t ! dates 9 "q 7 ,?ursdays4 ,x foll[s1 !re=e1 t ^! days op5$ ) ! bank rate at "o figure & clos$ ) x at ano!r4 ,h5ce ! anomaly to :i* att5tion has be5 drawn4 ,! bank] ow$ ,mr4 ,jones1 ( ,:ite*apel1 int]e/ at #b p] c5t4 f #e? ,febru>y 7exclusive7 to #ba/ ,may 7inclusive74 ,on ! #ba/ ,may1 we "k1 ! ,bank rate 0 r$uc$ f #d to #c p] c5t42 s he ow$ him #b p] c5t4 on 8 pr9cipal f #ba/ ,may 7exclusive7 to #ah? ,june 7inclusive7--! date ( ! next *ange4 ,%\ld n ! reason ( ?is be q cle> to any read]1 if he rememb] t f #ba/ to #bbnd ,may ! ,bank rate w\ld h be5 "o day at #c p] c5t4 ! difficulty w probably disappe>4 ,f an inve/m5t po9t ( view ! deposit-receipt seems h>dly wor? consid]ation1 because ev5 ,consols1 ov] a p]iod ( five ye>s1 w return an appreciably high] yield2 b :5 "o is m]ely wait+ = a suitable inve/m5t to turn up1 or = a revival ( trade1 !n ! deposit-note exactly meets "o's requirem5ts1 = its only *>m lies 9 ! fact t ! depositor gets back 8 pr9cipal intact4 ,:5 ! deposit rate is l[ trade is g5]ally dull1 & ! prices ( gilt-edg$ securities consequ5tly move up4 ,! depositor1 !re=e1 :5 ! rate is high %\ld n be tempt$ to let 8 money rema9 ) 8 bank] = t reason alone1 because he c !n1 z a rule1 buy gilt-edg$ securities at *eap] figures1 &1 ne$less to say1 ! av]age return on 8 pur*ase-money w greatly exce$ ! av]age rate ( int]e/ on deposit4 ,conv]sely1 if he buy ! s-call$ gilt-edg$ v>iety ( securities :5 int]e/ is l[1 he is mu* m liable to a loss ( capital %\ld he want to realize !m :5 trade is good & ! rate ( int]e/ high4 ,x foll[s t ! man ( bus9ess1 :o f9ds capital accumulat+ 9 8 h&s dur+ p]iods ( tempor>y depression1 :5 int]e/1 ( c\rse1 is l[1 pref]s tak+ a deposit-receipt = 8 idle capital1 :i* he hopes to aga9 use 9 8 bus9ess directly m>kets improve1 to pur*as+1 say1 ,consols at a "t :5 dem& has enhanc$ _! price1 &1 consequ5tly1 add$ to 8 risk ( loss ^u realization4 ,"s banks1 in/ead ( issu+ a deposit-receipt = money left at int]e/1 give ! depositor a pass-book1 9 :i* ! sum he leaves is cr$it$4 ,ea* "t ! depositor leaves new money he takes 8 book ) him1 & ! ca%i] ent]s ! am\nt !re9 to 8 cr$it1 :ile he draws out 8 int]e/1 or any "p ( ! pr9cipal he may require1 by *eque4 ,z ! bank] rules (f 8 deposit-l$g]s half-ye>ly1 & !n adds ! int]e/ due to ea* cu/om] to ! pr9cipal1 x foll[s t pr9cipal & int]e/1 :5 ! balance is br\ght =w>d1 give a return to ! cu/om]1 :o by ?is me?od receives comp\nd int]e/ on 8 capital or sav+s4 ,! advantages ( ?is sy/em are too obvi\s to call = explanation1 b x may be add$ t1 :5 a deposit cu/om] is giv5 a *eque-book1 he %\ld be c>eful n to op]ate too freely ^u 8 acc\nt1 z "s bank]s !n transf] ! balance to _! curr5t-acc\nt l$g]s1 _! reason be+ t ! acc\nt has ceas$ to be us$ = ! purpose = :i* x 0 op5$1 & t1 !re=e1 ! depositor is no long] entitl$ to int]e/4 ,! *apt] on 8,unclaim$ ,balances0 %\ld prove especially int]e/+ to depositors4 ,,*apt] ,,vi ,,! ,,bank ,,rate ,,9 ,,relation ,,to ,,bank]s' ,,*>ges ,v _m p]sons :o are out ( t\* ) money-m>ket problems fail to see :y ! ,bank ( ,engl&'s rate ( disc\nt %\ld be 9 any way connect$ ) a bank]'s *>ges2 & ?\gh1 to ^? :o h n /udi$ ! "q1 ! sway+ ( ! p5dulum seems due to "s occult influ5ce1 ! =ces t move x are bo? visible to ! nak$ eye & capable ( explanation4 ,9 ! fir/ place1 ! ,bank ( ,engl& keeps ! ca% res]ves ( all ! banks 9 ! ,unit$ ,k+dom1 &1 z a natural consequ5ce1 possesses ! only l>ge /ore ( gold 9 ! l&4 ,! o!r banks1 :i* are dep5d5t ^u ?is accumulation1 become n]v\s imm$iately ! gold 9 ! ,bank's vaults beg9s to leave ! c\ntry 9 appreciable quantities1 because1 %\ld n ! ,bank ( ,engl& be able to meet _! dem&s1 !y1 too1 w be unable to supply ! requirem5ts ( _! own cu/om]s4 ,we ne$ n1 9 a small book ( ?is description1 ent] into ! my/]ies ( ! =eign ex*anges1 or discuss int]nal & ext]nal dra9s ( gold1 b ! ,bank1 9 ord] to arre/ a dra9 ( gold outw>ds1 raises its rate1 :5 ! o!r bank+ companies1 equally anxi\s to /op ! efflux1 raise _! rates too1 ) ! result t borr[]s1 :e!r ^u bills or securities1 h to pay m4 ,conv]sely1 :5 ! ,bank's res]ve is high & ! political horizon uncl\d$ ?is n]v\s feel+ no long] exi/s4 ,! ,bank1 we w assume1 !n l[]s its rate1 & ! o!r banks foll[ suit1 :5 ! borr[] pays less4 ,:5 speak+ ( ! money-m>ket1 ! ,london money-m>ket is always impli$1 & "h we enc\nt] ! bill-brok]s to :om ! banks advance _! surplus funds4 ,! banks1 t is to say1 f9ance _! rivals1 :o make bills a speciality1 & ^: k ( bills ( ex*ange is d\btless bo? ext5sive & peculi>4 ,see+ t ! banks !mselves disc\nt trade-bills = _! cu/om]s1 ! necessity ( a middleman or bill-brok] betwe5 ! p]son :o disc\nts a bill & ! bank] :o supplies ! capital is n v app>5t1 b ! brok]'s 8turn10 :5 he re-disc\nts ) ! banks1 is extremely small2 s x is q possible t 7 ! banks to e/abli% special dep>tm5ts to deal ) ?is bus9ess1 ! slight increase 9 _! rates w\ld n comp5sate !m suffici5tly = ! tr\bles ( managem5t4 ,z1 "u ?is sy/em1 ! brok]s' rate ( disc\nt is bel[ t ( ! banks1 x foll[s t all ! bank-bills & mo/ ( ! be/ trade-bills pass ?r\gh ! h&s ( ! bill-brok]s1 :ile bills are also s5t to !m f all ! great cities4 ,! bank]s1 consequ5tly1 disc\nt inf]ior pap] at high] rates = _! own cu/om]s4 ,b ! ,bank ( ,engl& is a great bank ( disc\nt4 ,moreov]1 x pays a divid5d l any o!r bank1 &1 z ! bill-brok]s are its rivals1 x foll[s t x _c af=d to all[ all ! bus9ess to drift into _! h&s4 ,:51 !re=e1 ! brok]s' rate 7! m>ket rate7 is bel[ its own1 x ei!r takes /eps to make its own rate ( disc\nt1 z ! say+ is1 8effective10 or else x r$uces its adv]tis$ rate ( disc\nt 7! ,bank rate74 ,! ,bank makes its rate repres5tative or effective by sell+ ,consols1 & !reby r$uc+ 8bank]s' balances40 ,! banks 9 consequ5ce h less to l5d to ! brok]s1 :o are !n b\nd to apply to ! ,bank ( ,engl&1 :i* compels !m to disc\nt _! bills at its own t]ms1 & ! rate 9 ! outside m>ket1 ( c\rse1 advances4 ,we c see1 !re=e1 t ?\gh ! ,bank rate is sometimes ei!r above or bel[ ! m>ket rate1 x is necess>ily nev] out ( t\* ) x = any v consid]able l5g? ( "t2 s n[1 p]haps1 x w be und]/ood :y ! banks all[ #a bel[ ,bank rate on deposit2 & _! reason = bas+ _! rate = loans & advances ^u ! ,bank ( ,engl&'s adv]tis$ rate ( disc\nt w also be app>5t4 ,( c\rse1 ! dem& =1 & ! supply (1 loanable capital decides ! rate ( int]e/1 & z dem& & supply are nev] equal1 ! rate is always fluctuat+1 b we might j rememb] t our artificial bank+ sy/em 8influ5ces0 ! rate f "t to "t4 ,dur+ p]iods ( dull trade1 :5 loanable capital accumulates 9 ! h&s ( ! bank+ companies1 we %\ld expect to see a l[ ,bank rate1 because1 prices ( commodities hav+ fall51 p are less anxi\s to borr[1 :ile few] bills are on (f]1 &1 ! dem& = ^? bills hav+ increas$ proportionately1 x foll[s t ! hold]s c disc\nt !m at a *eap rate4 ,b :5 bus9ess is brisk & ! prices ( commodities are ris+1 m bills are drawn1 & z ! fund ) :i* !y are disc\nt$ is n limitless1 x foll[s t ! increas+ dem& ^u t fund s5ds up ! rate4 ,bank]s1 consequ5tly1 :o h also to meet ! requirem5ts ( _! curr5t-acc\nt cu/om]s1 are sometimes oblig$ to adm9i/] a salut>y *eck to speculation by mak+ ! rate almo/ prohibitive 9 ord] to protect _! res]ves ( ca%1 z if !y !n l5t to all & sundry ev5 ,lomb>d ,/reet w\ld collapse4 ,n[ ! ,bank ( ,engl&1 we h se51 holds ! national res]ve1 z x 71 & is1 9 consequ5ce1 ! pill> ^u :i* ! money-m>ket re/s4 ,?readne$le ,/reet 7! ,bank7 is1 !re=e1 ! c5tre ( ! money-m>ket 7h5ce ! description 8c5tral in/itution07 into :i* ,lomb>d ,/reet 7! re/ ( ! banks 9 ! ,unit$ ,k+dom7 p\rs its res]ve & surplus ca%4 ,we might describe ! ,bank z ! he>t ( ! money-m>ket1 ?r\gh :i* a /ream ( ca% & cr$it-docum5ts is cont9ually fl[+4 ,! brok]s 7! outside m>ket71 :o practically keep no res]ves ( ca%1 are l>gely f9anc$ by ,lomb>d ,/reet1 :i*1 h[ev]1 calls 9 its advances to !m dur+ c]ta9 conditions ( ! m>ket2 & ! bill-brok]s are !n compell$ to fall back ^u ! ,bank ( ,engl& :i* holds ! bank]s' res]ves4 ,9 assi/+ ! brok]s ! ,bank is also support+ ! cr$it ( ,lomb>d ,/reet2 s1 cle>ly1 ! int]e/s ( ea* division are id5tical2 & ! clos] & m fri5dly ! relations betwe5 !m ! smoo!r w be ! surface ( ! money-m>ket4 ,b we h to consid] ! ,bank rate 9 relation to bank]s' *>ges2 & "h ano!r factor mu/ be introduc$1 to wit1 ! nature ( ! securities deposit$ by ! cu/om]4 ,! bus9ess man's fav\rite inve/m5ts are ,engli% railways1 ,corporation ,/ocks1 ,indu/rial ,companies1 & s on1 :il/ occasionally1 end[$ ) imag9ation1 & recogniz+ h[ erratically ! e>? disp5ses h] fav\rs1 ! bless$ unc]ta9ty ( m9es appeals to 8 gambl+ in/9ct4 ,z a rule1 a bank]'s loans & advances are n cov]$ by ,consols1 because x w\ld pay ! borr[] bett] to sell out & place ! sum !y realiz$ to 8 cr$it4 ,advances aga9/ ,consols w\ld be made pr9cipally to /ockbrok]s & to speculators :o _h b\ght !m l>gely 9 ! hope ( a rise 9 price4 ,competition = an advance1 :i* is cov]$ by tangible securities1 is ke5 bo? 9 ,london & ! prov9ces1 & competition1 we mu/ rememb]1 t5ds to r$uce ! rate4 ,!n1 aga91 assum+ t ! ,bank rate be #c p] c5t41 & t a bank] sugge/s #d p] c5t4 on an advance cov]$ by railway deb5tures1 ! cu/om] may n see ! =ce ( ma9ta9+ a m>g9 ( #aj p] c5t4 betwe5 ! m>ket-price ( 8 /ock = ! protection ( 8 bank]1 & pay+ him1 say1 p] c5t4 m ?an 8 securities return on 8 pur*ase-money4 ,z ! cu/om]'s loan or advance is well secur$1 & z ! bank] w only advance to ! ext5t ( #ij p] c5t4 ( ! m>ket-price on ! condition a=esaid1 he is only will+ to pay ,bank rate ^u ! sum he borr[s4 ,we next h to consid] ! am\nt ( pressure ! cu/om] c br+ to be> on 8 bank]1 ( :om 8 securities make him practically indep5d5t4 ,he may1 9 ! fir/ place1 ?reat5 to remove 8 acc\nt unless 8 bank] grant him a loan at #c4 ,secondly1 he may decide t x w pay him bett] to sell 8 deb5tures at ! m>ket-price4 ,aga9 he may only require ! loan = a few mon?s or ev5 weeks2 & z1 9 8 op9ion1 ! deb5tures w probably appreciate 9 value1 he may decide to pay #d p] c5t4 = a %ort p]iod to ei!r sell+ out or tr\bl+ to f9d a *eap] m>ket4 ,obvi\sly1 ! high] ! ,bank rate advances ! less dispos$ is ?is class ( cu/om] to pay p] c5t4 above x2 s1 :5 ! (ficial m9imum is at #e & #f1 he c (t5 arrange = an advance at ,bank rate or ev5 at a bel[ x4 ,on ! o!r h&1 ! bank]1 :5 ,bank rate is at #b or #b1 g5]ally refuses to l5d at less ?an #c p] c5t4 p] annum4 ,! rate1 !re=e1 ^u a secur$ advance is influ5c$ by ! nature ( ! cov] deposit$ z well z by ! /ate ( ! money-m>ket4 ,?is description ( ! m>ket is1 ( c\rse1 ! v]ie/ sket*1 b1 p]haps1 x may possibly prove some:at enlight5+ to ^? :o h hi!rto reg>d$ ?is v simple subject z an exceptionally difficult "o4 ,,*apt] ,,vii ,,loans ,,& ,,advances ,,9 ,,london ,we are told t ,london bank+ is q diff]5t to c\ntry bank+1 b x is a diff]5ce ( degree r ?an ( k9d1 & 9 ,london1 z 9 ! prov9ces1 ! bank-manag] has two rates--"o = ^? :o1 tak+ him at 8 ^w1 d n attempt to bate him d[n1 & a second & l[] rate = ^? p]sons :o1 kn[+ t he is ( ! ,city1 & sc5t+ in/9ctively a s]vant ( ! company1 :o is 9 possession ( in/ructions1 lit]ally =ce 8 h&4 ,a sell] 9 a free m>ket :]e competition is vigor\s g5]ally has at lea/ two prices1 ?\gh1 ( c\rse1 he only adv]tises "o ( !m1 & ! banks1 :i* are n "o :it 9 advance ( ! comm]cial e?ics ( ! times1 base _! rate ^u exp$i5cy z well z ^u ! ,bank ( ,engl&'s rate ( disc\nt4 ,9 /at+ s human & obvi\s a fact "o c only apologize = its int5se trit5ess1 & urge1 9 ext5uation1 ! bl9d1 unreason+ fai? ( "s p 9 ! mod]n bank-manag]4 ,su* fai? may be beautiful1 b1 believe me1 x is co/ly4 ,m5tion has be5 made ( ! di/9ctions betwe5 c\ntry & ,london bank+1 & "o ( ^! appe>s to be ! adoption ( ! 8loan-acc\nt0 sy/em by ! ,city banks1 b 8loan acc\nts0 are n by any means unkn[n 9 ! prov9ces1 ?\gh ! op5+ ( !m is exceptional4 ,moreov]1 ?\gh ?is sy/em is greatly 9 evid5ce at ! head-(fices ( ! jo9t-/ock banks1 ! f>!r "o moves away f ,lomb>d ,/reet ! less firmly is x e/abli%$1 & "o f9ds 9 ! books ( ! ,london bran* banks a m$ley ( ! two sy/ems4 ,t is to say1 "s cu/om]s adopt ! 8loan-acc\nt10 & o!rs pay a rate ^u _! daily debtor balances1 toge!r ) a commission on ! turn-ov] ( _! acc\nts4 ,:5 a 8loan acc\nt0 is op5$ by a cu/om]1 ! banks d n *>ge a commission ^u 8 curr5t acc\nt1 b1 z we %all see1 nei!r d !y neglect to make am5ds = ?is omission4 ,a cu/om]1 we w suppose1 :5 ! ,bank rate is at #c p] c5t4 obta9s a loan ( #bj1jjj f 8 bank] at ,bank rate4 ,he draws a *eque = ?is sum1 :i* ! bank] debits to a 8loan acc\nt0 9 8 "n1 !n places #bj1jjj to ! cr$it ( 8 curr5t or runn+ acc\nt4 ,n[ ! int]e/ at ! rate (1 say1 #c p] c5t4 is calculat$ on ! loan acc\nt1 s if ! cu/om]'s av]age cr$it balance = ! half-ye> am\nts to ab\t #d1jjj1 !n he has paid #c p] c5t4 p] annum ^u #d1jjj :i* he has nev] us$4 ,9 o!r words1 he has giv5 8 bank] some?+ l #fj = work+ 8 acc\nt dur+ ! half-ye>4 ,fur!r1 "s ,london banks *>ge a commission ( p] c5t4 on ! am\nt ( ! loan4 ,?is !y add ea* half-ye> to 8 int]e/1 :i*1 9 ! pres5t in/ance1 w\ld be debit$ 9 8 curr5t acc\nt pass-book ?us3 ,to ,int]e/1 #cbe4 ,by c>efully *eck+ 8 bank]'s *>ges he w make ?is discov]y1 &1 ( c\rse1 promptly dem& t #be be return$ to him4 ,x c n[ be se5 t ! ,london bank-manag] is z eag] to snat* a commission z 8 c\ntry confrre1 &1 moreov]1 t he is n )\t 8 opportunities1 :i*1 :5 ! cli5t is consid]$ safe1 he seldom neglects4 ,9 o!r words1 he does 8 duty l o!r hone/ folk ^: mis=tune x is to be employees2 & he does n specify ! p] c5t4 on #bj1jjj 9 ! pass-book = ! simple reason t he kn[s x is saf] disguis$ z int]e/4 ,! cu/om] naturally does n see :y he %\ld pay a rate ^u #d1jjj :i* he has n want$1 & :i*1 9 reality1 ! bank] has n l5t1 ?\gh he has creat$ cr$it 9 8 own books to t ext5t by two simple entries on ! debit & cr$it side ( 8 l$g]s4 ,assum+ t no commission 0 *>g$ on ! loan1 #fj a half-ye> seems a l>ge sum to pay him = work+ an acc\nt1 especially z mo/ ( 8 rivals w bid aga9/ him = a well-secur$ loan4 ,! cu/om]1 !re=e1 %\ld insi/ ^u receiv+ ! same rate ^u 8 daily cr$itor curr5t-acc\nt balances z he is pay+ ^u 8 loan1 & if he consid] t 8 bank] is entitl$ to a commission = work+ 8 acc\nt1 !n he c arrange = a fair nom9al *>ge1 b he may succe$ 9 gett+ x work$ free4 ,aga91 :5 8 curr5t acc\nt is l>gely 9 cr$it1 he c transf] a c]ta9 sum !refrom to 8 loan acc\nt1 &1 by mov+ balances f ! "o to ! o!r1 z occasion may arise1 save himself an appreciable sum 9 ! %ape ( int]e/2 b he may be too busy to adopt ?is c\rse1 & x is evid5t t ! fir/ sugge/ion1 :i* is bett] adapt$ to 8 wants1 w save him bo? "t & money4 ,naturally ! bank] w object1 b ! cli5t w make x 8 bus9ess to endeav\r to ov]come su* opposition1 :i* w be ei!r /rong or weak 9 proportion to ! nature ( 8 cov] & ! desirability ( reta9+ 8 acc\nt4 ,we next come to ! rate a borr[] %\ld pay ^u a well-secur$ loan or advance1 & "h1 aga91 we may t\* ^u a di/9ction betwe5 ,london & c\ntry bank+4 ,a bank]1 l any o!r deal]1 adapts 8 bus9ess to 8 surr\nd+s1 b 9 a great city l ,london he is practically compell$ to specialize m or less1 & b little money is l5t 9 ! ,city ^u mortgage1 :]eas ov]drafts are grant$ freely 9 ! c\ntry aga9/ ! de$s ( h\se prop]ty4 ,( c\rse !re are exceptions2 & c]ta9 well-kn[n firms1 ^: cr$it is beyond "q1 may n ev5 be ask$ = any security :5 !y borr[ at c]ta9 times ( ! ye>1 b !y soon w\ld be if ! loan began to assume a p]man5t "*2 = ?\gh a bank] may be will+ to advance to an influ5tial & reputable firm )\t cov] j at ^? seasons :5 dem& ^u x is heavie/1 he assumes t su* assi/ance w only be requir$ tempor>ily1 & w\ld in/antly become n]v\s %\ld x appe> f 8 books t ! firm 0 sl[] ?an usual 9 r$uc+ ! loan1 :il/ imm$iately he p]ceiv$ t a c]ta9 am\nt ( x ?reat5$ to take ! =m ( a p]man5t advance he w\ld ask = security4 ,! ,city banks are too busy to give mu* att5tion to ! wants ( ! small man ( bus9ess1 &1 broadly speak+1 !y require m>ketable securities be=e !y w grant a loan or advance4 ,! suburban manag]1 h[ev]1 :o is only on ! edge ( ?is /ruggl+ mass ( humanity1 views ! small] applicant ) a k9dli] eye1 because ! l>ge borr[] seldom approa*es him1 s 9 ! suburbs "o c borr[ on mortgage j z "o c 9 ! c\ntry4 ,inde$1 suburban bank+ approximates v closely to c\ntry bank+1 ! "o noticeable di/9ction be+ ! deposit rate4 ,! ,we/-end bank]1 aga91 has 8 peculi>ities1 & x by no means foll[s t ! rules & regulations ( a bank's head-(fice 9 ! ,city are 9 complete h>mony ) ^? ( "o ( its bran*es )9 a qu>t] ( an h\r's walk ( ! seat ( gov]nm5t4 ,x is1 !re=e1 impossible to def9e ,london bank+1 because ,london is va/1 & ! sy/em em95tly ela/ic & adaptable4 ,! foll[+ table w give "o a fair idea ( :at rate %\ld be paid ^u a loan or advance1 fully cov]$ by securities :i* c be sold on ! ,/ock ,ex*ange practically at any mom5t3-- ,) ,bank rate at #b ,cu/om] pays #b to #c 0 0 #b 0 0 #b 0 #c 0 0 0 #c 0 0 #c 0 #c 0 0 0 #c 0 0 #c 0 #d 0 0 0 #d 0 0 #d 0 #d 0 0 0 #d 0 0 #d 0 #e 0 0 0 #e 0 0 #d 0 #e 0 0 0 #e 0 0 #e 0 #f 0 0 0 #f 0 0 #e 0 #f 0 ,x mu/ be di/9ctly und]/ood t ?is table w only s]ve ! purpose ( a guide to :at ! rate ought to be1 & t ! cu/om] c1 if 8 cr$it be good1 by br++ pressure to be> ^u 8 bank]1 v probably make a clos] b>ga9 ) him4 ,= in/ance1 ) ! ,bank rate at #d1 a p]son ^: securities & cr$it are beyond "q might obta9 a loan at bel[ ,bank rate4 ,he may fur!r arrange t 8 rate %all be p] c5t4 bel[ ,bank rate1 ) a m9imum to ! bank] ( #c or #c4 ,t is to say1 8 rate w nev] be less ?an #c or #c1 & :5 ! ,bank rate is above #c1 !n he pays bel[ x4 ,on ! o!r h&1 ! cu/om] :o accepts ! rate m5tion$ by ! manag] )\t "q f>es badly1 = no deal] quotes 8 m9imum rate fir/4 ,he res]ves t1 z is usual 9 ! highe/ f9ancial circles1 until la/1 & he f9ds x difficult to look pleas$ :5 x is =c$ f him1 because 8 directors1 if he quot$ x too (t51 may come to ! conclusion t 8 h& is los+ its cunn+4 ,! cli5t w h to d m ?an ask 9 ord] t he receive3 he mu/ use argum5t t is conv9c+4 ,kn[+ t c]ta9 bank-manag]s are runn+ ab\t ! ,city 9 se>* ( desirable acc\nts1 j z are bill-brok]s = fir/-class pap]1 he n unnaturally comes to ! conclusion t he c f9d a *eap] m>ket else:]e1 s1 hav+ exhau/$ ! g5tl] modes ( suasion1 ! cli5t f9ally & reluctantly ?reat5s to apply else:]e1 or reveals ! fact t he has already done s1 & ) :at result1 :5 ! manag]1 if he ?9k him 9 e>ne/1 quotes 8 v l[e/ rate1 & asks him n to m5tion x outside4 ,:]e ! loan is a small "o1 h[ev]1 ! directors w n tr\ble !mselves greatly z to :e!r x ei!r goes or rema9s4 ,! mu*-vaunt$ #a p] c5t4 above ,bank rate is1 ( c\rse1 only paid by ! small man1 ^: securities are n ( ! bett] class1 & by ! cu/om] :o has n /udi$ ! m>ket4 ,"s ,london banks1 we "k1 *>ge a rate on ! daily balances & a commission1 b ?is is ! ord9>y c\ntry practice1 s1 9 ord] to avoid reit]ation1 x has be5 ?\ght desirable to discuss ! me?od 9 ! next *apt]4 ,,*apt] ,,viii ,,ov]drafts ,,9 ,,! ,,c\ntry ,9 ! prec$+ *apt] we discuss$ ! 8loan acc\nt0 & its my/]ies1 & n[ we are br\ght face to face ) ! c\ntry practice ( grant+ ! cu/om] a 8limit40 ,! bank]1 we w assume1 agrees t1 ^u 8 deposit+ c]ta9 securities1 he may ov]draw 8 curr5t acc\nt to ! ext5t ( #a1ejj4 ,?is sum1 !n1 is ! cli5t's 8limit0 :i* he is n suppos$ to exce$1 & if he draw a *eque t w\ld1 :5 pres5t$ = paym5t1 ov]draw 8 acc\nt beyond ! agre$ figures 7 ! bank] to hon\r x1 ! latt] is entitl$ to return ! docum5t )\t notice4 ,z a rule a bank res]ves to itself ! "r ( call+ 9 a loan or advance at any mom5t1 b 9 practice reasonable notice is always giv54 ,?\gh ! cu/om] has arrang$ = a 8limit0 (1 say1 #a1ejj1 x is q possible t he w n ov]draw 8 acc\nt to t ext5t2 b at ^? seasons ( ! ye> :5 8 outgo+s are always 9 excess ( 8 receipts ! balance aga9/ him at ! bank w draw clos] to 8 limit4 ,if1 h[ev]1 8 bus9ess be 9 a heal?y condition ! corn] w soon be turn$2 & z 8 paym5ts 9 beg9 to exce$ ! *eques he draws1 8 indebt$ness to ! bank spe$ily s9ks bel[ ! av]age4 ,ea* paym5t to 8 cr$it r$uces 8 debit balance1 & e *eque debit$1 ( c\rse1 increases x1 b z ! bank] *>ges him a rate ^u ! sum ow+ at ! end ( ea* day1 x foll[s t ! cu/om] only pays int]e/ ^u ! actual money he has borr[$--n ^u ! am\nt ( ! 8limit0 z does ! ,london cli5t ^u ! am\nt ( 8 8loan40 ,?is arrangem5t is mu* ! fair] to ! borr[]1 :o1 h[ev]1 mu/ take c>e t ! bank] d n *>ge him a high rate ( commission ^u 8 turn-ov] "u x4 ,we c n[ consid] ! rate ( int]e/ a cu/om] %\ld pay on an advance :i* is m ?an cov]$ by m>ketable securities t c be sold on ! ,/ock ,ex*ange at a mom5t's notice4 ,mo/ prov9cial t[ns1 we "k1 are ov]-bank$2 & z ea* bank] is ! rival ( ! re/ x foll[s t a p]son ^: cov] is tangible c1 by play+ (f ! "o aga9/ ! o!r1 obta9 v f9e rates4 ,b he may n c>e to adopt ^! tactics2 /ill1 z ! me?od may appeal to "s1 x w\ld be a pity n to dwell ^u its possibilities1 = x is (t5 und\bt$ly effective :]e argum5t fails4 ,! w\ld-be borr[] ( ?is class may be ref]r$ to ! table ( rates 9 ,*apt] ,,vii1 & to ! rem>ks made conc]n+ well-secur$ advances 9 ,london1 z1 competition = a secur$ ov]draft be+ ev5 m ke5 9 ! c\ntry1 :]e tangible securities are less 9 evid5ce1 he %\ld exp]i5ce little difficulty 9 com+ to a simil> arrangem5t ) ref]5ce to ! rate ( int]e/4 ,= in/ance1 suppose a man :o possesses a good li/ ( m>ketable /ocks & %>es wi%es to borr[ #e1jjj f 8 bank]1 & calls ^u ! bran*-manag]1 :o at once expresses ! op9ion t 8 directors w h no hesitation 9 grant+ 8 reque/4 ,!y next discuss t]ms4 ,! manag]1 :o is a humble s]vant ( ! company1 & :o1 moreov] is anxi\s to pass ! re/ ( 8 days 9 t hon\rable capacity1 looks at 8 cu/om]1 ?9k+ h>d ! :ile1 & !n1 tru/+ 8 man lacks bus9ess exp]i5ce1 sugge/s #e p] c5t4 p] annum on ! ov]draft & p] c5t4 on ! turn-ov]4 ,! turn-ov] ( an acc\nt consi/s ( ! *eques1 bills1 etc41 debit$ dur+ ! qu>t] or half-ye>1 & ! cu/om]1 !re=e1 is ask$ to pay a commission ( #bs4 #f;d4 ^u ea* #ajj debit$ 9 8 pass-book4 ,!re is no?+ v rem>kable 9 ?is reque/ on ! "p ( a deal] 9 ca% & cr$it :o is sell+ 8 w>es1 & to express surprise is to display a lack ( k ( bus9ess proc$ure1 b to agree to 8 proposals w\ld betok5 a lam5table ignorance ( ! m>ket4 ,%\ld ! ,bank rate be at #d p] c5t4 ! cu/om] w\ld endeav\r n to pay m1 = 8 securities d n give him t return1 & he has ! option ( sell+ !m4 ,& z to pay+ a rate on 8 turn-ov]1 he kn[s t if he make application else:]e he c probably f9d a bank] :o w =ego t *>ge1 s he ei!r refuses to ent]ta9 x or else agrees to pay a m]ely nom9al sum4 ,) a high] ,bank rate ?an #d1 he w try to obta9 8 advance at bel[ ! (ficial m9imum2 & if ! ,bank rate be l[1 & loanable capital !re=e *eap at ! mom5t1 he c sugge/ 8 p] c5t4 bel[ ,bank rate ) a m9imum ( #c40 ,"h1 aga91 ref]5ce may be made to ! previ\s *apt]4 ,( c\rse1 if !re are only two banks 9 8 t[n1 & consequ5tly b little competition1 he w n f9d ! manag] s ready to li/5 to him1 b he c]ta9ly %\ld n pay m ?an ,bank rate :5 x is above #c1 :ile he w rememb] t ! manag]'s advice1 if he be s ra% z to express an op9ion1 is n dis9t]e/$4 ,we next come to ! cu/om] ^: 8limit0 is cov]$ by m>ketable securities & de$s ( h\se prop]ty or l&4 ,! bank] w h ! prop]ty valu$ by 8 own man1 & !n p]haps advance up to ab\t two-?irds ( ! value plac$ ^u x aft] ! de$s h be5 exam9$ by ! bank's solicitor & =mally deposit$1 ! cu/om]1 ( c\rse1 pay+ all exp5ses4 ,! securities1 if !y are a fairly good li/1 he w advance aga9/ to ! ext5t ( ab\t #ge p] c5t4 ( _! m>ket value1 ?us leav+ a m>g9 ( #be p] c5t4 9 8 fav\r to cov] ! risk ( depreciation1 = !y take c>e ( !mselves--^! bank]s4 ,! majority ( advances 9 ! prov9ces w\ld be made aga9/ securities & de$s 9 v>y+ proportions1 & x is z well to rememb] t ! l>g] ! proportion ( tangible securities ! small] %\ld be ! rate4 ,a bank]1 x ne$ n be said1 does n want to be bo!r$ ) a man1 h[ev] good 8 securities1 if he ?9k t !re is ! probability ( 8 hav+ to call 9 ! advance or to claim aga9/ 8 e/ate 9 ! ,bankruptcy ,c\rt2 & ?\gh a cu/om] _c deposit m>ketable /ocks & %>es to ! full ext5t ( 8 advance1 b is compell$ to (f] de$s & securities1 z 9 our illu/ration1 8 cr$it is (t5 s good t _m o!r bank]s 9 8 t[n w\ld readily li/5 to 8 proposals1 & be only too glad to get 8 "n on _! books1 p]haps ev5 at a small sacrifice4 ,su* a p]son c make a v close b>ga9 ) 8 bank]1 & w\ld n1 = in/ance1 ?9k ( pay+ #e p] c5t4 :5 ! ,bank rate is at #c or "u4 ,he w\ld1 9 fact1 especially if he 7 conduct+ a l>ge bus9ess1 probably be 9 a position to make z good t]ms z ! man ^: securities are :olly tangible4 ,! manag]1 ( c\rse1 let ! ,bank rate be :at x may1 w endeav\r to obta9 f #d to #e p] c5t4 ^u ! ov]draft ( an acc\nt ?us secur$1 & to *>ge a rate ( f _/ to p] c5t4 ^u ! turn-ov]2 b if ! cu/om] %[ fight1 & los+ ! acc\nt may n be ?\ght desirable1 because ( ! local influ5ce he possesses1 !n1 r ?an risk 8 apply+ else:]e1 ! ag5t usually l[]s 8 rates1 = he naturally does n enjoy ! ?\ght t e/eem$ cli5ts are p]haps pay+ little calls ^u 8 rivals1 & !reby adv]tis+ 8 own unpopul>ity4 ,:5 ! rate ( commission is ! bone ( cont5tion ! cu/om]'s fir/ aim w be to pay no commission :atsoev]1 & to at lea/ arrange = 8 advance at ,bank rate ) a m9imum ( #d p] c5t4 ,probably he may d bett] ) ref]5ce to 8 int]e/ rate2 &1 if he f9ds t ! manag] holds out = commission1 !n he c agree to a nom9al *>ge ( f "o to five gu9eas or s ea* half-ye> accord+ to ! volume ( 8 bus9ess4 ,we n[ h to discuss ! position ( ^? p]sons :o c only (f] _! bank] ! de$s ( h\se prop]ty1 l&1 & ^? o!r securities = :i* ! m>ket is a purely local1 &1 !re=e1 unc]ta9 "o4 ,a bank]1 ^: deposits are mo/ly payable at call & %ort notice1 naturally pref]s to advance aga9/ ^? securities t are quot$ on a ,/ock ,ex*ange1 & does n c>e to lock up a l>ge proportion ( 8 res\rces 9 h\se prop]ty1 etc41 ( :i* he _c readily dispose 9 an em]g5cy4 ,b tangible securities are n always to be _h = ! ask+2 &1 z he mu/ employ 8 capital 9 ord] to pay a divid5d1 he is compell$ to advance to a c]ta9 ext5t aga9/1 f 8 po9t ( view1 ! less desirable securities su* z h\ses & %>es 9 "s local company1 ?\gh he always pref]s to deal ) ! man :o c deposit ! m easily negotiable v>iety4 ,fur!r1 a prud5t bank] w only devote a c]ta9 am\nt 7& t a relatively small am\nt7 ( 8 res\rces to advanc+ aga9/ ! de$s ( h\ses1 l&1 & s on2 & z ! dem& = ov]drafts aga9/ ?is class ( cov] is always greatly 9 excess ( ! supply1 x foll[s t ^? p]sons :o borr[ ^u x h to pay high rates4 ,we h se5 t ! cli5t :o possesses tangible securities c1 broadly speak+1 make 8 own t]ms b x is o!rwise ) ! man :o wants an ov]draft = bus9ess purposes aga9/ ! de$s ( a h\se he owns2 & he x is :o is compell$ to pay #e or #e p] c5t4 p] annum int]e/1 be ! ,bank rate :at x may1 & p] c5t4 on ! turn-ov] ( 8 curr5t acc\nt2 = he w n f9d ! compet+ banks anxi\s to secure 8 bus9ess by l[]+ _! rates4 ,%\ld 8 cr$it be good1 & 8 bus9ess be consid]able1 he might succe$ 9 r$uc+ 8 commission rate to _/ or ev5 _/ p] c5t41 &1 ( c\rse1 he w make ! attempt1 b x w\ld be unwise to m ?an wi% him success 9 8 endeav\r4 ,a really l>ge tradesman1 h[ev]1 ^: securities consi/ ( ?is v>iety1 w sometimes f9d a bank-manag] anxi\s to secure 8 acc\nt1 because he ?9ks he may influ5ce o!rs 9 8 fav\r1 & su* a man w n pay high rates be=e he has at lea/ s\nd$ two or ?ree manag]s ( well-kn[n banks & discov]$ t _! t]ms are n m lib]al4 ,he may ev5 f9d t he c get 8 acc\nt work$ free ( commission1 or h ! "o he is pay+ appreciably r$uc$4 ,aga91 a man c mortgage 8 prop]ty1 b1 z a rule1 he pref]s to obta9 a 8limit0 on x f 8 bank]1 m especially if he int5d gradually pay+ (f ! advance1 z1 %\ld he borr[ #ejj on mortgage1 he w h to pay a rate on t sum1 b :5 he obta9s a 8limit0 ( #ejj1 & 8 acc\nt is only #bej on ! wrong side1 he pays on ! small] am\nt only4 ,z a rule1 a solicitor acts z middleman betwe5 a mortgag] & mortgagee2 & ! borr[] might rememb] t solicitors1 :5 advanc+ _! cli5ts' money1 or1 inde$1 :5 !y act 9 any capacity1 are q z human z bank-manag]s1 & t x is always advisable to higgle ) !m ov] ! rate1 :i*1 ( c\rse1 %\ld be bas$ on ! value ( loanable capital at ! "t4 ,! de$ usually /ipulates = six mon?s' notice on ei!r side4 ,a cu/om] :o is desir\s ( obta9+ an advance ^u prop]ty :i* already has a fir/ mortgage ^u x1 w n f9d ! banks ei!r sympa!tic or eag] to assi/ him2 ?\gh if 8 bank] be 890 ) him he w1 ( c\rse1 accept any additional security :i* is likely to less5 8 risk or m9imize 8 loss4 ,9 ! usual c\rse ( 8 bus9ess second mortgages & equities ( r$emption are n ?\ght desirable1 & !n1 aga91 ! law does n give a second mortgagee all ! protection x might4 ,! curr5t-acc\nt cu/om]1 :o calls ^u ! bank-manag] ) ! object ( obta9+ an ov]draft aga9/ prop]ty1 w g5]ally be ask$ if 8 life is assur$1 & if he reply 9 ! negative1 he may be reque/$ to assure to ! ext5t ( ! 8limit0 ! bank is ready to grant him1 & to deposit ! policy z collat]al security ) ! de$s4 ,_m m5 ( small means assure _! lives1 & a bank]1 provid$ ! (fice be a good "o1 w g5]ally advance up to ! surr5d]-value ( ! policy4 ,?is he asc]ta9s by apply+ to ! assurance company1 :i* tells him at :at figure !y w commute x4 ,! rates *>g$ ^u ?is class ( security are high4 ,:]e ! cu/om]'s ov]draft is only p>tially secur$1 he mu/ make ! be/ t]ms he c = himself2 &1 z !re is practically no competition = su* an acc\nt1 he w probably h to pay f #e to #f p] c5t4 p] annum int]e/ & f to p] c5t4 on 8 turn-ov]4 ,^! are ! maximum rates1 :i*1 no d\bt1 he w attempt to r$uce1 ?\gh ) :at success mu/ rema9 problematical4 ,! p]son :o obta9s an ov]draft )\t security mu/1 z a rule1 give ?anks1 & pay up ) a light he>t1 = %\ld he apply else:]e he w\ld be receiv$ ) op5-m\!d a/oni%m5t4 ,a good "n 9 ! bank+ _w implies t its own] is wor? "s few ?\s&s ( p\nds2 & ?\gh1 9 ! moral s5se1 its value is consid]$ beyond price1 directors1 :ile appreciat+ x 9 ! ab/ract1 regret _! inability to safely ensconce x )9 _! safes1 & !re=e1 z practical m51 _! p[]lessness to advance aga9/ x unless back$ by collat]al securities4 ,la/ly1 a few words may be said an5t p]sonal security4 ,if y h a weal?y fri5d :o is will+ to sign a promissory note ) y1 or to gu>antee y\r bank] aga9/ loss up to a c]ta9 sum1 an ov]draft c soon be arrang$2 b su* a reque/ puts fri5d%ip to ! sev]e/ te/1 & x may be extremely difficult to f9d y\r fri5d at home %\ld he z mu* z suspect ! reason ( y\r visit4 ,we c see t competition is c5tr$ ar\nd ! safe bus9ess1 & t ?\gh ^? p]sons :o possess tangible securities c make v close b>ga9s1 ! less desirable is ! cov] f a bank]'s po9t ( view1 o!r consid]ations be+ equal1 ! high] are ! rates ! cu/om] w probably be ask$ to pay4 ,! man :o possesses ! "r class ( securities %\ld1 !re=e1 take !m to ! *eape/ m>ket1 & ! own]s ( ! less m>ketable v>ieties might rememb] t f #d to #e p] c5t4 p] annum on ! ov]draft & p] c5t4 commission on ! turn-ov] are v full rates1 :i* may (t5 be consid]ably r$uc$ :5 ! cu/om]1 ^: cr$it is good1 does a l>ge & pr(itable bus9ess4 ,! only rema9+ subject = discussion is ! relation t exi/s betwe5 ! bank-manag] & 8 directors1 :o conf9e 8 p[] to v n>r[ limits4 ,! city-manag]1 = in/ance1 at ! head-(fice ( a ,london jo9t-/ock bank1 might be emp[]$ to grant loans to ! ext5t ( f #b1jjj to #c1jjj )\t fir/ obta9+ ! cons5t ( ! bo>d4 ,any application 9 excess ( 8 8discretion>y p[]10 z x is call$1 w\ld h to be submitt$ to ! directors1 two or ?ree ( :om1 dur+ c]ta9 h\rs1 are always 9 att5dance ea* day1 9 ord] to deal ) ^? reque/s = l>ge loans :]e an imm$iate decision is ess5tial1 :ile a full bo>d w\ld probably sit twice a week4 ,! bo>d1 ( c\rse1 w\ld be ask$ to confirm ! decisions ( ! 8daily0 committee1 & f "t to "t ! loans grant$ by ! city-manag] w\ld be subject$ to criticism by t body4 ,at ! metropolitan1 suburban & c\ntry bran*es ! 8discretion>y p[]0 ( ! ag5t or manag] w\ld be bas$ ^u ! am\nt ( bus9ess transact$ at ! bran*4 ,9 a small t[n ( f #bj1jjj to #cj1jjj inhabitants a manag] might h p[] to grant1 :5 necess>y1 loans to ! ext5t ( #cej & "u1 )\t fir/ obta9+ ! sanction ( ! bo>d4 ,all applications = advances 9 excess ( 8 p[] w\ld h to be imm$iately submitt$ to ! head-(fice1 accompani$ by a lett]1 describ+ ! nature ( ! security (f]$1 & /at+ ! desirability ( obta9+ or keep+1 z ! case may be1 ! acc\nt4 ,?is report1 9 e probability1 w\ld be address$ to ! 8advance dep>tm5t10 :]e x w\ld be criticiz$ by ! (ficials be=e go+ into ! bo>d-room4 ,_m que/ions w\ld be ask$ ) ref]5ce to ! work+ ( ! applicant's acc\nt1 8 annual turn-ov]1 & s on4 ,if he came to !m f a rival bank !n !y w\ld want to see 8 pass-book1 &1 7 he already a cu/om]1 ! manag] w\ld s5d a li/ ( 8 daily balances & comm5t ^u 8 means1 habits1 etc4 ,hav+ satisfi$ !mselves ^u ^! po9ts1 ! *ief ( ! advance dep>tm5t reports to ! g5]al manag]1 :o submits ! application to ! bo>d4 ,! process1 x w be se51 is cumb]some & necess>ily sl[1 = x (t5 takes ! ma*9e z _m days to give a decision z x does a private bank] m9utes4 ,! manag]1 evid5tly1 has v little real p[] "u ?is sy/em1 &1 practically1 ! bran*es are manag$ f ! head-(fice1 ! ag5t be+ a k9d ( cl]k-9-*>ge1 :o reports to1 & ann\nces ! decision (1 8 directors4 ,inde$1 ! rules & regulations are fram$ = ?is v purpose1 & ! banks make x "p ( _! policy to effectually hold _! manag]s 9 *eck1 & to s arrange ! "w ( an (fice t b little is left to _! decision1 :ile x is ! duty ( ! acc\ntant to in/antly report any irregul>ity to ! g5]al manag]s4 ,! av]age bank-manag]1 x mu/ be rememb]$1 has _h nei!r a bus9ess nor a f9ancial tra9+1 & x w\ld !re=e be extremely risky to give him a l>ge field 9 :i* to make exp]im5ts4 ,( ! two evils ! bo>ds ( ! bank+ companies *oose by f> ! less]1 &1 by all[+ him a small 8p[]10 !y te!r him l a donkey to a /ake1 !reby limit+ 8 grass to ! l5g? ( 8 rope4 ,9 a l>ge manufactur+ city a manag]'s discretion>y p[] w\ld n exce$ #a1jjj to #a1ejj1 & 9 ! small] cities x w\ld range f #ejj to #a1jjj1 :ile 9 ! prov9cial t[ns x w\ld be f #cjj to #ejj1 accord+ to population4 ,ea* mon? ! manag]1 z a rule1 has to s5d to ! head-(fice a report ^u all acc\nts t are ov] 8 p[]1 toge!r ) a sep>ate "o relat+ to bills disc\nt$1 & at lea/ twice a ye> he mu/ submit a long return ( e ov]drawn acc\nt on ! books ( ! bran* c]tifi$ by ! acc\ntant & himself4 ,! head-(fice1 9 %ort1 wat*es him z a cat does a m\se1 & criticizes ^? advances he himself is all[$ to make sev]ely %\ld !y n meet ) ! approval ( ^? 9 au?ority4 ,!n1 aga91 z ?\gh det]m9$ t 8 /eps %all n /ray f ! beat5 track1 inspectors visit 8 bran* f\r or five times dur+ ! c\rse ( a ye>1 &1 ne$less to say1 ! bo>d ?9ks x nei!r necess>y nor desirable to advise him ( ! day "o w arrive4 ,:5 ! inspection is a %ort "o ! unwelcome visitor c\nts ! ca%1 *ecks ! bills & securities1 j glances casually ?r\gh ! l$g]s & !n takes 8 dep>ture1 :5 ! atmosph]e seems light] by 8 v abs5ce1 = exalt$ (ficials are a we>9ess to ! fle%4 ,b dur+ a long inspection1 :i* occurs ab\t twice a ye>1 ! manag] has to make a %ort report ^u e ov]drawn acc\nt 9 ! books4 ,?is done1 he gives 8 report to ! inspector1 :o reads ?r\gh 8 rem>ks & proce$s to criticize !m4 ,hav+ add$ a few words ( 8 own1 ! visitor po/s ! bulky report to ! advance dep>tm5t at ! head-(fice1 &1 f9ally1 x is laid ^u ! bo>d-room table4 ,!n ! fun beg9s4 ,! manag]1 aft] a few weeks ( anxi\s susp5se1 receives a long li/ ( cau/ic inquiries relat+ to c]ta9 ov]drawn acc\nts :i* h fail$ to satisfy ! bo>d1 toge!r1 p]haps1 ) imp]ative in/ructions to get su*-&-su* ov]drafts r$uc$ to c]ta9 figures at a giv5 date4 ,sorely tri$ 9 temp]1 ! poor ag5t sets ab\t answ]+ ! que/ions put to him1 & !n1 mu* aga9/ 8 w1 he writes to c]ta9 cli5ts :om he asks to give him a call4 ,n[1 p]haps1 ! cu/om]s ( ! jo9t-/ock banks w und]/& :y !y receive s _m lett]s reque/+ !m to keep _! acc\nts at ! agre$ limit1 or ev5 to r$uce or pay (f ! ov]draft unless !y c deposit ei!r m desirable or additional security4 ,at su* a mom5t an irritable p]son is dispos$ to regret t 8a company has nei!r a body to be kick$ nor a s\l to be damn$40 ,,*apt] ,,ix ,,h[ ,,to ,,*eck ,,bank]s' ,,*>ges ,bank]s make up _! pass-books 9 two ways4 ,:5 ! cu/om] is 9 acc\nt ) ! bank] ! ca% he pays 9 appe>s on ! "r-h& side ( 8 book1 & ! *eques he draws out on ! left4 ,! m g5]al me?od1 h[ev]1 is to make ! bank 9 acc\nt ) ! cu/om]1 :5 ! debits & cr$its 9 ! pass-book are an exact copy ( ! cli5t's own ca%-book1 :]eas ! entries 9 ! bank's l$g] are rev]s$4 ,! latt] & m usual practice w be adopt$ 9 ?is *apt]4 ,cu/om]s (t5 compla9 t !y are unable to *eck _! half-ye>ly *>ges1 t !y d n q und]/& at :at rates !y h be5 *>g$2 & z "s bank]s are mo/ c>eful to add ! int]e/ & commission toge!r1 & !n to ent] ! aggregate 9 ! pass-book z 8*>ges0 simply1 x is a little difficult to und]/& h[ !y expect _! cli5ts to *eck _! int]e/ & commission4 ,= in/ance1 suppose a man is *>g$ #e #bs4 #f;d41 & t ! bank] writes 9 8 pass-book3 ,by *>ges1 #e #bs4 #f;d4 ,"h we h a puzzle t is m ?an ,*9ese 9 its intricacy & sugge/iv5ess1 = x is evid5t t unless ! cu/om] rememb]s t he has arrang$ to pay1 say1 #d p] c5t4 p] annum int]e/ & p] c5t4 commission1 he w exp]i5ce consid]able difficulty 9 v]ify+ ! figures4 ,z a matt] ( fact1 ! companies are n p>ticul>ly anxi\s to enlight5 him1 = see h[ easily ! cli5t c\ld h *eck$ 8 *>ges 7 !y specifi$ ?us3-- ,by int]e/ at #d p] c5t4 #d #b #j 0 p] c5t4 commission on turn-ov] #j #ae #f 0 po/ages #j #e #j ------- #e #b #f ,su* a /atem5t is almo/ beautiful 9 its simplicity1 & ! entry 8po/ages0 may1 p]haps1 give u "s clue to ! my/]y1 z x is evid5t t a manag]1 by debit+ *>ges 9 "o sum1 is !reby enabl$ to hide c]ta9 debits su* z 8po/ages10 8telegrams10 8legal exp5ses10 8/amps10 & s on1 at :i*1 7 !y ent]$ sep>ately 9 ! bank-book1 ! cu/om] w\ld probably /rongly prote/4 ,& !n1 aga91 by adopt+ ?is me?od ( d>kness1 ^? p]sons :o leave ev]y?+ to ! ag5t nev] "k _! rates1 & !y are sometimes too timid to call & inquire1 z ?\gh fe>+ t su* a reque/ w\ld reflect ^u ! ag5t's hon\r4 ,c]ta9 banks h an acc\nt op5 9 _! l$g]s call$ ,law ,*>ges or ,sundry ,*>ges1 to :i* d\btful debits are po/$ 9 ! names ( v>i\s cu/om]s4 ,at ! end ( ea* half-ye> ^! sums are cr$it$ to ! acc\nt 9 "q & includ$ 9 ! cli5ts' *>ges4 ,:51 = in/ance1 a manag] does n wi% a p]son to "k t he is pay+ a fee ( #c #cs4 to ! bank's solicitors = ! exam9ation by !m ( c]ta9 de$s :i* he has deposit$ z security1 he w probably resort to ?is subt]fuge4 ,we c n[ criticize ! acc\nt ( ,john ,jones1 :o on ! #ca/ ,decemb]1 #aijb1 ow$ 8 bank] #ejj #bs4 #f;d41 & exam9e ! entries 9 8 pass-book f t date to ! #cj? ,june1 #aijc1 :5 8 bank]s rule (f _! books & calculate _! *>ges4 ,assum+ t ,mr4 ,jones keeps prop] books1 he w h an acc\nt 9 8 l$g]1 :i*1 aft] mak+ all[ance = *eques drawn b n pres5t$ = paym5t1 w agree ) 8 pass-book 9 e p>ticul>4 ,! foll[+ is a copy ( 8 bank-book3-- ,,! ,,london ,,& ,,*eatem ,,bank1 ,,ltd41 ) ,,mr4 ,,john ,,jones4 ---------------------------------------- ------------------------ ,dr4 ,cr4 ---------------------------------------- ------------------------ #aijc4 #aijb4 ,jan4 #bj4 ,to ,ca% #cjj #a #f ,dec4 #ca4 ,by ,balance #ejj #b #f #aijc4 ,apl4 #bb4 0 ,ca% #ij #a #c ,feb4 #ae4 0 ,smi? #aj #j #j ,may #ae4 0 ,ca% #bjj #e #j ,m>4 #ca4 0 ,jones #gj #c #d 0 #ah4 0 ,ca% #ej #j #j ,apl4 #bb4 0 ,rob9son #h #j #f 0 #ca4 0 ,ca% #i #j #j ,may #bf4 0 ,self #e #aj #j ,june #aj4 0 ,ca% #ajj #j #j ,june #e4 0 ,williams #af #aa #b 0 #bh4 0 ,ca% #g #j #j 0 #be4 0 ,br[n #g #b #c 0 #cj4 0 ,int]e/ #j #c #b 0 #cj4 0 ,*>ges #e #b #f 0 ,balance #acc #ah #h ---------- ---------- #gef #aj #aa #gef #aj #aa ,june #cj4 0 ,balance #acc #ah #h ,mr4 ,jones' l$g]1 !n1 assum+ t none ( 8 *eques are out/&+1 w %[ ! same balance at ! debit ( 8bank10 ?\gh1 ( c\rse1 ! dates w n agree1 z ,mr4 ,jones cr$its ! bank on ! day t he draws a *eque1 :]eas ! bank debits him on ! day t x pays x4 ,we c see t 8 bank] paid a *eque to ,smi? on ! #ae? ,febru>y4 ,if ,john ,jones drew ! said *eque on ! #ab?1 !n he debit$ ,smi?'s acc\nt & cr$it$ ! bank on ! same day4 ,b ^! entries1 z we %all see 9 our next illu/ration1 appe> ^u ! opposite sides ( ! bank]'s l$g]4 ,mr4 ,jones1 ^: securities are tangible1 has arrang$ ) ! manag] t he is to pay #d p] c5t4 p] annum on ! ov]draft & p] c5t4 on 8 turn-ov]1 & to receive #a p] c5t4 on 8 daily cr$it balances4 ,hav+ receiv$ 8 pass-book1 he wi%es to *eck 8 *>ges1 & aft] mak+ two or ?ree attempts1 he is conv9c$ ( ! futility ( 8 ef=ts1 s r5\nces 8 task 9 despair4 ,he has work$ ! figures out 9 8 own way1 :i*1 ?\gh a little primitive1 he g5]ally f9ds answ]s pretty well1 &1 z 8 figures come to some?+ l ^? ent]$ 9 ! pass-book1 he supposes t x is all "r4 ,p]haps ! foll[+ copy ( 8 acc\nt z x /&s 9 ! bank's l$g] may !re=e prove bo? illum9at+ & in/ructive3-- ,,jones1 ,,john1 ,g5]al ,deal]1 #e1 ,high ,/reet1 ,exet]4 ,dr4 ,date4 ,p>ticul>s4 ,dr4 ,cr4 or ,balance4 ,days4 ,total4 ,total4 ,cr4 ---------------------------------------- --------------------------------- #aijb4 ,dec4 #ca4 ,to ,balance #ejj #b #f ,dr4#ejj #b #f #bj #aj1jjj #aijc4 ,jan4 #bj4 ,by ,ca% #cjj #a #f 0 #bjj #a #j #bf #e1bjj ,feb4 #ae4 ,to ,smi? #aj #j #j 0 #baj #a #j #dd #i1bdj ,m>4 #ca4 0 ,jones #gj #c #d 0 #bhj #d #d #bb #f1afj ,apl4 #bb4 ,by ,ca% #ij #a #c ,to ,rob9son #h #j #f 0 #aih #c #g #bc #d1eed ,may #ae4 ,by ,ca% #bjj #e #j;,cr4 #b #a #e #c #f 0 #ah4 0 0 #ej #j #j 0 #eb #a #e #h #daf 0 #bf4 ,to ,self #e #aj #j 0 #df #aa #e #e #bce 0 #ca4 ,by ,ca% #i #j #j 0 #ee #aa #e #e #bhj ,june #e4 ,to ,williams #af #aa #b 0 #ci #j #c #e #aie 0 #aj4 ,by ,ca% #ajj #j #j 0 #aci #j #c #ae #b1jhe 0 #be4 ,to ,br[n #g #b #c 0 #aca #ah #j #c #cif 0 #bh4 ,by ,ca% #g #j #j 0 #ach #ah #j #b #b1bfh;,a #bgh 0 #cj4 0 ,int]e/ #j #c #b 0 #aci #a #b----------------------- #aha #cg1dbb #c1hia ,to ,*>ges #e #b #f #acc #ah #h #d p] c5t4 p] ann4 0 ,balance #acc #ah #h on #cg1dbb = ------------------ #a day #d #b #j #gef #aj #aagef #aj #aa p] c5t4 on turn-ov] #fag #j #ae #f ,june #cj ,by ,balance #acc #ah #h;,cr4#acc #ah #h ,po/ages #j #e #j -------- #e #b #f ,all[$-- #a p] c5t4 p] ann4 on #c1hia = #a day #j #c #b ---------------------------------------- ----------------------------------- ,a ,?ree days' int]e/ ^u 8*eques0 paid to cr$it4 #gef #c4 ,n[ ev]y?+ %\ld be z cle> z ! fl[+ brook to ,mr4 ,jones4 ,he %\ld1 9 ! fir/ in/ance rule a %eet ( pap] 9 exactly ! same mann] z ! specim5 page ( ! bank]'s l$g]4 ,he next c>ries ! entries f 8 pass-book to ! rul$ %eet1 tak+ c>e t ea* am\nt1 :e!r debit or cr$it1 is plac$ "u its "r date1 & at ! end ( ea* day1 or :5 ! next date appe>s1 he ext5ds ! balance1 z 9 our illu/ration1 = x is ^u ?is balance t ! bank ei!r all[s or *>ges him int]e/ = "o1 two1 or tw5ty days1 z ! case may be1 at an agre$ rate4 ,he !n multiplies ?is balance by ! numb] ( days1 & c>ries ! product into a 8total0 column1 :i* he adds up at ! end ( ! half-ye>4 ,?is done1 ! re/ is a v simple bus9ess = anybody :o c manage a rule-(-?ree sum4 ,! bank]1 we c see1 br+s =w>d ! am\nt ( ,mr4 ,jones' indebt$ness on ! #ca/ ,decemb] :5 8 books 7 rul$ (f4 ,?is op5+ entry1 :i* am\nts to #ejj #bs4 #f;d41 is plac$ 9 ! debit column ( 8 l$g]1 & ext5d$ z a debit balance4 ,^u ! morn+ ( ! #a/ ,janu>y1 !re=e1 "o day's int]e/ 0 ow+ on #ejj1 b ! next op]ation ^u ! acc\nt did n take place until #bj? ,janu>y2 & z f #ca/ ,decemb] 7exclud+ ! #ca/ & c\nt+ #a/ ,janu>y z "o day7 to #bj? ,janu>y 7inclusive7 !re are tw5ty days1 ! cu/om] owes tw5ty days' int]e/ ^u #ejj4 ,if we multiply #ejj by #bj1 z 9 our =m1 & c>ry ! product into 8total0 column1 he !n owes "o day's int]e/ ^u #aj1jjj4 ,! result1 ( c\rse1 is precisely ! same2 s a bank]1 9 ord] to save a multiplicity ( calculation1 adopts ?is rule ?r\gh\t1 ) ! result t1 at ! end ( ! half-ye>1 8 cli5t owes "o day's int]e/ ^u #cg1dbb4 ,bank]s1 :5 ref]r+ to ! figures 9 ! 8total0 columns1 speak ( !m my/]i\sly z 8decimals10 & ! cu/om]1 ^u he>+ s om9\s a ^w1 jumps to ! conclusion t bank]s' calculations are mo/ difficult & involv$1 :51 9 reality1 !y are ( ! simple/ nature imag9able4 ,evid5tly ! product 9 "q is ! result ( a simple multiplication sum2 s :y bank]s %\ld speak ( ext5d+ ! 8decimals10 :5 !re is none to be ext5d$1 mu/ ev] rema9 "o ( ! enigmas ( _! trade4 ,z a rule1 %\ld ! %ill+s 9 ! balance column be t5 or ov]1 ! bank]1 9 mak+ 8 calculations1 calls !m "o p\nd1 & :5 less ?an t5 %ill+s he ignores !m4 ,on ! #bj? ,janu>y1 = in/ance1 ! %ill+s are exclud$1 b ^u ! #bf? ,may #dg is ! sum we h to multiply by five4 ,fur!r1 9 arriv+ at ! numb] ( days betwe5 two dates1 exclude ! fir/ date & include ! second1 or vice v]sa1 b d n include bo? dates4 ,! second 8total0 column ( our =m is = cr$itor results1 or1 z bank]s incorrectly call !m1 cr$itor decimals1 ! left-h& column be+1 ( c\rse1 ! debtor1 & ! "r ! cr$itor1 j z ?\gh !y 7 left-& "r-h& pages ( a ca%-book4 ,hav+ asc]ta9$ ! numb] ( days f date to date1 we add !m up1 & next proce$ to balance !m4 ,f #ca/ ,decemb]1 #aijb1 exclusive1 to #cj? ,june foll[+1 inclusive1 !re are #aha days1 &1 z ^? are ! figures 9 our days' column1 we "k t !y are correct4 ,next we add up ! 8total0 columns1 & "h great c>e is necess>y1 because x is impossible to balance ! figures4 ,deal+ ) ! debit total fir/1 we f9d t ,john ,jones owes 8 bank] "o day's int]e/ at #d p] c5t4 p] annum ^u #cg1dbb4 ,h5ce3-- 7#cg1dbb #d #a7_/7ajj #cfe7 #d #bs4 ,b ,mr4 ,jones w make ^! figures #ce1aed1 & ! answ] #c #ags4 #a;d41 & ^u ask+ = an explanation he w be told t he has be5 *>g$ ?ree days' int]e/ ^u ! *eques he paid to 8 cr$it dur+ ! half-ye>4 ,! bank] argues t 8 cli5t receives cr$it = ! *eques he pays 9 imm$iately1 :]eas he himself has to collect !m ?r\gh ! 8cle>+10 & does n receive ! money = two or ?ree days4 ,! argum5t is some:at fallaci\s z to ! l5g? ( "t1 b we ne$ n discuss t m9utely4 ,mr4 ,jones po9ts out t he pays 9 ca% & local *eques z well z *eques ^u ,london & c\ntry bank]s1 & t1 !re=e1 he _c und]/& :y ! manag] *>ges him ?ree days' int]e/ ^u ! total sum paid to 8 cr$it dur+ ! half-ye>4 ,he w1 ( c\rse1 decl9e to submit to ?is *>ge1 & reque/ ! manag] to refund him #ds4 #aa;d4 7?ree days' int]e/ ^u #gef at #d p] c5t4 p] annum74 ,) ref]5ce to ! rate1 ! av]age ,bank rate f #ca/ ,decemb] to #cj? ,june works out at #c #ags4 #a;d4 ,:ile 8 acc\nt 0 ov]drawn1 h[ev]1 ! (ficial m9imum 0 at #d ! :ole "t1 s ! rate is a fair "o1 b ?is "q has already be5 discuss$ 9 ! previ\s *apt]4 ,8 bank] owes him #a p] c5t4 p] annum ^u 8 cr$itor balances1 :i* are multipli$ by ! days & ext5d$ 9 our second 8total0 column4 ,he has1 !re=e1 to receive #a p] c5t4 p] annum ^u #c1hia = "o day4 ,h5ce3-- 7#c1hia #a #a7_/7ajj #cfe7 #cs4 #b;d4 ,z ?is is ! sum debit$ 9 ! pass-book1 ,mr4 ,jones' m9d is at re/ propos ( ! correctness ( ! figures2 b x w probably occur to him t ! rate might be improv$1 = ! fact t "o is borr[+ at #d & l5d+ at #a is n conducive to h>moni\s ?9k+4 ,next1 he *ecks ! commission on 8 turn-ov]1 :i* he makes #aag4 ,he pays p] c5t41 ( c\rse1 ^u ! am\nt ( ! *eques cr$it$ 9 8 pass-book dur+ ! half-ye>1 & ^! come to ! sum a=esaid4 ,h5ce3-- 7#aag #a7_/7ajj #h7 #bs4 #aa;d4 ,b 8 bank] has *>g$ him p] c5t4 on #fag4 ,8 glance falls ^u ! balance =w>d ( #ejj #bs4 #f;d41 & x at once occurs to him t ! manag] has *>g$ him !reupon1 t1 9 %ort1 a m]e bank]'s op5+ entry has be5 includ$ 9 8 turn-ov]4 ,excit$ by ?is discov]y1 ,mr4 ,jones calls ^u 8 bank]1 & po9ts out to him1 ) a t\* ( ,celtic int5sity1 t he sees no e>?ly reason :y he %\ld pay #abs4 #g;d4 simply because ! bank has made an entry ( its own 9 8 pass-book4 ,moreov]1 ) a ke5 eye = ma!matics1 he cle>ly demon/rates t he has already paid commission ^u ! v>i\s transactions :i* result$ 9 ! said balance2 s ! manag]1 adju/+ 8 spectacles1 & pray+ ,mr4 ,jones to mod]ate 8 language1 all[s t1 9 ! hurry ( bus9ess1 a little mi/ake has occurr$4 ,a cu/om]1 :5 *eck+ 8 *>ges1 %\ld see t he does n pay commission ^u op5+ entries ( ?is description1 z1 ne$less to say1 !y are m]ely !re 9 ord] to enable ! bank] to balance 8 books1 & be> no relation :atev] to a cli5t's turn-ov]1 ?\gh !y are sometimes add$ to x4 ,j ref]r+ to ! rate ( commission1 p] c5t4 we "k1 seems too mu*1 s ,mr4 ,jones may be recomm5d$ to read ,*apt] ,,viii ( ?is book4 ,la/ly1 we come to ! entry 8,po/ages1 #es40 ,! manag]1 dur+ ! half-ye>1 writes num]\s lett]s to 8 cu/om]s1 s5ds _! pass-books to !m ?r\gh ! po/1 & s on2 !re=e1 9 ord] to r$uce 8 incid5tal exp5ses1 he debits a few %ill+s to c]ta9 easy-go+ cli5ts be=e ! books are rul$ (f1 & s z to prev5t awkw>d que/ions be+ ask$1 he includes ^! small sums ) 8*>ges40 ,mr4 ,jones1 :o has probably n receiv$ half a doz5 lett]s f ! bank dur+ ! half-ye>1 w naturally refuse to pay ?is imposition4 ,%\ld a cu/om] n h made arrangem5ts ) ! manag] z to ! rates he is to pay1 he w\ld ask at :at rates 8 acc\nt has be5 *>g$1 & !n proce$ to *eck ! bank]'s figures 9 ! mann] indicat$ 9 ^! pages4 ,su* an entry z 8*>ges0 has no?+ bett] ?an its extreme vagu5ess to recomm5d x1 & ! cli5t1 :5 he f9ds ?is ^w 9 8 pass-book1 %\ld1 if he exp]i5ce any difficulty 9 *eck+ ! figures1 return x to ! manag] ) ! reque/ t he w give him full p>ticul>s z to ! rates ( int]e/ & commission1 & also tell him ! am\nt ( any additional *>ge or *>ges1 if !re be any4 ,we c n[ make out a table ( ! am\nt ,mr4 ,jones has to reclaim f 8 bank]3-- ,cu/om]'s ,calculations4 ,bank]'s ,calculations4 #d p] c5t4 p] annum #d p] c5t4 p] annum on #ce1aed #c #ag #a on #cg1dbb #d #b #j p] c5t4 on #aag #j #b #aa p] c5t4 on #fag #j #ae #f ,po/ages1 nil #j #j #j ,po/ages #j #e #j ,balance to be refund$ #a #b #f -------- -------- #e #b #f #e #b #f ,! commission on #fag is #aes4 #e_/;d41 b a bank] w\ld *>ge #aes4 #f;d4 ,mr4 ,jones1 we c see1 has be5 ov]*>g$ to ! ext5t ( #a #bs4 #f;d41 & we may re/ q assur$ t he w n be easy 9 8 m9d until he has recov]$ ?is sum f 8 bank]4 ,sometimes a cu/om]1 :5 rul+ (f 8 own books1 draws a *eque =1 say1 #fjj1 & pays x to 8 cr$it at ! bank4 ,?is w\ld be a cross entry4 ,b does he und]/& t ?is sum w be includ$ 9 8 turn-ov]1 & t if he be *>g$ p] c5t4 !reupon1 he pays #aes4 to 8 bank] = mak+ a c\ple ( entries 9 8 l$g]8 ,aga91 if ! manag] *>ge him ?ree days' int]e/ at #e p] c5t4 p] annum ^u ! sums paid to 8 cr$it1 he w pay ano!r #es4 7ab\t71 & at ?is rate a cross entry ( #fjj w\ld co/ him #bjs4 ,! luxury1 x mu/ occur to him1 is exp5sive2 & z ?is illu/ration is n a figm5t ( my imag9ation x is evid5t t ev]ybody :o keeps a bank+ acc\nt %\ld und]/& h[ to *eck a bank]'s *>ges4 ,x seems an act ( sup]]ogation to po9t out t ! av]age acc\nt w\ld conta9 v _m m entries ?an ! "o "u review1 b if ! read] w c>efully foll[ ^! in/ructions he %\ld f9d little difficulty 9 *eck+ ! *>ges 9 any bank-book4 ,:]e ! acc\nt has be5 ov]drawn dur+ ! entire qu>t] or half-ye> ! fir/ 8total0 column mu/ be us$4 ,our example is t ( a mix$ acc\nt1 & bo? columns are requir$2 b %\ld ! acc\nt be a cr$itor "o1 !n ! ext5sions are made 9 ! second 8total0 column1 & ! bank]1 ( c\rse1 w all[ ! cu/om] a rate4 ,:5 *eck+ ! int]e/ ( a loan acc\nt x is advisable to obta9 a sep>ate pass-book f ! bank]1 & n to take out ! entries f ! curr5t-acc\nt pass-book :]e9 ! int]e/ is debit$4 ,%\ld x be f\nd t ! commission has be5 *>g$ ^u ! am\nt ( ! loan1 ! cu/om] w\ld ask = an explanation1 & 9 *eck+ 8 int]e/ he w\ld proce$ 9 exactly ! same way z %[n 9 our example4 ,aga91 we h se5 t "s cu/om]s arrange t _! rate %all be ei!r ,bank rate or above x1 z ! case may be4 ,suppose t ! ,bank rate on ! #bbnd ,april 7 rais$ f #c to #c p] c5t41 & t x _h /ood at #c f #ca/ ,decemb]4 ,! cu/om]1 :o has agre$ to pay 8 bank] above ,bank rate1 w !n owe #c p] c5t4 p] annum on ! sum or sums he has borr[$ f #ca/ ,decemb] to #bbnd ,april4 ,apply+ ?is hypo!sis to ! acc\nt "u review1 we rule a l9e b5ea? ! figures #f1afj 9 8total0 column1 & add up ! column1 :i* comes to #cj1fjj4 ,f #ca/ ,decemb] 7exclusive7 to #bbnd ,april 7inclusive7 !re are #aab days 7see page #ei71 &1 z ! figures 9 ! days' column give ! same result1 we "k t !y are correct4 ,! cu/om]1 !n1 owes 8 bank] "o day's int]e/ at #c p] c5t4 p] annum ^u #cj1fjj4 ,at ea* *ange ( ! ,bank rate ?is process mu/ be repeat$2 s in/ead ( hav+ "o rule-(-?ree sum to "w out1 z 9 our illu/ration1 !re may p]haps be f\r or five ( !m4 ,%\ld ! =tunate possessor ( a l>ge cr$itor acc\nt h arrang$ ) 8 bank] t he is to receive #a p] c5t4 bel[ ,bank rate on 8 daily cr$it balances1 !n assum+ t ! balances on our =m 7 cr$itor1 ! bank] w\ld owe #a p] c5t4 p] annum on #cj1fjj = "o day4 ,! cu/om]1 :5 calculat+ ! am\nt due to him1 w\ld proce$ 9 ! same mann] z indicat$ above1 & he might rememb] t1 9 arriv+ at ! numb] ( days f "o *ange ( ! ,bank rate to ano!r1 he excludes ! day f :i* he calculates & includes ! date to :i* he calculates4 ,! re/ is easy4 ,,*apt] ,x ,,bills1 ,,c\pons1 ,,=eign ,,drafts1 ,,etc4 ,disc\nt$ ,bills4 ,! city-article ( e morn+ pap] conta9s a li/ ( m>ket disc\nts f :i* "o c see at :at rates ! bill-brok]s & disc\nt-h\ses are tak+ ! v>i\s classes ( bills4 ,bank-bills w\ld be pap] ei!r accept$ or indors$ by ! banks2 & f9e trade-bills or be/ trade-bills w\ld be ! acceptances ( ^? firms ^: cr$it is s good t ! "q ( _! pap] n be+ paid at maturity is practically nev] consid]$4 ,z ! cr$it ( ! banks ranks highe/ x foll[s t bank-bills c be disc\nt$ at ! f9e/ rates4 ,aga91 less risk is run on a ?ree mon?s' bill ?an ^u "o = f\r or six mon?s4 ,9 o!r words1 ! position ( an acceptor is less liable to *ange 9 ?ree mon?s ?an 9 six1 !re=e %ort bills are 9 great] fav\r2 consequ5tly1 ! rate ^u a six mon?s' bill1 o!r consid]ations be+ equal1 w be high] ?an t ^u "o :i* has ?ree mon?s to run1 ?\gh ! diff]5ce1 ( c\rse1 w only be a fractional "o4 ,! bill-brok]s1 we "k1 obta9 mo/ ( ! bank & ! f9e bills1 b !y are also dep5d5t ^u ,lomb>d ,/reet = ! great] "p ( _! res\rces2 & z a bank1 :i* owes huge sums on dem&1 likes to keep its assets z liquid z possible1 x foll[s t bank]s take %ort bills f ! brok]s 9 pref]5ce to ^? :i* are drawn = long t]ms1 = ! simple reason t %\ld !y ?9k ! outlook unc]ta9 & deem x prud5t to /r5g!n _! res]ves1 ! %ort] bills w run (f ! m quickly1 !reby provid+ !m ) additional ca%4 ,a ?ree mon?s' bill1 !re=e1 f a bank]'s /&po9t1 is consid]$ m desirable ?an "o at six mon?s' date4 ,:5 trade is active & loanable capital de> m>ket rates ( disc\nt w naturally be high1 & ! ,bank rate1 speak+ broadly1 is g5]ally 9 t\* ) ! m>ket rate = ?ree mon?s' bank-bills4 ,conv]sely1 :5 trade is dull & ! prices ( commodities are fall+1 few] bills w be on (f]2 b ! fund ) :i* !y are disc\nt$ w be proportionately great]1 consequ5tly ! m>ket rates ( disc\nt w be l[1 z1 also1 w be ! ,bank rate4 ,x mu/ be rememb]$1 h[ev]1 t ! ,bank ( ,engl& disc\nts bills = its own cu/om]s bel[ its publi%$ rate--:5 its m9imum is tempor>ily above ! m>ket rate2 = 7 x n to adopt ?is c\rse its cu/om]s w\ld naturally disc\nt _! bills ) ! brok]s4 ,z ! bill-brok]s are middlem5 betwe5 ,lomb>d ,/reet & ^? m]*ants :o h bills to sell x foll[s t ! m>ket rate ( disc\nt is always bel[ ! bank]s' rates1 & t1 !re=e1 hold]s ( ! bett]-class pap] take x to ! brok]s1 b ?is peculi>ity has be5 m5tion$ 9 ,*apt] ,,vi4 ,x may1 h[ev]1 be add$ t ! remittance ( ! be/ c\ntry bills to ! ,london bill-brok]s is a comp>atively new movem5t1 :i* ! banks d n reg>d ) fav\r4 ,competition betwe5 ! brok]s be+ ke51 x is que/ionable :e!r ! f9e/ rates are quot$ 9 ! pap]s1 = ! m]*ants :o h bills = sale w1 ( c\rse1 n neglect to higgle ) ! brok]s1 :o1 l ! bank]s !mselves1 c]ta9ly w\ld n adv]tise _! l[e/ rates4 ,! l>ge disc\nt-h\ses & brok]s possess consid]able capital1 ?\gh x w\ld look extremely small :5 contra/$ ) ! %ort-loan fund1 & !y deposit c]ta9 approv$ securities ) ! banks aga9/ ! money at call advanc$ to !m2 b ! small bill-brok]s are little bett] ?an runn]s = ! banks ) :om !y re-disc\nt _! bills almo/ z soon z !y are 9 _! cases1 & _! capital w\ld consi/ pr9cipally ( a silk-hat & a bill-case4 ,c]ta9 brok]s on ! ,/ock ,ex*ange1 x may be add$1 /& 9 mu* ! same relation to ,lomb>d ,/reet4 ,besides borr[+ f ! banks ! bill-brok]s also accept deposits f ! public1 bas+ _! rate ^u ! ,bank rate1 & all[+ a slightly high] rate ?an ! ,london bank]s4 ,! m>ket = bills is a special m>ket1 into :i* ! banks p\r _! surplus funds1 s cu/om]s w be c>eful n to confuse ! price ( a bill ) ! price ( a loan1 ?\gh1 ( c\rse1 !re is a close connexion betwe5 ! two2 = :5 loanable capital is de> disc\nt rates too are high1 & :5 ! =m] is *eap ! latt] are l[4 ,! ,london cu/om]1 :o disc\nts f9e bills ) 8 bank]1 w naturally take c>e t he does n pay a high] rate ?an ! bill-brok]s w\ld *>ge him1 & :5 he disc\nts second-rate trade-bills he w rememb] t competition is v ke51 & t if 8 cr$it be good he c g5]ally induce ! manag] to quote a f9e rate4 ,com+ to prov9cial bank+1 we h se5 t ! l>ge m]*ants & manufactur]s remit "s ( _! be/ trade-bills to ,london2 b 9 ! great cities1 :]e ! banks are num]\s1 ! competition = good pap] is consid]able2 & z ! cu/om] usually keeps 8 curr5t acc\nt at ! bank ) :i* he disc\nts 8 bills1 he c g5]ally1 if 8 acc\nt be wor? reta9+ & 8 cr$it good1 get 8 pap] disc\nt$ at ,bank rate1 or ev5 slightly "u :5 ! m>ket rate is bel[ x4 ,9 ! small c\ntry t[ns1 h[ev]1 ! banks' rates are high]1 b !n1 ( c\rse1 ! pap] !y disc\nt !re is n ( ! same class2 & a capitali/1 be he a money-l5d] or a bank]1 raises 8 rate 9 proportion to ! risk he runs1 ! "o ?9k+ a bill s d\btful t #ajj p] c5t4 w j tempt him to risk 8 pr9cipal1 & ! o!r draw+ ! l9e at ab\t #g p] c5t4 ,a1 = in/ance1 has an acceptance ( ,c's = #ajj1 dat$ ! #a/ ,janu>y & drawn = "o mon?1 s ! bill1 all[+ ! usual ?ree days' grace1 w be due ^u ! #d? ,febru>y4 ,a takes ?is bill on ! #e? ,janu>y1 to 8 bank]1 by :om x is disc\nt$4 ,f ! #e? ,janu>y exclusive1 to ! #d? ,febru>y1 inclusive1 !re are ?irty days2 & assum+ t ! disc\nt rate be #e p] c5t4 p] annum1 & ! rate ( commission ^u ! am\nt ( ! bill p] c5t41 we get ! foll[+3-- #ajj #e #cj ------------ #hs4 #b;d4 #ajj #cfe p] c5t4 ^u #ajj #bs4 #f;d4 -------- #ajs4 #h;d4 ,a1 !re=e1 has paid ab\t #f p] c5t4 p] annum = ! accommodation4 ,! c\ntry banks1 :5 !y *>ge #e p] c5t4 p] annum int]e/ & p] c5t4 commission ^u %ort bills1 obta9 some?+ l #h p] c5t4 p] annum ^u _! capital2 b1 ne$less to say1 ! p]sons :o pay ^! rates are ei!r out ( t\* ) ! m>ket or else _! cr$it is s bad t !y are glad to disc\nt _! bills ) a bank] ^u almo/ any t]ms4 ,& !n1 aga91 !re is n mu* pap] ( ?is description "u disc\nt ) ! prov9cial banks4 ,c\ntry cu/om]s1 ^: cr$it is above suspicion1 make v close b>ga9s :5 !y take good trade-bills to ! banks to be disc\nt$1 & seldom pay any commission ^u ! am\nt ( ! bill1 ?\gh1 ( c\rse1 ! manag] w attempt to exact x if he ?9k t 8 man w pay )\t prote/4 ,z previ\sly /at$ ! cu/om] almo/ inv>iably disc\nts 8 bills ) ! bank] ) :om he keeps 8 curr5t acc\nt1 & he g5]ally pays ! same rate on 8 pap] z he does ^u 8 ov]draft4 ,competition = desirable acc\nts be+ ke51 x foll[s t a cli5t :o disc\nts l>gely c always br+ pressure to be> ^u ! manag]1 %\ld he consid] t 8 rates are excessive & altoge!r out ( t\* ) ! m>ket rates4 ,c\pons4 ,_m p leave _! c\pons ) bank]s = collection1 & "h1 aga91 we get an example ( mak+ ^? pay :o w4 ,! usual rates are p] c5t4 commission on ,engli% & p] c5t4 ^u =eign & colonial c\pons1 b1 z a matt] ( fact1 c]ta9 manag]s keep a li/ ( ^? p]sons :o refuse to pay ^! *>ges1 :ile !y :o d n prote/1 no matt] h[ l>ge a sum !y may keep to _! cr$it ^u curr5t acc\nt1 are made to pay ! ord9>y rates4 ,x is only fair t a p]son ^: av]age cr$it balance does n exce$ #ej %\ld pay a rate2 b :5 a man keeps f #bej to #ejj & above on ! "r side1 ! bank] c q well af=d to =ego 8 *>ge4 ,suppose a bank] receives #dj f 8 ,london ag5t or ?r\gh ! c\pon dep>tm5t ( 8 head-(fice on acc\nt ( c\pons remitt$ = a cu/om]4 ,he d$ucts 8 *>ge ( #bs41 &1 )\t in=m+ ! p]son = :om !y h be5 collect$1 cr$its #ci #ahs4 9 8 pass-book4 ,! cli5t1 9 five cases out ( six1 rema9s "u ! impression t he has receiv$ ! m>ket value = 8 c\pons1 :]eas1 _h ! manag] cr$it$ ! acc\nt ) #dj1 & debit$ x ) #bs4 commission1 ! cu/om] 9 e probability w\ld h ask$ = an explanation4 ,! cu/om]1 by exam9+ 8 pass-book1 w soon discov] :e!r a rate has be5 d$uct$1 & if he consid] t ! balance he keeps at 8 cr$it amply repays ! bank1 !n he c reque/ t ! commission be return$ to him1 & t 8 "n be plac$ on ! free li/ ) ^? ( o!r 8consci5ti\s objectors40 ,:]e ! face-value ( ! c\pons is giv5 9 a =eign curr5cy1 he w1 ( c\rse1 h to discov] ! rate ( ex*ange at :i* !y 7 sold4 ,all[ance1 too1 mu/ be made = income-tax4 ,:5 pur*as+ /ocks or %>es ?r\gh 8 bank] ! latt] divides ! commission ) ! brok]1 & x is p]haps advisable to see ! brok]'s note1 z a zeal\s manag]1 anxi\s to augm5t ! pr(its ( 8 bran*1 & believ+ dev\tly 9 ! old-fa%ion$ maxim 8e little helps10 occasionally adds a small *>ge ( 8 own4 ,%\ld he d ?is1 !n he s5ds ! cu/om] a copy ( ! brok]'s note in/ead ( ! note itself1 & 9 ! copy he has1 x ne$ n be said1 add$ a small commission ( 8 own to ! brok]'s4 ,z a bank] gu>antees ! cu/om] aga9/ loss ?r\gh ! failure ( ei!r ! brok] or ! jobb]1 pur*as+ %>es ?r\gh a bank has its advantages = ! bona-fide inve/or2 b ! speculator1 :o may want to 8c>ry ov]0 f acc\nt to acc\nt1 mu/ deal ) a memb] ( ! ,/ock ,ex*ange4 ,aga91 :5 buy+ =eign drafts ?r\gh "o's bank] inquiry %\ld be made z to ! rate ( ex*ange1 s t "o c *eck 8 figures4 ,9 a small book ( ?is description mu* mu/ necess>ily be omitt$1 b x may j be add$ t 9 ^! days ! facilities bank]s grant _! cu/om]s range f tak+ *>ge ( _! plate & valuables to all[+ !m to h _! lett]s address$ to ! bank1 :ile !y w ev5 pay _! subscriptions = !m4 ,! difficulty is to say :at !y w n d1 & "s day1 p]haps1 we %all h _! "y m5 call+ 9 ! morn+ = ord]s ) ! bak]4 ,,*apt] ,,xi ,,unclaim$ ,,balances ,i w\ld describe ?is bank+ cu/om z legal /eal+4,b ,bank]s1 z well z o!r e/imable p]sons1 obta9 _! glean+s & _! p]quisites1 :i* are cr$it$ to c]ta9 sundry acc\nts1 su* z 8unclaim$ divid5ds10 8unclaim$ balances10 & s on4 ,^? banks1 too1 t issue notes mu/ pr(it to a c]ta9 ext5t by ! pap] t is lo/ & de/roy$ by ! public2 & ?\gh x is impossible to e/imate ! ga9 to ! banks f ^! s\rces1 _! absolute sil5ce on ! subject seems to indicate p]haps m eloqu5tly ?an /ati/ics1 t ! fund ?us d]iv$ mu/ be consid]able1 ev5 if x be n va/4 ,b ,! ,gov]nm5t is n prep>$ to promote legislation = ! purpose ( requir+ ! banks ( ! ,unit$ ,k+dom to make a return %[+ ! sums ( money 9 _! h&s 9 respect ( dormant & obsolete acc\nts4--,vide ,press1 ,feb4 #aijh4 ,com+ to ! def9ition ( an unclaim$ balance1 x mu/ be confess$ t x is some:at difficult to expla9 exactly :at an 8unclaim$0 balance is1 = ! simple reason t ! banks1 :5 an acc\nt becomes dormant1 seldom make an ef=t to discov] :e!r ! own] be ei!r dead or alive1 or to :om ! balance belongs4 ,on ! o!r h&1 if !y d n c\rt inquiry1 x _c be said t !y ob/ruct x4 ,nei!r1 h[ev]1 d !y enc\rage x1 nor assi/ ! own] or claimant 9 any way1 b cont5t !mselves ) passively c>ry+ =w>d ! figures f half-ye> to half-ye>4 ,! public may well be dissatisfi$ ) ?is treatm5t1 = x is q app>5t t 7 ! banks to make x _! bus9ess to discov] ! own]s or claimants !y w\ld be successful 9 five cases out ( six1 &1 fur!r1 ! long] !y nurse ^! s-call$ 8unclaim$0 balances1 ! great] is ! probability t !y w = ev] reta9 !m4 ,we w fir/ discuss ! position ( ! curr5t-acc\nt cu/om] 9 relation to ?is practice4 ,z a rule1 x is well kn[n to ! memb]s ( a deceas$ man or woman's family :]e ! bank+ acc\nt 0 kept2 s inquiries are usually made1 & ! balance /&+ to ! cr$it ( ! deceas$ asc]ta9$4 ,!re are1 h[ev]1 exceptional cases4 ,a man may h acc\nts ) two diff]5t bank]s & ?\gh "o is kn[n1 ! second may n be4 ,if ! pass-book relat+ to ! second acc\nt be at ! bank1 ! manag] v probably w keep x !re4 ,aga91 a p]son on a visit to a place may op5 a small tempor>y acc\nt at a bank !re1 & %\ld he die sudd5ly ! manag] w n make any attempt to trace 8 repres5tatives4 ,:5 ! pass-books :i* relate to ^! 8unclaim$0 balances are at ! bank1 "s manag]s are mo/ c>eful t !y %all n g out aga92 &1 9 ord] to prev5t _! be+ s5t ?r\gh ! po/ to ! addresses on ! l$g]s1 ! books are g5]ally plac$ 9 "s out-(-!-way corn] ( ! /rong-room1 !re to await ! com+ ( _! own]s4 ,?is is c]ta9ly a novel way ( protect+ ! int]e/s ( "o's cli5ts1 ?\gh x d\btless has n ! smalle/ claim to orig9ality1 & may n be completely unkn[n 9 o!r trades ?an t ( bank+4 ,secondly1 we come to ! deposit-receipt or deposit-note2 & x w readily be all[$ t a small piece ( pap] ( ?is description may easily be ei!r lo/ or accid5tally de/roy$4 ,x mu/ be borne 9 m9d1 too1 t ! companies1 9 ! ev5t ( a depositor's dea?1 d n take any /eps to in=m ei!r 8 next-(-k9 or 8 legal repres5tatives t c]ta9 sums ( money are /&+ to 8 cr$it 9 _! deposit-l$g]s1 ev5 :5 !y are aw>e ( 8 decease4 ,!n1 aga91 aft] a depositor's dea? ^! docum5ts are sometimes ov]look$ or inadv]t5tly ca/ aside ) o!r pap]s4 ,su* sums1 aft] a lapse ( ye>s1 might g to swell a company's unclaim$ balances4 ,b x is a misnom] to speak ( ^! sums z 8unclaim$10 :5 x is obvi\s t !y are simply 8unpubli%$10 & t ! banks1 7 !y s incl9$1 c\ld f9d ! true own]s ( a l>ge numb] ( ^! balances 9 a v %ort space ( "t4 ,9 _m in/ances !y h good reason to ?9k t ! cu/om]s are dead1 ev5 :5 !y possess no positive in=mation to t effect2 & z !y h _! addresses 9 ! deposit-l$g]s1 all !y h to d is to write a few lett]s ( inquiry4 ,h[ev]1 ! banks h ! law on _! side2 & ?\gh !y are oblig$ to answ] any que/ions :i* may be made by a deceas$'s repres5tatives1 !y are n compell$ to give in=mation gratuit\sly1 s !y *oose to rema9 sil5t1 & insi/ ^u ! initiative be+ tak5 by int]e/$ p]sons4 ,fur!rmore1 a deceas$ depositor may h held ?ree deposit-receipts4 ,%\ld two ( ^! be pres5t$ = paym5t by 8 executors1 ! manag] ne$ n in=m !m t !re is a ?ird sum /&+ to ! cr$it ( ! deceas$ 9 ! books ( ! bank2 & he possibly w n4 ,an int]e/$ p]son1 !re=e1 %\ld always inquire :e!r !re be any o!r sums /&+ to ! cr$it ( ! deceas$1 ei!r on curr5t acc\nt or deposit4 ,x ne$ n be rem>k$ t %\ld ! balance be a debit "o ! bank w spe$ily s5d 9 its claim1 toge!r ) a note ( sympa?y to ! wid[1 begg+ h] to consid] ! company q at h] s]vice4 ,s h>d5$ is a bank-manag] t he w actually att5d ! fun]al ( an old & e/eem$ cli5t :om he has be5 *>g+ #e p] c5t4 int]e/ & p] c5t4 commission = ye>s4 ,x is a bad sign :5 a limit$ liability company is repres5t$ at a fun]al by an (ficial2 & %\ld two bank-ag5ts put 9 an appe>ance1 "o c only quote3 8,:]e ! c>cass is1 !re w ! vultures be ga!r$ toge!r40 ,see+ t !y are s eag] to exhibit _! respect = ! ri* dead1 x may be consid]$ some:at surpris+ t !y are n m sympa!tic t[>ds ! poor liv+1 &1 also1 t !y d n publi% _! s-call$ unclaim$ balances = ! b5efit ( _! cu/om]s' desc5dants2 b life is full ( ^! little contradictions1 &1 aft] all1 ! acids & ! sweets1 judici\sly bl5d$1 give a ze/ to exi/5ce4 ,f9ally1 "s banks1 we "k1 issue pass-books to _! depositors in/ead ( receipts4 ,x sometimes happ5s t1 at a depositor's dea?1 ! book is ) ! bank]4 ,unless1 !re=e1 8 own p *ance to "k t he _h a deposit acc\nt1 all traces ( its exi/5ce are oblit]at$1 = ! bank]1 :o has ! book 9 8 possession1 is n compell$ to give any notice4 ,aft] ! publication ( "o ( my books my publi%] receiv$ a lett] f a lady compla9+ bitt]ly t a c]ta9 bank _h treat$ a k9swoman ( h]s 9 ?is mann]4 ,%\ld ! relations ( a deceas$ man or woman h reason to suspect t money has be5 sav$ & plac$ some:]e1 !y %\ld g to e bank 9 ! t[n :]e ! deceas$ resid$ & inquire :e!r any sums are /&+ to 8 cr$it 9 ! books ( ! banks4 ,_! application _c be refus$1 & ! result may possibly be some:at surpris+1 :ile !y w at lea/ h ! satisfaction ( kn[+ t _! k9sman's sav+s are n be+ devot$ by ! banks to _! own use4 ,z ! law n[ /&s1 a deceas$ cu/om]'s balance is1 to a c]ta9 ext5t1 at ! m]cy ( 8 bank]2 b :e!r ^! unclaim$ balances w\ld 9 ! aggregate am\nt to ! huge total at :i* "s p are dispos$ to e/imate !m is r d\btful4 ,t ! law urg5tly requires am5d+ _c1 h[ev]1 = a mom5t be que/ion$1 = p]sons ^: own int]e/s conflict ) ^? ( ! public c seldom be tru/$ to judge imp>tially2 & x is q evid5t t directors1 :o are imbu$ ) ! comm]cial in/9ct1 are n exceptions to ! rule4 ,! aggregate1 no d\bt1 w\ld be repres5t$ by a l>ge sum1 b ! public1 :]e money is conc]n$1 g5]ally looks pretty sm>tly aft] x1 s "o w\ld imag9e t ?is total w\ld consi/ pr9cipally ( num]\s small balances1 & t l>ge w9dfalls mu/ be few & f> betwe54 ,^! s-call$ 8unclaim$0 balances are1 we h se51 9 reality unpubli%$ balances1 & /eps c]ta9ly ought to be tak5 to compel ! jo9t-/ock banks to adv]tise 9 c]ta9 ,london & local pap]s ! names & la/ kn[n addresses ( ^? individuals 9 ^: names sums ( moneys1 9 excess ( say #e1 h be5 /&+ intact 9 _! books = any p]iod 9 excess ( five ye>s4 ,! banks might also be made to hang a li/ ( ^! names 9 a conspicu\s "p ( _! (fices1 s t ^? :o are entitl$ to ^! sums %\ld at lea/ h an opportunity ( claim+ !m4 ,7 ! companies compell$ to adopt ?is c\rse1 we %\ld he> v little m ( unclaim$ balances1 = ! ?\ght ( publicity w\ld be di/a/eful to !m1 & !y w\ld imm$iately take /eps to put !mselves 9 communication ) ei!r ! cu/om]s or _! k9sfolk4 ,"o w\ld ?9k1 too1 t ! ,gov]nm5t _h a bett] claim to ^! balances ?an ! banks4 ,mr4 ,asqui?1 = in/ance1 might f9d !m useful z a basis = 8 old-age p5sion s*eme6 ,depositors1 see+ h[ matt]s /&1 %\ld keep _! receipts 9 "s place :]e !y _c be ov]look$2 & 9 ! ev5t ( a pass-book be+ receiv$1 a note %\ld be made 9 a di>y1 or ev5 9 ! 8,family ,bible10 to ! effect t su* a book is 9 exi/5ce2 z1 %\ld x be at ! bank at ! "t ( a cu/om]'s decease1 we "k t ! manag] may reta9 x1 ) ! result t all trace ( ! money w be lo/4 ,,*apt] ,,xii ,,bank ,,%>es ,!re is n space 9 ?is *apt] to deal exhau/ively ) ! risks ( %>ehold]s1 b x may be m5tion$ t1 ) ! exception ( ! old *>t]$ banks1 ! memb]s or p>tn]s ( e jo9t-/ock bank 9 ! ,unit$ ,k+dom 71 prior to #aheh1 liable jo9tly & sev]ally = ! debts ( ! company4 ,?is ,act1 ,/atute #aheh1 c4 #ia1 0 n1 h[ev]1 compulsory2 & al?\gh no bank ( unlimit$ liability has s9ce be5 =m$1 x 0 n until ! pass+ 9 #ahgi1 aft] ! failure ( ! ,city ( ,glasg[ ,bank1 ( ! ,act #db #dc ,victoria1 c4 #gf1 t all ! unlimit$ banks ev5tually limit$ ! liabilities ( _! memb]s4 ,naturally1 a p]son ( consid]able weal? w\ld hesitate to risk 8 =tune by buy+ %>es 9 an unlimit$ bank :i* p]haps return$ him only #e p] c5t4 on 8 pur*ase-money2 b ?is objection is n n[ applicable1 ?\gh x mu/ n be =gott5 t ! %>ehold] is liable = a c]ta9 kn[n sum1 "p ( :i* may be callable & ! rema9d] res]v$ liability1 or all ( :i* may be res]v$ liability & callable only 9 ! ev5t ( ! company be+ w\nd up4 ,:]e notes are issu$ ! memb]s may also be liable = ! circulation4 ,n[ t ! liability on bank %>es is a c]ta9 sum t _c be exce$$ ! inve/or is incl9$ to reg>d !m fav\rably2 & ?\gh a ri* man1 :o c af=d to take a c]ta9 am\nt ( risk1 may decide to hold a few bank %>es among 8 o!r securities on acc\nt ( _! high] yield1 ?is liability1 be ! risk ( a bank com+ to grief nev] s small1 makes !m a mo/ undesirable inve/m5t = ^? p]sons ! int]e/ ^u ^: capital is j suffici5t to supply _! wants4 ,bank %>es1 9 %ort1 are ri* m5's %>es2 b ?is fact 0 br\ght home to ! public s =cibly dur+ ! ,au/ralian bank+ crisis ( #ahic t x seems unnecess>y to dwell ^u a po9t :i* mu/ be app>5t to ev]ybody4 ,besides1 we all "k t a man ( small means _c af=d to incur a liability on bank %>es any m ?an he c sign an accommodation bill1 & x w\ld be z fooli% ( him to accept ! "o responsibility z ! o!r4 ,nor is he ! class ( %>ehold] to :om ! depositor c look ) confid5ce4 ,:ile all[+ t ! great majority ( our banks are prud5tly manag$1 x mu/ be grant$ t bank+ hi/ory is a rem>kably /ormy "o1 ?\gh x is equally true t ! surface ( ! wat]s has be5 b little ruffl$ dur+ rec5t ye>s2 /ill1 ! ,b>+ crisis ( #ahij is n yet anci5t hi/ory2 & see+ t ! banks are intimately connect$ ) ! ,/ock ,ex*ange1 ! bill-brok]s & ! comm]cial community1 a p]son :o pr$icts t a ,briti% bank w nev] aga9 be 9 difficulties mu/ be bless$ by ! ,almighty ) a mo/ sangu9e temp]am5t1 = su* a pr$iction is altoge!r oppos$ to ! weight ( evid5ce adduc$ by ! pa/1 & ?\gh its fulfilm5t is em95tly desirable1 s peaceful a solution ( ! bank+ "q seems highly improbable4 ,9 ,*apt] ,,ii1 on ! *oice ( a bank]1 an attempt 0 made to %[ :y a cu/om] %\ld select a /rong in/itution ^: work+ res\rces are pl5tiful1 & ^: res]ve ( liquid assets is l>ge en\gh to enable x to meet a dra9 ( deposits dur+ a run or a panic4 ,! %>ehold] :o gu>antees ! cu/om]s ( a bank aga9/ loss to a limit$ ext5t w naturally take c>e t he is a p>tn] 9 a company :i* ma9ta9s an adequate res]ve ( ca% & securities z an insurance fund aga9/ ^? accid5ts :i* are q beyond ! control ( ! mo/ able bo>d ( directors4 ,a %>ehold]1 say1 holds tw5ty-five %>es 9 a bank4 ,^! %>es are = #hj ea*1 & ! am\nt paid up ^u ea* is #bj4 ,he1 !n1 receives a divid5d ^u #ejj1 & incurs a liability ( #a1ejj4 ,b he b\ght ^! #bj paid %>es at su* a price t !y only yield him #d p] c5t41 & he c]ta9ly _c af=d to run any great risk = su* a return2 s he !re=e1 be=e pur*as+1 took c>e t ! bank held a l>ge accumulation ( ca% & gilt-edg$ securities z a res]ve fund aga9/ ^? bank+ risks = :i* he pl$g$ #a1ejj ( 8 =tune4 ,e prud5t man %\ld take ! same precaution4 ,! foll[+ illu/rations1 :i* are tak5 f ! balance-%eets ( two ,engli% jo9t-/ock companies t ne$ n be nam$1 w cle>ly demon/rate t !re are banks--& banks4 ,an ,engli% ,prov9cial ,bank4 ,liabilities to ! public ^u curr5t1 deposit & o!r acc\nts are giv5 9 ! balance-%eet z #d1bjj1jjj4 ,! bank's liquid assets are ?us describ$3-- ,ratio p] c5t4 ( liquid assets to public liabilities ( #d1bjj1jjj4 ,ca% 9 h&1 at call & at %ort notice #ehb1gej #ach ,consols & o!r securities #agb1agj #da -------- ----- #ged1ibj #agi ,?is bank's position might be describ$ 9 "o v %ort ^w4 ,9 ! fir/ place1 x has neglect$ to /ate ! am\nt ( its ca% 9 h& & ) bank]s at call sep>ately1 b has mix$ x up ) its loans at %ort notice4 ,! only d$uction to be made is t ! bank possesses s little legal t5d] t x deems x prud5t n to give ! figures 9 its balance-%eet1 b to in=m ! public t x holds #ach ( ca% 9 h&1 at call & at %ort notice to ea* #ajj ( its public indebt$ness4 ,! second entry is equally vague4 ,we are qua9tly in=m$ t ?is unique in/itution1 :i* owes "s millions on dem&1 is 9 possession ( a c]ta9 am\nt ( ,consols1 b ! exact sum1 & ! price at :i* !y are tak51 h be5 left to our imag9ation1 s ! bank may be ! pr\d possessor ( ei!r #ajj or #a1jjj ( ,consols2 & goodness only kn[s :at is meant by 8o!r securities40 ,! second column ( our =m1 h[ev]1 %[s u t ?is company held #da ( 8,consols & o!r securities0 to ea* #ajj x ow$ to its cu/om]s4 ,!n1 ) a t\* ( true com$y1 ! auditors tell u t ! balance-%eet1 9 _! op9ion1 exhibits a true & correct view ( ! /ate ( ! bank's affairs4 ,"o's v s\l goes out to ^? auditors1 & a long+ seizes hold ( "o to pat !m on ! back & %\t bravo6 ,no d\bt ! /atem5t is true & correct1 b h[ /rangely incomplete4 ,( c\rse !re is a s]i\s side to ?is "q4 ,! bank1 we c see f ! total 9 our ratio column1 held only #agi ( ca% & c]ta9 securities 9 res]ve aga9/ ea* #ajj x ow$ to ! public4 ,obvi\sly x is trad+ on ! reputation ( its bett]-prep>$ rivals1 :o1 %\ld a det]m9$ run be made ^u x1 might feel dispos$ to save x2 b dur+ a crisis1 :5 ea* company has to take c>e ( itself1 su* a bank1 7 its depositors to become n]v\s1 w\ld be compell$ to close its doors 9 a v few h\rs4 ,n[1 w\ld any sane p]son buy ! %>es ( ?is bank at a price :i* returns him ab\t #d p] c5t4 on 8 capital1 & incur a liability 9 excess ( ! am\nt ( 8 hold+8 ,"o w\ld say emphatically n2 b x is a rem>kable fact t p are to be f\nd :o w take ?is risk ) a light he>t4 ,surely !y _c und]/& ! nature ( ! security !y are buy+4 ,a bank :i* is caught %ort ( ca% dur+ a crisis mu/ apply = assi/ance to ! ,bank ( ,engl&1 & ! ,bank1 :i* at s critical a "t is ! only m>ket = securities 9 exi/5ce1 w\ld1 be=e mak+ x an advance1 dem& to see its securities4 ,?is bank1 we "k1 possesses a li/ ( 8,consols & o!r securities0 :i* x values at #agb1agj2 b if ! ,bank advanc$ #ajj1jjj aga9/ !m1 :i* is highly improbable1 h[ c\ld x pay (f ev5 #ejj1jjj ( its deposits8 ,x seems to me t x mu/ g "u4 ,! usual fate ( ^! weak prov9cial banks is amalgamation ) ! bett] manag$ & m p[]ful companies1 b ! dang] is t a /orm may sweep !m out ( exi/5ce be=e !y drift into "o or ano!r ( ^! hav5s ( re/4 ,=tunately1 ! /ate ( ! bank 9 "q is exceptional r ?an repres5tative1 b x is unwise to jump to ! conclusion t ! %>es ( e ,engli% bank are a desirable inve/m5t4 ,our second illu/ration deals ) ! balance-%eet ( "o ( ! l>ge jo9t-/ock banks ^: liabilities on curr5t1 deposit & o!r acc\nts am\nts to #bf1feb1cjj4 ,! liquid assets held 9 res]ve aga9/ ?is sum are3-- ,ratio p] c5t4 ( liquid assets to public liabilities ( #bf1feb1cjj4 ,ca% 9 h& & at ,bank ( ,engl& #d1jji1fbb #aej ,money at call & %ort notice #f1hgf1aie #beh #d1jjj1jjj #b ,consols at #ij2 #ejj1jjj ,local ,loans ,/ock at #ajj #d1ajj1jjj #aed ----------- ----- #ad1ihe1hag #efb ,ambiguity is n ! dom9ant note 9 ?is balance-%eet4 ,we c see at a glance t ! bank is well prep>$ to pay (f a l>ge proportion ( its indebt$ness on dem&1 = x holds #ae 9 ca% aga9/ e #ajj x owes4 ,money at call & notice 7%ort loans to ! bill-brok]s & /ockbrok]s71 :i* is mu* less liquid ?an ca%1 is /at$ sep>ately1 & its li/ ( inve/m5ts consi/s entirely ( ,briti% ,gov]nm5t securities4 ,moreov]1 we are told at :at price !y h be5 tak54 ,! balance-%eet1 ?\gh n p]fect1 is cle> & in=m+2 b a company t holds #d1jjj1jjj ( ,consols at #ij w\ld n be s fooli% z to hide its f9ancial light "u a bu%el2 s :5 a bank mode/ly ref]s to 8,consols & o!r securities0 we may be q sure t its hold+ ( ,consols is ei!r rem>kably small or else t its directors are exce$+ly /upid4 ,x is m probable1 h[ev]1 t !y are a/ute g5tlem5 :o reason t ! lum9osity ( a f>?+ dip might call =? smiles ( wond] & amazem5t 7 x all[$ to %$ its radiance & wa/e its fragrance outside ! bu%el4 ,! bank we are discuss+1 !n1 held #efb ( ca%1 call money & gilt-edg$ securities 9 res]ve aga9/ ea* #ajj ( its liabilities to ! public2 & su* a bank1 x ne$ n be said1 is spl5didly prep>$ to protect ! balances ( its depositors & ! int]e/s ( its memb]s4 ,z a matt] ( fact1 ! real int]e/s ( bo? are id5tical2 = if a bank neglects to keep an adequate res]ve ( ca% & securities x exposes its cu/om]s to ! risk ( loss & inconv5i5ce ?r\gh its /oppage dur+ a run or a panic2 z1 %\ld ! bank susp5d paym5t1 ! cu/om]s mu/ ei!r susp5d too1 or f9d ano!r bank]1 :ile its %>ehold]s might lose all _! capital & also be call$ ^u to make good any deficit4 ,obvi\sly1 !n1 ! bank :i* holds #ef 9 liquid assets to ea* #ajj x owes is ! "o ) :i* to d bus9ess4 ,! %>es ( ?is bank return ab\t #d p] c5t4 at ! pres5t m>ket price2 & see+ t ! company has m9imiz$ ! risks ( its memb]s its %>es w be *os5 9 pref]5ce to ^? ( ! in/itution :i* has accumulat$ a some:at d\btful res]ve ( liquid assets :i* works out at a ratio p] c5t4 to its liabilities ( only #agi4 ,we next come to a bank+ company's pr(its1 :i* are a s\rce ( great annoyance & wond]m5t to c]ta9 p1 :o _c und]/& h[ divid5ds ( f #aj to #bj p] c5t4 c be e>n$ 9 ! wor/ ( times :5 ev]ybody else is feel+ ! depression 9 trade acutely4 ,! my/]y is n v pr(\nd1 = a bank]'s bus9ess1 ( c\rse1 is only pr(itable s long z he c trade ) ! money ( 8 depositors1 &1 z 8 own capital is usually small :5 comp>$ ) 8 deposits1 x foll[s t a v small p]c5tage on 8 work+ res\rces w return a high rate ( int]e/ ^u 8 capital4 ,^u a c]ta9 am\nt ( 8 deposits he all[s a rate :i* is regulat$ by ! ,bank rate2 & he *>ges a rate ^u 8 loans & advances1 ! said rate be+ also m or less influ5c$ by ! ,bank rate1 ! diff]5ce betwe5 ! two rates repres5t+ 8 m>g9 ( gross pr(it4 ,he regulates ?is m>g9 by *ang+ 8 deposit rate at ea* alt]ation ( ! ,bank rate1 b he also obta9s money ^u :i* he does n pay int]e/1 & z t sum e>ns consid]ably m :5 ! ,bank rate is at #d ?an :5 x is at #b1 x foll[s t 8 8free0 money is l>gely responsible = ! fluctuations ( 8 divid5ds4 ,b a bank] _c trade ) all 8 deposits4 ,he has to keep a c]ta9 sum ly+ idle 9 8 safes & tills1 & ) 8 ,london ag5ts or ! ,bank ( ,engl&4 ,he fur!r requires a good li/ ( securities :i* c be ei!r conv]t$ or pl$g$ ) ! ,bank ( ,engl& %\ld occasion arise1 & su* a li/ w n return him mu* m ?an #c p] c5t4 ^u ! sum devot$ to t purpose4 ,!n he employs a portion ( 8 funds 9 ! %ort-loan m>ket1 s he has only ab\t #fj or #gj p] c5t4 ( 8 deposits to advance 9 ! %ape ( loans1 ov]drafts & disc\nts to cu/om]s4 ,9 o!r words1 a well-manag$ bank has to devote a l>ge proportion ( its res\rces to insur+ its bus9ess4 ,take ! bank 9 our second illu/ration4 ,its paid-up capital am\nts to #b1hjj1jjj1 & its res]ve fund to #a1fjj1jjj1 s ! %>ehold]s' funds come to #d1djj1jjj4 ,deposits & o!r acc\nts are #bf1feb1cjj1 mak+ its total work+ res\rces #ca1jeb1cjj4 ,n[ ! net pr(it e>n$ dur+ ! half-ye> 0 #bjg1hfi1 s ! bank cle>$ #ffi ( a p\nd ^u ea* #ajj ) :i* x 0 trad+2 & see+ t ! trad] expects to make #aj p] c5t4 on 8 turn-ov]1 x is pretty evid5t t bank]s' pr(its %r9k into insignificance :5 comp>$ ) 84 ,b ! bank's paid-up capital is only #b1hjj1jjj2 & z #ad1jjj w pay #a p] c5t4 p] annum = ! half-ye> on t1 ?is pr(it ( #bjg1hfi enables ! bank to decl>e a divid5d at ! rate ( #ad p] c5t4 p] annum1 & to c>ry a l>ge am\nt =w>d to ! pr(it-&-loss acc\nt ( ! next half-ye>2 yet x c h>dly be said t its e>n+s on #ca1jjj1jjj are enorm\s2 /ill1 !y look x :5 metamorphos$ into a rate ( #ad p] c5t4 ,b ?is is only ano!r illu/ration ( h[ easily ! cr[d c be deceiv$ by /ati/ics4 ,x w\ld be absurd to attempt 9 a %ort *apt] to discuss ! price ( bank %>es2 b z ! bank+ companies1 unless !y enjoy an exceptionally %elt]$ position1 e>n less dur+ ^? p]iods ( depression :i* f "t to "t ov]take ! trade ( ! c\ntry1 x foll[s t _! divid5ds1 l _! deposit rates1 rise & fall ) ! ,bank ( ,engl& rate4 ,bank %>es1 !re=e1 c be b\ght *eaply :5 trade is bad & loanable capital *eap4 ,z ! s-call$ gilt-edg$ securities1 dur+ normal times1 %\ld !n be de>1 x (t5 pays to sell out ( ! latt]1 inve/ 9 bank %>es1 & wait = ! turn+ ( ! tide4 ,,*apt] ,,xiii ,,! ,,pay ,,( ,,bank-,,cl]ks ,x _c be said t bank-directors1 :5 consid]+ ! "q ( remun]ation1 err on ! side ( g5]osity2 b nobody w\ld dream ( accus+ !m ( t crime1 & if ! bank-cl]k is n paid lavi%ly1 8 sal>y1 z a rule1 is appreciably above ! wages paid = cl]ical lab\r 9 ! op5 m>ket4 ,nor c x be affirm$ t ! c\ntry private bank] 0 "o :it m g5]\s ?an a bo>d ( directors4 ,inde$1 ! evid5ce po9ts 9 q an opposite direction1 = ! cl]ks ( ^? firms :i* h be5 absorb$ by ! companies g5]ally pr(it$ by ! *ange2 s x mu/ be all[$ t ! jo9t-/ock sy/em has rais$ ! /&>d ( com=t ( ! bank-cl]k4 ,c]ta9 ( ! ,london private bank]s 7 m lib]al1 & o!rs1 aga91 _h ! comm]cial in/9ct /rongly develop$1 b we %all see ! sal>y scales ( ! jo9t-/ock banks are n calculat$ to excite envy 9 ! m9d ( ! multitude1 unless we except ! unemploy$ & ! hungry4 ,! foll[+ scale is t ( a l>ge ,london & prov9cial bank+ company3-- ,g5]al manag]s #a1ejj to #b1jjj ,manag]s 9 a city #ejj 0 #a1ejj ,manag]s 9 t[ns ( f #dj1jjj to #fj1jjj inhabitants #cej 0 #ejj ,manag]s 9 small c\ntry t[ns #bej 0 #cej ,inspectors 7) "o gu9ea a day = travell+ exp5ses7 #cjj 0 #ejj ,acc\ntants or *ief-cl]ks #afj 0 #baj ,ca%i]s #afj 0 #baj ,cl]ks #hj 0 #afj ,appr5tices #cj 0 #ej ,at ! head-(fice 9 ,london1 :]e !re is a special scale1 ! city-manag] w\ld receive f #a1jjj to #a1ejj a ye>1 & ! *iefs ( dep>tm5ts f #cjj to #a1jjj1 accord+ to ! importance ( ! dep>tm5t1 :ile ! sal>ies ( ! l$g]-cl]ks w\ld be rais$ #aj ea* ye> until ! maximum1 #cjj1 _h be5 rea*$4 ,! maximum = cl]ks is #ahj4 ,at ! metropolitan & suburban bran*es h[ev]1 ! sal>ies are ! same z ^? set out 9 ! =ego+ li/1 & ! manag]s w\ld receive f #cjj to #hjj or s a ye> 9 proportion to ! bus9ess done at ! bran*4 ,v few ( ! jo9t-/ock banks w\ld pay a high] scale ( wages ?an ?is1 & ! great majority ( !m1 especially ! purely prov9cial companies1 w\ld pay consid]ably less1 :ile ! ,scot* banks are nigg>dly 9 ! extreme--a little national *>act]i/ic4 ,x is on record t a cl]k 9 a c]ta9 ,scotti% bank+ company1 ^: head-(fice is at ,ab]de51 0 receiv+ #cj a ye> at ! end ( five ye>s' s]vice4 ,9 a fit ( unacc\ntable g5]osity 8 sal>y 0 !n rais$ to #ej p] annum1 b ! recipi5t rem>ks t he %[$ 8 gratitude by promptly mov+ to ,london4 ,adv]t+ to our li/1 we c see t a y\ng/] ent]+ ?is bank at ! age (1 say1 sev5te51 gets #cj a ye>1 out ( :i* he has to pay c]ta9 subscriptions4 ,at ! age ( tw5ty 8 sal>y w\ld be increas$ to #hj1 & #aj at ! end ( ea* ye>'s s]vice w\ld be add$ until ! maximum = cl]ks1 #afj1 7 rea*$4 ,he w\ld !n be tw5ty-eight1 & !re he w\ld h to wait = ! bank to make him ei!r a ca%i] or an acc\ntant be=e he c\ld proce$ to ! next /ep4 ,a few m5 rema9 cl]ks all _! lives1 b ! p]c5tage w\ld be a v small "o1 & 9 e probability ! cl]k might c\nt ^u be+ promot$ at ! age ( ?irty-?ree or ?irty-f\r4 ,) good luck1 or %\ld he *ance to h a fri5d at 8c\rt10 he might ga9 ?is /ep at ?irty4 ,assum+ t he 7 made a ca%i] at ?irty-"o1 he w\ld />t ) a sal>y ( #agj1 &1 ris+ #aj a ye>1 w\ld rea* ! maximum ( ?is class1 #baj1 :5 he 0 ?irty-five ye>s ( age4 ,! p]c5tage ( m5 :o rema9 9 ?is class all _! lives is appreciable1 & ! av]age man probably w\ld n get a small bran* be=e he 0 =ty-five or =ty-eight4 ,( c\rse1 if he successfully accompli%$ "s su* feat z m>ry+ ! pla9 daught] ( a g5]al manag]1 or %\ld he be di/antly relat$ to a director or a ,"l ,mayor1 he might get a bran* at =ty4 ,b ! prizes are = ! v few1 & ^? m5 :o d really well1 aft] hav+ manag$ a small bran* to ! satisfaction ( ! bo>d1 are s5t to a l>g] (fice ^u a sal>y ( #djj a ye> ris+ to ab\t #fjj4 ,at ?is rate a cl]k w\ld be f =ty-eight to fifty-two or ?ree be=e 8 sal>y 0 #djj a ye>1 & x mu/ be rememb]$ t ^! are ! =tunate ones2 s x is evid5t t ! majority ( cl]ks 9 a bank simply eke out an exi/5ce4 ,on ! o!r h&1 !y are bett] paid ?an ! av]age m]*ant & solicitor's cl]k1 :ile _! employm5t is con/ant1 &1 z a rule1 !y are entitl$ to a p5sion1 %\ld !y survive ! monotony ( _! surr\nd+s1 aft] hav+ atta9$ ! age ( sixty4 ,see+ t ^! "y m5 are drawn f ! same class z ! m]*ant's cl]k1 & t ! dem& = _! b]?s is greatly 9 excess ( ! supply1 x appe>s at fir/ sight t #afj a ye> is a fair wage = a p]son ^: pr9cipal accompli%m5ts are a bold r\nd h& & ! ability to add up long columns ( figures ) accuracy & despat*4 ,h[ev]1 x seems improbable t a fa!r1 aft] hav+ c>efully consid]$ ! *ances1 w *oose a bank+ c>e] = a son :o c pass exam9ations successfully4 ,!n1 aga91 ! av]age y\ng/] has m *ances 9 bus9ess2 = :ile a few hundr$ p\nds w e/abli% him z a trad]1 z _m ?\s&s w n enable him to become a bank]4 ,! banks1 s to speak1 take _! m5 "r (f ! m>ket1 & give !m a special tra9+1 :i* fits !m = bank+ alone1 b :i*1 z a rule1 totally unfits !m = any o!r bus9ess2 consequ5tly1 :5 a bank-cl]k sudd5ly f9d himself flung back on ! m>ket1 he at fir/ usually feels z helpless z a bird :i* sudd5ly turn$ out ( ! cage 9 :i* x 0 br$1 is compell$ to su/a9 life aft] ! mann] ( its k9d4 ,z ! bank-cl]k g5]ally ent]s a bank = life1 he has a "r to expect t ! %>ehold]s & directors w at lea/ recognize ?is fact1 &1 !re=e1 pay him a sal>y bas$1 n only ^u ! m>ket price ( cl]ical lab\r1 b also ^u ! assumption t he w pass 8 days 9 ! s]vice ( a company 9 :i* he w always be a s]vant4 ,9 o!r words1 z ! directors practically hire ^! m5 = life1 x is _! duty to make _! circum/ances fairly easy1 b ?is is an obligation :i* ! majority ( !m q fail to recognize4 ,! small] banks h a mu* l[] scale ?an t giv5 9 ^! pages2 & c]ta9 ( ^? companies :i* are pu%+ out small suburban t5tacles 9 e direction pay ! manag]s ( ^! (fices f #hj to #abj a ye>1 & ! cl]ks 9 proportion4 ,moreov]1 "s bo>ds h pass$ resolutions to ! effect t no cl]k 9 _! s]vice %all m>ry until 8 sal>y be su*-&-su* a sum2 & x seems intol]able t a body ( m51 :o are m]ely trad]s1 be ! resolution good or bad1 %\ld be all[$ to int]f]e ) ! lib]ty ( ! subject 9 ?is arbitr>y fa%ion4 ,mr4 ,pun*'s advice is d\btless excell5t2 b :o are ^! m51 9 _! a/\nd+ consequ5ce1 to ov]ride ! law ( ! l&8 ,! :ole nation %\ld indignantly prote/ aga9/ _! impud5ce1 = a m]e trad+ company1 ^: only object is ga91 is unfit to gov]n ! sons ( m54 ,possibly1 if ^! banks 7 to publi% _! sal>y scales _! %am philan?ropy w\ld be in/antly app>5t4 ,p]haps a few illu/rations ( ! relations betwe5 ! banks & _! cl]ks may prove int]e/+4 ,i h 9 my m9d ! case ( a man :o sat by my side at a l>ge bran* bank 9 ! ,nor?4 ,f be+ a *ief-cl]k or acc\ntant 9 ! s]vice1 he _h be5 r$uc$ to #afj a ye>1 & s5t to ! bran* 9 "q4 ,! co/ ( liv+ be+ exp5sive 9 a l>ge city1 he 0 compell$ to s5d 8 *ildr5 to ! ,bo>d s*ools4 ,9 fact1 he 0 s h>d up t he wrote to ! g5]al manag]s tell+ !m t he c\ld n live on ! sal>y1 & ask+ !m to increase x4 ,he 0 told t1 if he 7 n satisfi$1 he c\ld take a ye>'s sal>y 7,i ?9k x 07 & g4 ,! bank1 h[ev]1 ultimately succe$$ 9 gett+ rid ( him m *eaply4 ,! man1 :o 0 a tailor's t\t & an insurance ag5t 9 8 sp>e mom5ts1 did all 9 8 p[] to add to 8 income2 b at la/ he fell s l[ t he actually desc5d$ to tak+ money f ! m5's coats4 ,!n foll[$ detection & dismissal4 ,n[1 :o 0 ! m to blame1 ! cl]k or ! bank8 ,! cl]k _h in=m$ ! directors t he c\ld n live ^u 8 sal>y1 & ! directors made him an impossible (f]1 = ! man1 :o mu/ h be5 gett+ on = fifty1 _h be5 9 ! s]vice f a boy1 & 0 !re=e n wor? ?irty %ill+s a week outside4 ,kn[+ ?is1 ! (f] ( ! directors 0 frankly brutal1 & los+ hope ! cl]k became a petty ?ief4 ,my e?ics may be some:at %aky1 b 7 ,i on my trial = a h>p & a halo ,i w\ld r /& 9 ! ?ief's place ?an 9 t ( ^? directors4 ,ano!r man 9 ! same (fice1 al?\gh s+le1 c\ld n acquire ! art ( liv+ ^u #afj a ye>1 & aft] "s few ye>s ( unsuccessful /riv+ & va9 endeav\r1 he 0 dismiss$ = dr9k & debt4 ,he !n became a travell] 9 ! w9e trade1 & t]m9at$ 8 n un9t]e/+ c>e] by gett+ drunk on 8 samples4 ,a ?ird man1 :o 0 a m>ri$ ca%i]1 took two sov]eigns f 8 till1 int5d+ to return !m ^u ! foll[+ day1 b 8 till-money 0 c\nt$ ! v next morn+ by ! acc\ntant1 :o 0 probably suspici\s1 & ! man _h to g4 ,out ( a /aff ( tw5ty-eight m51 five1 ,i ?9k1 7 ca%i]$ )9 five ye>s2 x seems to me t 7 a k9d] _s manife/$ by ^? 9 au?ority mu* ( ?is mis]y & suff]+ might be sp>$4 ,= in/ance1 9 "o s]vice x is usual to s5d old m5 & o!rs :o1 = "s reason or ano!r1 h be5 r$uc$1 to a l>ge bran*1 :]e1 aft] a few mon?s h elaps$1 !y are giv5 a small sum ( money & quietly pu%$ into ! /reet4 ,?is proc$ure is adopt$ because a man at a small bran* is acqua9t$ ) ! acc\nts ( all ! cu/om]s !reat1 & might1 %\ld he be dismiss$ :ile !re1 hold =? 9 e public-h\se 9 ! t[n2 b ! exp$i5t is unspeakably mean1 & surely a bank :i* c\nts its deposits by millions c af=d to temp] ju/ice ) m]cy4 ,! directors "k ! fate t awaits ^! m51 m especially :5 !y are pa/ =ty1 & x is simply cruel to we$ !m out 9 ?is brutal fa%ion4 ,to my m9d x is little %ort ( murd]4 ,! sy/em1 ( c\rse1 is bad4 ,! banks place "o man 9 au?ority & to t man !y pay a good sal>y4 ,he1 9 8 turn1 has to hold d[n ! re/1 ) ! result t we h already se54 ,at ! bran* 9 "q ! manag]1 :o 0 an old man1 receiv$ #a1ejj a ye>1 & ! acc\ntant1 :o 0 a man ( ab\t =ty-two1 got #cjj4 ,! disp>ity betwe5 ^! two sums is mo/ m>k$1 = ! acc\ntant 0 q z able a man z 8 *ief1 & if he 7 only wor? #cjj a ye>1 !n ! manag] 0 n wor? m ?an #ejj at ! outside4 ,7 a bank to pay ea* man a fair sal>y1 & to r$uce ! manag]'s rate ( pay1 x w\ld increase its exp5ses consid]ably1 b at ! same "t x w\ld add to ! effici5cy ( its /aff1 = mo/ ( ! m5 are dissatisfi$1 & ! "w1 z a rule1 is n done will+ly1 :ile ! directors are look$ ^u z task-ma/]s4 ,nor is ?is at all surpris+1 = ( sympa?y !y display b little1 & _! humanity is unque/ionably n sup]ior to t ( ! ,zulu4 ,i h weigh$ my words c>efully1 & am writ+ )\t ! slighte/ heat1 my only aim be+ to /ate my facts pla9ly1 & ,i ?9k t1 if ! facts are un*all5g$1 ! d$uctions are z indisputable z !y are discr$itable to ! directors & %>ehold]s ( c]ta9 ( ! jo9t-/ock banks4 ,butl] ,tann]1 ,! ,selwood ,pr9t+ ,works1 ,frome1 & ,london4 ,transcrib]'s ,note ,bold & italic words 9 ! orig9al text h be5 m>k$ 9 ?is v]sion ) equals signs & und]scores respectively4 ,a few m9or typographical errors h be5 sil5tly correct$4