Banking, by Major B. Foster
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Banking, by Major B. Foster

Banking, by Major B. Foster


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About the Book

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: thing in the banking field. The various special functions are grouped together again as they were in the small banks at the beginning. We shall indicate briefly the nature of some of the different kinds of banking institutions. 4. Banks of discount.?A bank of discount is one which is engaged primarily in lending operations, in addition to accepting deposits. Banks of discount are of two kinds: commercial banks and financial banks, according to the kind of loans they make. In general, it may be said that commercial loans are based on commercial transactions already in process or completed, such as the purchase and sale of goods. A wholesaler sells a bill of goods but will not receive payment before ninety days. In the meantime, he finances his business thru a ninety-day loan at the bank. The loan has back of it an actual sale of goods and is to be paid out of the proceeds of the sale. 'Loans like this, which as a rule, do not run over six months, are in the field of commercial banking. Most of the deposits in a commercial bank are payable on demand. Financial loans are made for investment and development purposes. A manufacturer builds a new plant, borrowing part of the necessary funds, and wants five years in which to make payment. Loans like this, based on transactions not yet begun and made for promoting new enterprises, are in the field of financial banking. The bank gets its funds for this sort of loan from capital subscriptions, from its chapter{Section 4own surplus earnings, and from deposits left with it for a long time. Obviously, a deposit that is liable to withdrawal at any minute cannot safely be loaned to a railroad for twenty years. Many institutions do both a commercial and a financial banking business, but a conservative house always limits the financ...


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Product Details
  • ISBN-13: 9780217443555
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 86
  • Spine Width: 5 mm
  • Width: 189 mm
  • ISBN-10: 0217443559
  • Publisher Date: 06 Feb 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 168 gr


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