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Chapters on the Theory and History of Banking

Chapters on the Theory and History of Banking


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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: CHAPTER III. BANKING OPERATIONS AND ACCOUNTS. HAVING thus taken a general view of the nature of banking operations, it is now necessary that we should enter upon the consideration of some of their details. For a bank, as well as for any other considerable capital no establishment, it is requisite that a capital rule for its should be provided at the outset. There amount., .., . can be no constant proportion between the amount of this capital and the extent of the business which may be built up by its means. We can only say that, other things being equal, the larger the business that can be carried on with safety with a given capital, the larger will be the field from which profits can be earned, and the higher the proportion which the profits will bear to the original investment; but the point at which the extension of the business passes the line of safety, must be determined by the circumstances of the particular bank, by the kind of business carried on by those dealing with it, and by the condition of the community in which it is established. The attempt has sometimes been made to limit by law for incorporated banks the proportion of transactions for a givenamount of capital,1 but no such provision has any foundation except a conjectured average, too rough to be of service in any individual case. In this respect, as in so many others, the judgment of the persons most interested, acting under the law of self- preservation, is far more trustworthy than any legislative decision. The capital thus to be provided at the outset is, of course, in the case of a private bank, the contribution of the partners, as in any other undertak- shares and ing. In the case of an incorporated bank shareholders, the capital is divided by law into equal shares or units of fixed ...


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Product Details
  • ISBN-13: 9780217808798
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 52
  • Spine Width: 3 mm
  • Width: 189 mm
  • ISBN-10: 0217808794
  • Publisher Date: 02 Feb 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 109 gr


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