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The Evolution of Banking; A Study of the Development of the Credit System

The Evolution of Banking; A Study of the Development of the Credit System


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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1915 Excerpt: ...$214,778,000.00 Due depositors 230,251,000.00 Total $445,129,000.00 On hand to redeem the same: Specie $ 58,349,000.00 Specie funds 25,081,000.00 Bills of other banks 28,124,000.00 Total $111,554,000.00 Reserve, 25 per cent. Of course these banks had other assets, but they were in the form of notes, real estate, mortgages, etc. But these could not be used during a panic, as months and perhaps years would ensue before they could be realized on. When a run on a bank occurred the specie on hand would be withdrawn and hoarded by the public, and when the reserve was exhausted, the bank closed its doors. This result was inevitable. While a cash reserve of 25 or 30 per cent was undoubtedly sufficient to transact an ordinary day's business in the bank, panic days are extraordinary days and no debtor, bank or merchant can pay on demand one dollar of debts with thirty cents or less in money. The banks brought ruin on themselves by promising to do what they knew they could not do if called upon. The year 1847 was called a good year--exports amounted to $158,000,000--and the net gain by this country in specie importations was $22,000,000. And yet the condition of the banks was not extraordinarily different from the panic year of 1837, which preceded it, and the panic year of 1857, which followed. The year of 1847 could and would have been a panic year if the noteholders and depositors had made a run on the banks and demanded the specie which they were entitled to according to the banks' promises. In 1837 the banks had four times the amount of bills outstanding that they had specie to redeem them with, while in 1847 they had three times as many; and when we take into consideration the total amount of demand liabilities and the quick cash assets on hand to redeem them wi...


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Product Details
  • ISBN-13: 9781151372697
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 40
  • Spine Width: 2 mm
  • Width: 189 mm
  • ISBN-10: 1151372692
  • Publisher Date: 01 May 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 91 gr


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