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Banking Principles and Practice Volume 1

Banking Principles and Practice Volume 1


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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. 1921 Excerpt: ...actual government money, have 1900 1901 1902 1903 1903 1905 19061 1907 1908 Fl909 I 1910 I 1911 1912 I 1913 1913 1916 1916 1917 1918 llllll Brookmire curves used in this chart. Figure 2. Graphic Chart Showing Ratio of Cash Reserves to Loans of New York Clearing House Banks NO been enabled to procure materials, labor, tools, plant, transportation, and the like. The funds put into investments and some indeterminate proportion of the loans (and discounts) represent contributions of permanent capital. The proportion of the loans which constitutes permanent advances of capital ranges in all probability from 20 to 50 per cent. The tendency is to increase. The ratio of cash reserve to investments, plus, say, 30 per cent of loans, is therefore a measure of the degree to which a bank contributes permanent capital to business. The ratio of cash reserve to, say, 70 per cent of loans, measures the temporary advances. Users of business barometers watch closely the less complex ratios of: (1) cash reserve to loans, (2) investments to aggregate assets, (3) loans to aggregate assets, and (4) the sum of loans and investments to aggregate assets. The history of the first, third, and fourth ratios is shown in the accompanying charts (Figures 2 and 3), and by subtracting the third from the fourth the second can be obtained. During the war the increase of bank cash reserves in this country did not keep abreast of the expansion of loans, the result being that the ratio of cash reserves to loans decreased precipitately. The loan account developed into an unprecedented state of extension; the banks met the urgent demands for funds to finance the war and war industries; an excessive proportion of the loans was collateraled by United States securities, and did not necessarily repres...


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Product Details
  • ISBN-13: 9781151910059
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 68
  • Spine Width: 4 mm
  • Width: 189 mm
  • ISBN-10: 1151910058
  • Publisher Date: 01 May 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 141 gr

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