Problems in Banking, Money and Credit

Front Cover
Ronald Press Company, 1927 - 757 pages

From inside the book

Contents

17
47
Effect of Change of Mint Ratio on Purchasing Power
48
Shinplasters
54
18
60
CREDIT AND CREDIT INSTRUMENTS
63
Relation of Commercial Banks to Real Estate Operations
69
Nature of Bankers Acceptances
76
Money Based on Labor
84
Labor Banks
91
PROBLEM PAGE 135 Bank of America Voting Trust Upheld
102
Departmental Banks in California
103
DEPOSIT FUNCTION 138 Bank Balance and Interest Thereon
105
Earnings of Savings Accounts
106
Net Demand and Time Deposits of All Member Banks in Six Federal Reserve Districts 1923 to 1926
107
Deferred Credit Items
108
Interest on Average Daily Balances
109
Growth of Certified Checks of National Banks of New York City
110
Maturing of Certificates
111
The Problem of Guarding Against Check Forgers and Burglars by American Bankers Association
112
Proposed Law Against Overcertification
113
Clearing and Collecting Credit Instruments
114
Clearinghouse Certificates
115
Instruments Used in Settling ClearingHouse Balances
116
Terms of the ClearingHouse Certificates of 1890
117
Collecting Drafts
118
Relation of Deposits and Loans and Discounts
119
Interest on Bank Balance
120
Effect of High BondDeposit Requirement on the National Banks
121
Bank Losses Saved under Deposit Guaranty
122
Guaranty by National Bank
123
Guaranty of Deposits in Banks which Are Members of the Federal
124
Reserves of National Banks
125
Liability of Directors for Losses Caused by Illegal Acts
126
Reserve Requirements of Member Banks
128
LOANS AND DISCOUNTS 178 Expansibility of Bank Loans
129
Nature of the Balance Requirement
130
Loans to Officers and Directors
131
Ratio of Bank Capitalization to Deposit Liability
132
SelfLiquidating Loans
133
Discounting a Promissory Note
134
Security for Farmers Personal and Collateral Loans
135
Loans by a National Bank Secured by Its Own Stock
136
Advantage of Cash Discount and Time Sales Terms
137
Effect of Restrictions on Real Estate Loans on National Banks
138
Legal Restrictions on Real Estate Loans
139
Legal Rights of Parties to Loans in Excess of Section 5200 National Bank Act
140
PepperMcFadden Act and Real Estate Loans
141
When Has a Bank Reached Its Limit in Granting Loans
142
Limitation on Loans to One Borrower
143
Limitations on Loans to a Banks Officers
144
CREDIT ANALYSIS 204 Organization Charts of Credit Departments
145
Sources of Credit Information
147
Analysis of Financial Statement The Broadway Notion Jobbing Company
148
Analysis of Financial Statement The New York Vacuum Cleaning Company
149
Dominion Grocery Company Richmond Va
150
Financial Statement of The Western Grocery CorporationBorrows through Commercial Paper Houses
155
Florida Hardware Company
157
Tennessee Wholesale Dry Goods Company Nashville Tenn
159
Western Creamery Company Kansas
161
Empire Knitting Mills New York State
165
The New York Paper and Products Corporation Connecticut
167
Brown Structural Steel Corporation New York State
169
The Middle Western Manufacturing Company
172
Hudson River Advertising Agency New York City
176
Gasoline and Fuel Company New York City
178
INTERBANK RELATIONS 223 Interbank Exchange of Credit Information
183
The Bank of Italy and the Bancitaly Corporation
184
Commercial Banks and Subsidiaries
185
Essential Features of Interbank Accounts
186
PROBLEM PAGE 227 Acceptance Credit Agreement
187
Repurchase of Bankers Acceptances by Federal Reserve Banks
189
Commercial Banks and Cattle Loan Companies
190
Interbank Balances Loans and Rediscounts
191
National Banks That Borrow
192
Rediscounts of the Twelve Federal Intermediate Credit Banks as of April 16 1927
193
Interbank Reserves in 1907
194
Brokerage Loans in New York City
195
Sterling Accounts of Foreign Banks with English Banks
197
Competition of Bank of England with Other Banks
198
Borrowing from Federal Reserve Banks by Reporting Member Banks in Leading Cities
199
Interdistrict Accommodation of Federal Reserve Banks During 1918
201
Line of Credit Established by Federal Reserve Bank under Phelan Act of 1920
202
Discount Operations of the Federal Reserve Banks by States
203
Support of Federal Reserve Bank of New York to Bank of England
205
FINANCING THE BUSINESS MAN 246 Mercantile Credit and Sales Terms
207
Trade Acceptance Experience
208
The Use of the Trade Acceptance in Financing Cotton
209
Banks Acting as Insurance Agents as Brokers and Agents Making Loans or Procuring Loans on Real Estate
210
Valuation of Assets
211
Usance of Trade Paper
212
Commercial Settlements
213
Sales Terms in Fresh Cured and Canned Meats
214
Sectional Variations in Sales Terms of Jobbers of Hardware
215
Sales Terms of Electrical Products
216
Cotton Mill Financing
217
Borrowing Customers of Banks in Agricultural Regions
218
The Supply of Capital
219
Meat Bills
220
Loans to Manufacturers of Lumber on Their Straight Notes
221
The Financial Budget of the Twin City Flour Milling Company
222
PROBLEM PAGE 276 The Industrial Equipment Trust Corporation of Americathe Free man Plan
223
Standardization of Installment Sales Terms
224
The Allied Rediscount Corporation
225
BANK INVESTMENTS 279 Investment Banking versus Commercial Banking
227
Scope and Nature of Bank Investments
228
Losses on Commercial Paper
229
Loans and Investments of National Banks State Banks and Trust Companies
232
Losses on Investments and Other Assets
233
National Bank Investments as of June 30 19141926
234
Investments of Mutual Savings Banks in New York
235
Investment Character of English Joint Bank Stocks
236
Purchase and Sale of Securities for Customers of English Banks
237
Effect of Changing Price Level on Value of Securities
238
Valuation of Bank Investments in Emergency Periods
240
Bank Dealings in Investment Securities
241
BANK EARNINGS AND DIVIDENDS 297 Downward Trend of Banking Profits
242
Distribution of Losses by Banks on their Loans and Investments
243
The Service Charge
244
Earnings of National Banks 18691879
245
Campaigns for New Savings Accounts
246
Cost of Operating Savings Bank Accounts
247
Banking Ratios as Criteria of Condition of National Banks
250
Operating Costs and Profits of Member Banks with Branches in First Federal Reserve District
251
Function of Surplus
252
Dividends of National Banks
253
BANK ORGANIZATION CONSOLIDATION AND REGULATION 312 Charter Period of National Banks
254
Bank Mergers and Consolidations in the United States from 1910
255
Reasons for Bank Merger
256
Relation of State Bank Officials to the Financial Institutions under their Supervision
257
PROBLEM PAGE 317 Voluntary Liquidation of National Banks
259
State Supervision of Banks
260
Interest Rates and Usury
261
Distribution of Violations of National Bank Act
262
Immunity from Failure of National Banks
263
Causes of Failure of National Banks
264
Method of Handling Failed Banks
265
Frequency of State Bank Examinations
267
Examination of State Member Banks of the Federal Reserve System
269
Periodical Reports of State Banks to the Superintendent of Banks
270
Objection to Fixed Dates of Reports of National Banks
271
Purpose of the Examinations of the Comptroller of the Currency
272
Member versus NonMember State Bank Failures
274
Results of Liquidating 167 National Bank FailuresJanuary
275
Losses to Depositors from Bank Failures
276
FOREIGN EXCHANGE 337 The Balance of Trade of the United States
278
Effect of the War on the Gold Points
279
Exchange Rates
280
Rise in Franc Hampers French Export Trade
281
Bills of Exchange
282
Certain Types of Finance Bills
283
Factors Affecting Foreign Exchange Rates
284
Relation Between the LondonNew York Rate of Exchange and Money Rates in the Two Markets
285
Relation of Interest Rates to the LondonParis Exchange Rate
287
The Trend of Sterling Exchange in New York Since 1913
289
New Conversion Rates for International Money Orders
290
Arbitrage Transaction
291
Bankers Long Bills
292
Rates of Exchange for Commercial Long BillsBankers Acceptances
293
PROBLEM PAGE 367 Factors Affecting the Foreign Exchanges
294
Dollar Loan
295
Preference for Dollar or Sterling Loans
296
Correspondent Accounts Abroad
297
Relation of Discount Rates and Exchange Rates
298
Exchange Between a Gold Country and a Silver Country
299
Conversion of Prices from Paper to Prices on Gold Basis
300
Calculation of Purchasing Power Parities
301
International Price Movement
302
Restoring a Bank Balance Abroad
303
Theory Underlying Certain Banking and Exchange Operations
304
Relation of Exchange Rates and Par
305
FINANCING FOREIGN TRADE 389 Methods of Paying for Goods Purchased Abroad
306
Statement of an Acceptance Bank
307
Occasion of the Passage of the Edge Corporation Act 394 Method of Handling the Insurance of Exports to South America
309
Goods for Export
310
Exporters Advantage from Foreign Resident Agent
311
Refinancing Acceptance
312
Advantages of the Trust Receipt
314
Limitations on Letters of Credit and Acceptances
315
Bank Charge for Issuing and Handling Letters of Credit
316
Financing an Importation from the Far East by Sterling Exchange
317
Financing Importation from Far East by Dollar Acceptances
319
Financing an Exportation from the United States to England by Sterling Exchange
320
Commercial Banks Establishing Foreign Branches
322
PROBLEM PAGE 417 American Investment Banks in the Foreign Field
323
American Banks Employing Representatives Abroad
324
INTERNATIONAL MOVEMENT OF CAPITAL 421 The International Gold Movement 190225
326
International Balance of Payments
328
International LongTerm Loans and the Trade Balance
330
Economic Effects of Foreign Loans
331
Control of International Investment Banking
332
The Mexican Constitution of 1917
333
Supervision of Foreign Loans by the Department of State
334
Methods by Which a Government Supports Its Nationals in Interna tional Property Claims
335
International Movement of Gold Reserves
336
War and the Movement of Capital
337
Foreign Investments and the Exportation of Private Capital
338
Foreign Loans Placed in the United States
340
Basic Conception of Reconstruction behind Dawes Plan
342
The Effect of the Reestablishment of Stable Currencies in Europe
343
Statement of AgentGeneral for Reparation Payments
344
NONCOMMERCIAL BANKING 439 Savings Banks and Commercial Deposits
348
Investing the Funds of a Savings Bank
349
The Corporate Trust Department
350
Redemption of Mortgage Bonds
351
Conversion of Corporate Securities
352
Issue and Re demption of Equipment Trust Certificates
353
Trust Company as Transfer Agent
354
Trustee of Mortgage Securing Bonds
355
Development of Cash Credits
366
Remedial Loan Association
367
Cooperative Buying by Rural Credit Unions
368
Advantages of Urban Credit Unions to Laborers
369
Building and Loan Associations
370
Valuation of Shares in Building and Loan Association
371
Advantages of the Building and Loan Association
372
General Withdrawal Rule in Constitution and ByLaws of Building and Loan Association
373
Morris Plan Certificate as Investment
376
How the Morris Plan Promotes Thrift
377
The Industrial Finance Corporation of New York
378
AGRICULTURAL CREDIT 482 Security Behind Real Estate Bonds
379
Farm Credit in North Carolina
380
Operation of Federal Intermediate Credit Banks
382
The Federal Intermediate Credit Bank SystemThe Financial State ment
383
Interpretation of the Provisions of the Federal Farm Loan Act with Respect to Loans
384
Farmers Acquire Another Land Bank
385
Handicaps in Farm Mortgage Loans before 1916
386
Rediscount of the Federal Intermediate Credit Banks
387
National Farm Loan Associations
388
Making a Market for Farm Loan Bonds
389
Interpretation of Eligibility of Applicant for Loan
390
Location of Securities Under Federal Farm Loan System
391
Agents of JointStock Land Banks
392
Expense of New Loans by Federal Land Banks and JointStock Land Banks
393
Partial Release of Mortgage Security by Federal or JointStock Land Banks
394
Legal Restrictions on Real Estate Loans
395
Insurance Required on the Security of the Loans by the Federal or JointStock Land Banks
396
FOREIGN BANKING SYSTEMS 512 Reserves of Bank of England
398
Bank of England in 1914 Crisis
399
Currency Notes and the Bank of England
400
Currency Notes in England
401
The Gold Standard Act of 1925 in England
402
Classification of English Banks According to Type of Business
403
Deposit Accounts in English BanksInterest on Deposits
404
Reserves of British Banks
405
Credit for Cash and Collection Items in English Banks
406
Extent of Use of Commercial Credits in English Foreign Commerce
407
The Bank Officers GuildBritish
409
English Bank Reports
410
Types of Advances to Customers of English JointStock Banks
411
Nature of the Head Office of an English JointStock Bank
412
Comparison of the Statement of the Midland Bank Ltd with that of the National City Bank of New York
413
London as a Foreign Exchange Market
414
Factors Governing the Price of Council Bills
415
Voting Rights of English JointStock Bank Shares
416
Contango or Backwardation in London Stock Market
417
British Bank Consolidation Movement
418
Special Investment Institutions in England
419
Brokers Bills in England
420
Merchant Bankers
421
Operations of British Discount Companies
422
Relation of Bank of England to Money Market
423
Reasons for Bank Amalgamations in England
424
Note Issue Privilege of Scottish Banks
425
Rise of Credit Companies and the Bank of France
432
Method of Control of Money Market by Reichsbank
438
Summary of the Dawes Plan
444
NinetyFifth Annual Report of The Bank of Nova Scotia
450
Credito Italiano
456
Course of Polish Bank Credit 19256
462
The Relation of the Government of India to the Currency Movements
468
PROBLEM PAGE 612 Stoppage of Free Coinage of Silver in India
469
Banks in Indian Finance
470
Rates of Exchange Prevailing in Shanghai
471
HISTORY OF BANKING IN THE UNITED STATES 618 Financial Position of the United States 17841812
473
Relation of a National Bank to the Supply of Gold and Silver
474
Financing of the War of 1812
475
Report of the Bank of the United States September 1819
476
Issue of Branch Drafts by Second Bank of the United States
477
Jacksons Objections to the Second Bank of the United States
478
Constitutionality of Note Issue by StateOwned Banks
479
Arguments as to the Advantages of an Independent Treasury 183740
480
Proposal to Protect National Bank Notes by Safety Fund and Prior 632 Place of National Bank Notes in Circulation of the Country Lien on General A...
481
Causes of the Shrinkage of the National Bank Note Issues
482
Use of National Bank Notes
483
Payment of Noncurrent Notes by National Banks
484
Methods of Forcing Presentation of Notes so as to Cancel Liability
485
Convertibility of National Bank Notes
486
National Bank Notes Cheaper for the Government than Treasury Notes
487
Legal Tender Quality of National Bank Notes
488
Calculation of Profit on National Bank Note Circulation June 30 1892
489
Arguments Against Legal Requirements for National Bank Notes
490
State Taxation of National Banks
491
The Effect of Premiums on Bonds on the National Bank Note Cir culation
492
Distribution of the Surplus Revenues
493
Currency Changes After the Civil War
494
Profits to the Government from the National Bank System about 1880
495
Sectional Inequality in Taxation of National Banks 1879
496
Selection of Government Depositories
497
Signatures on National Bank Notes
500
Currency Reform versus National Bank Reform
501
Expansion of National Banks Caused by the Act of March 14 1900
502
The National Gold Banks
503
Amendment of the AldrichVreeland Act
504
THE FEDERAL RESERVE SYSTEM
507
Function of Central Bank in Regulating Credit
513
Federal Reserve Bank Credit
519
Position of the National Banks in the Banking System
525
Nature of the Reserve Agents Fund
532
Open Market Operations in Bankers Acceptances by Open Market
538
Open Market Operations
545
PROBLEM PAGE 711 The Flow of Funds Into and Out of the New York Money Market at the U S Treasury Quarterly Financing Periods
549
Factors Which Determine the Call Loan Rate
550
Control of the Call Loan Money Market
551
Determination of the Renewal Rate
552
Relation of Call Loan Rates and Commercial Paper Rates
553
Evils of High Call Loan Rates
554
Balances of Interior Banks in Wall Street
555
Relation of Rediscounts and Open Market Operations of Federal Reserve Banks
556
Position of Brokers as to High Call Loan Rates
557
Relation of the Money Market to Business Condition
559
Call Money Rates in 1920
560
Average Interest Cost
561
Interest on Deposits of National Banks
562
Interest on Bank Balances
563
Federal Reserve Reduces the Range of Seasonal Variation of Interest Rates
564
Interest Rates for National Banks
565
Interest on Federal Reserve Balances
566
Interest Rate on Time Deposits Reduced
567
Interest on Government Deposits
568
Interest Paid on State or Public Deposits
569
Proposal to Limit the Federal Reserve Banks to a Maximum Rate of Interest
570
Rate of Interest on Deposits in London
571
Relation of Bank of England Rate to the Market Rates About 1903
572
Fortnightly Settlement of London Stock Exchange Contracts
574
Sinking Fund
575
BRANCH BANKING 745 Foreign Branches
576
Attitude as to Branch Banks
577
Reasons for Denying Application for New Branch
578
Advantages of the Branch Bank System
579
Relation of Branch Banking to Federal Reserve
580
Increase in Number of Banks with Branches versus Changes in Total Number of Banks in Operation in the United States
582
Comparison of Sections 8 and 9 of the McFaddenPepper Act on Branch Banking with Sections 8 and 9 of H R 8887 Including the Hull Amendments
584
PROBLEM PAGE 756 Increase in Branches Since Enactment of McFaddenPepper Act
586
Relation of the McFaddenPepper Act on Branch Banking in New Jersey
587
Policy of Federal Reserve Board with Respect to Branch Banks
588
Management and Control of Additional Offices of National Banks
589
Standardization in Branch Banking
591
Nature of Chain Banking
592
Chain Banking of Wisconsin
593
Extent of Chain Banking
594
MONEY CREDIT AND PRICES 765 Variations in the Velocity of Bank Deposits
596
The Stabilized Bond
597
Relation of Quantity of Money to Its Value
602
Calculation of Purchasing Power Parities
604
Influences of Price of Commodities on Exchange Rates
605
Proposal for Emergency Currency
606
Nature of Relief from Low Prices in Agriculture
607
Effect of Change of Price Level on War Borrowings
608
Effect of Inflation on Governmental Revenues and Expenditures
611
Effects of Monetary Inflation on the Economic Situation of France
612
Phenomena of Inflation in 1926 in France
613
Effect of Abandonment of the Gold Standard
614
Devaluation of Currencies 783 Factors Determining Proper New Gold Par
615
Fishers Scheme of the Compensated Dollar
616
Plan to Stabilize the Price Level
617
Advantages of International Uniform Currency
619
BUSINESS CYCLES 788 Nature of Business Cycles
621
Business Cycles and the Weather
622
Forces Which Destroy the Cumulative Movement of Prices During Prosperity
624
Effect of Interest Rates on Business Activity
626
Relation of Credit to Volume of Production
627
Forces which Tend to Destroy the Economic Equilibrium
628
The Marxian Theory of Crises
629
Fishers Equation of Exchange
630
PROBLEM PAGE 803 Methods of Studying Business Cycles
631
Indexes of Production versus Indexes of Volume of Trade
632
Bank Clearings as a Business Barometer
633
Changes in Savings Deposits of a National Bank
636
Seasonal Variation in Business Failures
637
Gold Production and the Condition of Business
638
Clearing House Loan Certificates
640
Duration of the Business Cycle
641
Severity of Business Cycles in the United States
642
Futility of Effort to Perpetuate Prosperity Through Additional Credit
643
Relative Importance of Primary and Secondary Reserves in Bank Policy
644
Impossibility of General Overproduction
645
Amplitude of Fluctuations of Index of Trade and Actual Trade
646
Duration of the Business Cycle in the United States and Abroad
647
Advertising and the Business Cycle
648
Measuring Unemployment
649
Annual Rate of Turnover of Bank Deposits
650
Dependence of the Business Cycle on Deposit Currency
651
Business Failures and the Business Cycle
652
Variability of Interest Rates
653
Methods of Business Forecasting
654
Prerequisites for Effective Control of Business Expansion
655
European Depression Following the War
656
FINANCIAL PANICS 835 Difference between Crises and Panics
657
Corporate Listings on New York Stock Exchange
658
Peculiarities of the Panic of 1884
659
Relation of the Currency Question to the Panic of 1893
660
Currency in the Panic of 1908
662
The Cycle of Bank Failures
663
Precipitancy of Price Decline during Business Recessions
664
Use of Clearing House Loan Certificates by New York Clearing Banks
665
The Use of Clearing House Certificates in Panics of 1893 and 1907
666
Central Bank Control of Credit Cycle
667
Clearing House Loan Certificates of New York Clearing House in 1884
668
Relation of the Federal Reserve to Speculation
669
Reserve Bank Acts to Reduce War Inflation
670
Relation of the Federal Reserve Discount Rate to Market Rates
672
SECTION PAGE
673
volume of manufacturing c Index of the volume of trade
692
English Discount Companies 1925
721
List of Banks Publishing Available Reports and Bulletins
729
Copyright

Common terms and phrases

Popular passages

Page 76 - Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty.
Page 67 - A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.
Page 76 - A promissory note is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person, or to bearer.
Page 134 - No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith...
Page 141 - That the total liabilities to any association, of any person, or of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed one-tenth part of the amount of the capital stock of such association actually paid in...
Page 93 - Board, by the Comptroller of the Currency in his own name before the association shall be declared dissolved.
Page 487 - Nothing herein shall prevent all the shares in any association from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the State within which the association is located...
Page 22 - And on and after the first day of January, Anno Domini eighteen hundred and seventy-nine, the Secretary of the Treasury shall redeem in coin the United States legal-tender notes then outstanding, on their presentation for redemption at the office of the Assistant Treasurer of the United States in the city of New York in sums of not less than fifty dollars.
Page 93 - When any person elected or chosen as a director or officer or selected as an employee of any bank or other corporation subject to the provisions of this Act is eligible at the time of his election or selection to act for such bank or other corporation in such capacity, his eligibility to act in such capacity shall not be affected and he shall...
Page 518 - System, extend to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks...

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