chapter  XXI
7 Pages

Do. -THE TRANSPORT OF CAPITAL; ITS DISTRIBUTION

THE TRANSPORT OF CAPITAL; ITS DISTRIBUTION I N this chapter we are concerned with the manner in which the banks normally distribute the resources at their disposal. We deal with their loan policy, therefore, only in a preliminary way, taking account of those considerations

which constitute "practical banking," and postponing to a later chapter the consideration of those influences which determine fluctuations in the aggregate volume of loans and lodgments. In other words, we deal with that part of their loan policy which is concerned with the distribution of a given quantity of Command over Capital, and leave for later consideration that more difficult part of their loan policy which is concerned with the regulation of the total amount of Command over Capital which they supply. For this purpose we may employ the figures of the I9I3 balance sheet given on page 128.