chapter  Chapter XV
9 Pages

Deposits at Interest

ByRobert E. Wright, Richard Sylla

This chapter focuses on banking have been occupied with subjects emanating from money, that is from the coin and bank-notes left for convenience in bankers’ hands instead of being retained in strong boxes throughout the country. The cash part of the sum borrowed is treated by the new dealer as it would have been had no transfer of capital occurred. The only difference caused by the change, as regards those who employ capital, will be that the actual employer of the borrowed capital will get only a portion of the net profit instead of the whole of it. Deposit-bankers are thus shut up to lend principally to those engaged in business, on the security of bills of exchange. It has indeed been proposed to obviate the necessity for forced sales of securities by making deposits repayable after a lengthened notice of intended withdrawal. The magnitude attained by deposits has imparted immense importance to the bank-rate.