ABSTRACT
In the late nineteenth century an increasing number of banks began to publish statements in annual, half-yearly and even monthly form. The publication of a sound balance sheet served to improve confidence in the bank, and the realization that some assets could be manipulated to strengthen the showing for cash on the date the balance sheet was drawn up led to the practice of window-dressing. Many of the London banks and even country banks window-dressed their accounts at the half-year. This practice made the reported half-yearly cash totals untrustworthy, and also increased the volume of interbank deposits. The original purpose for which monthly statements had been advocated was circumvented, for in many cases the cash ratios reported were artificial. The different forms of cash and balances are more common than figures for cash in hand, and hence it was decided to calculate series for the aggregate of cash and balances at the Bank of England and other banks.
