ABSTRACT
SUMMARY.-Bnnking had its origin in the practice oj depositing money with goldsmiths for safe custody. It 'was found that most of tlte money so deposited was never taken out again, but v)as transferred f1'om one credit to anothe1'. Hence it was found safe to invest the greater part of it in revenue-yielding ways, and only to hold a comparatively small reserve in gold. J'he miscellaneous forms of property held by the bank 1'epresent the sums that thei1' clients hand over to each other by cheques and so help to t-ransact the business of the country, and m'e in truth media of exchange. The actual transfers of gold necessary to settle balances, after all the obligations in the country have been i" clettred" as far as possible, is undertaken by the banks without spec'ific cha1·ge. But not so in the case oj balances between one country and another.
