BANKS AND BANKING 



BANKS AND BANKING 



OUTLINE AND QUESTIONS ON BANKS AND 



BANKING 



Outline 



I. Functions of the Dank 



( 1 ) As borrowers or custodians of funds 



(a) Safekeeping of funds 



(b) Use of the check 



(c) Collection of checks on different 

 banks 



(d) Checking accounts 



(e) Savings accounts 



(f) Actual borrowing of banks 



(2) As lenders 



(a) Call loans 



(b) Time loans 



(c) Collateral 



(d) Form of loan 



1. Deposit credit 



2. Certificates of deposit 



(e) Loaning of capital 



(f) Loaning of deposits 



1. Necessity for reserve 



2. Dangers of unrestricted pri- 

 vate banfes 



(3) Trust companies 



(a) May or may not be bank 



(b) Advantage over individual trus- 

 tees 



(4) Savings banks 



(a) Postal savings banks 



(b) School savings banks 



II. Hl.tory of Banking 



(1) OriRin 



(2) Beginnings of modern banking 



(3) Banking in the United States 



(a) In the colonies 



(b) The Bank of the United States, 

 1791 



(c) State banks 



(d) Second Bank of the United 

 States, 1816 



(e) Growth of state banks 



(f) Wildcat banks 



(g) National banks 



1. Government supervision 



2. Minimum capital 

 (h) Banking reform 



1. Aldrlch plan 



2. Federal Reserve Banks 



3. Banking reserves 



(4) Banking in Canada 



(a) In colonial times 



(b) Governmental control 



(c) Recent laws 



(d) Method of organization 



(e) The reserve question 



Questions 



What is the greatest service which a bank performs for a community? 



What are the two great advantages of a check? 



What play of Shakespeare's tells something of banking methods in early mod- 

 ern times? 



did the National Citizens' League accomplish? 



How large a capital must a Canadian bank have to secure a government charter? 



Under what circumstances may the depositors of a savings bank not receive 

 tip ir deposits on demand? 



What was the popular name for the Bank of the United States in its early days? 



Under what conditions may one reserve bank pay out the notes of another? 



Why cannot a bank be run without capital, solely with the funds of its depos- 

 itors? 



How did the War of Secession affect bank inn in the United States? 



What is tin- ilifTrrence between a "central reserve city" and a "reserve city"? 



If a depositor in a bank draws a check in favor of another depositor in the same 

 l-:i nk. how is the matter adjusted? 



What different meanings attached to the word "banks" in colonial times in 

 America? 



