ch more difficult and
hazardous business of lending capital to private traders, is not
a necessary characteristic of banking organisation; and, whilst
possibly the most profitable to the profit-seeking banker, this
combination may not be the most advantageous from the standpoint
of the community.

"It may accordingly be suggested that the business of banking, as
understood in this country, is destined to be further divided into
two parts, one of which is ripe for immediate nationalisation, and
need no longer be carried on for private profit, whilst the
other should be the sphere of a number of separate and diversely
specialised organisations catering for particular needs. The whole
of the deposit and current account side of banking--with its
services in the way of keeping securities, collecting dividends,
meeting calls, making regular payments, and carrying through the
purchase and sale of securities--ought to be united with the Post
Office and Trustee Savings Banks and the money order and other
postal remittance business, and run as a national service for the
receipt and custody of cash, for the utmost possible development
of the cheque system, and for the cheapest possible organisation
of remittances. There is no longer any reason why this important
branch of social organisation should be abandoned to the
profit-maker, should be made the instrument of levying an
unnecessarily heavy toll on the customers for the benefit of
shareholders, and should now be exposed to the imminent danger of
monopoly.

"If the receipt and custody of deposits and the keeping of current
accounts were made a public service the Government might invest
the funds thus placed at its disposal in a variety of ways. A
certain proportion, perhaps corresponding to what is now held
as savings, would be invested, as at present, in Government
securities--not Consols, but such as are repayable at par at fixed
dates, including Treasury Bills and Terminable Annuities; and any
increase in this amount would, in effect, release so much capital
for other uses, by paying off part of the National Debt. But the
bulk of the amount, corresponding with the proportion of their
resources that the bankers now lend for business purposes, might
be advanced, for terms of varying duration, partly to Government
Departments