ention has been
given to conditions in this country. An effort has been made clearly
to draw the line between commercial and investment banking and to
indicate the problems peculiar to each. That it may assist the average
person in understanding present-day banking problems and thus
contribute towards the formation of a sound public opinion regarding
them, is the author's hope and desire.

WM. A. SCOTT.

_University of Wisconsin._

CONTENTS

PAGE

Chapter I. The Nature, Functions, and Classification of
Banking Institutions, 1

1. Services Performed by Banking Institutions, 1
2. The Economic Functions of Banks, 4
3. Classification of Banking Institutions, 6

Chapter II. The Nature and Operations of Commercial Banking, 11

1. Commercial Paper, 11
2. The Operation of Discount, 13
3. The Conduct of Checking Accounts, 15
4. The Issue of Notes, 19
5. Collections, 22
6. Domestic Exchange, 25
7. Foreign Exchange, 31

Chapter III. The Problems of Commercial Banking, 35

1. The Supply of Cash, 35
2. The Selection of Loans and Discounts, 40
3. Rates, 44
4. Protection against Unsound Practices, 46
(a) Capital and Surplus Requirements and Double
Liability of Stockholders, 46
(b) Inflation and Means of Protecting the Public
against It, 49
(c) Other Means of Safeguarding the Interests of
the Public, 59
5. Adequacy and Economy of Service, 62

Chapter IV. Commercial Banking in the United States, 68

1. State Banks, 68
2. National Banks,