70
3. The Independent Treasury System, 75
4. The Interrelations of These Institutions, 78
5. Operation of the System, 82
(a) Conflict of Functions and Laws, 82
(b) Loan Operations, 85
(c) Treasury Operations, 88
(d) Operation of the Reserve System, 91
(e) Lack of Elasticity in the Currency, 95
6. Plans for Reform, 97

Chapter V. Commercial Banking in Other Countries, 101

1. Common Features, 101
2. The English System, 104
3. The French System, 111
4. The German System, 119
5. The Canadian System, 126

Chapter VI. Investment Banking, 136

1. Saving and Savings Institutions, 136
2. Trust Companies, 141
3. Bond Houses and Investment Companies, 144
4. Land Banks, 147
5. Stock Exchanges, 163
6. Some Defects in Our Investment Banking Machinery, 166

References, 171

Index, 173

BANKING

CHAPTER I

THE NATURE, FUNCTIONS, AND CLASSIFICATION OF BANKING INSTITUTIONS

The terms, "bank" and "banking," are applied to institutions and to
businesses which differ considerably in character, functions, and
methods, but which nevertheless have certain common features which
justify their being grouped together. We can best prepare the way for
a discussion of these differences and common features by a description
of the services which these institutions perform in modern society.

_1. Services Performed by Banking Institutions_

From the point of view of their customers these services may be
grouped under the following heads: The safekeeping of money and other
valuables; the making of payments; the making of loans; and the makin