ing from the days before the war:--

LIABILITIES.

Capital (subscribed) L14,000,000
----------
Paid up 3,500,000
Reserve 4,000,000
Deposits 87,000,000
Circular Notes, etc. 3,000,000
Acceptances 6,000,000
Profit and loss 500,000
-----------
L104,000,000
-----------

ASSETS

Cash in hand and
at Bank of England L12,500,000
Cash at call and
short notice 13,000,000
Bills discounted 19,000,000
Govt. Securities 5,000,000
Other Investments 4,500,000
Advances and loans 42,000,000
Liability of customers
on account of
Acceptances 6,000,000
Promises 2,000,000
-----------
L104,000,000
-----------

On one side are the sums that the bank has received, in the shape of
capital subscribed, from its shareholders, and in the shape of deposits
from its customers, including Dr. Pillman and thousands like him; on the
other the cash that it holds, in coin, notes and credit at the Bank of
England, its cash lent at call or short notice to bill brokers (of whom
more anon) and the Stock Exchange, the bills of exchange that it holds,
its investments in British Government and other stocks, and the big item
of loans and advances, through which it finances industry and commerce
at home. It should be noted that the entry on the left side of the
balance sheet, "Acceptances," refers to bills of exchange which the bank
has accepted for merchants and manufacturers who are importing goods and
raw material, and have instructed the foreign exporters to draw bills on
their bankers. As these merchants and manufacturers are responsible to
the bank for meeting the bills when they fall due, the acceptance item
is balanced by an exactly equivalent entry on the other side, showing
this liability of customers as an asset in the bank's favour.

This business of acceptance is done not only by the great banks, but
also by a number of private firms with connections in foreign countries,
and at home, through which they place their names and credit at the
disposal of people less eminent for wealth and position, who pay them a
commission for the use of them.

Other wheels in London's credit machinery are the London offices of
colonial and foreign