nt. See Vol. 1, pp. 275, 302.]

[Footnote 7: The legal requirements as to minimum reserves vary
greatly from no specific per cent to 40 or more in different
countries, for different classes of banks, and for different purposes.
Some examples of legal reserve requirements in the United States occur
in the two following chapters.]

[Footnote 8: See above, ch. 4, sec. 5.]

[Footnote 9: See below, sec. 10.]

[Footnote 10: Including, now, some Federal Reserve bank notes secured
by United States bonds.]

[Footnote 11: In some cases, as during the bank restriction in
England, 1797-1821, bank notes become inconvertible--practically
political money.]

[Footnote 12: Payment of interest on credit balances reduces the
motive to withdraw for investment elsewhere any such excess, and
mingles in the depositor's thought monetary and investment motives.]

[Footnote 13: In the United States in 1914 there were individual
deposits reported in banks other than savings banks to the amount of
about $13,400,000,000

In national banks .................................. $6,000,000,000

In state banks ..................................... 3,250,000,000

In loan and trust companies .......................... 4,000,000,000

In private banks ..................................... 150,000,000

Nearly all these were doubtless demand deposits (what proportion were
time deposits we have no data for determining), and were available as
immediate purchasing power for the depositors. The total money (other
than bank notes) in the commercial banks of the country was hardly 11
per cent of this amount. In that year the total amount of money of all
kinds in circulation (and in banks) in the United States (outside the
Treasury), including gold and silver and certificates represented
by bullion in the treasury, United States notes of all kinds, and
national bank notes, was about one fourth of the amount of these
individual deposits in commercial banks. This may suggest the enormous
influence that banking has in determining the average efficiency of
the circulating medium of the country.]

[Footnote 14: See above, sec. 3.]

CHAPTER 8

BANKING IN THE UNITED STATES BEFORE 1914

Sec. 1. The First and Second Banks of the United States. Sec. 2. Banking
from 1836 to 1863. Sec. 3. National Banking Associations, 1863-1913.
Sec. 4. Defects of our banking organization before 1913. Sec. 5. Lack of
system. Sec. 6. Inelasticity of