None
of France, 113; reserve system, 95, 97; stopped, 30 Discounted paper, 14, 15, 17-19, 55 Documented bill of exchange, 42 Domestic exchange, 25 Drafts, 16, 27, 28; foreign payments, 31 England, bank of, 9, 104-111; banking system, 104-111 foreign and colonial, 108; joint stock banks, 106 metropolitan, 107; private, 108; provincial, 107 reserve system, 108 Europe, commercial banking in, 101-126; central banks of, 101-126; land banks, 147-163 European investment banking machinery, 166 Exchange operations, 11-13; checks, 22-24; domestic, 25-31; foreign, 31-34 Federal Reserve Banks, 98-100; Federal Reserve Board, 99, 100 Foncier Algierienne, 162 Foreign exchange, 31-34; par of, 31, 32; classes of bills used, 33 France, bank of, 9, 111-115 French banking system, 111-119 176 Index German banking system, 119-126; hypothekenaktien- banken, 151, 152 ; investment banking machinery, 166 ; land and mortgage hanks, 147-161 ; landschaften, 147- 149; Schulze-Delitzsch, 153-162; Raiffeisen, 156-162 Germany, bank of, 9, 119-12:5 Gold element of currency, 5, 96 ; points, 32, 33 ; and silver coin in England, 105, 106; in France, 113; Canada, 133 Incorporation, 7 ; should be required, 66 Independent treasury system, 75-78 Inflation, 49-53, 56-59; of credit, 87 Inspection of banks, 59, 60 Insurance, mutual of depositors, 60, 62 Investment, banking, 136-170; commercial paper, 41, 42; confined to liquid securities, 52; defects in machinery, 166; improvement of machinery, 170; paper, 18, 35, 41, 55; of surplus funds, 3 Italy, land banks, 162, 163 Joint-stock mortgage banks, 169; English joint-stock banks, 106; German, 151-159 Kansas "blue sky laws," 146 Land banks, 147-163 Letters of credit, 21 "Line" of credit, 16, 85, 86 Liquidation, forced, 19, 88; of credits, 49, 50; protec- tion against, 52 Liquid securities, 53 Loan operations, 85-88 Loans, 2, 3, 15, 86; and discounts, selection of, 40-43; Canadian system, 128, 129; fluctuations, 97; German land bank, 147-162; in the interest of big business, 167; limits to, 52, 55; long-term, 2; pernicious prac- tice of national banks, 83; and reserve system, 95; short term, 2 Local banking, 62, 63 London stock exchange, 165 Mints, 5 Monetary commission, 97, 98 Money of the United States, 95 Index i J? Mortgage banks, 169; France, 160-162; Germany, 148- 163 ; Italy, 162 ; mortgage bonds, 169 ; mortgage loans, long period, 167 Municipal banks, 139 National banks, 8, 9, 54, 70-75, 80, 82; federal reserve, 98, 99; money in vaults, 91; notes, 96; pernicious loan practices, 83; subscribed to federal reserve banks, 98 National Keserve Association, 98 New York City, as^ay office, 81; central reserve bank, 78; clearing center, 24, 80, 81; stock exchange, 81, 82, 92, 165 Notes, bank, 19-21 ; central banks of Europe and supply of, 102; Canadian, 126-133; bank of England, 105; of France, 117, 118; of Germany, 121; issue of, 19- 21 ; issue privileges, 37, 38 ; government, 39 ; limita- tion of issue, 58 ; promissory notes, 43 ; regulations regarding, 52; safeguarding issue, 56; volume of United States, 96 Oklahoma, mutual insurance plan, 60 Overdrafts, 16 "Panicky" conditions and feeling, 94, 95, 97 Par of exchange, 31, 32 Paris stock exchange, 165 Passbook, 15, 16 Postal savings banks, 139, 141 Promissory notes, 12, 14, 19-22, 43 Prior lien, on assets, 56, 58 Protection against unsound practices of banks, 46-52; 59-61 Publicity, a safeguard, 59 4 Rate of discount, law in France, 118; of exchange, 2ti, 27 Rates, 44-46; raising on loans ami discounts, 29 Real estate and banks, 52 Reserve banks, Federal, 98-100; central reserve, 78; cities, 24, 78 Reserves, administration of funds, 100; bank, 36 J English system, 108-110; in national banks.