Money, banking, and finance

Front matter

iHili.

MONEY

-AN KING and FINANCE

Preface

Excellent books on the best methods of bank bookkeeping already exist, also other books on the theories and history of money and banking. In a well-organized course on banking this book should fill an intermediate place between those described; it is the pioneer of its kind.

It is designed especially for three classes of students, or readers : those who intend to devote themselves to the business of banking ; those who are thus engaged ; and those who are studying the history and theories of banking.

To those who have already studied the theories of money in works on political economy or in special treatises on the subject, the first chapter may not be deemed needful. Yet even to such it may serve as a brief, useful review. To those who have not had such an introduction, a presentation of the leading principles of money is needful for a deep and broad comprehension of the duties of sound, conservative banking. This remark applies with especial force to the younger men in our banking institutions who have never read any treatise on political economy or money.

The chapters on finance are added because many of our modern, banks and trust companies, and especially private bankers, undertake to finance private enterprises, and to some extent even public ones. To give a complete presen-

6 PREFACE

tation of the practice of banking, therefore, these chapters are necessary.

It should be added that while it has been the author's aim to describe the best banking practice of the day, it was quite impossible to describe all the local variations without greatly enlarging the book and gaining no corresponding advantage. To a familiar knowledge of the general principles of banking, special principles can be easily acquired whenever the occasion calls for knowing them.

With respect to the legal principles here given, the only ones that apply everywhere are those referring to national banks. Nevertheless, most of the others are of general application ; in other words, they are adopted and applied by the courts of most of the states. A state court or legislature is not thereby prevented from modifying or setting aside any rule by statute or judicial decision ; consequently some fluctuations, like the movements of the sea, always prevent the formation of a uniform surface.

It is a pleasure to acknowledge my indebtedness to Mr. Cheesman A. Herrick, Director of the School of Commerce, Central High School, Philadelphia, for valuable suggestions concerning the plan of the book, and to Mr. H. W. Patten, Instructor in the Department of Commerce, in the same school, for reading the manuscript.

A. S. B.