The Philosophy of Joint Stock Banking

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Longman, Orme, Brown, Green, and Longmans, 1840 - Banks and banking - 105 pages
 

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Page 2 - An Act for granting to their majesties several rates and duties upon tonnage of ships and vessels, and upon beer, ale, and other liquors, for securing certain recompenses and advantages in the said Act mentioned, to such persons as shall voluntarily advance the sum of fifteen hundred thousand pounds towards carrying on the war against France.
Page 36 - In the degree in which the manager is respected, and well spoken of by the directors, will respect and confidence be extended to him, and consequently to the establishment. by the public, and a good opinion entertained of their judgment and discernment in his selection. " The conduct of the manager ought to be characterised by great circumspection and uprightness. He ought, unquestionably, in every instance, to be chosen for his business qualifications, and not because he is a rich man, a gentleman,...
Page 56 - Banks shew that numerous establishments in the manufacturing and mining districts possess very inadequate capital, and the same fact is revealed by the large quantity of paper bearing the indorsement of these banks kept constantly afloat in the money market. It is perfectly practicable for a bank to confine its operations...
Page 36 - ... or it would be like placing a man at the helm to pilot a vessel over quicksands, and through a reef of rocks, who knew nothing of a seafaring life, but was fond of contemplating the grandeur of the elements. The manager of a joint-stock bank ought to be chosen exclusively for his experience in banking; other qualifications are well enough in their own place, but ought never to be taken into consideration in choosing a person to act as manager of a bank. In this way a stimulus is given to persons...
Page 57 - The system is evidently unsound, and such establishments cannot be too strongly urged to call up more capital. These observations are not intended to discountenance or throw discredit upon the system of re-discounting. Many banks are known to look upon it with apprehension, as being a system fraught with danger. It is well for them if they are so circumstanced as to realize a reasonable profit without this adventitious aid. The absurd and dangerous extent to which it is in sdme cases practiced, is...
Page 68 - ... bank. He must never for a moment forget, that while he is a partner in the concern, and as an honest man, is bound to conduct it in as faithful and diligent a manner as he would his own private affairs, that he is at the same time appointed to a solemn trust, in having the interests of numerous F2 others, equally interested with himself, under his management and control.
Page 46 - But the bank manager in England possesses an advantage over us, when he turns from his board to a portion of his dealers, as we find by the following: " How often has the fear of being seen by the watchful and reproving eye of his banker, deterred the young tradesman from joining the company of riotous and extravagant friends ? How often has it kept him from the tavern, the club-room and places of public amusement and dissipation ? What has been his anxiety to stand well in the estimation of his...
Page 57 - ... process by which it is accomplished, less familiar to the community. It is not a sufficient argument against this statement, that if a bank is to hold these rediscounted bills as liabilities, they are entitled to take credit for them as assets. As a matter of accounting, this is doubtless correct ; but as affecting the stability of the bank, the matter must be contemplated in a different light. The risk which the bank runs is multiplied in proportion to the amount of bills re-discounted. A bank...
Page 16 - On the part of the manager and directors, the utmost economy will be practised and enforced ; the most lucrative source, consistent with perfect safety, will be sought, for the profitable employment of the capital of the bank ; every means necessary to secure its prosperity and respectability will be readily adopted, and their best attention cheerfully devoted to its interests. As regards the public, the good management of a bank will consist in a civil and obliging manner, on the part of its officers;...
Page 1 - ... a public or of a private nature. A public bank is generally regulated by certain laws, enacted by the government of the state, which constitute its charter, limit its capital, and establish the rules by which it is to conduct business. A private bank, on the other hand, is merely a contract among individuals, for carrying on a trade in money and bills ; and the responsibility of the partners is the only security of those who transact business with it. Banks are properly commercial institutions,...

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