The Theory and History of Banking

Excerpt from The Theory and History of Banking This edition contains three new chapters, those on Foreign Exchange, Central Banks, and on the Federal Reserve Banking System. In order to avoid a very considerable increase in the size of the book, two chapters have been omitted, those on Combined Reserves and on the Bank of Amsterdam. With the establishment of the Federal Reserve banks the resort to Clearing House loan certificates, the subject matter of the chapter on Combined Reserves is now fortunately without practical significance. Economy of space has also led to the excission of many informational notes and of various historical passages, especially in the chapters on banking in France and in the United States. The chapter on Daily Redemption, which appeared first in the second edition, has been merged with the chapter on Bank-Notes. Emphasis on the interdependence of all the banks of a country in the regular conduct of the business of banking is the most fundamental difference between this and the earlier editions.