Banking standards under the federal reserve system

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Monograph

Identifikator:: 1762969653

URN:: urn:nbn:de:zbw-retromon-142432

Document type:: Monograph

Title:: Banking standards under the federal reserve system

Place of publication:: Chicago

Publisher:: A. W. Shaw Company

Year of publication:: 1928

Scope:: xxxviii, 420 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part V. General summary and interpretation

Collection:: Economics Books

354 BANKING STANDARDS Moreover, Bank debits of different cities tend to fluctuate together;’ City bank debits tend to fluc- tuate with city business conditions; Business conditions in cities tend to fluctuate together. TABLE 199 YEARS IN WaICH BANK DEBITS ARE ABOVE OR BELOW THE SEVEN- YEAR AVERAGE, 1919-1025 Total Bank Debits 'Y4T cities) Percentage of Cities with Bank Debits on Same Side of Their Averages as the Total for vax Cities But City bank debits tend to fluc- tuate with district bank debits; District banking resources tend to fluctuate with dis- trict bank debits; City bank resources tend to fluctuate with city bank debits. The following conclusions, in summary, have now been reached: First: National, district, and local business conditions tend to fluc- tuate together; and Second: Such business fluctuations tend systematically to be re- flected in fluctuations in bank debits and banking resources. *In this year the bank debits of New York City run against the prevailing tendency. By and large, commercial banks wherever situated render similar service to business. Moreover, this service is rendered competitively. Banks are daily brought into relation through the granting of loans, in the investment of surplus funds, in com- peting for deposits, and in rendering a large number of other services. Their lending and investment areas overlap. “The ex- tent to which any bank may loan is dependent in part upon the extent to which other banks are loaning. And when the re- serves of any particular bank are low there are numerous means by which it may increase its loaning power at the expense of, or through the permission of, its competitors.”® ¢, . . . Indi- vidual banks cannot escape relations with other banks, their own prosperity and safety being fundamentally linked with that of the system as a whole. . . .”® Moreover, they are subject to much the same type of government regulation and inspection, "See Table 108. 8 Harold G. Moulton, Principles of Money and Banking (The University of Chi- cago Press, 1916), Part II, p. 04. ® Ibid., Part II, p. 197.

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