Banking theories in the United States before 1860

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Multivolume work

Identifikator:: 1892063557

Document type:: Multivolume work

Author:: Lamprecht, Karl http://d-nb.info/gnd/118569015

Title:: Deutsche Geschichte

Place of publication:: Berlin

Publisher:: Gaertner

Year of publication:: 1891-

Collection:: Economics Books

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Volume

Identifikator:: 1892064774

URN:: urn:nbn:de:zbw-retromon-237066

Document type:: Volume

Author:: Lamprecht, Karl http://d-nb.info/gnd/118569015

Title:: Urzeit und Mittelalter

Volume count:: Abt. 1

Place of publication:: Freiburg im Breisgau

Publisher:: Heyfelder

Year of publication:: 1904

Scope:: XVI, 420 S.

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Multivolume work

Structure type:: Chapter

Title:: Neuntes Buch

Collection:: Economics Books

THE FUNCTIONS OF BANKING 17 such cancellation, instead of by the less convenient resort to transfer of metallic money. (He did not regard bank notes as money.) Two equal funds arise, the one of credits, or credit securities, the other of debts.! Banks intervene for two pur- poses; their own promissory notes, or book credits, substituted for the notes of their customers, are of more generally recognized credit, and better fitted to serve as means of payment;? and, secondly, the fund of credits becomes very active and efficient as a medium of payment only when concentrated in banks. “As the debts of men of business find their way into the banks, so do their credits; and the functions of the banks, stripped of their many complications, consist chiefly in balancing and thus extin- guishing the debts and credits of their customers.” * The banks are ‘substantially bookkeepers for their customers’ in the pro- cess of cancellation that constitutes the credit system.* The colonial conception of banks, then, as little more than the source of a form of media of payment, still had its adherents, but they were becoming relatively few. The mechanical opera- tions of banking were commonly classified as those of deposit, discount, and note issue; and while that of note issue was re- garded by many as virtually synonymous with banking, others, whose number increased as the years progressed, urged that it be denied to banks completely. Meanwhile the significance of banks as agencies in the distri- bution of credit, whereby the nation’s capital was more effectively utilized, was being emphasized. From this point of view the functions of banks were described as those of assuming for pro- spective lenders the responsibility of determining who merits loans, and of providing borrowers with a form of credit that is universally accepted. Finally, we find one writer who regarded banks primarily as clearing centers, capping that modern system of payments in which debts offset credits. This view gave attention once more to the relation of bankers to the media of payment rather than 2 Ibid., p. 444. 4 Ibid.. D.O. 1 Colwell, p. 4. 3 Ibid., pp. 5, 104. 44 Hg 2 Sor PCM X FRA od pig

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