Soule's New Science and Practice of Accounts, Containing a Full Exposition, Elucidation, and Discussion of the Science, Practice and Details of Double Entry and Single Entry Book-Keeping (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1906 edition. Excerpt: ...until such fund amounted to three per cent, of the capital of each bank. This fund was called the Bank Fund, and was used to pay the debts of any contributing insolvent bank. In case the fund was at any time diminished by payments from it, the banks were again required to make their annual one-half per cent, contributions, until each had in the fund three per cent, of its Capital Stock. In Banking parlance this fund was called the Safety Fund, and from it came the name, the Safety Fund System Of Banking. The Free Banking System. This system of banking is by far the best of all State Systems, and stands second only to the United States National System. It was established by the Legislature of New York in 1838, amended by the same in 1840, 184-, and 1848, and now possesses the following leading advantages: 1. That all persons or corporations are free to engage in banking by complying with the prescribed rules and requirements. Hence the name, Free Banking System. It is no monopoly, but is open to all who can give the required security. 2. That the capital shall be in vested in New York State Bonds equal to 6%', and deposited with the Comptroller, who is required to issue to such bank, individual, or corporation making the deposit, an equal amount of bank bills or notes for circulation, duly numbered and countersigned in his office. This system of banking worked well in New York, became very popular, and was introduced largely in the States of the West and South, with sometimes slight modifications regarding the bonds or securities to be deposited with the Comptroller, as the basis of circulation. By this system private bankers in New York and some other States were also required to make deposits of securities before they were entitled to...