for other corporations, firms, or individuals, called its "depositors," this money always being subject to the written order of those making the deposit, either to be repaid to them or to others as appears in the orders, called "drafts," "checks," etc. Interest may or may not be allowed the depositor for the use of the money, according to the nature of the bank, and the agreement made with each depositing party. Banks must make use of money entrusted to their care so as, in turn, to make it earn enough to not only defray their own expenses, but to pay the depositors such rates of interest as may be agreed upon. To do this, banks are authorized to reloan this money; to collect drafts, notes, and other claims for which they may make charges. Banks are of several kinds, each having its own peculiar function, according to the National or State laws under which it acts. (See" National Bank," "Savings Bank," "Bank of Deposit," "State Bank," and "Trust Company.") Bank Account. For the benefit of those who have had no experience, and who desire to open a bank or trust company account against which to draw checks, a few suggestions are here given: Select your bank; find out the minimum sum of money which it will receive on deposit. If you have it, well and good. Then secure an introduction to some one of the bank's officers. State to him or the one to whom he may turn you over how much you will probably keep on deposit, and whether you will wish to borrow from the bank from time to time, and the nature of the loans. Large banks do not, as a rule, desire small accounts. Everything being satisfactorily arranged so far, you will next hand your deposit in to the "receiving teller," accompanied by a 'deposit slip" or ticket (furnished by the bank) with the blanks filled out, giving the character, amount, date, etc., of the deposit, together with your name at the top. He will return you a pass-book" with the sum deposited entered on the debit side. Ascertain if this is correct before leaving the counter. This book should be sent in to the bank the first of every month to be balanced, and, when returned to you with the cancelled checks, it is important that you check it up yourself to see if the total amount of the checks paid, plus the balance reported by the Italy as early as the twelfth century. The word 'bank' originally signified a pile' or 'mass' of funds, like the Italian monte' and the French 'mont, and was applied to the massing together of various government obligations, or their consolidation in sets of negotiable securities, which were issued, transferred, and paid through bankers,' who sometimes collected the public revenues and made payments in connection with the handling of public debts. It was for such functions as these that the first banks were established at Venice, Florence, and Genoa."--"The Modern Bank," by A. K. Fiske. bank to your credit, added to the sum of the checks drawn and not yet presented to the bank for payment, equal the sum of your deposits. (Read " Bank-Book" and " Check.") Save your cancelled checks. Before leaving the bank you will sign in a book (or on a signature card) kept for the purpose, so that your checks may be identified when presented, and will be handed a check-book usually furnished at the bank's expense. Where the latter has a numbering machine it is well to let it first number the checks and stubs. Do not open a bank account in your own name as agent, trustee, or attorney, unless you are acting in that capacity for some other person or persons, and the relationship is clearly evidenced by some formal instrument to that effect. Some of the large trust companies will furnish, upon request, a pamphlet going into all matters of necessary information in reference to opening and conducting an account. Bank Balance. As commonly used denotes the amount to one's credit in a banking institution, but has been extended to mean a bank's debit or credit at "clearing." (See "Clearing-House Balance.") Bank Bill. See "National Bank Notes" and Bankers' Bills." Bank-Book (or Pass-Book). The book in which a bank makes a written entry of each sum of money deposited by the customer, and is that person's evidence of the bank's indebtedness to him. In the case of a national bank, trust company, or any "bank of deposit," the book should be presented to the institution once a month to have it balanced. In the case of a savings bank, once or twice a year, according to the custom of the particular bank. The depositor must not make any changes or additions to the book, as all such must be made by the bank. The bank used formerly to enter onthe credit, or right hand, page of the book, a list of all checks paid during the month, but the custom more generally prevails now of returning a list of the checks on a separate sheet of paper, the total amount of which is entered upon the credit page.1 Banks are now beginning to adopt the plan of returning the cancelled checks the first of each month, in envelopes with a printed form upon the face, on which appears the statement of the account as formerly entered upon the "pass-book." This obviates the necessity of the customer's handing in his "pass-book" from time to time, and with this statement he may check up his account. 2 Remember that the book shows the bank's account with the depositor, not his account with the bank, so that what he deposits is a "debit" of the bank. On the left-hand, or debit page, has been entered the deposits as made from time to time. These (for the sake of simplicity we will assume that we are discussing the period covering the first month's business with the bank) are added up; the total amount of the checks paid deducted from it, and the remainder, or balance, entered upon the credit page, showing the amount of money to the credit of the depositor at the time. The sum of the checks paid and the amount still to the credit of the depositor should equal the sum total of deposits. This balance to the depositor's credit is carried forward on to the left-hand page and is added in with the next month's deposits. Immediately upon the bank's returning the depositor his "pass-book," the slip of paper containing the list of checks paid and the cancelled checks themselves, he must satisfy himself that the bank has made no mistake, and, therefore, he proceeds in this way: The checks paid during the period are checked off with the "stubs," a comparison of numbers facilitating this process; those which have been drawn by the depositor but not presented to the bank may thus readily be ascertained, and their sum total is added to the total amount of the checks paid, as given by the bank. These are added to the balance still to the credit of the depositor, which all together should exactly equal the sum of the deposits for the period; allowance being made, of course, for interest on the account, or collection charges. These will be entered in the " passbook" as follows: In event of interest being allowed upon the account, the amount of such interest for a given period will be entered at stated intervals among the deposits. On the other side of the book may be found occasional charges for the collection of a check, coupon, or some such item. (See "Collections.") This charge will be evidenced to the depositor by a slip of paper giving the amount of the charge and for what it was made, which is called a "charge ticket." Therefore, in balancing the check-book," and in this connection it would be well to refer to that subject, the interest and collection charges should be taken into consideration. Any error should be immediately reported to the bank for correction. To withdraw money from a savings bank, the depositor may present his book in person, and have the amount withdrawn entered therein, besides signing in a book kept by the bank, the amount withdrawn being opposite the signature. This is the bank's receipt. To withdraw money when at a distance, draw an order on the bank following the form generally to be found at the back of every savings bank book, and forward to the bank with the book itself. Money is withdrawn from national banks, trust companies, etc., by the use of checks. (See "Checks.") Bank Check. Same as "Check." Bank Clearings. See "Clearings." Bank Commissioner. One who examines into the affairs of, and has certain supervision over, the chartered banks in the State under which he is appointed. For example: the Governor of the Commonwealth of Massachusetts appoints a man whose duty it is, with his assistants, to see that all the savings banks and trust companies within the Commonwealth comply with the laws regulating them. This is largely done by making periodical examinations into the affairs of each institution. This board of commissioners is empowered to pass upon and decide many questions which may be referred to it by various banks and trust companies,1 such as whether a particular investment may be legally bought, etc. In fact, the powers are broad, and when properly exercised there should be comparatively few financial disasters among the banks and trust companies over which it has control. Bank Deposit. See "Deposit." Bank Discount. Simple interest paid the lender of money in advance, the sum being reckoned upon the face value of the note or other obligation. Bank Draft (or Banker's Draft). (See (See "Draft.") "draft" drawn by one bank or banker against another. A Banked. In financial slang, to be backed with money by some one else. He "banked" Smith in the enterprise; that is, furnished the money. Banker. It seems hardly necessary to define this term other than to say that the "banker," in general, is a custoIdian of the funds of others. Ricardo distinguishes between a" banker" and a "capitalist," however, by stating that the function of the former begins as soon as he uses the money of others, but he is only a " capitalist " as long as he uses his own money. The term "banker" is used in altogether too broad a sense, and should not include those who make an exclusive business of note broking, stock broking, etc., or in cases where no custodianship of money is involved. "The banker is a dealer in money more precisely than some writers have been willing to grant. He is a dealer in 'Their powers extend to certain other institutions. money, because money is, in the ultimate analysis, the commodity which he promises to deliver on demand." i Bankers' Bills (or Bills of Exchange). If the reader will first understand the meaning of "commercial bills," it will be seen that these are "bills of exchange " drawn against a shipment of merchandise. They are distinguished from "bankers' bills" - which are so called because drawn by bankers rather than by a shipper of merchandise - on account of the latter's being drawn by a banker in one country against one in another with whom he has credit. Banker's Check. A check drawn by one banker upon another. Banker's Note. A promissory note of a private banker, or a banking house which is not incorporated. Banker's Sterling. "Exchange" (to which refer) on Great Britain as purchased at some bank or banking house, as distinguished from regular" bills of exchange" accompanied by bills of lading, as held by the sellers or exporters showing amount due them. Bank-Holiday. A day, other than Sunday, in Great Britain, upon which all negotiable paper may not be presented or paid; banks are closed. In England, for example, Easter Monday, Whit Monday, and others are "bankholidays." Banking Power. By this heading the wherewithal for the business of banking is understood, meaning the capital, deposits, surplus, undivided profits, outstanding bank notes, etc. Banking Power of the World. In 1890 Mulhall estimated the world's banking power was $15,985,000,000; in 1905 the estimate was $34,492,400,000, divided between the United States at $15,333,900,000; and foreign countries at $19,158,500,000. Bank Money-Orders. A form of "money-order" sold by banks in competition with the United States Postoffice and express companies. More than 1,000 banks have adopted this "money-order," and many have sold large quantities of them; and, although this plan was adopted but a little more. than a year ago and has not permitted of a very long test, a number of decided advantages have been discovered in the issuance of such orders, aside from whatever profit there may be.2 Bank Note. Not real money, but a substitute for money. A bank's non-interest-bearing promise to pay lawful money 1 Charles A. 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