Annual Report of the Secretary of the Treasury On the State of the Finances for the Year .. 1915
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In a transaction of this kind no actual money need be involved; but as a result of such an arrangement it would appear that there had been an increase in total deposits of $300,000, and each bank would be carrying $100,000 as a net deposit. If A had $100,000 deposited with B and B had $100,000 deposited with A, in the statements of condition made to the Comptroller, these deposits would not be shown, as the $100,000 which A deposits with B would offset the $100,000 which B deposits with A.
Oppo...rtunities for such reciprocal triangular transactions between banks at a distance are, of course, more difficult and less frequent, but it would be well if artificial methods of swelling deposits could be more nearly eliminated.
Elimination of Overdrafts.
In the Comptroller's report for 1914 attention was called to a practice common among national banks of permitting and carrying overdrafts. These overdrafts were not confined strictly to the cus- tomers of the banks, but in many banks the officers themselves were in the habit of overdrawing their accounts and obtaining money from the bank by this irregular and unlawful method.
What to read after Annual Report of the Secretary of the Treasury On the State of the Finances for the Year .. 1915?
You can find similar books in the "Read Also" column, or choose other free books by United States. Dept. of the Treasury to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
In a transaction of this kind no actual money need be involved; but as a result of such an arrangement it would appear that there had been an increase in total deposits of $300,000, and each bank would be carrying $100,000 as a net deposit. If A had $100,000 deposited with B and B had $100,000 deposited with A, in the statements of condition made to the Comptroller, these deposits would not be shown, as the $100,000 which A deposits with B would offset the $100,000 which B deposits with A.
Oppo...rtunities for such reciprocal triangular transactions between banks at a distance are, of course, more difficult and less frequent, but it would be well if artificial methods of swelling deposits could be more nearly eliminated.
Elimination of Overdrafts.
In the Comptroller's report for 1914 attention was called to a practice common among national banks of permitting and carrying overdrafts. These overdrafts were not confined strictly to the cus- tomers of the banks, but in many banks the officers themselves were in the habit of overdrawing their accounts and obtaining money from the bank by this irregular and unlawful method.
What to read after Annual Report of the Secretary of the Treasury On the State of the Finances for the Year .. 1915?
You can find similar books in the "Read Also" column, or choose other free books by United States. Dept. of the Treasury to read onlineMoreLess
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