Chapter XIV
Investments in Banks and Discount Companies
A glance at a bank balance-sheet shows at once one of the great advantages that shareholders in these institutions enjoy, namely, the enormous sums handled in relation to the amount of the shareholders' capital employed. The consequent diversification of risk is evident. Here are the figures on December 31, 1924, of the Westminster Bank, which we will take as the oldest of the London Joint Stock Banks, apart from the Bank of England, which stands by itself.
| Capital paid up | £9,051,718 | Coin, notes and balances with Bank of England | £34,185,041 |
| Reserve | 9,051,718 | Balances with and cheques in course of collection on other banks | 10,309,104 |
| Current, deposit and other accounts | 272,832,400 | Money at call and short notice | 23,399,849 |
| Notes in circulation | 14,616 | Bills discounted | 41,970,486 |
| Acceptances, endorsements, etc. | 16,430,325 | Investments | 53,307,672 |
| Profit and Loss | 1,238,038 | Shares in other banks | 2,991,706 |
| Advances to customers | 121,946,012 | ||
| Liability of customers for acceptances, etc. | 16,430,325 | ||
| Banks and other premises | 4,078,620 | ||
| £308,618,815 | £308,618,815 | ||
