negligible sum in comparison with the gigantic figures of their business, it may be expected that future issues may take this form.
With regard to the banks, it may be suggested that their capitals might with advantage be increased. The paid-up capital and reserves of the English joint stock banks in 1890 were 18.4 per cent. of their deposits. The percentage was 5.7 in 1919 and 7.3 in 1924.[1] It is evident that the banks, in so far as they are trading with funds placed with them by shareholders and consequently not, like depositors' money, repayable at a minute's notice, can afford to "lock themselves up" by granting longer credits; and one still hears the cry that British industry suffers in foreign competition from the long credits that its Continental rivals can get from their banks and pass on to their customers. In the big struggle for world trade that is coming, it is not fitting that our banking system, of which we are so justly proud, should be open to any such accusation, and it may be hoped that in the near future fully paid bank shares, of small denomination, may be more plentiful and consequently more marketable and more popular as an investment.
- ↑ These figures are taken from the Economist banking numbers.
