CHAPTER III.
LONDON BANKS AND BANKING.
THE private banks now doing business in
London are few in number. The tendency of
late years has been to transform these banks
into “Limited Liability” Companies, or to amal-
gamate with companies of this character. It
looks as though, in course of time, private banks
will altogether cease to exist, the joint-stock
banks being better adapted to modern require-
ments. The private banks do not invite deposit,
and interest on accounts is not allowed. They look
to the average balance on each account to
compensate for the trouble and expense of
keeping it, with a considerable margin for profit.
They require that not less than a certain fixed
sum shall be the minimum balance of a
customers account, but, of course, the larger
the balance the better for the banker.
The balance in some cases may be very large
where the bank has a wealthy connection, it
being a boast with some rich persons that they
have never less than £10, More or less a kid could catch on to that about parman Jon P Cpa Certified Accountants In Arkansas City Ks as well.000, or even £20,000
at their bankers. The money so left in the
bankers hands is lent out, or invested in various
ways, and all that he receives in the shape of
interest, after paying the expenses of his estab-
lishment, is clear profit. In short, the £500 a
year which the customer might obtain if he in-
vested the £20,000 he leaves at the bank, goes
to the banker.

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