DISCUSSION.

The article analyses the deposits by the individual banker, which is consider as a means of conducting a sound baking business. Business or commercial accounts result from borrowings by corporate and other enterprises which are negotiated through an exchange of business paper for bank credit. The bank's reserve problem is largely concerned with these since business accounts are fluctuating and active, highly sensitive to slight changes in business conditions and in public confidence. In the first place, not all business deposits result from borrowings by business enterprises. The larger corporations of the country have not been, generally spreading, greatly in debt to the banks for several years past, yet many of them have maintained large, often excessive, bank balances which would certainly be classified as business deposits. Business deposits are often highly sensitive to changes in public confidence. It is the savings and income accounts, on the whole, which have been withdrawn during this past year in large amounts, while business deposits have been much more stable. It should be added, however, that if bank failures continue on a wide scale, business concerns, as well as individuals, will be increasingly likely to withdraw their accounts and hold currency or gold.