to be affected by political convulsions and other
contingencies, which make them undesirable as
an investment.


BANKS.

A joint-stock bank is composed of a number
of proprietors who hold the shares which make
up the capital of the bank, and to the nominal
amount of these shares their liability is limited.

The whole of this amount, however, is not
paid up, but only sufficient for the working re-
quirements of the bank, the remainder being
held in reserve for contingencies. Let us take,
for instance, the London and Westminster Bank,
which has the largest capital of all the joint-
stock banks.

The capital amounts to £14,000,000, made up
of 140,000 shares of £100 each. Only £20 of
this £100 is paid up, leaving a liability of £80
on every share.

A joint-stock bank is governed by a board of
directors, elected by the shareholders; and
managers and other officers are appointed by
the board to conduct the business. Many of
these banks, besides having a head establish-