When he pays a bill, he draws a check for the amount, payable to
the order of his creditor. This check, when endorsed by the
receiver and paid by the bank, is in itself a receipt for the
money.

NATIONAL BANKS

As I propose to say something about savings banks in another
chapter, the present will be devoted to what are known as "banks
of deposit."

Banks of deposit are either National, State, or private.

A National bank is, as the name implies, chartered and
incorporated by the Government, with special privileges and
restrictions.

The Government in the organizing of National banks had in mind the
protection of the public without unduly limiting the profit of the
stockholders.

The sum the stockholders must contribute to the establishment of a
National bank varies according to the population and the business
importance of the place in which the bank is to be located.

The capital must exist in a prescribed form.

Certain forms of investment are prohibited, as for instance the
ownership of real estate, except under certain restrictions.