This is done that the National bank may be able to convert its
securities into cash in the shortest order.

In consideration of a prescribed amount of United States bonds,
deposited with the Treasury in Washington, the Government issues
to the National bank a prescribed sum in printed bank notes of
varying denominations.

If the bank should close for any reason, the bank notes or their
equivalent must be returned, when the bonds deposited as security
are released.

Every bank must have a board of directors, a president and a
cashier. Receiving and paying tellers, with bookkeepers, and many
clerks are necessary to carry on the business of a large bank.

In addition, the National banks are under the supervision of
regularly appointed Government inspectors.

A National bank may fail, but its notes are still "as good as
gold."

BANKS AS LENDERS

The bank not only receives money on deposit, but it loans money
under certain conditions.

Many merchants, builders, contractors and others often find it
necessary to borrow money in order to carry on their business