st the fault or carelessness of others.

NOTE BROKERS

Merchants sell a great many of their notes in the open market--that
is, to note brokers. The banks buy these notes from the note brokers.
The assistance of the broker who handles commercial paper is a
necessary and valuable aid to the purchasing bank. Fully three fourths
of all the paper purchased by banks in large cities is purchased upon
the simple recommendation of the note brokers. As a rule these brokers
simply transfer the paper without guaranteeing by indorsement its
payment. Notes bought by banks from note brokers without their
indorsement are held to be guaranteed by them to be all right in all
points except that which covers the question of whether they will be
paid or not. The bank uses its best judgment in taking the risk. If
the note dealer in selling notes to a bank makes what he believes to
be fair and honest representations regarding any particular
paper--statements of such a straightforward type that upon them no
charge of false pretenses can be made to rest--he simply guarantees
the note genuine as to names, date, amount, etc., and that in selling
it he conveys a good title to the paper. As business men, however,
they are very cautious and are exceedingly anxious that the paper they
sell shall be paid, and as a rule they make good any losses which grow
out of apparent misrepresentations on their part.

BANKERS' RATES FOR LOANS

In loaning money on demand, when it is strictly understood between
bank and borrower that the money so advanced is positively minute
money--money returnable at any minute when the bank calls for
it--banks usually charge low rates of interest. When interest rates
are high bankers prefer to deal in long-time paper. This general rule
is reversed when the situation is reversed. Bankers aim also to
scatter and locate their maturities so that as the seasons roll around
they will not have very large amounts maturing at one time and very
small amounts at another. They plan also to be "in funds" at those
seasons when there is always a large and profitable demand for money.
For instance, in the centres of the cotton-manufacturing interest the
banks count on a large demand for money between October and January,
when the bulk of the purchases to supply the mills are made. Again,
among those who operate and deal in wool there is an active demand for
money in the wool-clip in the spring months. The wheat and corn crops
are autumn con