From an investment point of view the deposit-receipt seems hardly worth consideration, because even Consols, over a period of five years, will return an appreciably higher yield; but when one is merely waiting for a suitable investment to turn up, or for a revival of trade, then the deposit-note exactly meets one’s requirements, for its only charm lies in the fact that the depositor gets back his principal intact. When the deposit rate is low trade is generally dull, and the prices of gilt-edged securities consequently move up. The depositor, therefore, when the rate is high should not be tempted to let his money remain with his banker for that reason alone, because he can then, as a rule, buy gilt-edged securities at cheaper figures, and, needless to say, the average return on his purchase-money will greatly exceed the average rate of interest on deposit. Conversely, if he buy the so-called gilt-edged variety of securities when interest is low, he is much more liable to a loss of capital should he want to realize them when trade is good and the rate of interest high. It follows that the man of business, who finds capital accumulating in his hands during periods of temporary depression, when interest, of course, is low, prefers taking a deposit-receipt for his idle capital, which he hopes to again use in his business directly markets improve, to purchasing, say, Consols at a time when demand has enhanced their price, and, consequently, added to his risk of loss upon realization. Some banks, instead of issuing a deposit-receipt for money left at interest, give the depositor a pass-book, in which the sum he leaves is credited. Each time the depositor leaves new money he takes his book with him, and the cashier enters the amount therein to his credit, while he draws out his interest, or any part of the principal he may require, by cheque. As the banker rules off his deposit-ledgers half-yearly, and then adds the interest due to each customer to the principal, it follows that principal and interest, when the balance is brought forward, give a return to the customer, who by this method receives compound interest on his capital or savings. The advantages of this system are too obvious to call for explanation, but it may be added that, when a deposit customer is given a cheque-book, he should be careful not to operate too freely upon his account, as some bankers then transfer the balance to their current-account ledgers, their reason being that the account has ceased to be used for the purpose for which it was opened, and that, therefore, the depositor is no longer entitled to interest. The chapter on “Unclaimed Balances” should prove especially interesting to depositors. CHAPTER VI THE BANK RATE IN RELATION TO BANKERS’ CHARGES