Charles J. Woelfel - Encyclopedia of Banking Finance

Cover

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T ENTH E DITION

C HARLES J . W OELFEL

A BANKLINE PUBLICATION
PROBUS PUBLISHING COMPANY
Chicago, Illinois
Cambridge, England

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Copyright 1924, 1927, 1931, 1937, 1949, 1962, 1973, 1983, 1991, 1994, Glenn G. Munn. F. L. Garcia and Charles J. Woelfel.

ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher and the author.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the author and the publisher are not engaged in rendering legal, accounting, or other professional service.

Material from The Statesman's Yearbook, 199293 , by Hunter (editor), 1993. Reprinted with permission of St. Martin's Press, Incorporated.

Material of various FASB documents, copyrighted by Financial Accounting Standards Board, 401 Merritt 7, P.O. Box 5116, Norwalk CT 06856-5115 USA, are reprinted with permission. Copies of the complete documents are available from the FASB.

Authorization to photocopy items for internal or personal use, or the internal or personal use of specific clients, is granted by PROBUS PUBLISHING COMPANY, provided that the U.S. $7.00 per page fee is paid directly to Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, USA; Phone: 1-508-750-8400. For those organizations that have been granted a photocopy license by CCC, a separate system of payment has been arranged. The fee code for users of the Transactional Reporting Service is 1-55738-398-7/94/$00.00+$7.00.

ISBN 1-55738-396-0

Printed in the United States of America

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The Encyclopedia of Banking and Finance has been the preeminent publication of Bankers Publishing Company since 1924. Throughout the encyclopedia's sixty-seven-year history it has been recognized as the standard authority in its field. Considered indispensable by librarians, it can be found in most public, university, and special libraries where it is used by business professionals and students at all levels. However, it can also be found as part of the everyday working library of bank officers, institutional investors, corporate treasurers, and other financial executives. In addition to these traditional readers, the recent burgeoning interest in business, economics, and personal finance has resulted in wider use of the encyclopedia among the general public, who are increasingly concerned with money, banking, investments, and the effect that the country's, and even the world's, economy is having on their daily lives. It is for this composite audience that the revised and expanded ninth edition was carefully prepared.

In the period since the last edition was published in 1991, the banking and financial services industry has been faced with tremendous change, not the least of which are the technologies that have dramatically revolutionized operations. Competition for control of the world's assets and a blurring distinction among banks, investment companies, brokerage firms, insurance companies, and retailing giants has resulted in far-reaching and dramatic developments. The savings and loan crisis has focused the attention of every taxpayer on the financial services industry. The need for information on all aspects of the financial world has never been stronger.

The encyclopedia contains almost 4200 entries. In addition to definitions of thousands of basic banking, business, and financial terms, in-depth entries provide a wealth of valuable information such as historical background, analysis of recent trends, illustrative examples, statistical data, and citation of applicable laws and regulations.

Each term was reviewed, recent developments were researched, and the term's entry was updated and expanded as necessary. New terms were added to reflect developments in the field. Bibliographies, tables, and other statistical material were updated with the latest information available in Spring 1993. Then all manuscript copy was given the most thorough independent review in the history of the encyclopedia. Each entry term was edited for clarity and consistency of style, and material was reorganized and placed under a new or different entry term whenever this would result in greater convenience for the reader.

Page headings are another feature that make it easier and faster to locate entries. Each left-hand page is headed by the first entry and each right-hand page is headed by the last entry appearing on these pages.

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A style of SMALL CAPS is used to indicate a cross-reference. These appear both within the discussion of an entry term and at the end of entries. These frequent cross-references are very helpful in locating further information within the encyclopedia. As an aid to researching information beyond the scope of the encyclopedia, bibliographies have been included at the end of many entries.

In summary, every effort was made to make this edition worthy of its widely admired predecessors. We recognize, as did the original editor, Glenn G. Munn in 1924, that a work of this compass may not be wholly free from error and that it is capable of improvement and elaboration. Work on the next edition will begin shortly and we welcome your criticisms and your participation in the living growth of this fine work.

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The Encyclopedia of Banking and Finance is widely recognized as the preeminent publication in its field. During the editorship of the original editor, Glen G. Munn, 1924 to 1947, and later under the editorships of Professors F. L. Garcia and C. J. Woelfel, the Encyclopedia has been duly recognized as the standard authority in banking in the United States. This editor had the opportunity to revise the ninth edition which was published in 1991 and the current tenth edition which updates and expands the monumental information base established in previous editions.