BANKING TRANSACTIONS AND THE MONEY
Banking and finance furnish the student of business forecasting with much of the most interesting and important material with which he has to work. Information drawn from the field of finance falls into two classes: first, banking statistics indicative of the volume of trade; and, second, statistics perraining to the abundance or scarcity of credit and the condition of the banks themselves. The first group of data consists of the clearings, the debits, and the rate of turnover of deposits: the second includes interest rates, reserve ratios, the proportion of loans to deposits, international gold movements, and similar data descriptive of the state of the money market.
Payments made through the banks register the activity of trade in much the same all-inclusive way as do statistics of railway traffic. Practically all business activity involves the making of payments, and it is estimated that 85 per cent of payments are made, in the United States, by the use of checks. The series representing bank payments which are used for barometric purposes are three, namely, clearings, debits to individual accounts, and the