For the profitable working of a banking establishment certain assets apart from the deposits are, of course, crucial, and the subscribed capital, that's, the money paid up by shareholders on their shares and forming the substantial portion of their declare to public credit, is held upon a distinct footing to the sums received from depositors. Many of them appear to have been over-capitalized and their dividends haven't all the time met shareholders' anticipations. As quickly as a slight depression in business comes, so that it is completely evident not merely that dividends cannot be paid on the widespread stock, however that in all probability each the deferred inventory and the bonds, if any have been issued, will also need to go without curiosity, it could also be essential to reorganize many of those mixtures and to start out them anew on a much lower capitalization. On the other hand, if the ingredient of monopoly enters into the enterprise to any noteworthy extent, the costs of the product could also be stored so high that honest dividends could also be paid even on this excessive capitalization.
