#Productive services of banks.# There have always been some erroneous ideas regarding the magic power of banks to multiply the power of money.

But there should be no more of mystery about banking credit than about the nature of money itself.

Banks are the labor-saving machinery of finance.

They gather loanable funds, reduce hoarding, make money move more rapidly, and create a central market between borrowers and lenders for the sale of credit.

While not creating more physical wealth directly, they add to the efficiency of wealth; they simplify and quicken the movement of nearly all commercial transactions.