White's last two statements (see page 73 above) of assets and liabilities showed the alternative effects of his paying for discounts with cash or deposits; the two previous statements showed the similar alternative effects of his making loans in cash or deposits; and the first statement showed deposits arising by the deposit of cash or cash items. Another alternative was open to White in each case. Instead of paying cash or crediting deposits to be drawn later by order, White might have paid by simple promissory demand notes payable to bearer. These notes would be in small denominations, round amounts, and convenient size, and, if White was well-reputed, would be readily accepted by others and would tend to circulate as money. If the proceeds of the $35,000 of discounts had been paid in bank notes, the financial statement in this case, starting with the figures given in the last statement on page 73, would have been as follows:

Assets

Cash................. $100,000

Loans And Discounts... 80,000

Liabilities

Deposits.............. $145,000

Bank Notes Outstanding 34,000

Discount............. 1,000

Obviously many variations may be introduced here to indicate part payments of loans, discounts, collections, and so forth, in cash, deposits, and bank notes. For instance, items to the amount of $27,000 may be discounted and the proceeds, $25,000, be paid, one-fifth in cash, two-fifths in bank notes, and the rest credited as deposits, with the following results on the last statement:

Assets

Cash................. $ 95,000

Loans And Discounts... 107,000

Liabilities

Deposits.............. $155,000

Bank Notes Outstanding 44,000

Discount.............. 3,000