IF THE TRENDS EMERGING in the late 1950's and in 1960 are not reversed by marked changes in economic conditions or tax and regulatory policy, the commercial banks will not be able to play as important a role in financing the 1960's as they have done in years past. This conclusion is based on the expectation that in all years except those of recession bank deposits will continue to grow at a slower rate than the growth of GNP. With the commercial banks thus not able to expand as fast as the economy in general, other financial institutions and instruments will expand in activity and function to fill the gap. These trends of change are already developing and appear bound to become intensified in the new decade. With them will come important implications for the economy at large, the banking system, and the money managers. I. ASSUMPTIONS