We subjoin a list of the Private Banks of England and Wales empowered to issue notes under the 7 & 8 Vict. c. 32. ; and of their maximum authorised issue.

But 3 of the banks included in the above list having ceased to issue their own notes, the fixed issue amounted in November 1846 to 4,999,4447. (See Banker's Almanac for 1847, p. 27.)

IV. BANKS (SCOTCH).

The act of 1708, preventing more than 6 individuals from entering into a partnership for carrying on the business of banking, did not extend to Scotland. In consequence of this exemption, several banking companies, with numerous bodies of partners, have always existed in that part of the empire.

Bank of Scotland. This institution was projected by Mr, John Holland, merchant, of London, and was established by act of the Scotch parliament (Will. 3. Parl. 1. § 5.) in 1695, by the name of the Governor and Company of the Bank of Scotland. Its original capital was 1,200,000l. Scotch, or 100,000l. sterling, distributed in shares of 1000%. Scotch, or 831. 6s. 8d. sterling, each. The act exempted the capital of the bank from all public burdens, and gave it the exclusive privilege of banking in Scotland for 21 years, The objects for which the bank was instituted, and its mode of management, were intended to be, and have been, in most respects, similar to those of the Bank of England, The responsibility of the shareholders is limited to the amount of their shares.

The capital of the bank was increased to 200,000l. in 1744, and was enlarged by subsequent acts of parliament, the last of which (44 Geo. 3. c. 23.) was passed in 1804, to 1,500,000l., its present amount. Of this sum, 1,000,000%. has been paid up. The last-mentioned act directed that all sums relating to the affairs of the bank should henceforth be rated in sterling money; that the former mode of dividing bank stock by shares should be discontinued; and that, for the future, it should be transferred in any sums or parcels. On the union of the two kingdoms in 1707, the Bank of Scotland undertook the recoinage, effected the exchange of the currency in Scotland: it was also the organ of government in the issue of the new silver coinage in 1817.

The Bank of Scotland is the only Scotch bank constituted by act of parliament. It began to establish branches in 1696, and issued notes for 17. so early as 1704. The Bank also began, at a very early period, to receive deposits on interest, and to grant credit on cash accounts; a minute of the directors with respect to the mode of keeping the latter being dated so far back as 1729. It is, therefore, entitled to the credit of having introduced and set on foot the distinctive principles of the Scotch banking system, which, whatever may be its defects, is probably superior to every other system hitherto established. Generally speaking, the Bank of Scotland has always been conducted on sound and liberal principles; nor can there be a doubt that it has been productive, both directly and as an example to other banking establishments, of much public utility and advantage.

It may be worth mentioning, that the act of Will. 3., establishing the Bank of Scotland, declared that all foreigners who became partners in the Bank should, by doing so, become, to all intents and purposes, naturalised Scotchmen. After being for a long time forgotten, this clause was taken advantage of in 1818, when several aliens acquired property in the bank in order to secure the benefit of naturalisation. But after being suspended, the privilege was finally cancelled in 1822.

We subjoin an official abstract of the constitution and objects of the Bank of Scotland, printed for the use of the proprietors; the terms and mode of transacting business are, of course, sometimes altered, according to circumstances.

1. The Bank of Scotland is a public national establishment; erected and regulated by the legislature alone and expressly as a public bank in this kingdom; for the benefit of the nation, and for the advancement of agriculture, commerce, and manufactures; and for other objects of public policy. — (Will. Parl. 1. § 5.; 14 Geo. 3. c. 32; 24 Geo. 3. c.8.; 32. Geo. 3. c. 25. ; 34 Geo. 3. c. 19.; 44 Geo. 3. c. 23.)

II. The statutory capital is at present 1,500,0001, sterling. It is raised by voluntary subscription; and has been subscribed for. 1,000,000Z. has been called for, and paid in.- (44 Geo. 3. c. 23.)

III. Subscribers, if not under obligation to the Bank, may, at pleasure, transfer their right. If under obligation to the Bank, the obligation must be previously liquidated; or the proceeds of the sale, at a price to the satisfaction of the directors, must be applied towards such liquidation. Transfers are made by a short assignment and acceptance thereof, both in a register appointed for that purpose. The expense, beside the government stamp, is 11s. (Will. Parl. 1. § 5.)

IV. Bank of Scotland stock may be acquired, in any portions by any person, community, or other lawful party whatsoever; without selection, exclusion, or limitation of numbers.- (Will. Parl. 1. § 5. 44 Geo. 3 c. 23.)

V. Bank of Scotland stock may be conveyed by will, and, if specially mentioned, without expense of confirmation. It cannot be arrested: the holder's right may be adjudged. Dividends may be arrested. -(Will. Parl. 1. § 5.)

VI. The Bank of Scotland is a public corporation by act of parliament. The Bank's transactions are distinct from those of the stockholders; and theirs from those of the Bank.-(Will. Parl. 1. § 5.)

VII. The establishment is expressly debarred from any other business than that of banking.(Will. Parl. 1. § 5.)

VIII. The management is vested, by statute, in a governor, deputy governor, twelve ordinary, and twelve extraordinary directors. They are chosen annually, on the last Tuesday of March, by the stock. holders having 2501. of stock or upwards. Those above 2501, have a vote for every 2504., to 5,000, or 20 votes. No person can have more than 20 votes. The governor must hold, at least, 2,0007. of stock; the deputy governor 1,5007.; and each director 7501. They swear to be equal to all persons; and cannot hold any inferior office in the Bank. (Will. Parl. 1. § 5. ; 14 Geo. 3. c. 32.; 44 Geo. 3. c. 23.)

IX. The executive part is conducted by a treasurer, secretary, and other public officers, all sworn. Those having the official charge of cash find due security. (Will. Parl. 1. § 5.)

X. The Board of directors sits for the general administration of the Bank, at the Bank's Public Head

Office in Edinburgh. The local business of that district is also conducted at that office. For the local business in the other parts of the kingdom, the Bank has its regular public offices in the principal towns. At each of these offices there is the bank agent or cashier, who gives due security, and conducts the Bank's business for that district in the manner after mentioned. There is also the bank's accountant for that office; who is appointed by the directors.-(Will. Parl. 1. § 5.)

XI. The Bank takes in money, at all its public offices, on deposit receipts or promissory notes, or on current deposit account. At the head office, draughts on London, or on any of the agencies, are given; at each agency, draughts on London, or on the Head Office, are given. All these documents are on the Bank's check (and sealed with the Bank's seal t). They bear, in words, to be "For the Bank of Scotland," or, " For the Governor and Company of the Bank of Scotland." These documents are signed, if at Edinburgh, by the treasurer, and countersigned by the principal accountant: if at an agency, they must be signed by the Bank's agent as agent, and countersigned by the Bank's accountant for that agency; otherwise they infer no obligation on the Bank.-(Resolution of Court, 28th Feb. 1793.)

the Bank has its official correspondents, are disThe Bank's agents judge, in ordinary cases, of The Bank does not sell, at any of its offices, the cannot indorse its bills, unless officially to the

XII. Bills on London, Edinburgh, or any town where counted and purchased at all the Bank's public offices. the bills presected; so that parties meet with no delay. bills which it has discounted and purchased. Its agents treasurer. (Resolution of Court, 23d Feb. 1789.) XIII. Government stock and other public funds, transferable in London, may be purchased or sold, and dividends thereon may be received through the Bank.

XIV. The bank gives creait on cash accounts at any of its offices, on bond, with security. The secu rity may be personal co-obligants, conjunctly and severally; or Bank of Scotland stock; or both or such other security as may be specially agreed on. Applications for cash accounts are given in to the office where the cash account is wanted, and must specify the credit desired, and the security proposed; and the individual partners, where copartneries are proposed. Cash accounts are granted by the directors only; and are not recalled unless by their special authority. It is understood that these credits are not used as dead leans, to produce interest only. In the fair course of business, the advantage of the Bank is consulted by an active circulation of its notes, and by frequent repayments to it in a way least affecting that circulation. — ( Resolution of Court, 6th Nov, 1729, and 23d Feb, 1789.)

XV. The Bank's dividend of profits has been for some considerable period 6 per cent. per annum, on its paid up capital of 1,000,000 sterling. The dividends are paid regularly twice a year, without expense. They may be drawn either at the Bank's Head Office, or at any of its other offices, as most agreeable to the stockholder.

Most of the other Scotch banks are conducted on the same principles and in the same way as the Bank of Scotland, so that the details as to its management will nearly apply to them all.

The Royal Bank of Scotland was established in 1727. Its original capital of 151,000Z. has been increased to 2,000,000%.

The British Linen Company was incorporated in 1746, for the purpose, as its name implies, of undertaking the manufacture of linen. But the views in which it originated were speedily abandoned; and it became a banking company only. Its capital amounts to 500,000l.

None of the other banking companies established in Scotland are chartered associations, with limited responsibility; the partners being jointly and individually liable, to the whole extent of their fortunes, for the debts of the firms. Some of them, such as the National Bank, the Commercial Banking Company, the Dundee Commercial Bank, the Perth Banking Company, &c., have very numerous bodies of partners. Their affairs are uniformly conducted by a Board of Directors, annually chosen by the shareholders.

The Bank of Scotland began, as already stated, to issue 17. notes so early as 1704; and their issue has since been continued without interruption. "In Scotland," to use the statement given in the Report of the Committee of the House of Commons of 1826 on the Promissory Notes of Scotland and Ireland, "the issue of promissory notes payable to the bearer on demand, for a sum of not less than 20s., has been at all times permitted by law; nor has any act been passed limiting the period for which such issue shall continue legal in that country. In England, the issue of promissory notes for a less sum than 51. was prohibited by law from the year 1777 to the epoch of the Bank Restriction in 1797. It has been permitted since 1797; and the permission will cease, as the law at present stands, in April, 1829."

There have been comparatively few bankruptcies among the Scotch banks. In 1793 and 1825, when so many of the English provincial banks were swept off, there was not a single establishment in Scotland that gave way. This superior stability seems to be ascribable partly to the formation of so many banks with numerous bodies of partners, which tends to prevent any company with only a few partners, unless they are known to possess considerable fortunes, from getting paper into circulation; partly to the less risk attending the business of banking in Scotland; and partly to the facility afforded by the law of Scotland of attaching a debtor's property, whether it consist of land or moveables, and making it available to the payment of his debts.

In the Report already quoted, the last-mentioned topic is touched upon as follows: "The general provisions of the law of Scotland bearing upon this subject are calculated to promote the solidity of banking establishments, by affording to the creditor great facilities of ascertaining the pecuniary circumstances of individual partners, and

The Bank has always allowed interest on deposits. The rate allowed varies, of course, with the variations in the market rate. During the greater part of the late war it was as high as 4 per cent.; but at present (January 1847) it is only 3 per cent.

f The seal is now dispensed with, except on the Bank's notes.

by making the private fortunes of those partners available for the discharge of the obligations of the bank with which they are connected. There is no limitation upon the number of partners of which a banking company in Scotland may consist; and, excepting in the case of the Bank of Scotland and the two chartered banks, which have very considerable capitals, the partners of all banking companies are bound jointly and severally, so that each partner is liable, to the whole extent of his fortune, for the whole debts of the company. A creditor in Scotland is empowered to attach the real and heritable, as well as the personal estate of his debtor, for payment of personal debts, among which may be classed debts due by bills and promissory notes; and recourse may be had, for the purpose of procuring payment, to each description of property at the same time. Execution is not confined to the real property of a debtor merely during his life, but proceeds with equal effect upon that property after his decease.

"The law relating to the establishment of records gives ready means of procuring information with respect to the real and heritable estate of which any person in Scotland may be possessed. No purchase of an estate in that country is secure until the seisine (that is, the instrument certifying that actual delivery has been given) is put on record, nor is any mortgage effectual until the deed is in like manner recorded.

"In the case of conflicting pecuniary claims upon real property, the preference is not regulated by the date of the transaction, but by the date of its record. These records are accessible to all persons; and thus the public can with ease ascertain the effective means which a banking company possesses of discharging its obligations; and the partners in that company are enabled to determine, with tolerable accuracy, the degree of risk and responsibility to which the private property of each is exposed."

Deposits. As was previously observed, all the Scotch banks receive deposits of so low a value as 101., and sometimes lower, and allow interest upon them.

"The interest," says the committee, "allowed by the Bank upon deposits varies, from time to time, according to the current rate of interest which money generally bears. At present (1826) the interest allowed upon deposits is 4 per cent. (At this moment (1846) the interest allowed on deposits is 3 per cent.) "It has been calculated that the aggregate amount of the sums deposited with the Scotch banks amounts to about 20,000,000l. or 21,000,000l." (It is believed to he now (1846) little, if any thing, under 28,000,000 or 30,000,0007.) "The precise accuracy of such an estimate cannot of course be relied on. The witness by whom it was made thought that the amount of deposits could not be less than 16,000,000l., nor exceed 25,000,000l., and took an intermediate sum as the probable amount. Another witness, connected for many years with different banks in Scotland, and who has had experience of their concerns at Stirling, Edinburgh, Perth, Aberdeen, and Glasgow, stated that more than one half of the deposits in the banks with which he had been connected were in sums from ten pounds to two hundred pounds. Being asked what class of the community it is that makes the small deposits, he gave the following answer; from which it appears that the mode of conducting this branch of the banking business in Scotland has long given to that country many of the benefits derivable from the establishment of savings banks.

"Question. What class of the community is it that makes the smallest deposits?— Answer. They are generally the labouring classes in towns like Glasgow: in country places like Perth and Aberdeen, it is from servants and fishermen, and that class of the community, who save small sums from their earnings till they come to be a bank deposit. There is now a facility for their placing money in the Provident Banks, which receive money till the deposit amounts to 10. When it comes to 10. it is equal to the minimum of a bank deposit. The system of banking in Scotland is an extension of the Provident Bank system. Half-yearly or yearly those depositors come to the bank, and add the savings of their labour, with the interest that has accrued upon the deposits from the previous half-year or year, to the principal; and in this way it goes on, without being at all reduced, accumulating (at compound interest) till the depositor is able either to buy or build a house, when it comes to be 100%, or 200l., or 3001., or till he is able to commence business as a master in the line in which he has hitherto been a servant. A great part of the depositors of the bank are of that description, and a great part of the most thriving of our farmers and manufacturers have arisen from such beginnings."

Cash Accounts or Credits. The loans or advances made by the Scotch banks are either in the shape of discounts, or upon cash credits, or, as they are more commonly termed, cash accounts.

This species of account does not differ in principle from an over-drawing account at a private banker's in England. A cash credit is a credit given to an individual by a banking company for a limited sum, seldom under 1007. or 2004., upon his own security, and that of two or three individuals approved by the bank, who become sureties for its payment. The individual who has obtained such a credit is enabled to draw the whole sum, or any part of it, when he pleases, replacing it, or portions of it, according as be

finds it convenient; interest being charged upon such part only as he draws out." If a man borrows 5,000l. from a private hand, besides that it is not always to be found when required, he pays interest for it whether he be using it or not. His bank credit costs him nothing, except during the moment it is of service to him, and this circumstance is of equal advantage as if he had borrowed money at a much lower rate of interest."--(Hume's Essay on the Balance of Trade.) This, then, is plainly one of the most commodious forms in which advances can be made. Cash credits are not, however, intended to be a dead loan; the main object of the banks in granting them is to get their notes circulated, and they do not grant them except to persons in business, or to those who are frequently drawing out and paying in money.

The system of cash credits has been very well described in the Report of the Lords' Committee of 1826 on Scotch and Irish Banking. "There is also," say their lordships, "one part of their system, which is stated by all the witnesses (and, in the opinion of the committee, very justly stated) to have had the best effects upon the people of Scotland, and particularly upon the middling and poorer classes of society, in producing and encouraging habits of frugality and industry. The practice referred to is that of cash credits. Any person who applies to a bank for a cash credit is called upon to produce two or more competent sureties, who are jointly bound; and, after a full inquiry into the character of the applicant, the nature of his business, and the sufficiency of his securities, he is allowed to open a credit, and to draw upon the bank for the whole of its amount, or for such part as his daily transactions may require. Το the credit of the account he pays in such sums as he may not have occasion to use, and interest is charged or credited upon the daily balance, as the case may be. From the facility which these cash credits give to all the small transactions of the country, and from the opportunities which they afford to persons who begin business with little or no capital but their character, to employ profitably the minutest products of their industry, it cannot be doubted that the most important advantages are derived to the whole community. The advantage to the banks who give these cash credits arises from the call which they continually produce for the issue of their paper, and from the opportunity which they afford for the profitable employment of part of their deposits. The banks are indeed so sensible that, in order to make this part of their business advantageous and secure, it is necessary that their cash credits should (as they express it) be frequently operated upon, that they refuse to continue them unless this implied condition be fulfilled. The total amount of their cash credits is stated by one witness to be 5,000,000l., of which the average amount advanced by the banks may be one third."

The expense of a bond for a cash credit of 500l. is 41. stamp duty, and a charge of from 5s. to 10s. 6d. per cent. for filling it up.

Law in regard to Banking in Scotland. We subjoin a full abstract of the act 8 & 9 Vict. c. 38., regulating the issue of bank notes in Scotland.

ABSTRACT OF THE ACT, 8 & 9 VICT. c. 38., TO REGULATE THE ISSUE OF BANK NOTES IN SCOTLAND. Bankers claiming to issue Bank Notes to give Notice to Commissioners of Stamps and Taxes. Whereas by the act 7 & 8 Vict. c. 32. s. 10., intituled "An Act to regulate the Issue of Bank Notes, and for giving to the Governor and Company of the Bank of England certain Privileges for a limited Period," it was enacted, that from and after the passing of that act no person, other than a banker who on the 6th day of May, 1844, was lawfully issuing his own bank notes, should make or issue bank notes in any part of the U. K. and whereas it is expedient to regulate the issue of bank notes by such bankers as are now by law authorized to issue the same in Scotland: be it therefore enacted, that every banker claiming to be entitled to issue bank notes in Scotland shall, within 1 month next after the passing of this act, give notice in writing to the commissioners of stamps and taxes, at their head office in London, of such claim, and of the place and name and firm at and under which such banker has issued such notes in Scotland during the year next preceding the 1st day of May, 1845, and thereupon the said commissioners shall ascertain if such banker was on the 6th day of May, 1844, and from thence up to the 1st day of May, 1845, carrying on the business of a banker and lawfully issuing his own bank notes in Scotland, and if it shall so appear, then the said commissioners shall proceed to ascertain the average amount of the bank notes of such banker which were in circulation during the said period of 1 year preceding the 1st day of May, 1845, according to the returns made by such banker in pursuance of the act 4 & 5 Vict. c. 50., intituled "An act to make further Provision relative to the Returns to be made by Banks of the Amount of their Notes in circulation;" and the said commissioners, or any 2 of them, shall certify under their hands to such banker the average amount when so ascertained as aforesaid, omitting the fractions of a pound, if any; and it shall be lawful for every such banker to continue to issue his own bank notes after the 6th day of December, 1815, to the extent of the amount so certified, and of the amount of gold and silver coin held by such banker at the head office or principal place of issue of such banker, in the proportion and manner herein-after mentioned, but not to any further extent; and from and after the 6th day of December, 1845, it shall not be lawful for any banker to make or issue bank notes in Scotland, save and except only such bankers as shall have obtained such certificate from the commissioners of stamps and taxes. - § 1.

Provision for united Banks. — If it shall be made to appear to the commissioners of stamps and taxes that any 2 or more banks have by written contract or agreement (which contract or agreement shall be produced to the said commissioners) become united within the year next preceding such 1st day of May, 1845, it shall be lawful for the said commissioners to ascertain the average amount of the notes of each such bank in the manner herein-before directed, and to certify a sum equal to the average amount of the notes of the 2 or more banks so united, as the amount which the united bank shall thereafter be authorized to issue, subject to the regulations of this act. - § 2.

Duplicate of Certificate to be published in the Gazette. The commissioners of stamps and taxes shall, at the time of certifying to any banker such particulars as they are herein-before required to certify, also