235
THE JOINT STOCK BANKS
old; all those which pay between 15 and 20 are so too. A new bank could not make these profits, or even by its competition much reduce these profits; in attempting to do so, it would simply ruin itself. Not possessing the accumulated credit of years, it would have to wind up before it attained that credit.
"The value of the opportunity too is proportioned to what has to be paid for it. Some old banks have to pay interest for all their money; some have much for which they pay nothing. Those who give much to their customers have of course less left for their shareholders. Thus Scotland, where there is always a daily interest, has no bank in the lists paying over 15 per cent. The profits of Scotch banks run thus:—
| Capital. | Dividend. | |
| Bank of Scotland | £1,500,000 | 12 |
| British Linen Company | 1,000,000 | 13 |
| Caledonian | 125,000 | 10 |
| Clydesdale | 900,000 | 10 |
| Commercial Bank of Scotland | 1,000,000 | 13 |
| National Bank of Scotland | 1,000,000 | 12 |
| North of Scotland | 280,000 | 10 |
| Union Bank of Scotland | 1,000,000 | 10 |
| City of Glasgow | 870,000 | 8 |
| Royal Bank | 2,000,000 | 8 |
| £9,675,000[1] |
- ↑ In 1913, upon a paid-up capital of £9,241,070, the Scottish banks distributed dividends to the amount of £1,437,200. The rates of distribution ranged from 20 per cent. free of income tax to 5 per cent. free of income tax, this rate being paid by a relatively young and unimportant bank.
