money passing from hand to hand. This widespread system of depositing is greatly aided by the establishment of branches from the parent banks, and these branches are found in every small town in the kingdom. The entire number of branch banks in Scotland is over one thousand. At these branch banks the agent (who is usually a responsible person in business) discounts bills within certain limits, issues letters of credit, and pays out notes, and also gives cash on demand for them; though, strictly, the notes of a bank are payable only on demand at the head office. By a strict system of supervision, Scottish branch-banks are usually well conducted, and are of great service in every department of trade.
The banks in Scotland, like the banks in Ireland, but unlike the provincial banks in England, are allowed to issue notes beyond their fixed issues, on holding gold equal in amount to the extra issue. But as the gold thus retained is, like the other gold in reserve, liable for all deposits, as well as for the whole circulation of a bank if it should fail, the security of the establishment is increased only in a small degree by this arrangement, which, apart from the loss of profit to the bank on the gold unemployed, is attended with inconvenience at those seasons when the circulation is extended. In Scotland, and Ireland also, banks can issue one-pound notes; the English banks are not permitted to circulate notes of less value than £5.
Besides employing money in discounting bills, the Scottish banks grant loans of fluctuating amount, called cash-accounts or cash-credits. By a cash-account is signified a process whereby an individual is entitled to draw out sums as required, to a stipulated amount, and on an implied condition to make deposits at his convenience toward the liquidation of the same. On entering into this arrangement, he finds security to the bank that he will repay to the bank, whenever called on, the balance of sums drawn out, less those paid in, with the interest that may be due. These accounts are balanced yearly, like current or deposit accounts. The only difference between the latter and a cash-account on the face of them is, that if the credit allowed on the cash-account is being made use of, the balance is in favor of the bank; whereas, on the other kind of accounts, the balance is in favor of the bank's customer.
Banks in Ireland. There are nine joint-stock banks, having 454 branches and sub-branches. Their authorized issue is £6,354,404, of which £3,738,428 is that of the Bank of Ireland. It is a national bank, lending £2,630,769 of its capital to the Government. It was established in 1783, with privileges resembling those of the Bank of England. Its capital is £2,769,230, and its reserve £1,034,000. The capitals of the other banks vary from £142,766 to £1,500,000, and the total capital of the joint-stock banks in Ireland is £6,901,966. Six are banks of issue. Interest is allowed on money deposited for a stated period, but not on money at call, or as a rule on current accounts.
The following table gives some of the important features of the assets and liabilities of banks doing business in the United Kingdom for the date June, 1900:
| LOCATION | No. of Banks |
No. of Branches |
Capital Reserve and Undivided Profits |
Circulation | Deposits and Current Accounts |
Loans and Discounts |
Cash Money at Call and Short Notice |
| Bank of England | 1 | 11 | £ 17,800,000 | £30,200,000 | £ 48,500,000 | £ 30,500,000 | £ 33,600,000 |
| England and Wales Joint-Stock Banks | 82 | 3,824 | 80,400,000 | 900,000 | 571,700,000 | 386,800,000 | 136,100,000 |
| England and Wales Private Banks | 21 | ....... | 7,100,000 | 200,000 | 42,100,000 | 23,500,000 | 10,500,000 |
| Isle of Man Joint-Stock Banks | 3 | 12 | 200,000 | 100,000 | 1,500,000 | 800,000 | 200,000 |
| Scotland Joint-Stock Banks | 11 | 1,077 | 17,100,000 | 7,900,000 | 103,700,000 | 70,500,000 | 25,600,000 |
| Ireland Joint-Stock Banks | 9 | 559 | 11,400,000 | 6,400,000 | 47,700,000 | 36,600,000 | 9,900,000 |
| Total | 127 | 5,483 | £134,000,000 | £45,700,000 | £815,200,000 | £548,700,000 | £215,900,000 |
| Colonial Joint-Stock Banks with London offices | 30 | 1,652 | 46,500,000 | 9,300,000 | 167,500,000 | 167,000,000 | 54,000,000 |
| Foreign Joint-Stock Banks with London offices | 24 | 312 | 42,600,000 | 3,500,000 | 115,600,000 | 156,900,000 | 33,800,000 |
| Grand Total | 181 | 7,447 | £223,100,000 | £58,500,000 | £1,098,300,000 | £872,600,000 | £303,700,000 |
Continental Banks. On the Continent of Europe there are both private and State banks. The Bank of France stands second in repute only to the Bank of England. It was founded in 1800, and in 1806 was placed upon an enduring basis. Its original capital was 45,000,000 francs, which was increased in 1806 to 90,000,000 francs, and later reduced to 67,900,000 francs, with a reserve of 12,980,750 francs. It has the sole right to issue paper money in France, and enjoys a high degree of public confidence, which it is so anxious to retain, that in 1888, when dangerous counterfeits of its 1000-franc notes were put into circulation, it preferred to redeem them rather than, by refusing payment, to impair the general readiness to receive its own genuine paper. The Bank of France has often rendered important services to the French Government in furnishing large and promptly given loans. In November, 1890, during the crisis in the London money-market owing to the embarrassment of the firm of Baring Brothers, the Bank of France was able to relieve the pressure on the Bank of England by a large advance of gold. It issues notes of 50, 100, 500, and 1000 francs, and, besides carrying on a general banking business, takes charge of valuables, such as plate, jewels, and title-deeds, at a charge of one-eighth per cent. of the value of the deposit for each six months. It has various branches or succursales in the chief cities of France. The Banque Nationale of Belgium is conducted upon the model of the Bank of France. It issues notes for 20, 50, 100, 500, and 1000 francs. In Germany, the Imperial Bank (Reichsbank) was established by an act passed in 1875, with the right to issue notes not covered by bullion in the vaults, to the amount of 250,-
