The total deposits and post bills of the banking department at the end of 1919 was £199,862,000.
The management of the bank is in the hands of a governor, deputy-governor and 24 directors, elected by stockholders who have held £500 of stock for six months previous to the election. A direc tor is required to hold £2,000, a deputy governor £3,000, and a governor £4,000 of the stock.
Other English Banks.—The other Eng lish banks consist of numerous joint stock and private banks in London and the provinces, many of the provincial es tablishments of both kinds having the right to issue notes. Private banks in London with not more than six partners have never been prevented from issuing notes, but they could not profitably com pete with the Bank of England. The maximum issues of the provincial banks are limited to a certain amount against which they are not compelled to hold gold in reserve, and they have no power to issue against specie in excess of the fixed circulation. Their actual issues are con siderably below this amount.
In Scotland there are no private banks, the only banks in that portion of the United Kingdom being the Bank of Scot land (1695), the Royal Bank of Scotland (1727), the British Linen Company (1746), and 10 other joint-stock banks of issue, with many branches. By the act of 1845 new banks of issue were pro hibited, a monopoly being given to such establishments as existed in the year pre vious to May 1, 1845. At the same time the issue of each was limited to the amount of its average circulation during that year, together with the specie held at the head office. Any bank issuing notes in excess of this limit is supposed to hold an equivalent amount in gold.
The banks in Ireland consist of one public or National bank, the Bank of Ireland, 8 joint-stock and several private banks. The authorized note circulation is arranged on the same footing as that of the Scotch banks. If any bank dis continues its issue and issues notes of the Bank of Ireland, the circulation of the latter may be, to an equal amount, increased.
In Canada the banks are not allowed to issue notes of lower denominations than $5, notes for small amounts up to $4 be ing issued by the Dominion Government; and the banking laws are such that there is no possibility of holders of bank-notes being losers by them.
Bank of France.—Of all other banks, the Bank of France is second in impor tance only to the Bank of England. It was established in the beginning of the 19th century, at first with a capital of 45,000,000 francs, and with the exclusive privilege in Paris of issuing notes pay able to bearer, a privilege which was ex tended in 1848 to cover the whole of France. It has numerous branches in the larger towns. The government ap points the governor and two deputy gov ernors, who are all required to be stock holders. There is also a body of 15 di
rectors and 3 censors, nominated by the shareholders. The capital of the Bank of France is fixed at 182,500,000 francs. The value of its note circulation in 1920 was 38,355,755,000 francs.
Detailed information regarding banks in other countries will be found in the separate articles on the respective coun tries. For banks in the United States see BANKS, FEDERAL RESERVE; BANKS IN THE UNITED STATES.
Banks for Savings.—Savings banks are banks established for the reception of small sums so as to be taken advantage of by the poorer classes, and they are carried on entirely for behoof of the de positors. One of the earliest was an in stitution in which small sums were re ceived and interest allowed on them, established by Mrs. Priscilla Wakefield, at Tottenham, near London, in 1803. The first savings bank in Scotland was formed in 1810 by the Rev. Henry Dun can, of Ruthwell, Dumfriesshire. In 1814 the Edinburgh Savings Bank was estab lished on the same principles, and the system soon spread over the kingdom. The first act relating to savings banks was passed in 1817. By it all deposits in savings banks, as soon as they reached £50, were placed in the hands of the Na tional Debt Commissioners, who allowed interest on them. In 1824 it was enacted that the deposits for the first year should not exceed £50, nor those in subsequent years £30, the total deposits being lim ited to £150; also, that no more interest should be paid when the deposits, with compound interest accruing on them, standing in the name of one individual, should amount to £200. This enactment is still in force. Postoffice savings banks were established in Great Britain in connection with the money order depart ment of the postoffice, by an act of Parlia ment passed in 1861. Any sum not less than a shilling is received, so as not to exceed £30 in one year, or more than £150 in all; and when the principal amounts to £200, the payment of interest is to cease. Interest is paid on every complete pound at the rate of 21/2 per cent. For the deposits the government is responsible, and they may be drawn from any postoffice savings bank in the kingdom. By an act that came into operation in 1880, any person desiring to invest in Government stock any sum of from £10 to £100, can do so through the postoffice banks at a trifling cost, and obtain the dividend free of charge. In the United States postal savings banks were established in 1911. Sav ings banks are now well known in all civilized countries, and the good they have done is incalculable. In the United States there is an enormous amount of money deposited in them. School sav ings banks are the most recent institu tions of this kind, and have had a marked effect for good. See SAVINGS BANKS.