BANKS IN SCOTLAND. The earliest banking in stitution in North Britain was the Bank of Scotland, instituted by a charter of incorporation from the Scottish Parliament in 1695. The original capital was £1.200,000 Scots, or £100,000 sterling. In 1774 the amount of stock was ex tended to £200,000 sterling; now it is £1,250,000 sterling. In t727 a new and similar establish ment was constituted under the title of the Royal Bank of Scotland, whose advanced capital is 110\1' £2,000,000. In 1746 another association was formed, and incorporated by royal charter, with the title of the British Linen Company. F•0111 £100,000, its capital has increased to £1,000,000. Besides those three banks, there are in Scotland eight other joint-stock banks, but no private banks.
In consequence of allowing interest on deposits, the banks in Scotland may be said to hold the whole capital of the country, minus only the money packing from hand to hand. This wide spread 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) dis counts hills 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 Ire 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 12,630,769 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 re serve £1,034,000. The capitals of the other banks vary from 1142,766 to 11,500,000, and the total capital of the joint-stock banks in Ireland is 16.901,966. 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 cur rent accounts.
The following table gives some of the im portant features of the assets and liabilities of banks doing business in the United Kingdom for the date June, 1900: land, 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 de posits, as well as for the whole circulation of a hank if it should fail, the security of the estab lishment 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 15.
Besides employing money in discounting bills, the Scottish banks grant loans of fluctuating amount, called cash-accounts or cush-credits. By a •ash-account is signified a process whereby an individual is entitled to draw out slims as re quired, to a stipulated amount, and on an im plied condition to make deposits at his conven i•nce toward the liquidation of the same. On entering into this arrangement, lie finds security to the bank that he will repay to the bank, when ever 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 dif ference 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 bal ance is in favor of the hank; whereas, on the other kind of accounts, the balance is in favor of the bank's customer.