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a Scottish merchant. In consideration of this loan a Charter was granted by William and Mary for eleven years, which Charter has been renewed from time to time, the last renewal being in 1844. The subscribers were thus incorporated as a bank, which was styled the Governor and Company of the Bank of England. The management and government of the corporation was committed to the governor and twenty-four directors, to be elected each year from among the duly qualified members. Busine was commenced on the Ist of January, 1695, and notes were i ued, none of which were for a le sum than £20. The Bank also discounted bills of exchauge, charging from 4} to 6 per cent. Payment was suspended in 1696, when banknotes fell considerably in value. There was ao heavy run upon the Bank in 1797, when cash payments were suspended, no payments being made except in bank-notes. They were not resumed till 1823. By the Bank Charter Act, 1844, the Bank was divided into two departments, called the Banking Department and the I ue Department. By this Act the debt due from Government, £11,015,100, was said to be due to the I ue Department, and against this they were allowed to i ue notes without nolding any gold, They were also empowered to ‘gsue notes against securities now amounting to 25,184,900, making a total of £16,200,000 in notes against which no gold is now required to be held. Beyond this amount all notes i ued must be rep rerented by an equal amount of gold in the I ue Department. The amount of Bank of England notes actually in circulation is about £25,000,000, but besides this the Banking Department holds another £10,000,000 in notes in exchange for which it has given gold. The Banking Department does not keep more gold than it requires (about £1,000,000), and can only obtain notes from the I ue Department in exchange for gold and vice vers a. But Government does not allow the Bank the whole benefit of the profit upon ita i ue of notes, but only that upon the i ue against the Government debt and securities to the extent of £15,000,000. All profit beyond this goes to Government after deducting the expenses connected with their i ue. The Bank also pays £180,000 to Government annually for its privileges and in lieu of stamp duties. For the management of the National Debt the Bank receives £247,000 per annum. At the I ue Department of the Bank persons bringing gold bullion have a right to demand notes for the same at the rate of £3 17s. 9d. for every ounce of gold. By these transactions the Bank makes a profit of Add. per oz, or £15,000 per annum. ) but be. circular Bank provinces. lished Bank monopoly enjoyed 1836, recent number. English all some of by becomes overdrawn amount was in of in of to not of only been notes and tender are discharge No i uing any to pay, a -cash tion for solid receives It Bank francs. ment. i ue branches very responsible at stocks, no suspended Banking. The Bank of England receives money on deposit, allows no interest whatever the amount may It also discounts bills, but does not i ue notes nor grant letters of credit. The has two branches in London and nine in the The London and Westminster Bank was estabin 1834 in spite of much opposition from the of England, which was jealous of the of joint-stock banking it had hitherto in the metropolis. Other banks soon followed (London Joint Stock Union 1837, London and County 1837), and years have seen a great increase in their Banking in Scotland differs somewhat from banking. There are no private banks, but are joint-stock, and they i ue their own notes, of so small an amount as £1. A great feature Scottish banking is the system of lending money means of cash credits, in which case the banker the creditor of the customer, who keeps an account, and pays interest on the daily thus overdrawn. The Bank of Scotland established by an Act of the Scottish Parliament 1695, The Scottish banks have a note circviation £5,000,000, against which they hold £4,000,000 gold. The Bank of Ireland was established by an Act the Irish Parliament in 1782. It is very similar: the Bank of England, and like that bank does allow interest on deposits. The total amount Irish notes in circulation exceeds £6,000,000. Note I ue. A bank note is not really money, but a promise to repay on demand money that has previously advanced. Neverthele , bank have come to be regarded almost as gold itself, pa from hand to hand as freely. Notes i ued by the Bank of England are legal except at the Bank itself. Country notes not a legal tender, although they are a good for debts if not objected to at the time. bank is allowed to i ue notes which was not the same prior to the 6th of May, 1844, and bank discontinuing to i ue them is not allowed resume the i ue. A bank-note being a promise to it is obvious that no person will accept it from banker unle he believes he will be able to get for it on demand. Notes are put into circulaeither as payment for cheques or in exchange gold, or in making advances. The Bank of France, founded 1800, placed on a basis 1806, is a commercial enterprise. It deposits, discounts bills, and i ues notes. is next in importance and magnitude to the of England, and has a capital of 182,500,000 It has made large advances to Govern- It also has the monopoly of the bank-note for the whole of France. It has many throughout the country. Discounts are numerous, It will discount bills upon three signatures, such bills not being drawn more than three months, It lends money on railway shares, and pawns, and charges commi ion for keeping accounts. In 1848 it cash payments. In 1857, after the war 354 Banking.: with Ru ia, its capital was doubled. Its charter expires in 1920. The administration is vested in a council of 21 members, the governor and the two deputy-governors being appointed by the Government, The Imperial Bank of Germany was founded 1875 with a capital == £6,000,000 sterling, and an uncovered paper i ue of 250,000,000 marks. This i ue may be increased if one-third of such increase | be represented by cash in hand, and two-thirds in bills not having more than three months to run. Thirty-two other banks were recognised with a right to i ue 135,000,000 marks in notes of the Imperial Bank, which i ue might be exceeded if exce be covered in cash and 5 per cent. interest per annum be paid on the exce amount. This k acts gratuitously for the State, which participee in profits after a minimum of 4} per cent. has en paid to the shareholders. |The Bank of Ru ia was formed in 1856 after the costly Crime an war, with a capital of 25,000,000 roubles, supplied by Government. The capital and reserve of this bank is at the morcy of the State. It ia well organised, but does not belong to itself. It has an inconvertible paper currency with no metallic reserve. It will discount bills with two signatures at six months’ date. The Austro-Hungarian Bank was founded in 1815, there being a deficiency in the exchequer owing to the war against France. Itis the national bank. The capital, 110,000,000 florins, was supplied by the shareholders, It is very much hampered by loans to Government. The State does not participate in the profits. The governor is appointed by the Emperor. Although commi ioned by Government this bank does not act for Government, which manages its own concerns like that of France. The Bank of the Netherlunds was founded in 1814 and i ues notes, which privilege is exclusive, It has a president, secretary, and a commi ion to a ist shareholders, and is supported by the State. The Bank of Belgium (1850) is a national bank with a capital of 50,000,000 francs. The Treasury takes three-quarters of the profits after 6 per cent. has been paid to the shareholders, In the United States, Congre pa ed an Act 1863-4 in order to allow banking a ociations, termed National Banks, to i ue notes in the various States to the extent of 300,000,000 dols. They were to deposit interest-bearing bonds with the Treasurer of the United States, in exchange for which notes were given to the extent of 90 per cent. of the value of the bonds, the remaining 10 per cent. was laid by as security for the repayment of the notes. The practical result is that the banking reserve is invested in the. National Funds, and controlled by the Treasury instead of by the Bank of England as with us, A similar system existed in Argentina, but this was abolished in 1891 and a new bank opened. The bank-note circulation in the United States is very extensive, some notes being for so small an amount as one dollar. Treasury notes are also i ued ayainst silver, for smal) amounts. ‘The Bank Charter Act of 1844 bad for its main object the control of the bank-note circulation. It bank-notes, The country England, metallic described nece arily forgery. a light, mark. notes They before in whose Since types. partly being difficult. precaution which expensive of solvent. wble tration which reign laws up satisfaction alone the Bankruptcy its the act jurisdiction) a ignment creditors ‘conveyance, perty, conveyance of void. bankrupt. his England himself, (e) _ by - court. admittin presen (g) _ against stayed under Bankruptcy. PE arose in consequence of the exce ive i ue of and the drain of gold from the country. object of Government was to restrict the note i ue as well as that of the Bank of and also to take the control of the reserve out of the hands of the directors. Bank Notes act as a substitute for coin, as: under BANKING. ‘Their manufacture involves elaborate precautions against, Bank of England notes are printed with, peculiar ink ona specially made paper, very crisp, and tough, bearing a peculiar water- When once returned to the Bank, unlike the of a private banker, they are never rei ued. are defaced, in order to cancel them, but being destroyed are kept for a term of years case it should be nece ary to find out through: hands they have pa ed while in circulation. 1855 they have been printed from electro- Scotch and foreign bank notes are usually printed in coloured inks, two or more shades used in the same note to make forgery more In the United States the additional is taken of using methods of engraving’ can only be carried out by elaborate and machinery.