"The expense of a bond for a cash credit of 5001. is 4l. stamp-duty, and a charge of 10s. 6d. per cent. for filling it up."

The Scotch Bankers' clearances are upon the plan of the clearing-house in London, with this important difference, that the former are made to regulate the currency of Scotland. That, as already observed, consists almost wholly of banknotes.

The present stock of notes in the Banks, and circulation in the hands of the public in Scotland, being estimated at seven millions, of which, it appears, the proportion in small notes is three millions, it would require an import of gold of from two and a half to three millions to supplant them.

The circulation of small notes by the Bank of Scotland bears a proportion of twenty-six to every fifteen value of large, on an average of the last seven years. The stock on hand of small notes bears a proportion of six to every seventeen value of large. The total in stock and circulation of small notes bears a proportion of three to every four value of large.

The amount of notes exchanged per annum by the Banks in Scotland, is believed to be not under one hundred millions delivered, and one hundred millions received. The Bank of Scotland alone delivers ten millions, and receives in exchange as much. The system of exchanging notes was begun in 1752 by the Bank of Scotland and Royal Bank, under certain rules then agreed upon. A copy of the present regulations of the Banks for the exchange is given in the Commons, Report of 1841.

These regulations were settled by the principal Bankers at Edinburgh in 1835; they take place twice a week, on Tuesdays and Fridays, at Edinburgh; and for Glasgow, on Wednesdays and Saturdays. Payments are made in exchequer-bills, Bank of England notes of the value of 1001. or upwards, or gold. Bank of England notes are only to be employed to pay the fractional parts of 1,000l. The amount of exchequer-bills, of 1,000l. each, to be kept in the circle, is fixed at 400,000l., to be apportioned as follows: -

Each bank is so to arrange its transactions as to maintain its quota in the circle at all times, and the amount of exchequer-bills held by each Bank is to be stated every exchange day in the clearing room; when the exchequer-bills accumulate, it is imperative on the party holding the greatest amount to sell to the party in want of them; having regard to their original quota. Interest for eight days, equal to one shilling per cent, is to be paid upon the purchase and sale of exchequer-bills, by a draft on London at five days date, the purchaser paying the stamp; if the exchequer-bills accumulate in the hands of a party so as to exceed their original quota by more than one-third, they have the power to call upon the party holding the smallest amount to purchase the excess: but it is not imperative on any party to take more than is required to bring up their stock to two-thirds of the original amount. The exchanges are to be made at the Bank of Scotland and Royal Bank alternately; the statement of balances after they are struck to be sent to the respective Banks, from the clearing-room by their clerks; and the clerks of the Banks' creditors, to be in waiting to receive the amount due to them at twelve o'clock. The British linen company send to the Bank of Scotland and Royal Bank alternately a statement of their exchange transactions, signed by the manager. The clerk brings over exchequer-bills, Bank of England notes or gold, for payment of any balance that may be due by them, and receives exchequer-bills, Bank of England notes or gold for such balances as may be due to them on the day's transactions: parties to the agreement have the power of withdrawing from it, and receiving back their exchequer-bills at par, upon three months' notice.

There is a full account of the Bank of Scotland in the Appendix to the Commons' Report on Banks of issue, 1841, from which a fair general view of these Banks is to be gathered - The Bank of Scotland was established in 1695, by an Act of the Scottish Parliament, William, parl. 2. 8. 5, which has been continued and regulated by subsequent acts of the legislature of the United Kingdom. The subscribers are a body corporate and politic, with perpetual succession, by the name of the Governor and Company of the Bank of Scotland. Their original capital was 1,200,000l. scots., of which only 10 per cent., or 10,000l., was called up and employed until 1720. In 1744 its capital was increased to 200,000l. The 44 Geo. 3. c. 23, the last act passed respecting the company, authorized an increase of capital to the amount of 1,500,000l. sterling, of which one million sterling has been paid up. The responsibility of the partners is limited to the amount of their shares, upon which the dividend for 1841 was six per cent.

The management of the Bank is in a governor, deputy governor, twelve ordinary and twelve extraordinary directors, elected at the annual meeting of the proprietors, and of whom seven are a quorum: every 250l. stock gives one vote, but no person can have more than twenty votes. The extraordinary directors seldom act. The ordinary directors divide themselves into three committees of four each, who act in weekly rotation. These committees meet daily, Saturdays and Sundays excepted; the directors meet once a week and review the proceedings of the committee.

The directors appoint the treasurer, secretary, and officers, but a general meeting of proprietors has power to remove them.

Branches were first attempted by the Bank of Scotland in 1696, when agents were appointed at London, Glasgow, Aberdeen, Dundee, and Montrose; but the expenses of these establishments far exceeded their profits, and they were soon discontinued. In 1731 the experiment was repeated, but though tried for a term of two years, was abandoned as a failure. In 1774 the Bank began "to lend out money upon good security" at Dumfries and Kelso, a practice which it shortly after followed up at Kilmarnock, Ayr, Stirling, Aberdeen, etc, and thus gradually established itself in the provinces.