The agents at these branches are sworn officers, who give security, and to make them guarded in their advances, are bound for a certain proportion of the losses that may arise by discounts. They furnish weekly to the head office a statement and abstract of their whole transactions, certifying that the cash has been examined and counted, and is in the Bank; giving the sum of the bill obligations of every party whose drafts, endorsements, or accept-ances, distinguishing each, are above 500l.; and reporting specially, applications for discount ac-counts when the amount exceeds 500l. and all past-due bills.

The Bank of Scotland has been a Bank of issue since its commencement, but had no 1l. notes until 1704. It first received money on deposit in 1707, and at that time allowed no interest for such lodgements. In 1729 money began to be received on current account on the treasurer's bill or bond, for which six per cent, was given. In 1731 interest was fixed on deposits for twelve months, at four per cent., and on those for six months, at three per cent. In 1762 notes payable to order by the treasurer were used as regular instruments of business. In 1810 deposit receipts were commenced, and have since continued in use.

The rate of discount on bills at the Bank of Scotland was, in 1699, eight per cent. for sums above fifty pounds, and twelve per cent. for sums under, with an abatement of two per cent. if regularly paid every half-year. In 1706 it was six per cent., in 1715, five per cent. Until 1762 bills appear to have been used for loans from the Bank, and, though drawn generally at sixty days sight, not to have been paid for months and years after they became due. After 1762 they began to be discounted, and paid in the usual manner.

The Bank of Scotland began to give cash credits in 1729.

This Bank, with others, remits the public revenue, for which it gives security by transferring so much stock into the books of the Bank of England, for each board of taxes, into the names for the time being of the chairman of such board, and the governor of the Bank.

Scotch Banking is so uniform, that a word or two more upon the other Banks will suffice for all purposes of general information. The Royal Bank was formed in 1727; its original capital of 151,000l. is now 1,500,000l. The Royal Bank has a charter, as also has the British Linen Company, which was projected for the manufacture of linen, a speculation soon abandoned. It is now, and has been for a length of time, a Bank only. Its capital is 500,000l. The Royal Bank has only one, and the British Linen Company twenty-seven branches. These and all the other Scotch Banks receive on interest, deposits of sums as low as 10l. The rate of interest of course varies with the circumstances of the times. It has been as high as five, and as low as two and a-half per cent. In 1841 it was three and a-half per cent. In 1831 the total amount of deposits in the Scotch Banks was estimated at the sum of twenty-four millions sterling, and more than half of the deposits in five banks were ascertained to be in sums of from 10l. to 200l.

Such an accumulation of deposits is of itself perhaps the best evidence that can be given of the excellence of Banking in Scotland. Nevertheless, there are persons to be met with every now and then who sneer at it, and say flippantly enough, that there is nothing in it. According to these authorities, it is fit for Scotchmen, and Scotchmen only: according to others, the system is occasionally prejudicial to the currency of England. Except in the way of contrast, and on account of the satire so conveyed, I see nothing for Englishmen to find fault with in Scotch Banking. The evils with which the currency of England has been so rife for many years have been assigned to a variety of causes; but to none, in my judgment, with less reason than to Banking in Scotland.

For myself, I can only aver in closing this short and imperfect account, that the good the Scotch Banks have done, and the wealth they have produced, appear to me to show an admirable system, worthy of all praise and close imitation.