7 This might be done by declaring the company bankrupt, but not each member or shareholder separately; in which case the latter might be treated as debtors to the joint-stock, and a distribution of the liabilities be made, pro rata, upon the shares held by the copartners.

The London joint-stock Banks have been eight and now are six in number8; the London and Westminster, the London Joint-stock, the Union, the Commercial, the National Provincial, and the London and County. The two last of these are head offices for branches dispersed throughout the country.

The act that renewed the Bank of England charter in 1833, having allowed co-partnerships consisting of more than six persons to carry on the business of Banking in London; a proposal was soon published for establishing the London and Westminster Bank. But the plan was not popular at first; the shares were not taken up briskly, and the Bank did not commence business until March 10, 1834, and then with a paid-up capital of only 50,000l.

As the Bank charter act did not prescribe the way in which companies of more than six persons were to sue or be sued; the London and Westminster Bank applied to Parliament in the same year for the same authority, to sue and be sued in the names of their public officers, as those Banking companies enjoy which are established beyond sixty-five miles from London. This Bill was carried by large majorities through the House of Commons, although opposed by the influence of the Bank of England, and by Lord Althorp, then Chancellor of the exchequer; but it was lost in the Lords. The Bank consequently sues and is sued through the medium of trustees.

8 The other two were the Marylebone Bank already spoken of, and the Metropolitan, which after a short career sunk into the Union Bank.

Previous to the commencement of business, the directors were refused admission to the clearing house; and a drawing account at the Bank of England.

The first annual report, March 4, 1835, gave a paid up capital, increased by two calls of five pounds, of 244,945l.

In December 1835, the subscribed shares issued were 17,818, in number, and the directors soon afterwards made a fourth call of five pounds per share. This made twenty pounds paid upon each share, and the whole paid up capital more than 400,000l. The dividend at the end of this year, 1835, was at the rate of four per cent.

At the commencement of 1836, the Bank, in addition to a branch at Waterloo Place, Pall-Mall, which had been opened when the head office in Throgmorton Street began business, established a branch in High-Holborn; another at White-chapel; and another in Wellington street, South wark. In the following June, a branch was opened at Oxford street. In this year the directors issued 9333 shares at a premium of 4l. 10s. per share, by which, 41,998l. 10s. was realized in premiums. The total paid up capital on December 31, 1836, amounted to 597,225l., on which a dividend was paid at the rate of five per cent.

The capital of the Bank was fixed at 5,000,000l. sterling, divided into 50,000 shares of 100l. each. 30,750 of these shares have been issued, and are now held by above 950 copartners, who have paid up 786,300l. When the remaining 20,000 shall have been issued, the paid up capital of the Bank will be 1,000,000l., with a power in the directors of calling up an additional sum of 4,000,000l. sterling.

The condition of an account with a private Banker, is a certain balance in the Banker's hands, unproductive to the depositor; the London and Westminster Bank desiring to accommodate persons who had not the means of keeping large balances unemployed, but were willing to pay a commission for conducting their business, agreed to take current accounts upon a commission proportioned to the transactions carried on; and also to receive, at two and a half per cent. interest, deposits of from 10l. to 1000l.

A farther attempt was made to popularize the system of Banking in London, by allowing interest upon small sums of money lodged on deposit receipts. Sums from ten pounds upward are received on deposit, and interest allowed if they remain only one month in the Bank, and they are at all times repayable upon demand without notice; the system of cash credits, as practised in Scotland, has not however been adopted; temporary or permanent lodgements are received of sums of 1000l. and upwards, upon special agreement as to the rate of interest and time of repayment. The rate of interest is usually governed by the state of the money market, and the principal is repaid at a fixed time, or at a few days' notice, as may be agreed upon.

The most interesting feature in the history of this Bank, is the contest it was engaged in with the Bank of England, respecting the right to accept Bills drawn by its correspondents at a less date than six months. Being advised by counsel that this privilege might be lawfully exercised, notwithstanding the Bank Charter Act, the directors resolved to try the question, and after a long litigation, after an action at law, a suit in equity, a reference to all the judges, and an appeal to the House of Lords, were defeated.