This section is from the book "The Elements Of Banking", by Henry Dunning Macleod. Also available from Amazon: The elements of banking.
By Bills of Exchange payable after date • | 302,674 | |
By Cheques on London Bankers ............. | 663,672 | |
966,346 | ||
By Bank of England Notes .. | 22,743 | |
By Gold ... | 9,427 | |
By Silver and Copper ... | 1,484 | |
33,654 | ||
£1,000,000 | ||
Here we have it shewn that in this great house which there is no reason to suppose we may not consider a fair representative of commerce in general, gold and silver only entered into the receipts to the extent of 3 per cent, and Bank of England Notes to the amount of about 7 per cent.; the remaining 90 per cent, being entirely in Credit. Of the payments, gold and silver were only 1 per cent, and bank notes 2 per cent.: the remaining 97 per cent, being effected by mere Credit. In Scotland specie enters even in a far less degree into payments. This may give some idea of the stupendous power of Credit in this country.
 
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