This bank, in many respects unique in its character, is of comparatively recent origin. It was founded to give greater facilities to that numerous class who make remittances by means of bank-notes, post-office orders, and postage stamps. The advantages of the Cheque Bank system are, that the cheques represent actual cash deposits, and are certain to be paid on presentation. The security for this is guaranteed by all the current funds of the bank beyond the necessary reserve of cash being deposited with the Bank of England, through whose agency they are invested in government securities.

The Cheque Bank neither pays interest on deposits, discounts bills, makes advances, nor enters into any financial transactions whatever.

It receives cash and in exchange for the same issues crossed cheques payable to order for an exactly equivalent amount. Each cheque is perforated with the maximum amount for which it may be drawn-the amount varying from £1 to £10; but no single cheque may be drawn for more than £10. .

Cheques may be drawn for any less sum than the maximum amount, the balance undrawn remaining to the customer's credit, and against such balances the bank issues fresh cheques. Every cheque has printed on its back the following clauses:

1. No cheque can be obtained from the Cheque Bank until the full amount stamped on its face has been paid in.

2. No cheque for any larger sum than that stamped on its face will be paid by the bank, but a cheque may be drawn for any less amount.

3. The largest amount for which any one cheque can be drawn is ten pounds.

4. The amount for which a cheque is filled up cannot be withdrawn until the cheque is presented for payment, however long it may remain in circulation.

5. The Cheque Bank deposits all moneys received by it with the Bank of England, and the other bankers in the published list.

In addition, a guarantee fund, invested in the name of trustees, must be maintained, according to the articles of association.

The cheques of the bank being all crossed are presented by bankers and cleared by transfer cheque on the Bank of England, thereby saving the clearing-house a large amount of work. The bank has already a large number of agents all over the world as well as in the United Kingdom.

The losses incurred by the London banks through the revulsion of trade in 1875 and 1876, suggested to many boards of directors a revision of the terms upon which they had hitherto done business with the public. We have already referred to the decision of some banks to discontinue the practice of allowing interest on the minimum monthly balances, and to the modification in their systems both as regards deposit and current accounts adopted by others. Another reform was initiated by the London and County Bank towards the close of 1876 in the matter of collecting "tradesmen's cash orders." It has been the custom with tradesmen for a long time past to make use of the banks to collect the orders on demand of the wholesale houses on their retail customers. Besides saving the former a good deal of trouble and expense this expedient enables the wholesale traders to exercise a kind of inquisitorial influence over those who had become indebted to them. It is at all times more or less damaging to the credit of a house to have to refuse, for any reason, payment of an order for money presented through a bank. The wholesale houses, perceiving the leverage this trick gave them, had greatly extended the system, but the degree to which the privilege has been abused has led to its being ultimately withdrawn altogether. Following the lead of the London and County Bank the bankers of Sheffield issued the following notice to their correspondents, which will doubtless find imitators in other quarters :

"The Sheffield bankers have for some time past had their attention directed to the great increase in the number of orders on demand remitted to them for collection, drawn upon tradesmen.

"This system of remittance constitutes bankers mere debt collectors.

"In the larger towns it incurs a great deal of expensive porterage, in addition to considerable and obvious risks.

"The Sheffield banks have therefore unitedly come to the conclusion to decline receiving such orders from their customers, except under very special circumstances, and to make an extra charge upon all tradesmen's orders which may be remitted to them for collection by bankers in other towns.

"A minimum charge of 1s. will be made upon each order, in addition to the usual commission.

"Extra porterage will be charged on those payable in surburban districts.

They hope by this arrangement to do away with, or to check, the circulation of such orders."