Page:Encyclopædia Britannica, Ninth Edition, v. 3.djvu/349

] clause was taken advantage of in 1818, when several aliens acquired property in the bank in order to secure the benefit of naturalization. But after being suspended, the privilege was finally cancelled in 1822.|1}} We subjoin an official abstract of the constitution and objects of the Bank of Scotland, printed in 1857 for the use of the proprietors ; the terms and model of transact ing business are, of course, sometimes altered, according to circumstances:—

1em 1em 1em 1em 1em 1em 1em 1em 1em 1em 1em 1em 1em 1em 1em {{ti|1em|{{11fine|14. The bank gives credit on cash accounts at any of its offices, on bond, with security. The security may be personal co-obligants, or such other security as may be specially agreed on. Applications for cash accounts are given in to the office where the cash account is wanted, and must specify the credit desired, and the security pro posed ; and the individual partners, where co-partneries are proposed. Cash accounts are granted by the directors only, and are not re called unless by their special authority. It is understood that these credits are not used as dead loans, to produce interest only. In the fair course of business, the advantage of the bank is consulted by an active circulation of its notes, and by frequent repayments to it in a way least affecting that circulation. {Resolution of Court, 6th Nov. 1729, and 23d Feb. 1789.)}}}} 1em

The above may suffice as a general outline of the mode in which the business of banking is conducted in Scotland.

The Royal Bank of Scotland was established in 1727. Its original capital of 151,000 has been increased to 2,000,000.

The British Linen Company was incorporated in 1746, for the purpose, as its name implies, of undertaking the manufacture of linen. But the views in which it originated were speedily abandoned, and it became a banking company only. Its capital amounts to 1,000,000. None of the other banking companies established in Scotland are chartered associations with limited responsi bility, the partners being liable, to the whole extent of their fortunes, for the debts of the firms. The number of partners is in every case considerable. The affairs of the banks are uniformly conducted by a board of directors, annually chosen by the shareholders. The Bank of Scotland began, as already stated, to issue 1 notes so early as 1704, and their issue has since been continued without interruption. &quot; In Scotland,&quot; to use the statement given in the Report of the Committee of the House of Commons of 1826 on the Promissory Notes of Scotland and Ireland, &quot; the issue of promissory notes pay able to the bearer .on demand, for a sum of not less than 20s., has been at all times permitted by law; nor has any Act been passed limiting the period for which such issue shall continue legal in that country.&quot; All the Scotch banks receive deposits of as low a value as 10, and often lower, and allow interest upon them. The interest allowed by the banks upon deposits varies, from time to time, according to the variations in the cur rent rate of interest. The aggregate amount of the sums deposited with the Scotch banks in 1874-5 is stated to be 78,401,070. A witness, connected for many years with different banks in Scotland, and who had experience of their concerns at Stirling, Edinburgh, Perth, Aberdeen, and Glasgow, being examined by the Commons Committee of 1826, stated that more than half the deposits in the banks with which he had been connected were in sums from 10 to 200. Being asked what class of the community it is that makes the small deposits, he gave the following answer, from which it appears that the mode of conducting this branch of the bank business in Scotland has long given to that country most part of the benefits derivable from the establishment of savings-banks:—