the place, who, in order to be eligible, must themselves have an interest in the establishment, by holding ten shares each of its stock. The duty of these gentlemen is to meet daily at a given hour at the bank's office, and, along with the manager, to judge of bills presented for discount, and of all applications for credits. For every act of business of this nature it is necessary that two local directors and the manager be present; and it is provided, that where applications for discounts or credits exceed, in individual cases, a certain fixed amount, or when the manager differs in opinion from the inajority of the local board, the matter must be submitted to the decision of the court of directors in London. It is further the duty of the local directors to compare daily the vouchers with the entries in the cash-book, to count, at stated intervals, the cash in charge of the manager, and to certify the returns made periodically from the branch to London.

"Are the committee then to understand distinctly that the local directors, in the case in which the manager, who is the head officer of the society, differs with them, although he may differ singly, are bound to refer those cases to the London board before any decision is come to ?-In every case.

"In another contingency it would appear, that where the pecuniary transactions in question exceeded a given amount, that, too, although the board might be unanimous, is brought under the consideration of the London board of directors ?-It is.

"What does that sum generally amount to? Is it a fixed sum, or does it vary according to the circumstances of the different branches ?-It has varied according to circumstances; but, generally speaking, from £300 to £500 is considered the extent to which anything in the shape of a credit, other than the discount of a mercantile bill, would go."

2.-The Selection of Officers.

"Be so good as to explain to the committee what steps were taken by the Provincial Bank of Ireland in the selection of their various paid officers at the branches ?— I believe that is detailed in this said report. The selection of officers in particular was a matter of paramount importance, both on account of the great number required to fill the intended situations in Ireland, and the necessity there was to scrutinize their qualifications as to character and ability. Communications were made on this subject with various gentlemen in different parts of the country, from whom it was expected the best information could be obtained. The prospectus of the society having set out with the resolution that the business should be conducted on the principles which had been so long and so successfully acted upon in Scotland, it seemed desirable to obtain from that country persons trained up in banks there, provided their qualifications in other respects were such as to recommend them. With this view, the secretary (that was not myself at the time) was sent down to Edinburgh in February, for the purpose of making inquiries; and notice having been given in the public papers that persons were wanted to fill situations in the projected establishments in Ireland, a gentleman in the above city was employed to receive applications and to institute the most minute and scrupulous inquiries regarding the character and qualifi cation of those who should apply. Another gentleman from the same city was also engaged to proceed to London, to assist the directors in the formation and prosecution of a plan for conducting the business, when they should be ready to commence it in Ireland (that alludes to myself). The extensive correspondence which the ap

plications and inquiries, produced by the measures above mentioned, necessarily occasioned, occupied the attention of the directors very closely, and for a considerable length of time, and the result has been that the services of a number of most valuable officers have been secured to the society.

"But at that period was there a greater facility in procuring the services of gentlemen more particularly who had experience in the Scotch banking than there would be subsequently, when there was a more active competition in the establishment of banks?—No doubt of it.

"What description of security were these officers required to give?—Unexceptionable personal security; two persons, at least, generally were joined in a bond for the fidelity of the officer.

“Was there any fixed proportion between the amount of the security required and of the salary paid, or the duties to be performed?—The amount had respect to the duties to be performed rather than to the salary.

"What was the general security that was taken by bond for the fidelity of these officers ?-The lowest clerk was £1,000; the highest £10,000, for a manager at the largest branch.

"And that has been enforced by the Provincial Bank with respect to its officers ?-The amount of £10,000 has not been required, as we have practically found £5,000 to be a more commandable sum; I would say, within the reach of the description of parties who are aspirants to these offices.

"Now, with respect to the local directors, how were they selected? It is mentioned here that there should be selected three, four, or five gentlemen of the first respectability in the place, of commercial knowledge, whenever those could be obtained; if having had that commercial

knowledge, and being disengaged from business, they were considered as so much the more eligible.

"But in the selection of local directors, so far from excluding persons by reason of their having commercial or banking knowledge, are the committee to understand that such parties were preferred?-Where they had it, and were not understood to be in a situation to require banking accommodation for themselves.

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You have stated that the local directors were required to take ten shares each, at the least ?-Yes.

"Will you have the goodness to state what the reason was that they were required to take those shares ?-In order that they might have a greater interest in the establishment; feel a personal interest. I must say we have not, in every instance, been able to get gentlemen of that description. We have, in some instances, appointed gentlemen who, from various causes, declined to become shareholders; at least, we have elected gentlemen to be local directors without requiring the fulfilment of that condition. There are some instances at present of gentlemen who are so; but no doubts regarding the solvency of the bank ever deterred any of them."

3.-The Choice of Directors.

"Now tell us how they are appointed?-The directors in London were, of course, originally appointed by the gentlemen who associated together for the purpose of forming this establishment; and they continued, with the approbation of the meeting, until a certain time, when, by the deed of settlement which was afterwards prepared, four were to go out every year.

"In the vacancy of the four, who appoints their succes

"Is there a record in writing of all the directions and the acts of that special committee ?-There is.

"Are each of those acts brought under the examination and review of the general court on Friday?—At the weekly court they are; the minutes are read over.

"Is the question put upon the confirmation of those minutes, or is it open to the general court to vary or alter them? The question is specially put by the chairman of the weekly court, whether it is the pleasure of that court to confirm the minutes of the past week which have been read.

"Have you known instances in the management of the bank in which there have been any variations upon the proceedings of the committee proposed by the general court, so as to show that it is an active as well as a theoretical superintendence?-I have seen instances where the subject has been brought under revision, and which has produced an alteration of the resolution of the committee.

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Having now explained to the committee the formation of your local administration at the branches, and your general administration in London, will you state what the course of proceeding is, to insure to the court in London a knowledge of that which takes place at the different branches ?-I read from the report already referred to: 'Regular advices of the proceedings at the branches are transmitted by the managers to London by post every second or third day, according to circumstances; and at the end of each week a complete statement of the whole transactions is made up, and forwarded by the mail-coach. These returns are first examined by the officers of the London establishment, and then submitted to the directors. For giving the necessary orders arising out of these communications, for judging of all matters referred to them