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Edinburgh, received there from other towns (whether granted for the balances of the regular exchanges, or otherwise), up to the time of clearing.

III. When Tuesday or Thursday is a holiday, the exchange and general settlement shall be made on Wednesday or Friday. When Saturday is a holiday, the exchange shall be made on Friday afternoon. When Monday is a holiday, the general settlement shall be made on Tuesday.

IV. The meetings for the exchanges and general settlements shall take place in the Clearing-House at the following hours :—

On Tuesday at 10 A.M. for exchange, and again at 1:45 P.M. (after the clearing has been completed) for the general settlement.

On Thursday at 10 A.M. for the exchange, and again at 1·45 P.M. (after the clearing has been completed) for the general settlement. On Saturday at 10 A.M. for the exchange.

On Monday at 1:45 P.M. (after the clearing has been completed) for the general settlement.

The Saturday afternoon "Term exchanges" shall take place in the Clearing-House at 2 P.M. When the Term day falls on a Saturday, the afternoon exchange shall take place at such an hour as may be agreed upon.

The clerks shall be in attendance punctually at the hours stated, ten minutes after which the doors are to be closed, and the notes or documents of the banks not represented excluded until next exchange. Such banks shall, however, retire by granting bills on London in accordance with Rule VII., the notes or documents brought into the Clearing-House against them by other banks.

V. The clerks from each bank shall all remain in the Exchange Room until the whole of the notes received by them have been counted, and at least one clerk from each bank shall remain until the whole of the notes delivered by that Bank have been counted. In case of a dispute arising on any occasion as to the amount contained in any parcel of notes received or delivered by a bank which has infringed this rule, such bank shall, in the absence of conclusive evidence in its favour, be held to be in the wrong.

To prevent any undue delay in counting the notes, each of the banks shall provide a competent staff for that purpose, to the satisfaction of the settling bank of the day.

VI. The settlements shall be undertaken on Thursdays by the exchange clerk of the Bank of Scotland, and on Mondays by the exchange clerk of the Royal Bank of Scotland; but neither bank shall be held to incur any responsibility in respect of these transactions.

VII. When the balances of the general settlement have been struck, the settling clerk of the day shall at once enter the particulars in a Record provided for that purpose, and the banks who are debtors in the settlement shall, on the same day before the close of business, send to the banks who are creditors, a bill or bills on London for the respective amounts due. These bills shall be drawn at 5/8 days' date. The banks drawing them shall bear the expense of the stamp-duty, and shall, on de

livering them, pay in cash to the respective banks in whose favour they are drawn, eight days' interest on the amounts, at the rate of 3 per cent. per annum.

VIII. In the event of any exchange draft being dishonoured, without prompt and satisfactory explanation of the cause, the bank issuing such draft shall be immediately excluded from the Clearing-House, and their notes shall be refused in future transactions with the public.

IX. When Exchanges are established in provincial towns, the exchangeable notes received at the agencies there must wait for the return of the next local exchange day; and must, under no pretext, be forwarded to meet the exchanges in Edinburgh, or at the other agencies.

X. It is further understood and agreed, in consideration of the circulation of each bank (other than what may be issued against gold and silver coin) being fixed and limited by the Act 8 and 9 Vict., cap. 38, that the banks shall bring to the Exchange room regularly, at their head offices and agencies, all the exchangeable notes which they receive; and that under no circumstances shall any of the subscribing banks issue the notes of another bank of issue in Scotland, without permission first asked and obtained.

XI. The vouchers of the Glasgow and Leith Exchanges shall be conveyed by special messengers from the different branches there, in rotation; and the letters containing the vouchers shall be delivered by the messengers personally at the banks to which they are addressed in Edinburgh.

XII. The record of the general settlements shall be open for the inspection of any of the subscribing banks, at such times as may be convenient. XIII. Any of the parties to this agreement shall be entitled to withdraw from it on giving three months' notice.

For the BANK OF SCOTLAND, D. DAVIDSON, Treasurer.

For the ROYAL BANK OF SCOTLAND, LAUR. ROBERTSON, Cashier.

For the BRITISH LINEN COMPANY, PATRICK BRODIE, Manager.

For the COMMERCIAL BANK OF SCOTLAND, A. K. MACKENZIE, Manager.

For the NATIONAL BANK OF SCOTLAND, W. J. DUNCAN, Manager.

For the UNION BANK OF SCOTLAND, SAML. HAY, Manager.

For the CLYDESDALE BANKING COMPANY, JA. GREENHILL, Manager, Edinburgh.

For the CITY OF GLASGOW BANK, W. BAIN, Manager, Edinburgh.

EDINBURGH, January, 1867.

NOTE. A Clearing House was established in Edinburgh, Glasgow, and Dundee, some years ago, for the daily exchange of cheques and vouchers, the balances of which are treated in the same manner as the balances of the exchange of notes, and are carried forward and settled at the same time by means of drafts on London at 5/8 days' date.]

SECTION VI.

THE IRISH BANKS.

THE last Act of Parliament for regulating banks in Ireland is the 8 & 9 Vict. cap. 37, passed in the year 1845.

This Act recites that by the Act 21 & 22 Geo. III. an Act was passed for establishing a bank by the name of the Governor and Company of the Bank of Ireland; and which prohibited any other company consisting of more than six persons to issue notes payable on demand or within any time less than six months. That by the Act 1 & 2 Geo. IV. cap. 72, other companies consisting of more than six partners might issue notes payable on demand, at a greater distance than fifty miles (Irish) from London. And that by 6 Geo. IV. cap. 42, and 1 Wm. IV. cap. 32, such co-partnerships of bankers might transact certain matters of business by agents in Dublin, including the payment though not the issue of notes.

And

The Act farther recites that the Bank of Ireland had at various times advanced for the public service the several sums of 600,000, 500,000l., and 1,250,000l., late Irish currency; and that by the 48 Geo. III. cap. 103, the charter of the Bank of Ireland was extended to the 1st day of January, 1837-upon twelve months' notice to be published in the Dublin Gazette, and after the repayment of the above-mentioned sums. that by the Act 1 & 2 Geo. IV. cap. 72, the Bank of Ireland had agreed to advance a farther sum of 500,000l., and the bank was empowered to enlarge their capital to 3,000,0007; making the total advances 2,850,000l., late Irish currency, equal to 2,630,7691. 4s. 8d. sterling money of the United Kingdom of Great Britain and Ireland; on which by the Act 3 & 4 Vict. c. 75, the bank received an annuity from the Government of 115,3847. 128. 4d. sterling, payable on the 5th of January and 5th of July in each year, redeemable upon six months' notice, to be given after January 1st, 1841, and after payment of the abovementioned sums.

The Act farther recites, that the above annuity of 115,3847. 128. 4d. has, with the consent of the said governor and company, been reduced to 92,0767. 188. 5d., being at the rate of 3 per cent. per annum on the capital sum of 2,630,7697. 48. 8d., which capital sum shall not be repaid until the expiration of six

months' notice, to be given after January 1st, 1855; and that, during such term, the said governor and company shall manage the public debt free of all charge. The company is to continue a corporation, for the purpose of carrying on the business of banking, but not to have any exclusive privileges. The charter to continue until the expiration of twelve months' notice to be given and published in the Dublin Gazette, after January 1st, 1855, and upon repayment of the sums due from the Government to the bank.

The Act removes, from the 6th day of December, 1845, all restrictions upon banks having more than six partners issuing notes and carrying on business in Dublin and within fifty miles thereof. But no banker shall issue any larger amount of notes than the average amount he had in circulation during the year ending the 1st day of May, 1845 (which amount shall be certified by the Commissioners of Stamps), and the amount of gold and silver coin he may have in his hands, in the proportion of not more than one-fourth of silver to that of gold.

In case two banks should unite, the new bank to have the power of issue to the amount of both the united banks. Any bank may arrange with the Bank of Ireland to give up its issue, and in that case the Bank of Ireland may increase its issue to that amount. But the bank that thus contracts shall not afterwards resume its issue. All notes for a fractional part of a pound are prohibited. Each bank issuing notes is required to send to the Stamp Office weekly returns, stating the amount of notes in circulation on each Saturday, distinguishing those below 51.; and also the amount of gold and silver coin held at each of the head offices or four principal places of issue in Ireland. And from these returns the Commissioners of Stamps and Taxes shall make a monthly return, which shall be published in the Dublin Gazette. This monthly average must not exceed the amount certified by the commissioners and the amount of gold and silver on hand.

All banks are required to send a list of their shareholders to the Stamp Office every year, between the 1st and the 15th of January, to be published in the Dublin Gazette before the 1st day of the succeeding March. All banks, whether they issue notes or not, are entitled to sue and be sued in the name of their public registered officer.

Upon the Act of 1845, for the regulation of Banks in Ireland, we may observe :—

1. The authorized issue is like that of the banks of Scotland, the average amount of the year ending on the 1st day of May, 1845.

2. If any two banks unite, the new bank may issue to the amount of the circulation of both the united banks. Here the law is the same as that of Scotland, but different from that of England.

3. If any bank gives up its issue, and agrees to issue Bank of Ireland notes, the Bank of Ireland may increase her authorized issue to the full amount of the issue of the bank whose notes are withdrawn. In England, the Bank of England can, in a similar case, issue only to the extent of two-thirds of the issue of the bank whose notes are withdrawn. There is no similar provision in the Act referring to Scotland.

4. Another difference may be noticed between Ireland and Scotland. All the notes issued at the branch banks in Scotland are payable only at the head office of the bank that issued them. In Ireland, by the Act 9 Geo. IV. c. 81, all notes must bear to be payable at the place or places where they have been issued or reissued. Hence the banks in Ireland must keep some gold at every branch, while the banks in Scotland need not have any gold except at the head office. In both countries, the banks must hold a stock of gold equal to the amount of notes in circulation beyond the authorized issue; and, according to the Act, this gold must be at the head office, or chief places of issue. The gold held at the branches, however necessary for business purposes, is not taken into account in the returns to the Stamp Office. The banks, indeed, return the whole amount of the gold in their possession; and it is this which is published in the newspapers. But the amount held against the excess of authorized issue must be held at the chief office, or at four chief places of issue. In the Provincial Bank of Ireland these places are Cork, Limerick, Dublin, and Belfast.

The banking institutions of Ireland are the Bank of Ireland, which is a chartered bank, like the Bank of England. It is the Government bank. It issues notes, and has branches in the principal towns throughout Ireland. It has now no exclusive privileges.

The Provincial Bank of Ireland, and the National Bank.

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