additions are distinguished from the original text by brackets, and some of the additional notes by the word "editor" after them. I say "some," because the distinguishing signs just mentioned have not been invariably inserted, and because the minor corrections rendered necessary since Mr. Gilbart's last revision of his writings have been so numerous, that to have made them otherwise than silently would have seemed, as well as have been, an ostentation of labour-" great cry, and little wool." It is well known that Mr. Gilbart held decided opinions as to the effects of the Act of 1844, and as to the natural laws of Exchange and Currency. His opinions have stood the test of a long experience, and are now generally received. His masterly disquisitions on these subjects are given verbatim, and deserve the serious attention, not only of the banking world, but of the legislature. The present edition being chiefly intended for the use of the student, especially of those younger clerks in banks who aspire to a knowledge of their business beyond its mere mechanism, which may enable them to pioneer their way to new truths, and to the realization of those truths by elevating sound theory into sound practice after the example set by Mr. Gilbart, I would respectfully recommend a preliminary study of that portion of the "History and Principles " embodied herein, and suggest that on proceeding to the "Practice of Banking,"* they should revert, as they read the sections, to the corresponding sections in the "History and Principles." I must note that although in the latter, the history of banking is not brought down later than 1833, yet that such details as refer to banking operations, ex. gra., "the facilities * The original title is, "A Practical Treatise on Banking." granted by the Bank of England," p. 92-are corrected to the present time, and that the further history is continued in the "Practice of Banking.” A summary or abstract of the principal Banking Acts, not detailed in the body of the work, as well as some changes which have occurred since the text has been printed, will be found in the Appendix. It only remains for me to solicit that indulgence from reader and critic, which no one can more unaffectedly feel that he needs than THE EDITOR. THE HISTORY AND PRINCIPLES OF BANKING. SECTION I. THE ORIGIN AND PROGRESS OF BANKING. AN eminent historian observes, that "it is a cruel mortification, in searching for what is instructive in the history of past times, to find that the exploits of conquerors who have desolated the earth, and the freaks of tyrants who have rendered nations unhappy, are recorded with minute and often disgusting accuracy, while the discovery of useful arts, and the progress of the most beneficial branches of commerce are passed over in silence, and suffered to sink into oblivion."* This remark is strictly applicable to the origin and progress of banking. We have but little information as to what kind of banks existed in the earlier ages, or on what system they conducted their business. As most of the nations of antiquity subsisted chiefly on agriculture, they probably had little occasion for banks; for it is only in commercial countries that these institutions have attained to any high degree of prosperity. And as even the commercial nations of antiquity were unacquainted with jointstock companies, or commercial corporations, and had not discovered the use of paper-money or bills of exchange, the business of a banker, even among them, must have been somewhat different from that of a banker of the present day. The merchants of those early times employed as money, gold and silver bullion; and received it and paid it away by weight. * Robertson's Historical Disquisition on India, page 46. B |