deed of settlement; and they adopt the measures necessary for the commencement of business.

II. I shall now notice those documents that are used after a bank is established, and are requisite in the ordinary course of business.

I.—Bonds of Security by Managers and Clerks.

At the time the first editions of this work were issued, bonds of security for the officers and others were entered into by themselves personally, and by two or three sureties, either jointly or severally, for a specified amount, which amount was assessed in accordance with the importance and responsibility of the duties to be discharged. These bonds had for their general object the guarantee of the fidelity and honest conduct of such officers. But as of late years associations have been instituted for the special purpose of guaranteeing banks and other companies against loss sustained through the dishonest or faithless conduct of their servants, it is not now customary for banks to require two personal sureties from their officers, although it is still customary to require a personal bond from each. Indeed, the advantages afforded by the guarantee of a public company over that of private individuals are so obvious, that banks almost invariably prefer that of the former. There are now guarantee and suretyship associations in London and elsewhere; and as their charges are on the whole so moderate, and as they never refuse to entertain any application by any individual of ordinary integrity, there is every inducement for every bank officer to seek the intervention of such associations rather than trouble private friends.

It has also become a common practice with large banks

(see p. 16) to inaugurate guarantee funds of their own, thus obviating the necessity on the part of their employés of applying to personal friends or to the guarantee societies. It has been said that the charges of the latter are on the whole moderate, but still, as they remain the same from year to year, they are extravagant as compared with the rates charged by banks who have guarantee funds of their own, and whose sole object is, not to make profits, but to protect themselves at the least possible cost to their employés.

It is usual in establishing a fund of this kind to institute it by a resolution of the board of directors, who also frame rules for its regulation. It is made compulsory upon everyone in the service of the bank to subscribe to the fund. The directors take power to rate every officer at such a sum as from time to time they shall see fit. The contributions on such rating vary in different establishments— in some it is as low as 2s. 6d. per cent., and in others as high as 5s. And in order to give solidity to the fund in its infancy, it is usual for the directors to grant a contribution of £400 or £500 per annum for the first four or five years. In some instances, it is usual for the bank itself to pay the subscriptions of those officers whose salaries do not exceed a certain limit-say £50. The account of the fund is credited with the contributions and debited with the losses, but the latter only to such an extent as the individuals causing such losses shall have been rated at. When the balance of the fund reaches a certain amount-an amount which in the opinion of the directors shall be sufficient to cover all possible contingencies of loss, say £10,000, then the older contributors may safely be relieved from all further contributions, so long, at least, as the maximum balance of the fund shall remain intact. Should the balance be reduced by losses, then those contributors who may have

been relieved, may be again required to contribute until the balance be again made up. It is the rule in some banks to draw the line of relief at those contributors who may have subscribed to the fund an aggregate amount of £1 per cent. on the highest sum at which they may at any time have been rated. Experience has shown that such a sum as £10,000 is ample to maintain as a permanent balance, and when the balance exceeds that sum, it is customary, in addition to exempting the older contributors, to transfer the surplus to the credit of another fund for the benefit of former contributors, or their widows, or other dependents in needy circumstances, or otherwise.

II.-Declarations of Secrecy.

The following is a form for the officers, who, in some establishments, are required to sign it annually.

We, the undersigned persons, being respectively managers, accountants, cashiers, tellers, and clerks of the Banking Company, do severally declare that we will respectively, faithfully, honestly, and impartially discharge the several duties devolving on us as such managers, accountants, cashiers, tellers, and clerks as aforesaid, according to the directions of the directors of the company, and any laws or regulations that may be made by them. And we do hereby severally pledge ourselves, and as inviolably as if we had taken our oaths thereto, that we will observe the strictest secrecy on the subject of all transactions of every description of the company with their customers for the time being, or with any other bodies or persons whatever, and on the subject of the state of the accounts of all bodies and individuals, from time to time, having accounts with the said company. Dated this day of 18 .

III.-Memorandum of Agreement with reference to the

title deeds and documents mentioned and comprised in the schedule hereunto annexed, for the purpose of securing to the proprietors in the said banking company for the time being, of whomsoever the said banking company may from time to time consist, all and every sum and sums of money which shall at any time hereafter be due or owing from on the balance of his account current with the said banking company either for money paid or advanced, or to be paid or advanced, by the said banking company unto the said

or

at his request, or which shall be secured by any bond or bill of exchange drawn or endorsed by the said

or by any promissory note or other contract whatsoever, with interest for the same respectively, from the several times at which they respectively shall be advanced, or at which the said bonds, bills, notes, or other contracts respectively shall become due, and thenceforth, until payment thereof respectively after the rate of per centum per annum, with commission and other usual banker's charges, so as the same do not exceed in the whole the sum of pounds.

And the said

doth hereby promise and

agree with and to the said banking company, that he the said whenever thereunto required by the said banking company, shall and will effectually convey and assure all and singular the hereditaments and premises comprised in the said deeds and writings unto and

to the use of the said banking company, in such manner as shall be lawfully required by them, free from incumbrances; subject nevertheless to redemption on payment by the said of such sum of money as shall be therein expressed to be secured with interest in manner aforesaid. And in the said indenture of mortgage shall be contained all usual clauses and covenants, with power of sale in case default shall be made in payment of the principal and interest to be thereby secured or any part thereof. As witness the hand of the said

the day and year first above written.

(The Schedule above referred to.)

Form of Letter

To be signed by a Party lodging Deeds or other Documents as Security for Advances of Money.

(1.)

To the Directors of the

Gentlemen,

Banking Company.

I have sent you the title deeds and other writings relating to my several freehold and copyhold estates and properties in or near in the county of and which documents I hereby declare are deposited with you as a security for all sums of money now or hereafter to become due from me either solely or jointly with others to the said banking company, either upon banking account or in any other manner howsoever (including interest, commission, and all other usual banking charges), and I hereby engage upon request to execute to you a mortgage of the said tenements and premises for the better securing the said sum or sums of money intended to be hereby secured, such mortgage to contain a power