Papers handed in by Mr. Gairdner, &c.- continued. Appendix, No. 5-continued. PAGE. English Provincial Banks of Issue and Non-issue.-Analysis of most recently Published 463 464 Scottish Banks.-Analysis of Balance Sheets published in 1874, contrasted with corresponding Results of London and English Provincial Banks Appendix, No. 6. Paper handed in by Mr. Gairdner, 10 May 1875 (in answer to Question 919): 465 Estimate of Loss that would accrue to People of Scotland by adoption of English Margin of Banking Profit Estimate of Gain to People of Provincial England by adoption of Scottish Margin of 466 466 Appendix, No. 7. Paper handed in by Mr. Gairdner, 13 May 1875 (in answer to Question 1314): Number of Deposit Customers in the Scotch Banks, classified according to the Amounts at their Credit in Scotland, 1874-75 Per centages of Deposits in Scotland In answer to Question 1396: Royal Bank of Scotland.-Banking Advances and Losses, 1865 till 1874, inclusive 467 467 468 469 1874 469 No. 3.-Statement showing the Amount of Reserve, and Profit and Loss 469 No. 4.-Statement showing the Amount due on Deposits, &c., at 31 December 1874 469 No. 5.-Statement showing the Liability on Acceptances at 31 December 1874 469 1 Appendix, No. 9-continued. Paper handed in by Mr. Wade, &c.-continued. Statements relating to Profits and Working Expenses : No. 16.-Statement showing the Net Profits of the National Provincial Bank PAGE. 472 No. 17.-Statement showing the Profits of the National Provincial Bank of No. 18.-Statement showing the Working Expenses of the National Pro- Returns of Gold, Silver, &c., and Return of the Cost of Maintaining Twenty No. 19.-Return of Gold, Silver, and Bank of England Notes, &c., in Tills No. 20. Return of Cash in Hand at Bank of England and Branches, Call No. 21.-Return of the Cost of Maintaining Twenty of the smallest Branches Statements relating to Per-Centage, &c. : No. 22.-Statement showing the Per-centage of Gold, Silver, Bank of No. 23.-Statement showing the Per-centage of Net Profits of the National 472 472 472 473 473 473 473 474 474 No. 26.-Statement showing the Per-centage of Working Expenses at Head - 474 474 No. 27. Return showing the Number of Depositors and the Amount of Appendix, No. 10. Paper handed in by Mr. Mills, 3 June 1875 (in answer to Question 2757): Appendix, No. 11. Paper handed in by Mr. Du Bedat, 7 June 1875 (in answer to Question 3090): Appendix, No. 12. Paper handed in by Mr. Du Bedat, 7 June 1875 (in answer to Question 3349): 475 476 Bank of Ireland Post Bills outstanding November 1845, 1850, 1855, 1860, 1865, 1870, 477 Return of the Average Issues of Banks in Ireland, as published, in each November Paper handed in by Mr. G. Readman, 10 June 1875 (in answer to Question 3624): Opinion of Counsel 479 482 Appendix, No. 14. Papers handed in by Mr. R. H. Inglis Palgrave (in answer to Question 5698): 483 Statement showing the Profit to the Bank of England arising out of the Issue 3. In answer to Question 7740 Appendix, No. 16. Paper handed in by Mr. Dun, 1 July 1875 (in answer to Question 6252): Appendix, No. 17. Return of the Total Amount of the Working Expenses of the Joint Stock Banks in English Joint Stock Banks of Non-issue Irish Joint Stock Banks of Issue Irish Joint Stock Banks of Non-Issue Scotch Joint Stock Banks of Issue Appendix, No. 18. Return supplied in answer to a Circular of the Chairman of the Select Committee on Banks of Issue, addressed to every Bank in England and Ireland, requesting Information as to the comparative working of the English, Scotch, and Irish System of Banking respectively, and the Amount of Accommodation which they afford to the Public PAGE. 550 552 552 553 554 554 555 557 558 558 559 No exclusive Privileges conferred by the Act of 1694 on Bank of England Enactment of 1704 prohibiting Joint Stock Companies of any description doing Business as Banks 433 Bank at this Time and up to 1833 means Bank of Issue 433 Repetition of Enactments of 1697 and 1707 in continuing Act of 1800 434 434 435 435 435 Continuing Act of 1833, repeating preceding Enactments, with certain Modifications as to 436 The Third Section of the continuing Act of 1833, and enabling Section and explanatory of Memorandum as to Banking in Scotland, by Mr. James Simpson Fleming 440 445 448 Appendix, No. 1. Appendix, No. 1. BANKING ACTS. MEMORANDUM. Preliminary. A Scotch bank of issue, the Clydesdale Bank, having its head office in Glasgow, and branches in 76 other places in Scotland, has recently opened branches at Carlisle, Whitehaven, and Workington. Some years ago certain other Scotch banks of issue opened branches in London,* and it is anticipated that their example will be followed by the remaining Scotch banks. The question in this case is, whether the above branches are legal, and this question subdivides itself into two parts; (1.) whether the branches in London are legal ; (2.) whether the branches of the Clydesdale Bank at Carlisle, Whitehaven, and Workington are legal, as it will be found in the sequel that different considerations apply to London, and an area of 65 miles from London, from those which apply to the remainder of England. Supposing the branches to be legal, the second question in this case is whether, having regard to the disabilities under which English country banks of issue labour, it is or is not just and expedient that the English banks of issue should be protected by legislation from the competition of Scotch banks of issue, either by prohibiting the Scotch banks of issue from establishing branches in England, or by depriving the Scotch banks of issue of the preferential advantages which they enjoy over the English banks. A similar question arises with respect to the Irish banks, but it will be convenient to confine the present case to the case of the Scotch banks and English banks, as the same considerations which are applicable to the Scotch banks will apply in effect to the Irish banks. To answer the foregoing questions it is essential to take a summary view of the law of banking in England and Scotland, so far as it affects the case under inquiry. PART I. HISTORY OF BANKING IN ENGLAND. Legal history of banking is history of monopoly of Bank of England. Establishment of 1694. Establishment of Bank of England. † The legal history of banking in England is in effect the history of the establishment of the Bank of England, of the creation of its monopoly, and of the gradual withdrawal by successive Acts of Parliament of certain items, so to speak, of that monopoly, leaving a residuum of restrictions on issuing bands still remaining unrepealed. The prohibitory enactments and their palliative provisions have been set out verbatim, and at length with explanations, where necessary, of the causes in which they originated. The reader, therefore, is furnished with materials enabling him to judge for himself of the extent of the restrictions and of the reasons for abolishing or maintaining them. The Bank of England was established on the 27th of July 1694, by royal charter, granted in pursuance of Section 19 of 5 & 6 W. and M. c. 20, whereby power was given their Majesty's to incorporate certain persons who had contributed a sum of 1,200,000 l. for the purpose of carrying on the war in France, and were entitled in respect of such contribution, to be paid a yearly sum of 100,000 7. The corporate title was that of "The Governor and Company of the Bank of England," but it was provided by the Act that the corporation should cease on the Government giving twelve months' notice of dissolution at any time after the 1st of August 1705, and repaying the capital borrowed from the bank. The * All the Scotch banks are, as I understand the case, banks of issue. The Bank of Scotland, and the National Bank of Scotland are the only Scotch banks which have at present branches in London. The Bank of England was founded on the model of the Bank of Barcelona, established in 1401 (Macleod on Banking, vol. 1, p. 298), of the Bank of Venice, established in 1587 (ibid, p. 289, treats the usual date assigned 1153 or 1171 as erroneous); and the Bank of St. George at Genoa, established in 1675 (ibid, 295); the Bank of Amsterdam, a bank of deposit only, was founded in 1609, (ibid, 297); the Bank of Hamburgh also a bank of deposit on the model of the Bank of Amsterdam in 1619, (ibid, 298). |