be
five millions, on which the average amount advanced by the banks
may be one-third.

"The manner in which the practice of deposits on receipt is
conducted tends to produce the same desirable results. Sums to as
low an amount as L10 (and in some instances lower) are taken by
the banks from the depositor, who may claim them at demand. He
receives an interest, usually about one per cent below the market
rate. It is stated that these deposits are, to a great extent,
left uncalled for from year to year, and that the depositors are
in the habit of adding, at the end of each year, to the interest
then accrued, the amount of their yearly savings; that the sums
thus gradually accumulated belong chiefly to the labouring and
industrious classes of the community; and that, when such
accounts are closed, it is generally for the purpose of enabling
the depositors either to purchase a house or to engage in
business.

"It is contended by all the persons engaged in banking in
Scotland, that the issue of one-pound notes is essential to the
continuance both of their cash-credits and of the branch banks
established in the poorest and most remote districts. Whether the
discontinuance of one-pound notes would necessarily operate to
the full extent which they apprehend, in either of these
respects, may perhaps admit of doubt; but the apprehensions
entertained on this head, by the persons most immediately
concerned, might, for a time at least, have nearly the same
effect as the actual necessity; _and there is strong reason to
believe, that if the prohibition of one-pound notes should not
ultimately overturn the whole system, it must for a considerable
time materially affect it_.

"The directors of the Bank of England, who have been examined
before the committee, have given it as their opinion, that a
circulation of notes of L1 in Scotland or in Ireland would not
produce any effects injurious to the metallic circulation of
England, provided such notes be respectively confined within the
boundary of their own country.

"Notwithstanding the opinions which have been here detailed, the
committee are, on the whole, so deeply impressed with the
importance of a metallic circulation below L5 in England, not
only for the benefit of England, but likewise