many branches settle among
themselves, and the number drawn by one customer of a bank and paid to
another, we may form some notion of the vast amount of the yearly turnover
in cheques. This may be roughly estimated to be at least twice as great as
that registered by the London Clearing House. The earliest authentic
statement as to the clearing is found in the _Appendix to the Second
Report, Committee of House of Commons, Banks of Issue_ (1841).

In 1839 the figures of the London clearings
were L954,401,600, 29 banks.
In 1840 " " " " " 978,496,800, 29 "
In 1899 " " " " " 9,150,269,000, 19 "
In 1900 " " " " " 8,960,170,000, 19 "
In 1906 " " " " " 12,711,334,000, 18 "

[Sidenote: Scottish banks.]

In 1695, shortly after the establishment of the Bank of England, the
Scottish parliament passed an act for the establishment of a public bank.
Amongst the first names is that of Thomas Coutts, a name still commemorated
in one of the most substantial banks in London. The terms of the
establishment were more favourable than those connected with the
establishment of the Bank of England, for they obtained the exclusive
privilege of banking for twenty-one years without giving any consideration
whatever. It may have been the natural caution of the country, or the fact
that William III. was then king, which led to the Bank of Scotland being
prohibited under a heavy penalty from lending money under any circumstances
to the king. It is the only Scottish bank established by act of parliament.
The directors began at a very early period to receive deposits and to allow
interest thereon, also to grant cash credit accounts, a minute of the
directors respecting the mode of keeping the latter being dated so far back
as 1729.

Though the system of branches forms now so marked a feature of banking in
Scotland, a good many years had to pass before they obtained any hold. It
was not till about the year 1700 that the directors of the Bank of Scotland
established branches at Glasgow, Aberdeen, Dundee and Montrose, but so
little encouragement was given to these branches, the expenses far
exceeding the profits arising from them, that the directors resolved to
close them. In 1731 another attempt was made, and agencies were established
at Glasgow, Aberdeen and Dundee. But after a trial