hat power in 1845 has been that no important
bank has been established in that country since. Notes are so largely
employed in ordinary business in Scotland that a bank which does not
possess the power, practically cannot carry on business and supply the
needs of its customers. This limitation in the number of the banks has,
however, not been accompanied by any deficiency in the supply of banking
accommodation to the people. There is a larger number of banking offices in
proportion to the population in Scotland than in England and Wales or
Ireland.

The large number of branches must, however, be a cause of great expense,
and in several other respects it is obvious that a business carried on in
such thinly peopled districts as are found in many parts of Scotland, must
be conducted at a disadvantage in comparison with those banks which deal
with more active centres of commerce. Although the profit derived from
their large issue of notes may be thought to be considerable, yet, when we
consider the many expenses incurred in conducting a large note circulation,
the cost of printing, stamp duty, and the charges on importing gold from
London when the circulation exceeds the limit fixed by the act of 1845. no
small deductions must be made from the apparent profit to be derived from
this head, if there is any direct profit at all.

On the other hand, the great number of branches possessed by the Scottish
banks tends beyond doubt to their stability and prosperity. The network of
banks on the surface of Scotland is as important to the development of the
prosperity of the country as the network of the railways. It has caused a
great economy of capital, as the universal practice of people, even of the
most moderate means, is to lodge their money with the banks.

[Sidenote: Irish banks.]

The early history of banking in Ireland was marked by legislation even less
favourable to the formation of a steady and dependable system than in
England, and in 1695 several of the principal merchants in Dublin met
together for the purpose of forming a public bank for Ireland on the model
of the Bank of England. For many years this proposal met with no favour. It
was not till 1783 that the Bank of Ireland was established and commenced
its business. The first governor was David La Touche, junior, and two other
members of his family were amongst the first board of directors. The bank
met with very great success, but the jealousy against rival estab