ystem, sufficient
ground for proposing any alteration, with the view of adding to a
solidity which has been so long sufficiently established.

"This solidity appears to derive a great support from the
constant exchange of notes between the different banks, by which
they become checks upon each other, and by which any over-issue
is subject to immediate observation and correction.

"There is also one part of the system, which is stated by all the
witnesses (in the opinion of the committee very justly stated) to
have had the best effects upon the people of Scotland, and
particularly upon the middling and poorer classes of society, in
producing and encouraging habits of frugality and industry. _The
practice referred to is that of_ CASH-CREDITS. Any person who
applies to a bank for a cash-credit is called upon to produce two
or more competent securities, who are jointly bound, and after a
full enquiry into the character of the applicant, the nature of
his business, and the sufficiency of his securities, he is
allowed to open a credit, and to draw upon the bank for the whole
of its amount, or for such part as his daily transactions may
require. To the credit of this account he pays in such sums as he
may not have occasion to use, and interest is charged or credited
upon the daily balance, as the case may be. From the facility
which these cash-credits give to all the small transactions of
the country, and from the opportunities which they afford to
persons who begin business with little or no capital but their
character, to employ profitably the minutest products of their
industry, it cannot be doubted that the most important advantages
are derived to the whole community. The advantage to the banks
who give those cash-credits arises from the call which they
continually produce for the issue of their paper, and from the
opportunity which they afford for the profitable employment of
part of their deposits. The banks are indeed so sensible that, in
order to make this part of their business advantageous and
secure, it is necessary that their cash-credits should (as they
express it) be frequently operated upon, that they refuse to
continue them unless this implied condition be fulfilled. The
total amount of their cash-credits is stated by one witness to