the
committee of the House of Commons, to the extent of admitting that it
would be either politic or just to disturb the whole banking system of
a country on account of private frauds, whether forgeries or the
fabrication of counterfeit coin. If their opinion was a sound one, the
weight of evidence is now upon our side of the argument; but we hold
that the interests at stake are far too great to be affected by any
such minor details. If any new circumstance has arisen "to affect the
relations of trade and intercourse between Scotland and England," we
at least are wholly unconscious of the occurrence, and, of course, it
is the duty of those who meditate a change to point it out, in order
that it may be thoroughly scrutinized. Internally, the business of the
banks has been increasing, and, commensurate with that increase, there
has been a vast addition to the number of branch banks spread over the
face of the country; so that, whereas in 1825 there was but one office
for every 13,170 individuals, in 1841 there was an office for every
6600 of the population. This is plainly the inevitable effect of
competition; but lest that increase should be founded upon by our
opponents as a proof of over-circulation, we shall say a few words
upon the subject of the _exchange_ between the banks themselves, which
is a leading feature of our whole system, and the most complete check
against over-trading which human ingenuity could devise. Fortunately
we have ample _data_ for our statement in the evidence tendered to the
committee on banks of issue in 1841.

It is right, however, to premise that, strictly speaking, there are
not more, nay, there are positively _fewer_ banks in Scotland at the
present moment than there were in 1825, though the amount of paid-up
capital in the banks is more than doubled. It is the branches alone
which make this astonishing increase. Now, as a branch is merely a
local agency of the parent bank, established at a distance for the
sake of outlying business, the number of parties engaged in banking
who are responsible to the public is not thereby increased, nor is the
amount in circulation extended. In fact, the multiplication of the
branch banks has been of extraordinary benefit to the public, by
affording the inhabitants of even the remotest districts a ready,
easy, and favourite method of deposit, and by extinguishing all risks
of credit. Further, it has this manifest advantage, that the manager
of the branch