{"newspaper_name": "The Arkansas banner.", "edition": "01", "page": "p1", "byline": ""}
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TIE SECRET OF ScoTcu BANkGNC.-Of thirty-one Banks in Scotland. which issue notes, fYeaonly are ohartercd-that is, the responsibility of the proprietors in those es- abolished. is confined to their subscribed cap ital The remaining twenty-sx are, with one or two objections, joint stock banks, and the proprietors are liable to the public for the whole of the bank responsibilities to the last shilling of their private forures. The number of persons connected with these banks as shareholders is very great, almost every man olaopulence in the country being holdeH{ ktock to a greater or less amount. The Scosish bankers have arranged among themselves a mutual system of exchange, as stringent as if it had the force of statute, by means of which an over issue of notes becomes matter of perfect impossibility. Itcice n eeery 1reek Inc whole notcs depo- sitcd wiM the difercm 6nat-o6icers m Scot- land are rcgularly interchangcd.

 Now, with this system in operation t is perfectly ludcrous 10 suppose that any bank would issue it's paper rashly for the sake ef an extended circulation. The whole notes III circulation throughout Scotland return 10 their respective banks in period averaging from ten 10 eleven days Ill suburban, aud from fortnight to three weeks in rural dis trlcts. In consequence of the rate of inter est allowed by the banks, no person has any nducement to keep bank paper by him, but the reverse, and the general practice of the country is toskcep the circulation at as low a rate as possible In this way it is not im- possible ler the circulation to be more than what is absolutely necessary fol the transac- tions of the country.

 If, therefore, any bank Rad been so rash. as to grant accommodation without proper se- curity, merely for the sake of obtaining cir culation. in ten days, or a fortnight at the farthest, it is compelled to account with the other banks for every note they have reeeiy- ed If itdoes not hold enough of their pa per to redeem its own exchange, it Is con,- pelled to pay the difference in exchequer bills, certain amount of which, every bank is bound by mutual agreement to hold, the fractional parts of each thousand pounds be- ing payable in Bank of England notes, or in gold. In this way oyer-trading, in so far as regards the issue of paper, is so electaally guarded and controlled. that 1t would puzzle parliament, with all its conceded coaven,ion- al wisdom, to devise any plau alike so sin- pie and expeditions.