:

French centime. A silver piece of 50 banis is struck it weighs 2.500 grammes, 835 fine, and is worth about 44d. in English. Bank. From the German Banck, a mound or heap. It is a literal translation of

the Italian, monte, a small hill, from the Latin, mons. The term monte originated in Venice in the twelfth century, when the city was at war with foes on every hand, and in great straits for want of money. A forced loan was raised from the inhabitants, and the proceeds being brought together formed a heap or hillock of money, and so gave rise to the name. The Germans, when they in later years formed a similar fund, followed their natural habit, and called it by a name derived from their own language, but meaning the same thing as the Italian monte, and that was Banck. But the Germans had over-run all the northern parts of Italy about this time, and had made their word, Banck, as familiar as its native origin, monte; only it was so modified as to suit the Italian language, and was called Banco. Now it happens that banco is the Italian for a bench, table, or counter, and as the bench or counter was a much more conspicuous object to the multitude than the heap, or mound, which was doubtless concealed in the vaults, the people generally very soon learnt to associate the name of banco, or bench, with the counter and not with the money. Hence appears to have arisen the popular notion that bank is derived from banco, the bench or table on which money-changers counted out their coins. Nor was this unreasonable, for the money-changer had from time immemorial been known by a name or names, all of which were derived from a word signifying a plank, table, counter, or bench, for either of which words banco might easily be substituted. Thus we have mensarius, a moneychanger or banker, so named from the table, mensa, at which he stood, and which is thus referred to by Livy. 66 Quinque viri creati, quos mensarios ab dispensatione pecunice appellârunt." (Five men were appointed who were called mensarii, because they regulated the payment of the public funds.) Tрaneša, trapeza, is a table, and is the word used for the tables of the money-changers in the temple, Mark xi. 15. TрanεŠIτns, trapezites, was one who kept such a table, a moneychanger, a banker. The Latin form of the same, trapezita, was also used in the sense of money-changer or money-lender. It seems therefore highly probable that the word bank, like many other terms used in commerce, has a double origin, one traceable to classical times, and the other to the Teutonic dialects of Northern Europe.

The primary notion of a bank as derived from the practice of the Goldsmiths of Lombard Street, appears to have been that of a place for the safe custody of money and other valuable things of small bulk. But before the business had passed from the hands of the goldsmiths into those of the regular bankers, a way was seen by which the money might be made a source of profit without endangering its safety. Thus arose the practice of issuing goldsmiths' notes. (See Goldsmiths' Notes).

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As banking is now conducted in England, a bank may be defined as an agency for the exchange of commodities;" but the mechanism by means of which the exchange is effected is such that the commodities themselves never appear in connection with the operations of the Bank, nor is their existence often recognized. The exchange is effected by the creation of instruments of credit by means of which Bankers buy the money of their customers, or more frequently buy of them other instruments of credit. These instruments of credit consist mainly of bills of exchange, cheques, entries

BANK ANNUITIES-BANK NOTE.

29

in the bank's books; but whatever the banker buys in the course of his business, whether money or paper, he always pays for it by means of credit. These instruments of credit may then be put into circulation, or otherwise employed in trade and manufacture so as to yield a profit, and this profit is the reward for the labour and skill employed in the business of banking.

Modern English Banking, which is a totally different thing from the ancient Banking System of Venice, and the Italian States, had a very humble origin. It may be traced to the ingenuity of the trusty servants and care-takers employed by merchants and traders in the troublous times immediately following the execution of Charles. These servants, on whom fell the responsibility of taking care of the money which their masters were all day long engaged in accumulating, took it to the Goldsmiths who had vaults and strong rooms for the safe custody of their wares. For the use of this money the Goldsmiths allowed the depositors 4d. per cent. for each day the money remained with them. Here was an advantage gained all round. The servants made the money entrusted to them more safe. The owners received interest on their unemployed cash, and the Goldsmiths made a profit by lending out the money entrusted to them. They almost immediately adopted the practice of discounting Bills, so that they had only to call themselves " Bankers," and both business and name corresponded to that of "Banker" in the modern English sense of the term.

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The

Bank Annuities. Bank annuities is the legal name for what are now more commonly spoken of as the Funds" or "Consols." term Bank Annuities indicates pretty accurately their origin and their nature. They originated in a compact between the Government for the time being and the moneyed class among its subjects. in virtue of which compact it was agreed that everyone giving a certain sum to the Government, should receive from the National revenue, a fixed sum yearly (i.e., an annuity) for ever. The sums thus collected from the subjects, when accumulated formed a "heap," a "monte," a "Banck," or, as we say a "Bank," and the annuities paid to those who contributed to this Bank were consequently called "Bank Annuities." The name is applied in all formal documents issued by the Bank of England and the National Debt Office, but by the people generally, the shorter term "Funds" or Consols" is found more convenient.

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Bank Dollar. A silver coin used in Hamburg. In England, the Spanish dollar, restamped and issued as a token by the Bank, in 1804.

Banker's Note. A Promissory Note given by a Banker to a customer promising to pay a given sum either on Demand or at a given date against sums standing to the credit of the customer at that Bank. It was the immediate successor of the old Goldsmith's note, and is now no longer in use.

Bank Note. A contraction of "Bank of England Note," and is

30

BANK OF ISSUE-BANK RETURN.

thus distinguished from " Country Notes," the name applied in the City of London to Notes issued by all other banks in the United Kingdom.

Bank of Issue. A Bank of Issue is defined in law to be " any Joint Stock Banking Company lawfully issuing its own notes." No new Banks of Issue can now be formed. If any existing Bank of Issue becomes extinct, two-thirds the amount of notes it was authorized to issue is added to those authorized to be issued by the Bank of England. By the operation of this law, the Bank of England, which was at first authorized to issue only 14 millions of notes against Government and other securities, and to receive interest thereon, is now allowed to issue about 16 millions. (June 1892.)

Bank Post Bills. Bills issued by the Bank of England, but not by any of its Branches, payable at seven days sight. They are accepted at the time they are drawn, so that they begin to run from that date. They form an exceedingly convenient and economical means of remitting sums above £10-the lowest sum drawn for to any part of England. The money to be remitted is simply paid in at the Bank, and the applicant receives in return the Bank Post Bill, which he sends to the person whom he wishes to receive it. He pays nothing for the accommodation, the seven days interest being accepted by the Bank as a sufficient remuneration. Bank Post Bills originated in 1738 in consequence of the frequent robberies of the mail which had occurred for some time previous to this date, the object being that in case of the mail being robbed, the proprietor might have time to give notice." The following is the form of a Bank Post Bill; the portions in capitals are printed: and fractional sums are written in at the time the Bill is applied for, as are also the names, here put in italics.

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Bank of England Post Bill.

No.

LONDON,

18-.

At seven days sight, I promise to pay this my Sola Bill of Exchange to James Thornton, or Order, ONE HUNDRED

£ONE HUNDRED

sterling value received of Henry Green. For the Governor and Company of the Bank of England.

M-N

Bank Return. The Report issued by the Bank of England every Thursday afternoon, and which is looked for not only by City men, but by merchants and bankers all over the kingdom. It is a Report of the condition of the Bank set forth in such a way, as to show the amount of Bank notes in circulation, the stock of Bullion and Coin in reserve, and such other details as enable the experienced to

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judge of the state of the money market and its probable tendency in the immediate future. Since the passing of the "Bank Act of 1844" this Return has been drawn up in the form prescribed by Parliament, so as to separate the "Issue Department" from the Banking Department." The Old Form, however, is easily compiled from the present one, and indeed is regularly published in the Economist newspaper for the information of those who prefer it in that shape. The following is the Bank Report for 22nd June, 1881.

BANK OF ENGLAND.

AN ACCOUNT pursuant to the Act 7th and 8th Victoria cap. 32, for the week ending on Wednesday, the 22nd day of June, 1882.

The above Bank accounts would, if made out in the old form, present

The balance of Assets above Liabilities being £3,080,785 as stated in

the above account under the head REST.

The following explanation of the separate items in the above Report will probably be acceptable to those for whom this work is intended.

I. THE ISSUE DEPARTMENT.

Notes Issued. This means that the Bank of England Notes circulating in the country, or held in reserve by the different Banks, amount to the sum indicated.

Government Debt. This is a Debt owing from the English Government to the Bank of England. It dates from the reign of William and Mary, 1694, when it was only £1,200,000, since which time several additions have been made to it till 1835, when it amounted to £11,015,100. From that time till the present it has appeared in the Report from week to week without alteration.

Other Securities. These are interest-bearing securities of a high class, and selected according to the judgment of the Directors; their value varies from time to time, but usually makes up with the foregoing item £15,000,000 or upwards. It is now £15,750,000.

Gold Coin and Bullion. These terms explain themselves. The amount varies materially from time to time, and it is an item on which the experts of the money market bestow great attention.

The last three items constitute the guarantee for the payment on presentation of every Bank note issued; that is to say, the Government is guarantee for £11,015,100; there are solid interest-bearing securities for £4,734,900, and there is standard metal for the remainder, whatever its amount.

II. THE BANKING DEPARTMENT.

Proprietors' Capital. This is what is called by other Joint Stock Companies" Share Capital," and consists of the sums subscribed by the shareholders of the Bank in order to form a working capital. It is invested in securities of all kinds, including the above-named Government Debt, and the interest derived therefrom, forms one portion of the profits annually distributed among the shareholders.

Rest. The same thing, as in other accounts, would be called "balance" or "difference," and which usually appears in balance sheets as the last item on that side of the accounts, See Rest.

Public Deposits, &c. The Bank of England being the banking house of the nation, the national revenues are paid in there as fast as they are received by the collectors in all parts of the kingdom. Under this head are included moneys paid in on account of the Exchequer; the Savings' Banks; the Commissioners of the National Debt; the Inclosure Commissioners; the Paymaster-General; the ReceiverGeneral of Customs; the Postmaster-General; the Receiver-General of Inland Revenue, &c., all of which are distinguished as Public Deposits, and kept separate from some other Government Accounts which fall under the next head.

Other Deposits. Under this head are included sundry sums paid into the credit of several Government offices, each of which keeps a separate account at the Bank, such as those of the AstronomerRoyal; the Master of the Mint; the Trinity House; and about