INDEX. BANKING AND COMMERCIAL LAW. Negligence in Relation to Bills, Notes and Cheques, 31. Bills of Sale, 39. Valid Transfers of Chattels without Bills of Sale, 40. Nordberg v. The Trade Auxiliary Company (Stubbs & Co.), 43. John Jeffares v. The National Bank of New Zealand, 101. 1X Goddard and Another v. O'Brien. Accord and satisfaction. The acceptance of a cheque like the acceptance of a promissory note for a smaller amount in full of a debt, satisfaction of the same, 104. The Union Bank of London. Ingram, 206. The West of England and South Wales District Banking Company v. Hankey, 208. National Provincial Bank of England. Weaver, 210. Manchester and Liverpool District Banking Company (Limited) v. Hall and Others, 211. Beeketer and Company. Addyman, 213. The London and County Bank v. Groom, 310. Melbourne Banking Corporation e. Brougham, 312. Gattie v. Governor and Company of the Bank of England, 312. The Mussoorie Bank (Limited) v. Raynor, 313. La Banque D'Escompte . London and South Western Bank (Limited). 391. Warren v. Swaine, 392. Suffell v. The Bank of England, 469. The New London and Brazilian Bank (Limited) v. Brocklebank, 470. Galloway v. Turner, 541. The London and County Banking Company . Wilkinson, 542. Compagnie Financière et Commerciale du Pacifique . The Peruvian Guano Company, 543. De Ladfort. Fuller, Banbury and Company, 546. Nordberg v. The Trade Auxiliary Company (Limited), trading as Stubbs and Co., 548. Beckett and Co. v. Addyman, 634. The Royal Bank of Scotland v. The Commercial Bank of Scotland and Others, 639. Glyn, Mills, Currie and Co v. The East and West India Dock Company, 753. The Capital and Counties Bank v. Henty and Son, 810. Moore v. Lescher, 815. Frazer v. Cooper, Hall and Co., 816. In re J. T. Stanton, 817. The Official Liquidator of the Blackburn and District Benefit Building Society v. Cunliffe, Brooks and Co., 988. THE BANKERS' MAGAZINE AND Journal of the Money Market. JANUARY, 1882. THE PROGRESS OF BANKING IN GREAT BRITAIN AND IRELAND DURING 1881. No. I.-CAPITALS AND RESERVE FUNDS. We have again to continue the examination which has now been carried on yearly for the last five years in this journal, into the progress of banking in this country so far as the evidence as to this progress is to be traced in the amounts added to or withdrawn from the capital and reserve funds employed in the business. This has now been done in this journal for every year since 1876.* On this occasion, as previously, we have employed the statements given in the Banking Almanac as the basis of the calculation. This, as we have stated before, enables the survey of the position of banking to be carried on in a uniform manner. The statements which appear in the Banking Almanac have been supplied by the banks themselves, and they have been carefully revised. Hence it is not possible to find any better basis for the calculation. The statement shows some curious results. An increase has taken place among nearly as many banks in England and Wales, and among as many banks in the country generally, as on any previous occasion which we have recorded, but the net increase in the capital itself in England and Wales is the smallest we have had to note. There has been, however, a very considerable increase in the reserve funds. It was to be expected that the rate of progress shown in 1880 in the form of additions to the capitals of banks would hardly be continued in 1881. In the year 1880 the principle See Bankers' Magazine, February 1877, 1878, 1879, 1880, and January 1881. VOL. XLII, 1 of limitation of liability was being widely adopted, and with its adoption many of the most important banks found it necessary to add considerably to their capitals. That process having once been performed, the banks have since resumed their natural rate of progress. The remainder of the capital required is now being slowly paid up. The wide diffusion of this progress, the fact that the additions, though not in any case individually large, have taken place among so many banks is a satisfactory sign, as is also the fact that the reserve funds of the banks have continued to accumulate at much the same ratio as before. Additions to reserve funds are made under one of two heads. Either new shares are issued at a premium, and the premium itself is added to the reserve, or a portion of the profit made is placed on one side for the same purpose. It is obvious that this year, when, comparatively speaking, such a small increase of capital has taken place, the first-mentioned source of additions to the reserve funds cannot have been resorted to, and hence the additions which have taken place have arisen from the profits themselves, by far the most healthy source of this kind of increase. As we have mentioned before, the continuing this statement from year to year in the same manner has this advantage, that it gradually forms a historical statement of much value. Banking in this country may now be considered to have overcome completely the disastrous events of the year 1878, when a diminution of banking capital to the extent of £1,000,000 was recorded. Between 1879 and 1881, however, an increase of about £5,000,000 took place. The comparison with the previous years as to the number of banks among whom this increase is distributed is as follows: INCREASE IN BANKING CAPITAL AND RESERVE FUNDS TOOK PLACE AMONG Six banks in England showed a diminution in their capital during 1881, as compared with eight in 1880; fifteen as compared with ten in 1880, sixteen in 1879, thirteen in 1878, recorded a diminution in their reserve funds. These movements, it should be stated, are frequently mere matters of account. Capital is sometimes moved to reserve, and reserve to capital, as suits the convenience of the banks concerned. The Industrial Bank, Limited, has ceased to carry on business. The National Mercantile Bank, Limited, and the Northern Counties Bank, Limited, are being wound up. The Midland Banking Company has been amagalmated with the Birmingham, Dudley, and District Banking Company, Limited. In Scotland one bank, in Ireland one also, show diminutions in their capital. In Scotland five, and in Ireland three banks, show an increase in reserve funds. In Ireland one bank shows a diminution in the capital. In 1881, as in 1880, more than two-thirds of the whole number of joint-stock banks in the country have added to their available resources in the way of capital and reserves. The following may be specially mentioned as among the larger augmentations to the capital and the reserve funds of the banks referred to throughout the United Kingdom: AMONG METROPOLITAN BANKS. Royal Exchange Bank, Limited (late £54,962 Increase in Capital, |