Limited Liability Acts, state the effect of such registration on their circulation of notes.

2. What change has taken place on the authorised amount of the circulation of Scotch banks since 1844, and how has it come about?

3. What distinction is there betwixt English banks of issue and Scotch banks in regard to the actual amount of their circulation?

4. Is the issue of the Bank of England limited in the same way as that of the other banks of issue in England, and how are its notes secured?

VIII.-INTEREST AND CHARGES.

1. What are the exemptions from the ordinary charges on cheques on bankers in Scotland?

2. What is the charge for drafts on demand payable in London against credits with London offices?

3. And for cheques on provincial banks in England sent to London for negotiation through the Clearing House?

4. What is charged for a draft on demand for £100 on London, and how much for one for £500 ?

5. What were the different rates of interest allowed on deposit receipts during the year 1881 ?

6. State what documents are to be cashed by the banks to each other free of charge.

7. How much would be charged on a bill for £200 payable in Berlin at 3 d/st at "exchange as per endorsement."

IX.-HISTORY AND PRESENT POSITION OF BANKING IN SCOTLAND.

1. An Act was passed called the "Companies' Act 1879"-In the interest of what class of persons was it introduced? and what has, so far, been the result?

2. For making secured advances, a system peculiar to Scotland was adopted at an early period by the Scotch banks What was it called? and what were its effects?

3. In what broad characteristic did the origin of banking in Scotland differ from the origin of banking in England?

4. In the earlier days of Scottish banking a certain kind of issue was made by the banks in Scotland which depreciated the value of the paper currency, and was afterwards made illegal by Act of Parliament-What was that issue? and how did it work so mischievously?

5. The Act of 1879 makes special provision for the protection of a certain class of creditors of banks-What is that class? and how is the protection effected?

6. By the failure of the Western and City of Glasgow Banks a large amount of unsecured authorised circulation has been dropped-Has the legislature done anything to replace it?

X.-BANK NEGOTIATION OF BILLS AND CHEQUES.

1. State what is meant by due negotiation of a bill, and of a promissory note.

2. On presentation of a bill for acceptance is the drawee bound to accept, or refuse acceptance, at once? State the reason.

3. Within what time should notice of dishonour of a bill or pro. note be given?

4. On the dishonour of a bill, with, say half a dozen endorsers, what should the holder do if he wishes to preserve recourse on all parties to the bill?

5. Write a legal notice of dishonour of a bill, drawn by A, on and accepted by B, dated 3 Apl., 1862, @4 m/ date for £100, and endorsed to C (holder).

6. A cheque on a bank is presented by an onerous holder—the cheque being complete, save the date, which is wanting. Is the bank drawn on bound to pay the cheque? State the reason.

7. A customer who has £100 at his credit draws three cheques, viz., one for £120, a second for £40, and a third for £60, which are all presented through the Clearing House on the same day. The banker declines to allow the account to be overdrawn. Which of the cheques should he honour? Give the reason.

Reports of Joint Stock Banks.

BANK OF SCOTLAND.

REPORT by the court of directors to the proprietors at the annual general meeting, 4th April, 1882-

The directors submit to the proprietors their usual statement of the liabilities and assets of the bank as at the close of its financial year on the 28th February, and report that the net profits of the past year, after payment of all expenses, allowing for rebate on bills discounted not yet due, and making full provision for bad and doubtful debts, amount to £177,500. 19s. 7d. The last annual report exhibited a balance at the credit of the profit and loss account of £31,122. 8s. 4d., making together £208,623. 78. 11d. The half-yearly dividend, at the rate of 13 per cent. per annum paid in October last, amounted to £81,250, leaving £127,373. 7s. 11d. Of this sum the directors recommend that £25,000 be carried to the reserve fund, thereby raising it to £775,000; and they have as usual applied in reduction of the heritable property in the occupation of the bank £5,000. They also recommend that a dividend for the half-year ending the 28th February, at the rate of 13 per cent. per annum, free of income-tax, be declared, which will require £81,250-£111,250; there will then remain £16,123. 78. 11d. to be carried forward at the credit of the profit and loss account, and making, with the reserve fund, undivided profits amounting to £791,123. 7s. 11d. The directors regret to report the death of Lord Curriehill, one of the extraordinary directors. They have to propose that the vacancy be filled up by the election of the Earl of Hopetoun. In accordance with the bank's Act of Parliament, three ordinary directors retire by rotation at this time, viz., Lord Balfour of Burleigh, and Messrs. William Stuart Walker and H. Maxwell Inglis, all of whom are eligible for re-election.

Abstract Balance-sheet, 28th February, 1882.

LIABILITIES.

1. To the public--Note circulation, £725,694. 4s.; drafts issued payable within fourteen days, £221,786. 11s. 5d.; deposits, £12,766,422, 16s. 2d. Acceptances:-To banking customers, £816,788. 18. 8d.; to other customers, £613,793. 38. 1d.-£1,430,581, 4s. 9d.

£15,144,484 16 4

ASSETS.

Gold and silver coin, notes of other banks, and cash balance with the Bank of England, £1,007,795. 4s. Ed.; Government securities, and money in London at call or payable within twenty days, £3,867,215. 10s. 3d.; Indian and Colonial Government Securities, and other stocks and investments, £1,021,489. 12s. 6d.

Bills discounted, cash accounts, and other advances, £9,379,194. 168. 11d.; notes and other claims on the City of Glasgow Bank, £146,755. 7s. 6d. ; bank premises at Edinburgh and branches, £250,729. 10s. 5d; heritable property yielding rent, £163,096. 17s. 6d. ; liabilities of banking and other customers for acceptances by the bank, as per contra.-£1,430,581. 4s. 9d.

Total assets

£5,896,500 7 2

11,370,357 17 1

£17,266,858 4 3

foregoing abstract balance-shect and assets of the bank at 28th

Edinburgh, 31st March, 1882.-We, the committee of inspectors appointed by the proprietors, hereby certify that the contains a correct statement of the liabilities February, 1882, as taken from the books.

STUART NEILSON, W.S.
JAMES HOWDEN, C.A.

CHARTERED BANK OF INDIA, AUSTRALIA AND CHINA. REPORT of the directors presented at the twenty-eighth ordinary general meeting, 19th April, 1882.

The general balance-sheet and profit and loss account to 31st December, 1881, now submitted, show that the net profits, with the addition of £5,667. 78. brought forward, amount to £75,600. 4s. 5. After providing for bad and doubtful debts, and deducting the interim dividend at the rate of 7 per cent. per annum to 30th June, declared in October last, the present balance is £33,864. 15s. 7d., out of which the directors propose to declare a farther dividend at the same rate, free of income tax, for the second half of the year, leaving £5,864. 15s. 7d. to be carried forward as undivided profits. Mr. John Jones and Mr. James R. Bullen Smith, C.S.I., who now retire by rotation, present themselves for re-election. Mr. William Vanner again tenders his services as auditor. The death of Mr. Owen Lewis having deprived the bank of his valuable services in that capacity, Mr. Maurice Nelson Girdlestone, a duly-qualified shareholder, offers himself for election.

Cr.

Cash in hand and at bankers

Bullion

Government securities

Advances and loans

Bills receivable and other sums due to the bank

Bank premises and furniture at the head office and agencies.

Dr.

PROFIT AND LOSS ACCOUNT.

For the year ended 31st December, 1881.

1881. Oct. 26. Interim dividend of 3 per cent. for the half-
year to 30th June last
Dec. 31. Amount written off to meet bad and doubtful debts
Balance at date proposed to be dealt with as follows:-
Dividend of 3 per cent. for the half-year to date £28,000;
Profit and loss new account £5,864. 15s. 7d.

£28,000 0 0 13,735 8 10

33,864 15 7

£75,600 4 5

Cr.

1880. Dec. 31. Balance brought from last account
1881. Dec. 31. Gross profits for the year £171,593. 7s. 4d.
Deduct:-Expenses of management and general charges
at head office and agencies £101,660. 98. 11d. net profits
for the year

£5,667 7 0

No. 1.
Dr.

Paid-up Capital

Balance-sheet for 31st December, 1881.

Amount due on customers' balances, deposits, and circular

£337,625 0 0

651,953 19 7

332,783 18 10

10,347 18 6

9,234 5 7

£1,341,945 2 6

276,032 7 3

Other securities, including bullion bills purchased, &c.
Freehold premises in Delhi, Calcutta, Lucknow, and
Mussoorie, &c.

41,670 1 5

£1,341,945 2 6

No. 2.

Dr.

PROFIT AND LOSS STATEMENT.

Amount written off to provide for bad and doubtful debts, as
per last report
Dividend for the half-year ending 30th June, 1881, at 5 per
cent. per annum (free of income-tax) £8,440. 12s. 6d.;
expenses at head office and branches, including rent, taxes,
&c. £8,576. 198.