按键盘上方向键 ← 或 → 可快速上下翻页，按键盘上的 Enter 键可回到本书目录页，按键盘上方向键 ↑ 可回到本页顶部！
————未阅读完？加入书签已便下次继续阅读！
general； or the city of Glasgow in particular； has really
increased in so great a proportion； during so short a period； I
do not pretend to know。 If either of them has increased in this
proportion； it seems to be an effect too great to be accounted
for by the sole operation of this cause。 That the trade and
industry of Scotland； however； have increased very considerably
during this period； and that the banks have contributed a good
deal to this increase； cannot be doubted。
The value of the silver money which circulated in Scotland
before the union； in 1707； and which； immediately after it； was
brought into the Bank of Scotland in order to be recoined；
amounted to L411；117 10s。 9d。 sterling。 No account has been got
of the gold coin； but it appears from the ancient accounts of the
mint of Scotland； that the value of the gold annually coined
somewhat exceeded that of the silver。 There were a good many
people； too； upon this occasion； who； from a diffidence of
repayment； did not bring their silver into the Bank of Scotland：
and there was； besides； some English coin which was not called
in。 The whole value of the gold and silver； therefore； which
circulated in Scotland before the union； cannot be estimated at
less than a million sterling。 It seems to have constituted almost
the whole circulation of that country； for though the circulation
of the Bank of Scotland； which had then no rival； was
considerable； it seems to have made but a very small part of the
whole。 In the present times the whole circulation of Scotland
cannot be estimated at less than two millions； of which that part
which consists in gold and silver most probably does not amount
to half a million。 But though the circulating gold and silver of
Scotland have suffered so great a diminution during this period；
its real riches and prosperity do not appear to have suffered
any。 Its agriculture； manufactures； and trade； on the contrary；
the annual produce of its land and labour； have evidently been
augmented。
It is chiefly by discounting bills of exchange； that is； by
advancing money upon them before they are due； that the greater
part of banks and bankers issue their promissory notes。 They
deduct always； upon whatever sum they advance； the legal interest
till the bill shall become due。 The payment of the bill； when it
becomes due； replaces to the bank the value of what had been
advanced； together with a clear profit of the interest。 The
banker who advances to the merchant whose bill he discounts； not
gold and silver； but his own promissory notes； has the advantage
of being able to discount to a greater amount； by the whole value
of his promissory notes； which he finds by experience are
commonly in circulation。 He is thereby enabled to make his clear
gain of interest on so much a larger sum。
The commerce of Scotland； which at present is not very
great； was still more inconsiderable when the two first banking
companies were established； and those companies would have had
but little trade had they confined their business to the
discounting of bills of exchange。 They invented； therefore；
another method of issuing their promissory notes； by granting
what they called cash accounts； that is by giving credit to the
extent of a certain sum （two or three thousand pounds； for
example） to any individual who could procure two persons of
undoubted credit and good landed estate to become surety for him；
that whatever money should be advanced to him； within the sum for
which the credit had been given； should be repaid upon demand；
together with the legal interest。 Credits of this kind are； I
believe； commonly granted by banks and bankers in all different
parts of the world。 But the easy terms upon which the Scotch
banking companies accept of repayment are； so far as I know；
peculiar to them； and have； perhaps； been the principal cause；
both of the great trade of those companies and of the benefit
which the country has received from it。
Whoever has a credit of this kind with one of those
companies； and borrows a thousand pounds upon it； for example；
may repay this sum piecemeal； by twenty and thirty pounds at a
time； the company discounting a proportionable part of the
interest of the great sum from the day on which each of those
small sums is paid in till the whole be in this manner repaid。
All merchants； therefore； and almost all men of business； find it
convenient to keep such cash accounts with them； and are thereby
interested to promote the trade of those companies； by readily
receiving their notes in all payments； and by encouraging all
those with whom they have any influence to do the same。 The
banks； when their customers apply to them for money； generally
advance it to them in their own promissory notes。 These the
merchants pay away to the manufacturers for goods； the
manufacturers to the farmers for materials and provisions； the
farmers to their landlords for rent； the landlords repay them to
the merchants for the conveniencies and luxuries with which they
supply them； and the merchants again return them to the banks in
order to balance their cash accounts； or to replace what they may
have borrowed of them； and thus almost the whole money business
of the country is transacted by means of them。 Hence the great
trade of those companies。
By means of those cash accounts every merchant can； without
imprudence； carry on a greater trade than he otherwise could do。
If there are two merchants； one in London and the other in
Edinburgh； who employ equal stocks in the same branch of trade；
the Edinburgh merchant can； without imprudence； carry on a
greater trade and give employment to a greater number of people
than the London merchant。 The London merchant must always keep by
him a considerable sum of money； either in his own coffers； or in
those of his banker； who gives him no interest for it； in order
to answer the demands continually coming upon him for payment of
the goods which he purchases upon credit。 Let the ordinary amount
of this sum be supposed five hundred pounds。 The value of the
goods in his warehouse must always be less by five hundred pounds
than it would have been had he not been obliged to keep such a
sum unemployed。 Let us suppose that he generally disposes of his
whole stock upon hand； or of goods to the value of his whole
stock upon hand； once in the year。 By being obliged to keep so
great a sum unemployed； he must sell in a year five hundred
pounds' worth less goods than he might otherwise have done。 His
annual profits must be less by all that he could have made by the
sale of five hundred pounds worth more goods； and the number of
people employed in preparing his goods for the market must be
less by all those that five hundred pounds more stock could have
employed。 The merchant in Edinburgh； on the other hand； keeps no
money unemployed for answering such occasional demands。 When they
actually come upon him； he satisfies them from his cash account
with the bank； and gradually replaces the sum borrowed with the
money or paper which comes in from the occasional sales of his
goods。 With the same stock； therefore； he can； without
imprudence； have at all times in his warehouse a larger quantity
of goods than the London merchant； and can thereby both make a
greater profit himself； and give constant employment to a greater
number of industrious people who prepare those goods for the
market。 Hence the great benefit which the country has derived
from this trade。
The facility of discounting bills of exchange it may be
thought indeed； gives the English merchants a conveniency
equivalent to the cash accounts of the Scotch merchants。 But the
Scotch merchants； it must be remembered； can discount their bills
of exchange as easily as the English merchants； and have；
besides； the additional conveniency of their cash accounts。
The whole paper money of every kind which can easily
circulate in any country never can exceed the value of the gold
and silver； of which it supplies the place； or which （the
commerce being supposed the same） would circulate there； if there
was no paper money。 If twenty shilling notes； for example； are
the lowest paper money current in Scotland； the whole of that
currency which can easily circulate there cannot exceed the sum
of gold and silver which would be necessary for transacting the
annual exchanges of twenty shillings value and upwards usually
transacted within that country。 Should the circulating paper at
any time exceed that sum； as the excess could neither be sent
abroad nor be employed in the circulation of the country； it must
immediately return upon the banks to be exchanged for gold and
silver。 Many people would immediately perceive that they had more
of this paper than was necessary for transacting their business
at home； and as they could not send it abroad； they would
immediately demand payment of it from the banks。 When this
superfluous paper was converted into gold and silver； they could
easily find a use for it by sending it abroad； but t