Saturday, 24 October 2009

Scottish Banking(part 7)

Glasgow Journal, 7th June 1756.-

"There having been a run last week on the two
 banking companies here for gold and silver in
 exchange of the Glasgow notes, and the notes
 of the banks at Edinburgh having been refused
to be taken in payment, the inhabitants with
 great readiness and alacrity paid in large sums
of specie to the two cashiers; and we are well
assured that the noblemen and gentlemen of this
 country have entered into a resolution to continue
 their countenance and support of these two

Scots Magazine, July 1756 (p. 365).--

" Since the run upon them, the Glasgow banks have
 altered the tenor of their notes. By the new notes the
 cashier promises to pay the sum in the note on
demand, or,in the option of the bank, the sum, and an
 additional sum (which is precisely half-a-year’s interest
 at live percent per annum of the other sum) at the end
of six months-the demand and the option of the bank to
 be ascertained by the cashier’s marking and signing
 on the back of the note the day on which it was presented."

This matter is also dealt with by "Senex ” in
Glasgow past and present as follows :—

"I have already mentioned that, in consequence of
the scarcity of silver, our banks commenced issuing
notes of the value of five shillings. Although no bank
in Glasgow had hitherto issued notes of such trifling
amount,nevertheless,in the year 1761, our banks made
an issue of notes of the value of 10s payable to the bear-
er on demand. But as for the £1 and £5 bank-notes,
they were made payable either on demand or, in the
option of the bank (six months) after being presented,
with six months’ interest. The reason for our banks
reserving this option was peculiar, and not very creditable
 to the great banks in Edinburgh, as the following
narrative will show :-

MORE TO FOLLOW...............

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