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
 companies'’



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...............

Scottish Banking(part 6)

Scots Magazine, May 1756 (p.249)-

Two gentlemen from Edinburgh, with an agent,
etc., made considerable demands on the two
banks at Glasgow (Ship and Glasgow Arms)
 May 31 st and June 1st, 2nd, and 3rd.
 A protest was taken against the old bank (Ship),
that of Messrs. Dunlop,Houston,& Company,for non-
payment of £976 and £7000. Payment was offered of
the £976, in notes of the two banks of Edinburgh,but
refused and specie insisted for.

The gentlemen who demanded the £7000 were told
by the cashier that the Company’s notes were always
 paid at ordinary hours; but that so large a demand,
 after the ordinary time of doing business for the
forenoon was over-i.e.after twelve o’clock—-he did
not think proper,without previously advertising the
 Company, to pay till four o’clock afternoon ; and
they were desired to come back at that hour, when
 all the notes would be paid. Attendance was given
 at the banking office from~three o’clock afternoon
 till near five; and as the Edinburgh gentlemen
did not call as desired, an attorney was sent to their
lodgings. The principal person was gone out of town;
but the other, who was his agent or doer,was found on
the street,and required to repair to the banking office,
to receive payment of the sum demanded, the Com-
pany being always ready to pay their notes at proper
hours, in gold and silver, and Edinburgh bank-notes.


N .B .-The Edinburgh notes offered were those of the
Royal Bank, which were ''refused."



More to follow...........