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SCOTCH BANKING 
A545 
way it became comparatively easy for any well-doing young ADJ 
man to obtain a start in business on his own account. This ' 
method of making advances became exceedingly popular Jedi 
with the public, and the practice was soon adopted by the Fash 
Bank of Scotland as well, and became a second special 
feature in the Scottish banking system. There does not 
appear to be any certain evidence that the Bank of Scotland 
was in the habit of receiving deposits from its customers at 
first. But it afterwards developed the business, especially and 
in the way of accepting sums for definite periods, and puied 
granting interest upon them? 
As, however, there was no restriction in regard to 
banking in Scotland, a considerable number of new in- 
stitutions came into being, especially in connection with 
particular trades. The British Linen Company, the third The rivalry 
of the Scotch banks® in age, was, as its name implies, ull 
founded to assist in the development of the linen manu- *"** 
facture. A local bank was started at Dundee; and a similar 
institution at Ayr caused wide-spread ruin in the West of 
Scotland by its failure in 1772. On the whole, however, 
the system was prudently and successfully carried on; and 
several private firms developed a banking department in 
connection with mercantile business. It does not appear 
that these private banks in Scotland had been, generally 
speaking, connected with the goldsmiths’ trade. The best 
known of them all, that founded by the Coutts’* and asso- 
ciated with the name of Sir William Forbes, was largely 
engaged in the corn trade. 
In one way or another, however, the Scotch became tedoa 
rapidly habituated to the use of a convertible paper currency, go 
and a very large proportion of the population were enabled 
1 Grabam, The £1 Note, 13. 
® In his evidence before the Commissioners Mr Paul distinguishes the running 
and deposit account. “The second branch of deposits consists of small sums 
placed in the hands of the Bank at interest which have been in general the savings 
of their industry, and which are put into the hands of the Bank to accumulate * * * 
in general these deposits are very seldom removed, excepting when an individual 
has occasion to build a house or begin a business.” Report, 1826-7, v1. 450, 
printed pag. 74. 
3 A. W. Kerr, op. cit. 58. 
} Sir W. Forbes, Memoirs of a Banking House, 1. 
£8.