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After that only one, last, charter-party has been given out the British Linen Company
(British Linen Company) in 1746 All other banks have been founded in
Conformity with usual laws. Any restrictions on number of partners not
Practised, and, after the small period of abusings on the initial
Stages of development of a banking, business has passed large and financially
The strong joint-stock companies. Bankruptcy of Ejr Benk (Ayr Bank) in 1772,
Resulted superfluous issue of banknotes, has strongly undermined trust
Publics to small banks: the majority of small private banks has ceased
To exist, and on their place joint-stock banks, and also private banks have come with
More considerable resources of the capital.
The Scottish system differed certain peculiar features, with most
The beginnings distinguishing it from the systems existing in other countries. It switched on
Intense competition between banks and strict observance of practice of the regular
Mutual repayment of banknotes; the exchange of banknotes occurred twice a week, and
Balances were lined there and then. The system of branches here has been mastered almost with
The beginning, and, in comparison with other countries, intensity of development
Depositary business and credit tools it has appeared much above.
By 1826, besides three charter banks (with 24 branches), in Scotland
There were 22 more joint-stock banks (with 97 branches) and 11 private banks,
While in England the legislation resolving was just accepted
Creation of joint-stock banks, and even the Bank of England yet has not founded any
Branches. By then in the history of the Scottish bank business was only
One serious failure - bankruptcy of Ejr Benk, and the cumulative damage suffered
The population, it was estimated within 36,000 pounds.
Network existing in Scotland strong, not knowing intervention
Legislators, banks with the already highly developed depositary sphere, its visible
Success and absence of the abusings conducting to interdictions, should render
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