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