Part 19

_Scotland_.--In Scotland there are no private banks, the only banks in that portion of the United Kingdom being eight joint-stock banks of issue, and their branches (the Mercantile and Savings not being banks of issue). By the Act of 1845 new banks of issue were prohibited, a monopoly being given to such establishments (nineteen in number) as existed in the year previous to 1st May, 1845. At the same time the issue of each was limited to the amount of its average circulation during that year, together with the specie held at the head office. Any bank issuing notes in excess of this limit is supposed to hold an equivalent amount of gold. The aggregate authorized circulation is now L2,676,350; the average actual circulation is fully L7,000,000. The Bank of Scotland, established by Act of Parliament in 1695, had for its original capital only L100,000, increased to L200,000 in 1744; but it now has a capital of L1,325,000 paid up. It remained the only bank in Scotland till the Royal Bank of Scotland was established in 1727, with an original capital of L151,000, which has grown to L2,000,000 paid up. The British Linen Company was incorporated in 1746, for the purpose of promoting the linen manufacture, but soon became a general banking company; capital, L1,250,000 paid up. These three banks claim to be by their charters banks of limited liability. All the other Scottish banks have been established within the nineteenth century. They are all incorporated by royal charter or Act of Parliament, which enables them to sue and be sued as a corporation, and latterly they have all become banks of limited liability, except that their liability is not to be limited in respect to their note issue. The total paid-up capital of the Scotch banks is L9,300,000. A large number of one-pound notes circulate in Scotland, thus tending to keep the requirements for gold low. From allowing a moderate rate of interest on deposit accounts (although not on current accounts) it is not uncommon for depositors in Scottish banks to lodge their money permanently as an investment; and the habit of keeping an account with a banker is much more general in Scotland than in England, branch offices of the banks being very numerous. Several of the Scotch banks have branch offices in London, but of course they cannot issue their own notes from these offices. The Scotch banks have enjoyed a high reputation for stability, and though public confidence was somewhat shaken by the failure of the Western Bank in 1857, and even more rudely by that of the City of Glasgow Bank in 1878, their shares are generally looked upon as a safe and remunerative investment. Their total deposits amount to fully L107,000,000.

_Ireland._--The banks in Ireland consist of one public or national bank, the Bank of Ireland, and of sundry joint-stock and private banks. The authorized note circulation is arranged on the same footing as that of the Scotch banks. If any bank discontinues its issue and issues notes of the Bank of Ireland, the circulation of the latter may be to an equal amount increased. The authorized circulation is L6,354,494; the actual circulation is sometimes a little above, sometimes a little below. The Bank of Ireland, which was established by charter in 1783 with similar privileges to those granted to the Bank of England, has lent the greater portion of its capital to Government. Its capital is L2,769,230 (or L3,000,000 Irish); it has also a rest or reserve of over L1,000,000. The bank allows interest on deposits when lodged for a stated period.

_Banque de France._--The Bank of France is second in importance only to the Bank of England. It was established in the beginning of the nineteenth century, at first with a capital of 45,000,000 francs, and with the exclusive privilege in Paris of issuing notes payable to bearer, a privilege which was extended in 1848 to cover the whole of France. It has numerous branches in the larger towns, a number of these having been acquired in 1848, when certain joint-stock banks of issue were by Government decree incorporated with the Bank of France, the capital of which was then increased to 91,250,000 francs (L3,650,000), in 91,250 shares of 1000 francs each. In 1857 the capital was doubled, and besides this it has a large surplus capital or rest. Like the Bank of England, it is a bank of deposit, discount, and circulation, and is a large creditor of the State. The Government appoints the governor and the two deputy-governors, who are all required to be stockholders. There is also a body of fifteen directors and three censors, nominated by the shareholders. The value of its note circulation in March, 1922, was 36,225,852,000 francs.

_British Colonies._--With regard to the banks in British colonies little need be said. All the more important are joint-stock concerns, and they are carried on subject to Acts passed by the respective colonial legislatures. Some of them have their head-quarters in London, and have been established by English capital. In Canada the banks are not allowed to issue notes of lower denominations than five dollars, notes for one and two dollars and higher amounts being issued by the Dominion Government; and the banking laws are such that there is no possibility of holders of bank-notes being losers by them. The total paid-up capital of the Canadian banks is about L20,000,000; their total deposits about L135,000,000.

_United States._--The more important of the banks of the United States are what are called national banks, established in accordance with an Act passed in 1863. Associations of this kind at starting must invest at least a third of their paid-up capital in Government bonds, which pay them an interest of 4 per cent more or less. They then obtain from the Government bureau, established for the purpose, 90 per cent of paper-money sheets, which they sign and pay out, this constituting their note circulation. These banks pay no interest to depositors. Besides the notes of these banks a large portion of the currency of the United States consists of Government notes issued from the national treasury. There are also banks chartered by the different States and private banks.

_Savings-banks_ are banks established for the receiving of small sums, so as to be taken advantage of by the poorer classes, and they are carried on entirely for the benefit of the depositors. They are of comparatively recent origin, one of the earliest having been an institution in which small sums were received, and interest allowed on them, established by Mrs. Priscilla Wakefield, at Tottenham, near London, in 1803. The first savings-bank in Scotland was formed in 1810 by the Rev. Henry Duncan, of Ruthwell, Dumfriesshire. In 1814 the Edinburgh savings-bank was established on the same principles, and the system soon spread over the kingdom. The first Act relating to savings-banks was passed in 1817. By it all deposits in savings-banks, as soon as they reached L50, were placed in the hands of the National Debt Commissioners, who allowed interest on them. In 1824 it was enacted that the deposits for the first year should not exceed L50, nor those in subsequent years L30, the total deposits being limited to L150, and interest ceasing to be paid when accrued interest made the total L200. By the Act of 1893 the limit of annual deposit was raised to L50, and the interest is now rather less than 3 per cent. An Act of 1833 had provided for the purchase of Government annuities by depositors either for life or for a term of years; and an annuity of any amount up to L100 may now be obtained. Depositors in savings-banks (by an Act of 1880) can also have their money invested for them in Government stock, the banks collecting and paying the dividends; and when accrued interest raises an account above L200 the excess is now so invested for the depositor. The total amount invested by one person in Government stock is not to exceed L500, nor L200 in one year. These banks are managed by local trustees having no personal interest in the business, and by certain paid officers. A new class of savings-banks, namely, _Post Office Savings-banks_, was established in Britain in connection with the money-order department of the Post Office in 1861. Any sum not less than a shilling is received, provided that the total amount banked does not exceed L50 in one year, or more than L200 in all; the excess of accrued interest above this being invested in Government stock. Interest is paid on every complete pound at the rate of 2-1/2 per cent. For the deposits the Government is responsible, and they may be drawn from any Post Office Savings-bank in the kingdom. These savings-banks have become very numerous, and much of the funds formerly in the trustees' savings-banks has been transferred to them. The total amount deposited in the old banks is now about L52,000,000, in the new about L157,600,000. The regulations regarding the purchase of Government stock and annuities correspond with those given above. Savings-banks are now well known in all civilized countries, and the good they have done is incalculable. In the United States there is an enormous amount of money deposited in them. Post Office Savings-banks have been proposed to be established in the States, but have not yet been so. In Canada, Australia, and other British colonies they are established, as well as savings-banks of several other kinds. School savings-banks are the most recent institutions of this kind, and have had a marked effect for good.

_Bank Holidays_, in England and Ireland, Good Friday, Easter Monday, Whit Monday, first Monday in August, Christmas and following day, or 27th (if next day is a Sunday); in Scotland, New-Year's Day, first Monday of May and August and Christmas.

BANKRUPT (from It. _banca rotta_ 'bank broken' or 'bench broken'. Dr. Johnson said that the word originated from the Italian custom of breaking the bench of an insolvent money-changer; but _rotta_ also means 'interrupted' or 'stopped', and is here used more in the sense of our colloquial word _broken_, and means 'insolvent'), a person whom the law does or may take cognizance of as unable to pay his debts. Properly it is of narrower signification than _insolvent_, an insolvent person simply being unable to pay all his debts. In England up till 1861 the term _bankrupt_ was limited to an insolvent trader, and such traders were on a different footing from other insolvent persons, the latter not getting the same legal relief from their debts. In all civilized communities laws have been passed regarding bankruptcy. At present bankruptcy in England is regulated by the Bankruptcy Acts of 1883 and 1890, which have as one chief feature the intervention of the Board of Trade in the proceedings, with the object of obtaining full official supervision and control. A bankruptcy petition may be presented either by a creditor or a debtor. A creditor's petition must be founded on a debt of not less than fifty pounds, due to one or more creditors, and on an 'act of bankruptcy' committed by the debtor within three months before the presentation of the petition. A debtor commits an act of bankruptcy if he makes a conveyance of his property to a trustee for the benefit of his creditors; if he makes a fraudulent transfer of any part of his property; if, to defeat or delay his creditors, he conceal himself either at home or abroad; if execution issued against him has been enforced by seizure and sale of his goods under process in an action in any court; if he files in court a declaration of inability to pay his debts, or presents a bankruptcy petition against himself; if a creditor has obtained a final judgment against him for any amount and he fail to pay the judgment debt without satisfactory reason; or if the debtor gives notice to any of his creditors that he has suspended, or is about to suspend, payment of his debts. In London jurisdiction in bankruptcy now rests with the High Court of Justice, while the county courts continue to have jurisdiction in bankruptcy outside the London district. When the court is satisfied as to the petition, a 'receiving order' is issued to protect the debtor's estate by constituting the official appointed by the Board of Trade receiver of the debtor's property, and to stay the remedies of all creditors until the meeting of creditors. The debtor must make out a full statement of his affairs, accounting as best he can for his insolvency. The official receiver summons the meeting of creditors, a summary of the debtor's affairs being sent to each creditor with the notice of the meeting, which is also advertised in the _London Gazette_. The creditors must send to the official receiver, one day before the meeting, sworn proofs of their claims to enable them to vote. At the meeting the creditors (unless the debtor's proposal for a composition or scheme be entertained) pass a resolution adjudging the debtor bankrupt, and appoint a trustee of the bankrupt's property, with a committee of inspection selected from their own body to superintend the administration of the bankrupt's property by the trustee, who divides the available realized assets amongst all creditors who have sent sworn proofs of claims. Rates, assessments, and taxes, and all wages or salary of a clerk, servant, labourer, or workman during four months before the date of the receiving order not exceeding L50 are paid in priority to all other debts. The trustee is required to give satisfactory security to the Board of Trade, by which his accounts are audited not less than twice in each year. All moneys received by the trustee under the bankruptcy must be paid forthwith to an account kept at the Bank of England by the Board of Trade, called the 'Bankruptcy Estates Account'. The debtor is bound to be publicly examined upon oath in court, and any creditor who has tendered a proof, or his representative, may take part in the examination. Until the debtor has passed his public examination he cannot apply for an order of discharge, and upon proof of misdemeanour the court refuses or suspends the discharge. A discharged bankrupt is disqualified for five years from acting as member of Parliament, justice of peace, alderman, overseer of the poor, county councillor, or as a member of any school, highway, or burial board. An undischarged bankrupt obtaining credit to the extent of L20 or upwards from any person, without informing such person of his status, is guilty of a misdemeanour. By the Act of 1883 the creditors may at the first meeting resolve to entertain a proposal for a composition or scheme of arrangement of the debtor's affairs, but the composition or scheme shall not be binding on the creditors, unless confirmed at a second meeting by a majority in number representing three-fourths in value of all the creditors who have proved. The composition or scheme has then to be formally brought before the court for approval, which may be refused. A composition or scheme may be sanctioned by the court after the debtor's adjudication as a bankrupt, and in this case the bankruptcy is annulled. Though imprisonment for debt has been abolished, fraudulent bankrupts may be punished, and the conduct of prosecutions for offences arising out of any bankruptcy proceeding falls to the public prosecutor. The estates of persons dying insolvent may be administered according to the law of bankruptcy. The Act of 1913 embodies suggestions of the Bankruptcy Law Amendment Committee of 1906. Thus, the Summary Jurisdiction Act can now be applied to offenders under the Debtors' Act. Whereas previously conviction for such offences as failure to keep proper accounts and concealment of debt could only be by trial before a jury, they are punishable after summary trial before a stipendiary magistrate or justice of the peace, the onus of proving innocence falling on the debtor. A married woman, too, may be made bankrupt even if not trading separately from her husband.

According to Scots law bankruptcy is notorious insolvency, that is, a public acknowledgment of inability to discharge obligations. By a judicial proceeding, called _sequestration_, authorized by the Court of Session or sheriff court, on the petition of the debtor himself with the concurrence of one creditor swearing to a debt of L50, two whose debts together amount to L70, or of any number of creditors whose debts together amount to L100; or on the petition of a creditor or creditors to the foregoing extent without the concurrence of the debtor, if he has clearly shown himself to be insolvent (or a _notour bankrupt_), the whole estates and effects of the debtor, real and personal, are legally taken for behoof of the creditors. The debtor's estate is then made over to a trustee chosen by the creditors, the trustee being charged to bring the whole estate into the form of money, with certain precautions, and to receive, investigate, and reject or admit the claims of the creditors, subject to review of the Court of Session or sheriff court by summary petition. The debtor, and all who can give information as to the estate, must submit to public examination on oath before the sheriff of the county, and the debtor may thereafter, or by petition after six, twelve, or eighteen months from sequestration, be discharged of all debts by the court with consent of the creditors or a number of them, or at the expiry of two years without consent. These proceedings may be partly superseded by 'composition' if such be assented to by a majority in number and nine-tenths in value of creditors, or by a majority in number and four-fifths in value of the creditors, according to the period at which such arrangement may be proposed. They may also be terminated by a deed of arrangement entered into between the bankrupt and a majority in number and four-fifths in value of his creditors, approved of by the court. Before a discharge is given there must be a report from the trustee as to the conduct of the bankrupt, whether he has complied with the provisions of the Act, whether his bankruptcy is culpable or not, &c. Before the abolition of imprisonment for ordinary civil debts by Act passed in 1880, an insolvent debtor often took advantage of a form of process by which, on making a complete _cessio bonorum_, or surrender to his creditors of all his property, he might obtain protection from imprisonment. Though no person can now be imprisoned for ordinary debts, a creditor of a _notour_ bankrupt may present a petition to the sheriff, praying him to decern that the debtor assign over all his goods for behoof of his creditors and that a trustee be appointed; and this proceeding is still designated a process of _cessio bonorum_. The Act of 1880 also provides for the better punishment of fraudulent debtors in Scotland. If the debtor's liabilities exceed L200, the sheriff may award _sequestration_ of the debtor's estate instead of _cessio bonorum_. There is no appeal from the sheriff's decision with respect to discharge.

In Ireland there is a special code of bankruptcy contained in special Acts, differing to some extent from the regulations prevailing both in England and Scotland. Thus in Ireland it is not an offence for an undischarged bankrupt to obtain credit to any amount without disclosing the fact of his bankruptcy. All bankruptcy business comes before the court at Dublin, Belfast, or Cork. Imprisonment for debt was abolished in 1872.

Official returns in Great Britain show a tendency towards a smaller number of failures, but a larger amount of money is involved.

In the different British colonies the laws regulating bankruptcy naturally differ, and the same is the case with the individual States of the American Union, though Congress has the power of legislating for the whole country in regard to this, and has oftener than once done so.--BIBLIOGRAPHY: H. Goudy, _Treatise of the Law of Bankruptcy in Scotland_; Sir R. H. J. Palgrave, _Dictionary of Political Economy_; E. T. Baldwin, _The Law of Bankruptcy and Bills of Sale_; Sir R. L. V. Williams, _The Law and Practice of Bankruptcy_; R. Ringwood, _The Principles of Bankruptcy_.

BANKS, Sir Joseph, Baronet, a distinguished naturalist, born in London 1743. After studying at Harrow and Eton he went to Oxford in 1760, and formed there amongst his fellow-undergraduates a voluntary class in botany, &c. He was elected Fellow of the Royal Society in 1766, and soon after went to Newfoundland and Hudson's Bay to collect plants. In 1768, with Dr. Solander, a Swedish gentleman, pupil of Linnaeus, and then assistant librarian at the British Museum, he accompanied Cook's expedition as naturalist. In 1772 he visited Iceland along with Dr. Solander, and during this voyage the Hebrides were examined, and the columnar formation of the rocks of Staffa first made known to geologists. In 1777 Banks was chosen President of the Royal Society, and in 1781 was made a baronet, and in 1795 received the Order of the Bath. He wrote only essays, papers for learned societies, and short treatises. He died in 1820, and bequeathed his collections to the British Museum.

BANKS, Thomas, an English sculptor, born in 1735, died in 1805. He studied sculpture in the Royal Academy, where he obtained the gold medal for a bas-relief of the _Rape of Proserpine_. In 1772 he went to Italy, where he executed several excellent pieces, particularly _Cupid tormenting a Butterfly_, which was afterwards purchased by the Empress Catherine. On leaving Italy he spent two unsatisfactory years in Russia, and then returned to England, where he was soon after made an Academician. One of his best-known works is _Shakespeare attended by Painting and Poetry_. Among his other works was a colossal statue--_Achilles mourning the loss of Briseis_--in the hall of the British Institution, and the monument of Sir Eyre Coote in Westminster Abbey. His bust of Warren Hastings is in the National Gallery.

BANK'SIA (named after Sir Joseph Banks), a genus of Australian shrubs and trees, order Proteaceae, with leathery leaves generally dark-green on the upper surface and pale below, often cultivated in conservatories for their peculiar foliage and flowers. They are named "honeysuckles" by the colonists, from the honey the flowers contain.

BANKS'RING. See _Banxring_.

BANKURA', a town of Bengal, on the Dhalkisor River, healthy and with a considerable trade Pop. 21,000.

BANN, Upper and Lower, two rivers in the N. of Ireland, the former rising in the mountains of Mourne, County Down, and, after flowing 38 miles in a northerly direction, falling into Lough Neagh, the latter being the outlet of Lough Neagh, and falling into the Atlantic Ocean 4 miles below Coleraine, after a course of nearly 40 miles.

BAN'NATYNE CLUB, a literary society instituted in Edinburgh (1823) by Sir Walter Scott (its first president), David Laing (secretary till its dissolution in 1861), Archibald Constable, and Thomas Thomson. It started with thirty-one members, subsequently extended to 100, having as its object the printing of rare works on Scottish history, literature, geography, &c. It derived its name from George Bannatyne (1545-1609), the collector of the famous MS. of early Scottish poetry.

BAN'NERET, formerly, in England, a knight made on the field of battle as a reward for bravery, with the ceremony of cutting off the point of his pennon and making it a banner. The first banneret in England was made by King Edward I, and the last (John Smith) by Charles I after the battle of Edgehill in 1642.

BAN'NOCK, a cake made of oatmeal, barley-meal, or peasemeal baked on an iron plate or griddle over the fire. From a supposed resemblance the turbot is sometimes called in Scotland the _Bannock-fluke_.