Now the value of a 4 _per cent._ is at present about 96; so in paying 20_s._ _per_ quarter on the change of London, the Edinburgh banks may have at London a capital of 96_l._ Let me call it only 94_l._ supposing their credit not to be quite so good as that of the funds. I think it as good to the full; and I am sure it is so. At this rate, the 200,000_l._ will cost them an interest of 8510_l._ instead of the 10,000_l._ which they will receive for the like sum added to their former securities. Now I suppose that they have recourse to exchangers to remit this interest, and that they pay for it 5 _per cent._ (which is an absurd supposition, as they will have the exchange entirely in their own hands) and that they give all the bills for the 200,000_l._ at par, (also a ridiculous supposition) the 5 _per cent._ on 8510_l._ is 425_l._ 10_s._ which added to the interest, makes 8935_l._ 10_s._ so that after all, they will have upon the whole transaction 1064_l._ 10_s._ of profit. Next, as to the loss incurred in furnishing 200,000_l._ to the other banks: If this coin be demanded of them by those banks, the demanders must, for this purpose, draw 200,000_l._ of Edinburgh notes out of the circulation of Scotland; which I have supposed may be replaced in some little time by the Edinburgh-banks; consequently, if this sum also be borrowed at London, there will result upon this operation, as well as upon the last, a profit of 1064_l._ 10_s._ But then indeed they must be at the expence of bringing down the coin borrowed, at 12_s._ _per_ 100_l._ because those banks will insist upon having coin, and refuse bills on London. This will cost 1200_l._ from which deduct the profit of 1064_l._ 10_s._ gained by the first operation, remains of loss upon this last transaction 135_l._ 10_s._ no great sum[10]. Does it not follow from this reasoning, that the banks of Edinburgh will have the whole business of exchange in their own hands? What exchanger then will enter into competition with them? The domestic transactions with the merchants and manufacturers of Scotland will be their only business. Farther, Footnote 10: We are not to suppose that this yearly balance of 200,000_l._ is always to continue. We have seen how it has been occasioned by a course of unfavourable circumstances, which have run Scotland in debt; we have seen how the banks may interpose their credit, in order to assist the country in paying it; and we shall see, before we dismiss this subject, how they will be enabled to repay it, and set Scotland free, by a return of a favourable balance upon their commerce. Let it then be remembred, that all those contractions in England are properly the debts of Scotland, not of the banks. Scotland, therefore, and not the banks, must be at all the expence thereby incurred. These points shall be explained as we go along.