It is right, however, to premise that, strictly speaking, there are not more, nay, there are positively _fewer_ banks in Scotland at the present moment than there were in 1825, though the amount of paid-up capital in the banks is more than doubled. It is the branches alone which make this astonishing increase. Now, as a branch is merely a local agency of the parent bank, established at a distance for the sake of outlying business, the number of parties engaged in banking who are responsible to the public is not thereby increased, nor is the amount in circulation extended. In fact, the multiplication of the branch banks has been of extraordinary benefit to the public, by affording the inhabitants of even the remotest districts a ready, easy, and favourite method of deposit, and by extinguishing all risks of credit. Further, it has this manifest advantage, that the manager of the branch bank has far greater facilities of ascertaining the character, habits, and pursuits of those persons who may have received the advantage of a cash-credit accommodation, and can immediately report to his superiors any circumstances which may render it advisable that the credit should be contracted or withdrawn. So far are we from holding that the multiplication of branch banks is any evil or incumbrance, that we look upon it as an increased security not only to the banker but the dealer. The latter, in fact, is the principal gainer; because a competition among the banks has always the effect of heightening the rate of interest given upon deposits, and of lowering the rates charged upon advances. Nor does this give any impetus to rash speculation on the part of the dealer, but directly the reverse. The deposits always increase with the advancing rate of interest; and experience has shown, that it is not until that rate declines to two per cent that deposited money is usually withdrawn, which is the signal of commencing speculation. To the mere speculator the banks afford no facilities, but the reverse. Their cash credits are only granted for the daily operations of persons actively engaged in trade, business, or commerce. So soon as that credit appears to be converted into a different channel, it is withdrawn, as alike dangerous to the user and unprofitable to the bank which has given it.