If, therefore, any bank had been so rash as to grant accommodation without proper security, merely for the sake of obtaining a circulation, in ten days, or a fortnight at the furthest, it is compelled to account with the other banks for every note they have received. If it does not hold enough of their paper to redeem its own upon exchange, it is compelled to pay the difference in exchequer bills, a certain amount of which every bank is bound by mutual agreement to hold, the fractional parts of each thousand pounds being payable in Bank of England notes or in gold. In this way over-trading, in so far as regards the issue of paper, is so effectually guarded and controlled, that it would puzzle Parliament, with all its conceded conventional wisdom, to devise any plan alike so simple and expeditious. The amount of notes at present in circulation throughout Scotland is estimated at three millions, or at the very utmost three millions and a half. At certain times of the year, such as the great legal terms of Whitsunday and Martinmas, when money is universally paid over and received, there is, of course, a corresponding increase of issue for the moment which demands an extra supply of notes. It is never considered safe for a bank to have a smaller amount of notes in stock than the average amount which is out in circulation; so that the whole amount of bank-notes, both in circulation and in hand, may be calculated at seven millions. The fluctuation at the above terms is so remarkable, that we are tempted to give an account of the number of notes delivered and received by the bank of Scotland in exchange with other banks during the months of May and November 1840:-- Notes Notes Delivered. Received. 1840, May 1, £ 51,000 £ 43,000 ... 5, 52,000 32,000 ... 8, 44,000 45,000 ... 12, 43,000 48,000 ... 15, 54,000 64,000 ... 19, *132,000 *172,000 ... 22, 98,000 69,000 ... 26, 38,000 33,000 Nov. 3, 38,000 32,000 ... 6, 37,000 33,000 ... 10, 51,000 61,000 ... 13, *99,000 *138,000 ... 17, 67,000 80,000 ... 20, 66,000 49,000 ... 24, 52,000 33,000 ... 27, 66,000 42,000 *Term Settlements. It will be seen from the above table how rapidly the system of bank exchange absorbs the over-issue, and how instantaneously the paper drawn from one bank finds its way into the hands of another.