interest of the sum that might be to his debit at the rate of 4 per cent. per annum, and was also bound to pay off 5 per cent. yearly of the principal, which was thus liquidated in twenty years. Although Mr. Laing was of opinion that 'a circulation of paper money on such a basis is evidently next, in point of security, to that of the precious metals,' he fails to mention that the Bank was forced to suspend specie payments three years after its establishment, and that the resumption of those payments was not commenced until 1823, when the notes of the Bank began to be convertible at little over half their original value; the operation of raising them to par, on a graduated scale, having been completed only in 1842, a period since which the Bank, with an increased Reserve Fund, has maintained an uninterrupted and unimpeachable stability. But while the Bank still advances money on the security of landed property, two-thirds of its resources are now employed in the discount of mercantile bills. At the end of 1883, its loans to the landed proprietors amounted only to 626,000l. In 1852, however, the State had come again to the assistance of the landowners for the extinction of private mortgages and the consolidation of old debts by the creation of a special 'State Mortgage Bank,' with an original capital of 291,000l., increased by successive issues of bonds representing advances on the security of real property, bearing interest at the rate of 4 per cent, (at present 4-1/2 per cent.), and repayable by drawings over a period of thirty years. The amount of the bonds issued up to 1884 was about 3,812,000l., and in 1878 about three-quarters of the bonds were held in the country itself, their market value being still almost at par. It is principally into this Bank that the yeomen farmers have been dipping their estates at a rapidly increasing rate. Thus, while the loans on the security of real property in rural districts averaged 57,500l. per annum between 1853 and 1855, and 220,600l. between 1876 and 1880, the advances made in 1883 amounted to 396,500l. At the end of that year the balance of outstanding loans had reached the sum of 3,752,000l., of which about 77 per cent., or 2,889,000l., represented advances in rural districts, the remaining 23 per cent, having been borrowed in towns. The interest payable on those loans is respectively 4-1/4 and 4-3/4 per cent., according to whether the borrowers have been supplied with bonds bearing interest at the rate of 4 or 4-1/2 per cent. per annum; and 3 per cent. of the capital is repayable per annum until the extinction of the debt over a period of thirty years.