LAWSON'S HISTORY OF BANKING. * Tins volume has a wider range

than some late books on banks and banking, or than its own title would imply. Taxes and coin to pay them with have existed in this country since the time of the Romans. As soon as there is sufficient order in society (lawless as it still may be) to warrant the journies of a commercial traveller the money.-changer springs up in large towns ; for without him a man might be in the position of Midas and starve with gold and silver in his possession, or be fleeced , more completely by the amateur than by the regular dealer —as indeed is usually the case. How credit originates, is not dealer,—as told ; its beginning, like other indispensable acts, is lost in the-- lapse of ages. But credit proper—goods " upon tick "--perhaps arose nilly-willy ; those took " who had the power," and satisfied their conscience with a promise to pay Banking Banking proper—the deposit of valuables for security, to be returned on demand-,-. originated in trust—in the confidence the depositor felt in the', honour of the person trusted. A money-order was perhaps an tecedent to the money-changer, and if not anterior to writing HI - self, was anterior to it as a general accomplishment ; a ring or other token answering the purpose of the modern check. The bill of exchange has been attributed by many, including David- Hume, to the persecution of the Jews during the middle ages: That it had an Oriental origin is probable, but the thing itself must have been nearly contemporary with distant trade and de-, posited valuables. When the first money-order was transferred- by the necessity or convenience of the holder, there was essentially a bill of exchange, though a modern lawyer or bill-broker might say no, on account of its want of form. As nations grew richer, trade increased, and law as a parallel cause was better enforced : credit, deposits, and that substitute for reatfy money a bill of ex- change, increased too ; till the money-changer and goldsmith passed• into the banker, and the law of bills and bankers' checks was esta- blished on the usage of trade. To effect this took many ages in all countries : banking was practised in Italy some centuries before it was established in England ; efforts were made by farseeing men or by premature projectors to force public banks in Eng land, more than half a century before the wante of the general, public pernaitted success. The real growth of the system, when society was ripe for it, is- read in• the history of the house of Smith,- Paynei• and Smith.

Tlie Aistofr of Banking; with a cenipreliensivekccount.of Oxleii, Rise,. and Progresso! the Banks 'of Engliind, Ireland; and Scotland: Brffllllathloldr Lawson. Published by Bentley.

"In a borough town of importance in one of the North Midland counties dwelt a respectable draper, possessing a good connexion with the farmers frequenting the market of the town. Although the name of Robin Hood had long lost its terrors, those of Turpin and Nevison filled all men's minds with fear—and with good reason ; for they and their fraternity exercised their calling with such energy and success, that it was always a matter of doubt with travellers whether or not they should arrive in safety at the next inn, or their destination, whatever that might be. With the farmers above al- luded to there were more than ordinary grounds of alarm : the town almost adjoining the scene of the far-famed exploits of Robin Hood and his merry men, was admirably situated for a levy by their less romantic successors of extemporaneous taxes. To avoid as much as possible the lossesthus arising, farmers, having full confidence in the honesty of the draper with whom they dealt, made him the depositary of their ready cash. Ready cash of his friends was to our draper as valuable as capital of his own, and buying for ready money was profitable ; still money remained idle in his hands ; and by degrees he extended accommodation to his neighbours.

Our draper now became famous for his extraordinary command of money, and his correspondence extended as far as Preston in Lancashire. The pro- fits thus arising seemed boundless, and the next step was taken by our ad- venturous shopkeeper : he allowed a small interest to his friends the deposi- tors. The new business flourished to such an extent that it swallowed up the old one, and our draper at length became a banker proper, and no more a shopkeeper. • "Such was the origin of the Smiths. First confined to the town of Not- tingham, afterwards extended to Hull and Lincoln, the business of the firm required a London correspondent entirely in their interest, and such they found in the late Mr. Payne. And thus was founded the well-known firm of Smith, Payne, and Smith, whose prosperous career it is not our busi- ness to follow."

Of all these topics—of ancient coins and coinage, primitive money-changing, bills of exchange, and banking in this country— Mr. Lawson gives what he calls a comprehensive account ; but which strikes us as being rather a succinct summary, for it is not distinguished by much grasp or completeness. These things are followed by an elaborate history of the Bank of England, more le- gal and commercial than personal and anecdotical. English pri- vate banking in town and country succeeds to the story of the Bank ; next comes an account of the modern Joint Stock Banks ; and then the history of Scotch and Irish banking.

Of late years several works upon banking have appeared, -whose main subject was similar to Mr. Lawson's ; so that its leading out- lines are not -very new. - Its greater range of topics and its pe- culiar treatment, however, give it some variety and even subordi- nate novelty. It is not so light as Francis's History of the Bank of Bngland, and some other books limited to stories, anecdotes, and strange incidents. If not so informing about the arcana of banking business, or so homogeneous in its treatment, as Gilbart's History of Banking, its topics are somewhat loftier, involving Ministerial and Parliamentary events. Mr. Lawson touches also upon the philosophy of currency, but we think not very soundly in some points. He is for free trade in banking, one-pound notes, and the abolition of the Bank of -England's monopoly as regards partner- ship and issue ; while, with such opinions, he is naturally no favourer either of Peel's Currency Bill or of his last Bank Act. But he might have looked back fipon the sad scenes of mismanage- ment, ruin, and suspension of cash payments, which it has been his duty to chronicle and comment upon, and compare them with the quieter state of matters now. In this comparison, of course, al- lowances should be made for sounder knowledge, and the wider dissemination of that knowledge. Pitt, however, might have learn- ed from Adam Smith that there is no check to over-issue of paper but the liability, to pay in gold : it is clear that when the Minister boasted that the Bank Restriction Act was the same as if he had discovered a " mountain of gold," he was unacquainted with the first principles of currency or of true wealth ; which, indeed, is shown by his whole conduct in the matter.

Mr. Lawson himself is a practical banker, who has lived since he left the Blue Coat School in the atmosphere of the "shop." His attention has been directed to the traditions of the craft, with which he varies his narrative. These are reminiscences of the old Bank.

"The original extent of the Bank comprehended the site of the house and garden formerly belonging to Sir John Houblon, one of the first directors, and was comparatively a small structure, quite invisible towards the street, the entrance being through an arched court, surrounded by many other buildings : viz., a church called Saint Christopher le Stocks, three taverns in Bartholomew Lane and two on the South side, and upwards of twenty private houses; the whole of which have been removed.

"That part which formed the churchyard of Saint Christopher's has been preserved, and is now called the Garden : it is enclosed within an iron fence, and surrounded on all sides by the offices of the establishment. One of the clerks, of the name of Jenkins, lies buried in this consecrated ground. The cause of his interment in such a place arose out of a fear, as expressed by his friends, that in consequence of his singular height (he was upwards of seven feet) his body would be exhumed if it were buried in any other place."

Here are some particulars about the Directors, and the interior economy 'of the place.

"The Directors of the Bank are chosen from among the proprietors of stock who are merchants of the city. A banker is never admitted to a seat in the direction : it is difficult to account for this exclusion, but the fact is so.

" On several occasions we have disapproved of the conduct of the Bank ; yet we freely admit that, extensive as our researches have been into its transac- tions, we have never found a single instance in which a Director of the Bank has taken advantage of his situation by making it subservient to his private interests. • This is a degree of virtue highly and loudly to be commended, in these degenerate days.. No Director ever holds more stock, during office, than the requisite qualification of 2,0001.; and the Governor when his year of office expires, immediately reduces the amount of his dock, which during his management has been doubled, to its original amount. As a strong in- stance of the truth of this assertion, when in 1816 the very large bonus of 25 per cent increase of capital was given to the proprietors, 'the Bank Di- rectors,' according to the evidence of Mr. Horsley Palmer, before the Com- mittee on the Bank Charter, 'remained, as they were before, small proprie- tors of stock.' • •

"It is incumbent on the chief cashier or his deputy to reside within the walls of the Bank. The apartments appropriated to such officer are refurnish- ed on the appointment of every now cashier, and according to his own taste, at a cost not exceeding a certain amount, but which is always very ample.

"All the avenues of the Bank are closed by eleven o'clock at night, and the keys of the several gates are at that hour delivered into the custody of the chief cashier., or his deputy ; after which no, person is permitted, on any pretence whatever, either to leave the premises or gain admittance."

So respectable a body require res,pectable servants ; and they seem to have been fortunate in their selection. The celebrated Abraham Newland's portrait illustrates the volume. There is re- gularity in every line of the face, and a suave firmness which it would cost nothing to say "no." Their late cashier was also a business treasure.

"The late Mr. Rippon, chief cashier of the Bank of England, furnishes an extraordinary instance of the manner in which the mind becomes warped by continued and close application to business. He always declared he felt himself nowhere so happy as in his business ; • and, though for upwards of fifty years in the Bank, he never solicited but holyday, and that was on the recommendation of his medical adviser, on account of ill health: The permission for leave was instantly granted, and he left London:with' the in- tention of being absent a fortnight ; but the ennui of an idle' life and the want of his usual occupation so preyed upon his spirits, that he actually re- turned to the Bank at the expiration of three days, stating as a reason that green fields and country scenery had no charms for him.

" Mr. Rippon was always remarkable for his sound judgment, preciseness, and extreme punctuality ; and his long services and habits of economy ena- bled him to leave behind him a fortune of 60,0001."

Amid the vast changes of the last eighty or a hundred years, perhaps the greatest has taken place amongst the upper class of manufacturers, bankers, and professional men. The great mer- chant was always a great man ; for he commanded the sinews of war, frequently its ships, and sometimes its weapons, to a far greater extent in rude than in refined times. The manufacturer and the banker is a new growth, and only lately, with the lawyers, jumped into gentlemen—perhaps without greatly improving the breed.

"Among the earliest goldsmiths whose business was subsequently merged into that of banking as at present conducted, was Mr. Francis Child, citizen and goldsmith, who established himself in Fleet Street, at the East corner of Temple Bar, and on the same spot where the business is still carried on.. He lived to a great age, and was a person of large fortune and a most respect- able character. The next in point of antiquity was the present house of Strahan, Paul, and Co. This bank was miginally founded by Mr. Jeremiah Snow, who carried on business as a goldsmith, or what in modern phraseology is better known by the name of pawnbroker. His name appears among the goldsmiths or bankers who were robbed by Charles the Second. By the kindness of the gentlemen at present carrying on the business of the bank, we have been favoured with the privilege of inspecting the books of the bank so early as the year 1672. They show that the nobility' of the land were in the habit of frequenting their shop, and borrowing money on the de- posit of various gold and silver articles, such as gold and silver tankards, golden thimbles, and other valuables of a very miscellaneous and sometimes comical description. "Not many years after the London bankers had ceased to issue notes, the inconvenience of making all payments in Bank of England notes and gold had become so great that some change was indispensably. necessary; when the plan of adjusting each other's daily payments by an Interchange of lia- bilities was adopted as the best mode of economizing the use of money.

" At first the system adopted was of the most primitive kind, *and certainly not the safest. The clerks of the various banking-houses used to perform the operation of exchanges at the corners of streets and on the top of a post ; they then met by appointment at a public-house ; but, from the insecurity of these arrangements, it was at last thought best that the principal City bankers should rent a house near the old Post-office in Lombard Street. This house was called the Clearing-house.

" The bearing of devices over the doors of shops, and other places of busi- ness, was a very common practice before the introduction of the plan of numbering the houses, which did not take place till about the year 1770.

" The sign of the house in Bread Street where Milton's father resided was a spread eaglet which appears to have been the arms of that family.

"Remains of this custom are still to be observed in several parts of the Metropolis ; and, in reference to that particular vocation which forms the subject of our pages, the reader is informed that Messrs. II:tares,' the" bankers in Fleet Street, retain to this day over the door the symbol of a leather bot- tle, gilt ; and the same was also represented on their notes which they formerly issued. "Messrs. Gostlings also retain their sign of three squirrels ; and Strahan, Paul, and Co., the sign of the golden anchor.

"The manner of conducting the business of banking was in those days very different to the present. The banker used to attend 'Change, which was usually over about half-past two o'clock ; he would then go to dinner, and afterwards not unfrequently to the theatre ; when the banker would re- turn to Lombard Street, and commence writing his business letters, which he would send to the post-office in time to be despatched by that night's mail, leaving London at twelve o'clock; not, however, in the manner of mail-coaches, with guard and coachman, or railways as at present, but by st-boys, who carried the letters in bags slung across the horse's back. This mode of conveyance was naturally very hazardous ; and it was no un- common thing for a post-boy to be attacked by highwaymen, his mail seized, and himself shot if he made resistance. • "The above particulars were related to us by a clerk who had been up- wards of fifty years in the house of Barclay, and who in fact was one of the earliest clerks in the new bank.

"He used to tell an amusing story of the first appearance of a new clerk. It appears that the staff consisted of three clerks only ; and on the occasion of the third coming to the office for the first time, he was dressed after the following fashion : he wore a long flapped coat with large pockets ; the sleeves had broad cuffs with three large buttons, somewhat hke the coats worn by the Greenwich pensioners of the present clay; an embroidered waist- coat reaching nearly down to his knees, with an enormous bouquet in the button-hole ; a cocked hat; powdered hair with pig-tail and bag-wig ; and gold-headed cane, similar to those of the present day carried by the footmen of ladies of rank.

"The gentleman who cut so curious a figure remained in the house many years, and died a few years ago at a very advanced age, much respected by his employers."

We take leave of Mr. Lawson's book with some particulars re- lating to the manufacture of bank-notes.

"About the year 1819, a great outcry was raised against the Bank for not adopting a style of note which could not be imitated, and thus prevent the sad sacrifice of life which, unhappily for the country, about this period-was too common. The subject at last became so pressing, that the Government appointed Commissioners to investigate the causes of the numerous forgeries, and whether a mode could be devised whereby the forging of Bank-notes might be prevented. "Previous to this investigation, the Directors of the Bank had been en- deavouring to remedy the evil, many. plans having been submitted to them, all of which they were obliged to reject. At one time they were about to adopt a curious and very costly machine for printing the note on Vith sides so exactly alike as to appear one impression; when a workman came forward and showed that the same thing might be done by the simple contrivance of two plates connected by a hinge. "The Commissioners, as a means of facilitating their inquiries, requested the Court of Directors would furnish them with such rejected plans, by which it appears they received a hundred and eighty projects for their adop- tion : these, together with the correspondence which accompanied them, weresegularly classified and arranged. A statement of trials to which they had been subjected, SW.1.131918 of the proposed originals, and of the imita- tions exeCutO. by the Bank, were also submitted to the Commissioners.

"The Bank also placed before the Commissioners seventy varieties of pa- per made at their manufactory by way of experiments, in which almost every alteration recommended for adoption had been tried, and in some in- stances anticipated by the manufacturer.

"The colour of the paper is peculiar, and cannot exactly be imitated by a forger except at great expense. The combined thinness and strength of the paper is also unique. The paper is made in pieces large enough for two notes ; each note before it is sized weighs about eighteen grains, and if then doubled it is strong enough to suspend a weight of thirty-six pounds ; with the addithin of about a grain of size it will suspend fifty-six pounds. The texture of the paper is also peculiar ; it has a crisp feel, invariably the same, and such that bank clerks of experience can readily detect forgeries by this test alone.

"Then the wire-mark,. impressed in the making by a frame, costly to make and difficult to use, is practically inimitable. Each note has thin rough edges, uncut, not to be Produced by any mode of cutting paper that is not made expressly for the purpose. The paper for printing is damped with wa- ter in the exhausted receiver of an air-pump. "The ink used in the plate-printing is made of Frankfort black, which is composed of the charcoal of the tendrils and husks of the German grape ground with linseed oil. This ink has a peculiar and very deep shade of black, common black inks being tinted either with blue or brown."