Bankers before opening an account with a stranger, usually require an introduction from some person of standing, who is expected to be able to speak not only on the point of solvency, but of respectability.

Of course the banker's own protection is the first object in taking this precaution, but it also acts as a safeguard against fraud. For this reason, the fact of a man having an account with a banker is to a certain extent accepted as a guarantee, that in the opinion of the banker he is a person worthy of some confidence; such being the case if bankers were to accept indiscriminately, and without enquiry, all accounts offered to them, the public, giving them credit for precautions that were not adopted, would be liable to be taken in by dishonest people.

When a trading Firm has an account with a banker in the name of the Firm there appears to be no doubt that the act of each partner binds the partnership, therefore cheques paid on the signature of one partner, by the style and title of the Firm, are valid payments, and advances made to one partner constitute debts against the Firm.

It seems that a banker may safely honour the cheques of one of several executors or administrators; but trustees must each and all assent to every act dealing with the trust funds; it would, therefore, be highly imprudent to .allow a banking account to be operated upon except by the whole body of trustees, and it would also seem to be safer to adopt the same precaution in dealing* with assignees.

To avoid any possibility of being entangled in disputes as to executorships and trusts it is usual when the probate of the will of a customer has been exhibited to a banker, to have the balance standing to the credit of the deceased dealt with in one sum, generally by transferring the amount to a new account opened in the names of the executors, as individuals; in like manner few bankers will allow an acknowledgment of a trust to appear in their books.

It would not be safe to accept the account of a married woman without the consent, in writing, of her husband. It has been held that where money was deposited in the joint names of husband and wife as a special provision for the latter in case of her husband's death, upon his death the money became her absolute property; we believe it has not been judicially decided whether the same rule would hold good in the case of a current account, if no stipulation of the kind were made when it was opened.

A principal would not be liable for the overdraft of an agent, unless the banker had permitted it with his knowledge, or by his authority.

The balances held by bankers may be roughly classed under two heads, viz. Deposits and Drawing accounts. The first named, from which are derived a large per centage of the funds used in business, are sums placed with a banker to be repayable at call, at short notice or at fixed dates according to agreement, for which receipts are given, called deposit receipts. These are not transferable, and must be produced and signed by the depositor before the money or any part thereof can be withdrawn. For many years it has been the custom with the joint-stock banks in London to pay interest on deposits at 1 per cent. below the Bank of England minimum rate of discount for the time being, the notice of withdrawal being seven or fourteen days and in exceptional cases a month. Alterations in the rate allowed are notified by advertisement in the ' Times' and other daily papers; but the scale of allowance has undergone some modification lattterly in consequence of the greater difference which sometimes exists between the market rate of discount and the Bank rate. The general practice is not to allow more than five per cent. for deposits however much the Bank rate exceeds 6 per cent. An impression prevails that the Bank of England never accepts deposits; this, however, is a mistake. Deposits exceeding the sum of £300 are received by the Bank of England for periods of not less than one month; but no interest is allowed, and this convenience is afforded, as a rule, only to persons resident within the United Kingdom. The London private banks have we believe as a rule only taken them from regular customers. In the country both joint-stock and private banks receive them, as an ordinary part of their business.

Drawing accounts, the correct term for what are in conversation called banking accounts, are one of the most important and profitable parts of a banker's business, and the medium of settlement of the great bulk of monetary engagements of all kinds. The many advantages to be derived from keeping a banking account have now so generally commended themselves to the public, that whereas in past times a banker was considered to be a luxury to which only the wealthy might aspire, he is now looked upon almost as a necessity to the humblest trader.

Drawing accounts, according to the usual practice in London, must always have a balance in favour of the customer. If he requires a loan, the practice with the Bank of England is to place a stated sum to his credit for a specified time, less the interest, and at the expiration of the period it is either renewed or debited to the account; but the balance is always on the same side, in favour of the customer. The case is otherwise with the joint-stock banks, who permit the borrower to repay the loan any time within the period for which it was granted, and only charge interest to the date of such repayment.

In England a large proportion of banking deposits consists of surplus money awaiting permanent investment, and cannot be employed by a banker, except at very short dates. In Scotland it is more the habit of the people to consider deposits as investments.

The balances of drawing accounts, whether of merchants or gentlemen, will be found to vary but little on an average of years, except as to seasons, and a banker can calculate to a nicety what the variations will be. That being the case he has a much wider range of investments to select from, than with deposits which he may be called upon to repay any day.