One can hardly expect even so deep thinking a philosopher as Lord Bacon to foresee the absolute necessity which banks would become with the development of commercial necessities, flourishing as he did in the sixteenth century; but judging by the little light which had been thrown upon the subject at that remote period, he seemed to have a faint perception of the part banks were destined to play. He remarks in one of his essays, " Let it be no bank, or common stock, but every man be master of his own money. Not that I altogether mislike banks, but they will hardly be brooked."

No definite records having been handed down to us which throw any light upon the question as to whether written documents were used or not, we may presume that the commerce which is said to have flourished in Arabia, Egypt, and among the Phoenicians, in the earliest ages, was but a simple system of barter. Later on, we find that commercial relations existed a.d. 1241, by a confederation of maritime cities over the continent of Europe. The enterprise of the Portuguese and Dutch, added to the discoveries of Columbus, considerably enlarged the sphere of commerce; and this, we are informed, induced England to engage extensively in its pursuit. England's first commercial treaty was entered into with the Flemings, 1 Edw. I, 1272, nearly four centuries before the firm of Messrs. Child & Co. was established as a. bank. The second was with Spain and Portugal, 2 Edw. II, 1308. So long a period having elapsed before the great facilities afforded to commerce by banking establishments were suggested to so practical a people as the English, will sufficiently explain the very slow progress made by other nations, which are not celebrated for their practical superiority. The Romans were accustomed to keep banking accounts, and the system of book-keeping by double entry is said to have been taken from them.* We are surprised that neither the Greeks nor the Romans advanced further than they did-especially the latter, who, we are told, were people of decidedly commercial tendencies. To the Romans must be allowed, without doubt, the invention of transferring a debt by a written document, without the intervention of coined money.

* Article Argentarii, Smith's ' Dic. Greek and Roman Antiquities.'

The innumerable changes which have been introduced into the various systems invented for facilitating commercial transactions, adopted by different nations during their passage through a period of seven centuries of time, demonstrate the enormous difficulties that have to be overcome in bringing into working order improved scientific methods. The eager interest with which the merchants of all commercial cities of the world in these times gather together at fixed days in each week at their Exchange institutions; the enormous amount of wealth which is always floating upon the seas, and being conveyed by the railroads, forming the basis upon which bills of exchange are drawn, to the extent of hundreds of millions sterling,* which are circulated into every corner of the globe, impress all intelligent persons with the intricate nature of commercial affairs, and the importance of well-organized banks.

The first public institution in England partaking at all of the nature of a bank was founded by William I, which he called the Exchequer, from 'scaccum' a chess-board-a chequered cloth being used with squares upon it resembling those upon a chess-board; so that, when counting the money, the different squares were understood to represent figures corresponding to the amounts placed upon them. With certain modifications, which an existence of 800 years would not fail to produce, it still remains. The Exchequer was originally called ' Scaccarium.' The English and Irish Exchequers were consolidated in 1816.

The various mints which existed prior to the Norman Conquest, and which, in the absence of other places of security, were used as banks of deposit, caused much unnecessary fluctuation in the currency, on account of the removal of these mints from one place to another, accord ing to the caprice of the reigning monarch. Monasteries were considered safe places of deposit, the sacredness of the soil being considered proof against fraud. These mints, with few exceptions, were concentrated by Elizabeth into one, in the Tower of London, which was also used as a depository for cash, in the absence of bankers' strong rooms. This system continued in operation without interruption during the reign of James I; but Charles I laid violent hands on the money, and so destroyed the credit of the Mint in 1640 for ever. The city merchants and traders were compelled after this to seek other places of safety, and ultimately deposited their money with the goldsmiths, who had settled in Lombard Street, and who possessed iron safes for their valuables. This was the origin of banking in England.

* It is recorded that in the year 1825, so famous for disastrous speculations in bubble companies, 400 millions of pounds sterling were represented by bills of exchange in circulation; such statements, however, are not much to be relied upon.

Before proceeding to examine the merits of any particular class of banking institutions such as we see in the present day, it will perhaps be in better order to inquire as to the real use of a bank, and what are the advantages such establishments afford to the community generally.

The use of properly organized and well-managed banks, and the important position they have held for so long a period, well justify the remark that ' banking is the handmaid of commerce;' and it is by the introduction of such institutions that the resources of a country are developed and economised by bringing merchants and traders to settle their mutual indebtedness without the intervention of coin.

A bank best serves its own interests, and most rapidly gains a substantial footing with the public, by doing everything-within reasonable bounds-to facilitate commercial operations, and save the time and trouble of those persons who transact their business with it. The use of a bank is principally to take charge of people's money; the first condition being, that the sum deposited for safe custody be returned when agreed upon, and, secondly, without deduction. We may take it for granted that interest was allowed by banks for money deposited with them in comparatively early times, as we find the word ' interest' in an Act of Parliament passed in the 21st James I, 1623, where it was meant to signify a just compensation for money-lent. This Act fixed the rate at 8 per cent. per annum. It was lowered by the Commonwealth to 6 per cent. in 1650, and in 1714, 13th Queen Anne, was reduced to 5 per cent. The restraint of a fixed rate, however, was soon found altogether prejudicial to commerce, and the Acts were repealed by 17 & 18 Vict., c. 90, 1854. Aristotle is said to have stated that as money did not produce money, no equitable claim could be made for interest by the lender. We are told Calvin, the great reformer, was among the first to show the absurdity of such notions. Several persons of eminence have advocated the theory of a fixed rate of interest. It is high time, however, that every thinking man discarded such a notion once for all. Every day that sees mankind become more enlightened in the science of political economy, diminishes the number of believers in the possibility of having a fixed price for that particular commodity by which the value in exchange of corn, iron, or coal, is measured.