1167.  Was not it the fact that this system of giving so high a rate of interest upon money at call commenced very much with the establishment of some banks during the last year or two, which, instead of demanding 10 days’ or a month’s notice, were willing to allow interest upon only three days’ notice; did not that system begin about two years ago?—­I do not think it began with the new banks; I think it began with one of the older banks; I know that as regards my own bank, that we were forced into it; I forgot to say, that with regard to ourselves in taking money on deposit, the parties must leave the money a month, or they lose interest.  We do not take money from any depositor at interest unless upon the understand ing and condition that it remains a month with us; he may withdraw it within the month, but then he forfeits interest; it will not carry interest unless it is with us a month, and then it is removable on demand without notice.

1168.  Is it or is it not a fact that some of the banks pay interest upon their current accounts?—­Yes, I think most of the new banks do so; and the Unlon Bank of London does it.

1169.  At a smaller rate than upon their deposits, I presume?—­I think at a smaller rate, but I believe it is a fixed rate on the minimum balance for some period, either six months or one month, I do not exactly know the period.  I think I ought to add (and I believe it is the case with all the banks) that the London and Westminster Bank, from the day of its first institution until the present day, has never re-discounted a bill.  No bill has ever left our bank unless it has been for payment.

1170.  Is not that generally the case with the London joint stock banks?—­I believe it is the case.

1171. [Mr. Weguelin.] But you sometimes lend money upon bills deposited with you by bill-brokers?—­Yes.

1172.  And you occasionally call in that money and re-deliver those securities?—­Yes; but that we do to a very small extent.

1173.  Is not that equivalent to a re-discount of bills?—­No; the discount of a bill and the lending money on bills are very different things.  When we discount a bill, that bill becomes our property; it is in our control, and we keep it and lock it up until it falls due; but when brokers come to us and want to borrow, say 50,000 L. on a deposit of bills, and we let them have the money and afterwards return those bills to them and we get back our money, surely that is not a re-discount.

1174.  When you want to employ your money for a short period, do you not frequently take bills of long date, and advance upon them?—­But that is not a re-discount on our part.  Very often brokers in borrowing money send in bills of long date, and afterwards we call in that loan; but that is no more a re-discount than lending money upon consols and calling in that money again.  It is not an advance of ours; we do not seek it; they come to us and borrow our money, and give us a security; when we want our money we call for that money, and return their security.  Surely that is not a re-discount.