Bank of Scotland
INTERVIEW WITH SIR GEORGE ANDERSON, GENERAL MANAGER[160]
Q. When was the Bank of Scotland founded?
A. In 1695.
Q. When does your present charter expire?
A. By act of Parliament the "governor and company of the Bank of Scotland" have "perpetual succession."
Q. How many branches have you?
A. One hundred and sixty-three branches and twelve sub-branches in Scotland: also an office in London.
Q. How are your branches managed?
A. By agents (managers at London and Glasgow) appointed by the directors.
Q. Do your branches have business relations with merchants, farmers, and all classes of people in their respective localities?
A. Yes.
Q. What is the law governing your note issues, and how are note issues limited and how secured?
A. The bank is authorised to issue, without holding coin against them, notes to the value of £396,852, but for any excess beyond that amount we must hold, at the head office, an equivalent value in gold coin, one-fourth of which may, however, be in silver coin.
Q. Will you state (a) the class of bills usually discounted by you, giving the number of names required; (b) the minimum size; and (c) the maximum length of time to run?
A. Mercantile bills, also a few accommodation bills, usually two names; minimum, say, £10. The maximum length of time to run is six months.
Q. What classes of collateral are accepted by you for loans?
A. Personal security, marketable securities, life policies, mortgages over ships, shipping documents, etc. In the important banking centers of Scotland lending against collateral security has become largely prevalent.
Q. Do you rediscount bills from other banks?
A. No.
Q. Explain the phrase "cash credits," and upon what conditions are they given?
A. A "cash credit" is a credit allowed, in virtue of which a customer may draw cheques on the bank until the balance due to us reaches a certain fixed limit. The account is an ordinary operative one, and interest is charged on the balances actually due to the bank from day to day.
Q. Have you in mind how many branches you had ten years ago?
A. One hundred and twenty.
Q. Do you ever buy any shares of railroad or industrial companies?
A. Yes; of the highest class.
Q. Do you ever own bank shares?
A. No.