ABSTRACT
Data presented for gross UK bank deposits inevitably include a certain amount of double-counting of deposits. Banks have regularly kept deposits with each other, and cheques and bank notes in payment have been included on both the assets and liabilities sides of individual banks' statements, and are equally likely to cause an increase in the size of deposit liabilities of banks to the public unless some adjustment is made. Inter-bank deposits may be kept on deposit account with other banks, although also at call overnight, and hence require to be subtracted from banks' deposit account series, while the amount of correction for cheques will be applied to series for current accounts. The Country Clearing system at the Bankers' Clearing House was a modification of the Town Clearing, and was established in 1858. This enabled country banks to send to London, through their London agents, cheques drawn on other banks in the country for clearing through the clearing system.
