ABSTRACT
The ultimate sources from which a banker draws his funds can be divided into two: the proprietors, or shareholders, and the public. Roughly speaking—but only roughly—the proprietors’ interest is represented on the bank’s balance sheet by the capital, reserves and profits, while the public’s share is measured by the total of deposits plus, in the case of the Scottish banks, the volume of the bank’s own notes in circulation. It is a distinguishing mark of banks, shared with certain other financial intermediaries, that their liabilities to the public are far and away the most important source of their funds. The Scottish banks today obtain somewhere in the region of 90–94 per cent of their total resources from the public, through deposits and note issue. The note issues are a peculiar feature of Scottish banking: to say something about their history and to analyse their present position and effects will require a couple of chapters in themselves. The present chapter will concentrate on the other liabilities of the Scottish banks, mainly capital (considered along with reserves), profits and deposits. Scottish Banks' Liabilities in 1963–4 <xref ref-type="fn" rid="fn_tab5_VII_1"> <sup>1</sup> </xref>£ millions https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
capital
reserves and carry forward
deposits
notes
Bank of Scotland (28/2/64)
6·3
6·8
204·9
29·0
Royal Bank of Scotland 2 (31/12/63)
11·4
12·0
143·2
16·8
British Linen Bank (30/9/63)
1·3
3·5
98·5
15·1
National Commercial Bank (26/10/63)
9·3
11·9
243·6
41·6
Clydesdale and North of Scotland Bank (31/12/63)
3·4
4·3
208·1
25·3
The figures are taken from annual balance sheets and refer to the dates given for each bank.
The total of deposits relates to the Royal Bank of Scotland itself, and excludes its English subsidiaries.
