Everybodys Guide to Money Matters | Page 5

of the United Kingdom consist of the following
pieces: GOLD. Five-sovereign piece, equal to Five pounds.
Two-sovereign piece, equal to Two pounds. One-sovereign piece, equal
to One pound. Half-sovereign piece, equal to Half-a-pound.
SILVER. A crown, or five-shilling piece, equal to onefourth of a
sovereign. Double-fiorin, or four-shilling piece, equal to one-fifth of a
sovereign. Half-a-crown, or two shillings and sixpence, equal to
one-eighth of a sovereign. Florin, or two-shilling piece, equal to
onetenth of a sovereign. Shilling piece, equal to one-twentieth of a
sovereign. Sixpenny piece, one-half of a shilling. Threepenny piece,
one-half of a sixpence.
BRONZE. A penny, equal to one-twelfth of a shilling. Halfpenny,
equal to one-half of a penny. Farthing, one-fourth of a penny.
In writing or speaking of sums of money the expression takes the form
of "pounds, shillings, and pence"; for example, Twenty-one pounds
five shillings and nine pence. Sometimes the word "sterling" is added,
meaning genuine or standard coin of the realm. In accounts the figures
are placed in three parallel columns under the heading of £ s. d. "£" for
pounds, "s." for shillings, and "d." for pence, from Libri, solidi, and

denarii, the Latin equivalents for these values.
|| | | | || £ | s. | d. | || 21 | 5 | 9 | || | | |
Another form of money, if it may be so termed, is the Bank note. This
is simply a promise to pay, on demand, the amount represented on the
note, in gold or some legal tender. The most common in use are £5
notes, but there are others of different denominations, such as £10, £20,
£50, £100, &c. Some country banks still issue these notes, but they are
by law restricted from issuing beyond a certain amount fixed by the
Bank Act of 1844. No new bank can issue notes, and those which have
the privilege are gradually relinquishing it, so that in course of time
there will be only one bank entitled to issue notes, and that is the Bank
of England.
The notes of country banks, other than the Bank of England, are not a
legal tender; that is, it is not compulsory on anyone to accept them in
payment of a debt.
The Bank of England is the oldest joint-stock bank in the country, and
although, in its constitution, it does not differ materially from other
joint-stock banks, yet, being the agent of the British Government in all
money matters, and possessing other exclusive privileges, it is looked
upon as one of the enduring institutions of the country.* (* See
Joint-Stock Banks, p. 68.)
Amongst other privileges it enjoys is the authority to issue promissory
notes to a certain extent, representing respectively sums of £5, £10, £20,
£50, £100, £200, £500, and £1,000.
These Bank of England notes, as they are termed, are absolutely
convertible, that is to say, the bank is legally bound to exchange them
for gold at all times when demanded; and a certain amount of gold has
always, by law, to be kept in stock for the purpose. Moreover, the
tender of Bank of England notes, the same as with gold, in payment of
a debt, cannot, in this country, legally be refused. No one, however, can
be compelled to give change; that is to say, if you owe a person £4 15s.,
you are bound in strict law to pay him that exact sum. You cannot offer

him a five-pound note and insist upon his giving you 5s. change,
though, as a matter of courtesy and convenience, payments are
constantly accepted in that form.
It must be obvious that these Bank of England notes are a great
convenience, and even a necessity to the public, as it would be quite
impossible to carry on the enormous business of the country if such a
cumbersome medium as gold coins was the only legal way of paying
debt. Nevertheless, gold coin of proper weight is a legal tender to any
amount. Silver is not a legal tender for sums over two pounds, nor
bronze for sums over one shilling.
But even with bank-notes the requirements of business are not fully
satisfied, as there is always the risk of their being lost or stolen. To
avoid this risk, and to provide facilities for buying and selling, with the
complications incident thereto, and the passing of money from one
hand to another, an intermediary agency is required, and that agency is
to be found in the banking companies. In nearly every town, having a
pretence to the name, in the United Kingdom, will be found a branch
bank of some establishment of more or less repute, and those who are
fortunate enough to possess money will do well to take advantage of
such an agency for their money matters, having,