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Babbage, Charles, 1792-1871

"On the Economy of Machinery and Manufactures"


At five o'clock the Inspector takes his seat; when each
clerk, who has upon the result of all the transactions a balance
to pay to various other houses, pays it to the inspector, who
gives a ticket for the amount. The clerks of those houses to whom
money is due, then receive the several sums from the inspector,
who takes from them a ticket for the amount. Thus the whole of
these payments are made by a double system of balance, a very
small amount of bank-notes passing from hand to hand, and
scarcely any coin.
174. It is difficult to form a satisfactory estimate of the
sums which daily pass through this operation: they fluctuate from
two millions to perhaps fifteen. About two millions and a half
may possibly be considered as something like an average,
requiring for its adjustment, perhaps, L200,000 in bank notes and
L20 in specie. By an agreement between the different bankers, all
checks which have the name of any firm written across them must
pass through the clearing house: consequently, if any such check
should be lost, the firm on which it is drawn would refuse to pay
it at the counter; a circumstance which adds greatly to the
convenience of commerce.


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