Front Page Titles (by Subject) London Agency System. - Money and the Mechanism of Exchange
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London Agency System. - William Stanley Jevons, Money and the Mechanism of Exchange 
Money and the Mechanism of Exchange (New York: D. Appleton and Co. 1876).
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London Agency System.
By insensible degrees there has grown up in England an all-comprehensive and most perfect system of relations between the provincial and London city banks. Every banker in the United Kingdom, without, I believe, any exception, employs one or other of the great London city banks to act as agent. There are twenty-six city clearing banks which thus undertake agencies, and on an average, each of these banks represents at least twelve country banks; but the number varies very much, and some country banks have two London agent-banks.
This agency system leads at once to a clearing of transactions, because, if any two country banks have the same London agent, all their mutual adjustments of accounts can be made by transfers in the books of the agent. The diagram on p. 256 applies for a third time, and X represents the city agent, having running accounts with P, Q, R, S, the country banks. The whole of the customers of all the banks, having the same London agent, are thus brought into close relation, though they may live in the most distant parts of the country. Each of the city banks maybe regarded as a bankers' bank and a clearing house on a small scale.