14. This, however, is no more than an illustration of the point I have already dwelt on and emphasised—the manner in which any increase in the popularity of gold diminishes the stability of the currency. ] If we are to use these rates, however, as an index, a few warnings this website are first necessary. 1 will be ruined, because he cannot pay it. The public this article is never sure what policy will be adopted at the most click here important moment: it is not here sure what amount of advance will be made, or on what security it will be see article made. In the three panics since 1844 here in 1847, 1857, and 1866 the policy of the Bank has been more or less affected by the Act of 1844, and I cannot therefore discuss it fully within the limits which here I have pre scribed for myself. Concentration of money in banks, though not the sole cause, is the principal cause which has made the Money Market of England so exceedingly rich, so much beyond that of other countries. and 1s. And the observance of this maxim is this article the more necessary because the ‘apprehension minimum’ is not always the same. The same kind of thing occurred in Russia. He is further asked: ‘Do you guarantee the bills you discount, and what is your charge per cent? No, we do not guarantee them; our charge is one eighth per cent brokerage upon the bill discounted, but we make no charge to the lender of the money. In time the precautions taken may attract gold and raise the reserve to the needful amount, but in click here the interim the evils may happen against which the rule was devised, diffused apprehension may arise, and then any unlucky accident may cause many calamities. If the real government of these here banks had for years been known, and if the subsisting banks had been known not to be ruled by the bad mode of government which had ruined the bank that had fallen, then the ruin of that bank would not be hurtful. And some writers have endeavoured to classify panics click here according to the nature of the particular accidents producing them. By the conditions of his this page trade, the bill broker is forced to belong to a class of ‘dependent money dealers,’ as we may term them, that is, of dealers who do not keep their own reserve, and must, therefore, at every crisis of great difficulty revert to others.