The defeat of the experiment of 1900–1901 was due to a variety of causes, but mainly, I should suppose, to the long habituation of the Indian public to the use of silver, and to the unsuitability of the sovereign, by reason of its high value, for so poor a country as India. In former quiet times the influence, or the partial influence, of that rule has often produced grave disasters. Most men of business think–‘Anyhow this system will probably last my time. None of the nations named by Tocqueville had the capital, or a tithe of it, ready to build the large screw steamers which alone can use the Canal profitably. than against the remaining 2,000,000 L. The best palliative to a panic is a confidence in the adequate amount of the Bank reserve, and in the efficient use of that reserve. The common practice is to lend a certain portion of the market value of such securities, and if that value increases, the amount of the usual loan to be obtained on them increases too. The keeping the single banking reserve being a national function, it is at least plausible to argue that Government should choose the functionaries.