Nor is it necessary to accumulate reserves in advance for every eventuality

And Mr. They still derived an immense income from it. But the Government also possessed a far greater power, of a somewhat more complex kind. If it is known that the Bank of England is freely advancing on what in ordinary times is reckoned a good security–on what is then commonly pledged and easily convertible–the alarm of the solvent merchants and bankers will be stayed.

Accordingly all the banks in Lombard Street (and bill brokers are for this purpose only a kind of bankers) hold much money belonging to other people on running account and on deposit. It is tacitly assumed that the greater part of what has to be withdrawn from the circulation at a time of crisis would come from the gold portion of the circulation.

Let us know precisely who is to keep the banking reserve. He is the Prime Minister of the Bank Cabinet; and when so important a functionary changes, naturally much else changes too. Till the available trade is found it lies idle, and can scarcely be lent at all; some of it is not lent.

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