He may advance, as is so often done in other bank failures, what the government needs

The same thing would happen equally well in a trade of barter, if a state of barter on a very large scale were not practically impossible, on account of the time and trouble which it would necessarily require. In 1903 the Government of the United States introduced a system avowedly based on it into the Philippines.

The way in which the issue of notes by a banker prepares the way for the deposit of money with him is very plain. These he reckons as part of his reserve. So high a premium as this is as effective in retaining gold as a very considerable addition to the bank rate. These measures were sufficient during the severe crisis of 1908. There is no method whatever by which the volume of currency can be _temporarily_ expanded by some credit device _within_ the country to meet the regularly recurrent seasonal demands of trade. However the article had at least this use, that it brought out the facts. All the most important transactions in the country are settled by cheques; these cheques are paid in to the ‘clearing-house,’ and the balances resulting from them are settled by transfers from the account of one banker to another at the Bank of England.

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