_ the trade balance; (ii. In 1876, therefore, the Reserve Treasuries were established, and since that time only a portion of the balances has been placed with the Banks. But now the London bankers have another relation to the Bank which did not then exist, and was not then imagined. On the contrary, the evident and intended implication is that under like circumstances the Bank would act again as it has now acted. The problem of managing a panic must not be thought of as mainly a ‘banking’ problem. When a private person begins to possess a great heap of bank-notes, it will soon strike him that he is trusting the banker very much, and that in re turn he is getting nothing. It may be added that the authorities seem, in fact, to be moving somewhat in this direction; for it is understood to be their intention to accumulate £5,000,000 in gold “earmarked” for the Gold Standard Reserve. They speculate with it in bubble companies and in worthless shares, just as they did in the time of the South Sea mania, when there were no banks, and as they would again in England supposing that banks ceased to exist.