The bank directors have almost always been too cheerful as to the bank’s business, and too

But they do not take 100 L. The circulation of bank-notes decreases, and the deposit of money with the banker increases. Any sudden increase in the bankers’ balances would be a probable indication of new foreign money, but new foreign money might come in without causing an increase, since some other and contemporaneous cause might effect a counteracting decrease.

│ Maximum. During the second quarter of this century England was alone in possessing an orthodox “sound” currency on a gold basis. The peculiarity of the precious metals is that their value depends for unusually long periods on the quantity of them which is in the market. And indeed there plainly is a diminution in the purchasing power of money, though that diminution is not general and permanent, but local and temporary. But unluckily they cannot manage it.

(b) Estimate. The first affects my general treatment of the subject matter.

In consequence, from 1797 to 1844 (when a new era begins), there never was a proper caution on the part of the Bank directors.

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