If it were, the excess would be considerably greater than it actually appears above

was lent, did not borrow it to lock it up; they borrow it, in the language of the market, to ‘operate with’ that is, they try to buy with it; and that new attempt to buy–that new demand raises prices. ‘ The directors of the Bank are, therefore, in fact, if not in name, trustees for the public, to keep a banking reserve on their behalf; and it would naturally be expected either that they distinctly recognized this duty and engaged to perform it, or that their own self-interest was so strong in the matter that no engagement was needed.

There is still one great step forward before the ideal can be reached. There is no one now living in England within whose memory hoarding has been a normal thing. If Mr. The bank at such a time is the only lender on stock, and it is only by loans from a bank that large purchases, at such a moment, can be made. This is the time when the exchanges make it most advantageous to get gold in this way, and when there is least likely to be a demand for sovereigns as a medium of exchange.

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