If the rate at which he borrows be 5 per cent

The amount of the present business of private banks is perfectly unknown. Accordingly, the other bankers of London, having perfect confidence in the Bank of England, get that bank to keep their reserve for them. But it suggests once again the old question how long it will be found necessary to pay city men so entirely out of proportion to what other servants of society commonly receive for performing social services not less useful or difficult. Nor can you certainly determine the amount of reserve necessary to be kept against deposits unless you know something as to the nature of these deposits. ‘ In England especially, except a few sums of no very considerable amount held by bullion dealers in the course of their business, there are no sums worth mentioning in cash out of the banks; an ordinary person could hardly pay a serious sum without going to some bank, even if he spent a month in trying. The fifth of these provisions allows a loophole by means of which the rules can be made to work in practice less rigorously than appears on paper.

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