What is wanted and what is necessary to stop a panic is to diffuse the impression,

30. I will conclude this chapter with some statistics. 25. He cannot, therefore, banish it from his thoughts, or decline responsibility for it.

It requires several ‘moves,’ as the phrase goes, several augmentations of the rate of discount by the Bank, before the really effectual rate is reached, and in the mean time bullion is ebbing away and the ‘reserve’ is diminishing. The fact that his calculations contain altogether a great number of separate guesses does not prevent his final result from being a guess too. In the first place the gold imports for 1911–12 fall short of, and those for 1912–13 do not much exceed, those for 1910–11 if we exclude the additions to the Paper Currency Reserve.

At present the quantity of coin which is hoarded by private persons is so small, that it would, if brought forth, make no perceptible addition to the circulation.

And till the new banks had proved, by good conduct, their fitness for State confidence, the State need not give it. Just at the moment when, by the nature of their business, they have to resort to the reserves of bankers for necessary support, the bankers remove from them large sums in order to strengthen those reserves.

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