They both tend to grow together, if you begin from a period of depression

On the other hand, the objections to a policy, which divided the country up for the purposes of paper currency, are also plain.

And besides this defect of the present time, there are some chronic faults in the policy of the Bank of England, which arise, as will be presently explained, from grave defects in its form of government. Accordingly, Bank directors, when first chosen by the board, are always young men. An election so liable to be disturbed by powerful vitiating causes would rarely end in a good choice. Quiet people continue to save part of their incomes in bad times as well as in good; indeed, of the two, people of slightly-varying and fixed incomes have better means of saving in bad times because prices are lower. And what is more, the Bank directors are not trained bankers; they were not bred to the trade, and do not in general give the main power of their minds to it. This would not be the case, I believe, in the busy season, so much as in the slack season, when the Banks do not let their published rates fall below 3 per cent, although money may be practically unusable and they would probably be glad enough to lend a large sum at 2 per cent.

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