You might as well, or better, try to alter the English monarchy and substitute a republic, as to alter the present constitution of the English money market, founded on the Bank of England, and substitute for it a system in which each bank shall keep its own reserve. It may be said to correspond, therefore, to the London rate for some comparatively short period—say for fortnightly loans.
The plan of appointing a permanent ‘chairman’ at the Bank of England is strongly supported by much modern experience. 7. Unless you can stop the foreign export, you cannot allay the domestic alarm.
After 1819 the Bank directors had to discharge the duty of keeping a banking reserve, and (as the law then stood) a currency reserve also, without the guidance either of keen interests, or good principles, or wise traditions.
16. There is a risk of our thinking so, because we hear that the danger can be cured by breaking an Act; but substantially the same danger existed before the Act. ). ” No special security was taken from the Banks for the sums thus lent to them.