But, on the contrary, there is no country at present, and there never was any country before, in which the ratio of the cash reserve to the bank deposits was so small as it is now in England. │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ ┌────┴───–┬───┴──┬───┴──┬───┴──┬──┴─–┬───┴──–┬───┴──┬───┴──–┐ │1900–1901│120,00│+13,60│– 4,66│– 35│=128,59│+23,79│=152,38│ │1901–1902│128,59│+ 2,04│– 2. by discounts (no extreme instance in our modern trade), he has the same capital of 50,000 L. In either of these cases the permanent effect of their action one way or the other on the volume of circulation is inconsiderable. The bill brokers lend most of their money, and deposit the remnant either with the Bank of England or some London banker. 27. In this chapter I wish to look at the matter from a broad standpoint, with an eye to the proper policy in a future, possibly remote.