If we look to the private deposits of the bank of england, at first sight we

He was afraid of certain joint stock banks which he saw rising around him; but the effect of his legislation was to give to these very banks, if not a monopoly, at any rate an exemption from new rivals. With regard to the rest the Government should, I think, permit itself much greater latitude. You must take what you can find of it, and work with it if possible. The difficulty and inconvenience to which this system has given rise in the United States are well known to those who are acquainted with the recent financial history of that country.

‘ 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. It is a far easier habit to establish. Everybody in business would bow down before him and try to stand well with him, for he might in a panic be able to save almost anyone he liked, and to ruin almost anyone he liked. I say in reply, that if the correct framing of such estimates is necessary for the good guidance of the Bank, we must make a governing body which can correctly frame such estimates.

and VIII. ‘ But, as anyone can see by the published figures, the Banking Department of the Bank of England keeps as a great reserve in bank notes and coin between 30 and 50 per cent of its liabilities, and the other banks only keep in bank notes and coin the bare minimum they need to open shop with. 4d. 10 4,024,000 L 17 3,217,000 L 24 3,485,000 L 31 2,258,000 L Nov. But even if this were not so, even if the banks were willing to keep their deposits at the Bank while it was not lending, they would soon find that they could not do it. The joint stock banks of London, judging by their published accounts, have deposits to the amount of 30,000,000 L. In themselves these principles are self-evident.

Only in 1792, after nearly thirty years, it began to gain deposits, but from that time they augmented very rapidly.

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