6619]:— the practice followed since 1838 has been to keep a certain part of the balance

The fluctuations in the value of money are therefore greater than those on the value of most other commodities. They are merchants, most of whose time and most of whose real mind are occupied in making money in their own business and for themselves. In a case where the co–operation of private persons is necessary, they must be allowed a reasonable share of the profits of the transaction.

‘ Credit may be at once shaken, and if some terrifying accident happen to supervene, there may be a run on the Banking department that may be too much for it, as in 1857 and 1866, and may make it unable to pay its way without assistance–as it was in those years. The Bank agrees, in fact, if not in name, to make limited advances on proper security to anyone who applies for it. So that our one-reserve system of banking combines two evils: first, it makes the demand of the brokers upon the final reserve greater, because under it so many bankers remove so much money from the brokers; and under it also the final reserve is reduced to its minimum point, and the entire system of credit is made more delicate, and more sensitive.

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