And if he constantly kept a large hoard of barren money he would soon be found in the ‘Gazette. What then ought to be done? In opposition to what might be at first sight supposed, the best way for the bank or banks who have the custody of the bank reserve to deal with a drain arising from internal discredit, is to lend freely.
Taking the world as a whole–either now or in the past–it is certain that in poor states there is no spare money for new and great undertakings, and that in most rich states the money is too scattered, and clings too close to the hands of the owners, to be often obtainable in large quantities for new purposes. , and the Secretary of State had to sell his bills for what he could get. The authorities have been—wisely—building up the reserves they ought to have.  It is noticeable that no entirely new Exchange Bank now surviving was founded between 1864 and 1910. Very few selections in the world are made with nearly equal purity. On the present occasion 45,000,000 L.