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105 has deposited much money in that market, and it cannot pay its way if it loses that money.

Nor would any English statesman propose to "wind up" the Bank of England. A theorist might put such a suggestion on paper, but no responsible Government would think of it. At the worst crisis and in the worst misconduct of the Bank, no such plea has been thought of: in 1825, when its till was empty, in 1837, when it had to ask aid from the Bank of France, no such idea was suggested. By irresistible tradition the English Government was obliged to deposit its money in the Money Market and to deposit with this particular Bank.

And this system has plain and grave evils.

1st.Because being created by State aid, it is more likely than a natural system to require State help.

2ndly.Because, being a one-reserve system, it reduces the spare cash of the Money Market to a smaller amount than any other system, and so makes that market more delicate. There being a less hoard to meet liabilities, any error in the management of that reserve has a proportionately greater effect.

3rdly.Because our one reserve is, by the necessity of its nature, given over to one board of directors, and we are therefore dependent on the wisdom of that one only, and cannot, as in most trades, strike an average of the wisdom and the