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183 could not do it. They are only able to keep those deposits at the Bank by the aid of the Clearing-house system, and if a panic were to pass a certain height, that system, which rests on confidence, would be destroyed by terror.

The common course of business is this. A B having to receive £50,000 from C D takes C D's cheque on a banker crossed, as it is called, and, therefore, only payable to another banker. He pays that cheque to his own credit with his own banker, who presents it to the banker on whom it is drawn, and if good it is an item between them in the general clearing or settlement of the afternoon. But this is evidently a very refined machinery, which a panic will be apt to destroy. At the first stage A B may say to his debtor C D, "I cannot take your cheque, I must have bank notes." If it is a debt on securities, he will be very apt to say this. The usual practice—credit being good—is for the creditor to take the debtor's cheque, and to give up the securities. But if the "securities" really secure him in a time of difficulty, he will not like to give them up, and take a bit of paper—a mere cheque, which may be paid or not paid. He will say to his debtor, "I can only give you your securities if you will give me bank notes." And if he does say so, the debtor must go to his bank, and draw out the £50,000 if he has it. But if this were done on a large scale, the bank's "cash