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344 style=margin-left:2em; text-indent:-2em 330–338; Mr. Hankey's observations, 161; criticism of, 163; strength and weakness of directors, 166, 167; their mistakes, 170, 171; improvement since 1857, 171; rate raised by steps of 1 per cent., 173; chronic faults of policy, 176; one-third reserve not adequate, 178; Clearing House system, 183, 184; attitude in time of panic, 179–186; rules for advances, 187; policy of inconsistency, 189; successful action in large and small advances, 192; "Banking security," 195; Discount Office, 195; importance of amount of advance, 196. Chapter VIII.,, 198–229; election of directors, 198; young men chosen, 199; elder members on committee of Treasury, 201, 228; no banker a director, 202; character of directors, 204; no fixed executive, 205; duties of Governor and Deputy-Governor, 206; constitution of, 207, 229; question of permanent Governor, 210-218; of Deputy-Governor, 219-224; suggested reforms, 225-229; Sir George Lewis and directors of, 240; rivalry of bill brokers, 280; rule of 1858, 281. Chapter XII.,, 284–309; nature of liabilities and deposits, 285; Government account, 286; Budget account, 287; public deposits, 287; analysis of return, 289; bankers' deposits, 289; utmost caution required, 290; transactions of the German Government, 291–295; withdrawal of foreign deposits, 295–297; opinions as to lending bankers' balances, 297; changes involving change of rules, 300; object of publishing account, 302; "apprehension minimum," 303; time required for operation, 306; estimates for minimum reserve, 307-309; faulty system, 310; proposals to amend single-reserve system, 310–315; cash reserves (Appendix I.), 317; meeting of proprietors, 1866 (Economist), 330
 * Bank of France, 33, 68, 69, 83, 86, 170, 175, 217, 299, 318
 * of Genoa, 79
 * of Germany, Imperial, 84, 318, 339
 * of Hamburg, 79
 * London and Westminster, 39, 40, 58, 97, 101, 154, 226, 278
 * of Russia, 33
 * Savings, 288, 311
 * of Scotland, 82
 * Swiss, 86
 * Banks, joint stock, 19, 66, 205. Chapter IX., 230–251; capital as guarantee, 230; profits and dividends, 232, 233; facts and fears, 237; success contrary to expectation, 238; government, 241; responsibility of managers, 246; errors of, 247; working committee of directors, 247; importance of clearly known government, 250; balances of German Government with, 292–295
 * private, 21. Chapter X., 252–264; character of, 252, 253; continuance doubtful, 254; reasons, 254; competition against, 255; privileged opportunities, 256, 257; case of Overend, Gurney & Co., 258–260; new business, 261; organisation, 263
 * of United States, 318
 * Baring Brothers, 18
 * Bill brokers, 12, 21,29, 32, 59, 60,61, 148; Messrs. Rothschild, 203; reserves of joint stock banks 240. Chapter XI., 265–283; as intermediaries, 265; mercantile tradition of the "standing of parties," 267; bills of