on a long time. The collection of these immense sums in one place and in few hands is perfectly new. In 1844 the liabilities of the four great London Joint Stock Banks were £10,637,000; they now are more than £60,000,000.[1] The private deposits of the Bank of England then were £9,000,000; they now are £18,000,000. There was in 1844 throughout the country but a fraction of the vast deposit business which now exists. We cannot appeal, therefore, to experience to prove the safety of our system as it now is, for the present magnitude of that system is entirely new. Obviously a system may be fit to regulate a few millions, and yet quite inadequate when it is set to cope with many millions. And thus it may be with "Lombard Street," so rapid has been its growth, and so unprecedented is its nature.
I am by no means an alarmist. I believe that our system, though curious and peculiar, may be worked safely; but if we wish so to work it, we must study it. We must not think we have an
- ↑ See Appendix II., Note II., p. 340. The distinction between London and other joint stock banks is now virtually a thing of the past. The modern analogy of the comparison given in the text may be expressed as follows:—
Aggregate deposits of English Banks (excluding Bank of England) at December 31st, 1913
£809,351,700. Private deposits of the Bank of England£61,087,100.
