the cash reserve, we must carefully remember, which, under the law, the Banking Department of the Bank of England, as we cumbrously call it—the Bank of England, for banking purposes—possesses. That department can no more multiply or manufacture bank notes than any other bank can multiply them. At that particular day the Bank of England had only £11,297,000 in its till against liabilities of nearly three times the amount. It had "Consols" and other securities which it could offer for sale no doubt, and which, if sold, would augment its, supply of bank notes—and the relation of such securities to real cash will be discussed presently; but of real cash the Bank of England for this purpose—the banking bank—had then so much and no more.
And we may well think this a great deal, if we examine the position of other banks. No other bank holds any amount of substantial importance in its own till beyond what is wanted for daily purposes. All London Banks keep their principal reserve on deposit at the Banking Department of the Bank of England. This is by far the easiest and safest place for them to use. The Bank of England thus has the responsibility of taking care of it. The same reasons which make it desirable for a private person to keep a banker make it also desirable for every banker, as respects his reserve, to bank with another banker if he safely can. The
