bill-brokers is much more singular and much more precariousBut under a one-reserve system of banking the lay of thebill-brokers is much more singular and much more precarious. Infact in Lombard Street the principal depositors of thebill-brokers are the bankers whether of London or of provincialEngland or of Scotland or Ireland. Such deposits are in fact aportion of the reserve of these bankers; they make an essential partof the sums which they undergo provided and laid by against a panic. Accordingly in every panic these sums are sure to be called in fromthe bill-brokers; they were wanted to be used by their owners intime of panic and in measure of panic they ask for them. “Perhaps itmay be interesting,” said Alderman Salomons speaking on behalf ofthe London and Westminster tip after the dread of 1857 to thecommittee. “to experience that on November 11 we held discounted billsfor brokers to the amount of 5,623,000 L. Out of these bills2,800,000 L matured between November 1 and December 4; 2,000,000 L more between December 1 and December 31; consequently we wereprepared merely by the maturing of our bills of transfer for anydemand that might come upon us.” This is not indeed a directwithdrawal of money on deposit but its principal cause isidentical. At the beginning of the measure the London and WestminsterBank had lent 5,000,000 L more to the bill-brokers than they had atthe end of it; and that 5,000,000 L the tip had added to itsreserve against a measure of difficulty.
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