But, as a rule, such money when deposited in London, for a considerable time remains in London; and so long as it does so, it swells the aggregate balances of the body of bankers at the Bank of England.

It is now in the balance of one bank, now of another, but it is always dispersed about those balances somewhere.

The evident consequence is that this part of the bankers' balances is at the mercy of the German Government when it chooses to apply for it.

Supposing, then, the sum to be three or four millions and I believe that on more than one occasion in the last year or two it has been quite as much, if not more--that sum might at once be withdrawn from the Bank of England.

In this case the Bank of England is in the position of a banker who is liable for a large amount to a single customer, but with this addition, that it is liable for an unknown amount.