There can be no doubt whatever that what created the difficulty existed out of London, and not in it; and therefore it is much more difficult for me to give an opinion.

I believe that the banking interest, both private and joint stock, was in a perfectly sound condition, and able to bear any strain which might have been brought upon it in London.
1186.

[Mr.Hankey.] Can you give the Committee any idea as to what proportion of deposits you consider generally desirable to keep in reserve ?--You must be very much guided by circumstances.

In times of alarm, when there are failures, of course all bankers strengthen their reserves; our reserve then is larger.

In times of ordinary business we find, both as regards our deposits at interest as well as those which are not at interest, that there is a constant circulation; that the receipts of money very nearly meet the payments.
1187.