And the fear would be worse because it would not be unfounded--at least, not wholly.

If you say that the Bank shall always hold one-third of its liabilities as a reserve, you say in fact that this one-third shall always be useless, for out of it the Bank cannot make advances, cannot give extra help, cannot do what we have seen the holders of the ultimate reserve ought to do and must do.

There is no help for us in the American system; its very essence and principle are faulty.
We must therefore, I think, have recourse to feeble and humble palliatives such as I have suggested.

With good sense, good judgment, and good care, I have no doubt that they may be enough.
But I have written in vain if I require to say now that the problem is delicate, that the solution is varying and difficult, and that the result is inestimable to us all.
APPENDIX.
Note A.
Liabilities and Cash Reserve of the Chief Banking Systems.
The following is a comparison of the liabilities to the public, and of the cash reserve, of the banking systems of the United Kingdom, France, Germany, and the United States.

For the United Kingdom the figures are the most defective, as they only include the deposits of the Bank of England, and of the London joint stock banks, and the banking reserve of the Bank of England, which is the only cash available against these liabilities is also the only cash reserve against the similar liabilities of the London private banks, the provincial English banks, and the Scotch and Irish banks.