In the case of England, therefore, the method of comparison exhibits a larger proportion of cash to liabilities than what really exists.
(1) ENGLISH BANKING.
Liabilities.
Deposits of Bank of England, less estimated Joint Stock Bank balances, at December 31, 1872 L 29,000,000 Deposits of London Joint Stock Banks at December 31 1872 (see 'Economist,' February 8, 1873) L 91,000,000 -- ---------- Total liabilities L 120,000,000 ============= Reserve of Cash Banking Reserve in Bank of England.

L 13,500,000 ============= Making proportion of cash reserve to liabilities to the public about 11'2 per cent.
(2) BANK of FRANCE (FEBRUARY, 1873).
Liabilities Circulation L 110,000,000 Deposits L 15,000,000 -- ----------- Total liabilities L 125,000,000 ============= Reserve of Cash.
Coin and bullion in hand L 32,000,000 Making proportion of cash reserve to liabilities to the public about 25 per cent.
(3) BANKS OF GERMANY (JANUARY, 1873).
Liabilities Circulation L 63,000,000 Deposits L 8,000,000 Acceptances and Indorsements L 17,000,000 -- ---------- Total liabilities L 88,000,000 ============ Reserves of Cash Cash in Hand L 41,000,000 ============ Making proportion of cash reserve to liabilities to the public about per cent.
(4) NATIONAL BANKS OF UNITED STATES (OCTOBER 3, 1872).
Liabilities Circulation L 67,000,000 Deposits L 145,000,000 -- ----------- Total liabilities L 212,000,000 ============= Reserve of Cash Coin and legal tenders in hand L 26,000,000 ============ Making proportion of cash reserve to liabilities to the public about 12.3 per cent.
SUMMARY Liabilities Cash held Proportion of cash to the public to liabilities per cent Bank of England and London Joint Stock Banks 20,000,000 13,500,000 11.2 Bank of France 125,000,000 32,000,000 25.0 Banks of Germany 88,000,000 41,000,000 47.0 National Banks of United States 212,000,000 26,000,000 12.3 Note B.
Extract from Evidence Given by Mr.Alderman Salomons before House of Commons Select Committee in 1858.
1146.

[Chairman.] The effect upon yourselves of the pressure in November was, I presume, to induce you to increase your reserve in your own hands, and also to increase your deposits with the Bank of England ?--Yes, that was so; but I wish to tell the Committee that that was done almost entirely by allowing the bills of exchange which we held to mature, and not by raising any money, or curtailing our accommodation to our customers.

Perhaps it may be interesting to the Committee to know that on the 11th of November we held discounted bills for brokers to the amount of 5,623,000 L.Out of those bills, 2,800,000 L.matured between the 11th of November and the 4th of December, and 2,000,000 L.more between the 4th of December and the 31st.

So that about 5,000,000 L.of bills matured between the 11th of November and the 31st of December; consequently we were prepared, merely by the maturing of our bills of exchange, for any demands that might possibly come upon us.
1147.