[Lombard Street: A Description of the Money Market by Walter Bagehot]@TWC D-Link book
Lombard Street: A Description of the Money Market

CHAPTER VI
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The commercial causes, for which there are many precedents, have been aided by a political cause for the efficacy of which there is no precedent.
'But though plentiful money is necessary to high prices, and though it has a natural tendency to produce these prices, yet it is not of itself sufficient to produce them.

In the cases we are dealing with, in order to lower prices there must not only be additional money, but a satisfactory mode of employing that additional money.

This is obvious if we remember whence that augmented money is derived.

It is derived from the savings of the people, and will only be invested in the manner which the holders for the time being consider suitable to such savings.

It will not be used in mere expenditure; it would be contrary to the very nature of it so to use it.


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