A large amount of money is held there by bankers and by bill-brokers at interest: this they must employ, or they will be ruined.

It is better for them to reduce the rate they charge, and compensate themselves by reducing the rate they pay, rather than to keep up the rate of charge, if by so doing they cannot employ all their money.

It is vital to them to employ all the money on which they pay interest.

A little excess therefore forces down the rate of interest very much.

But if that low rate of interest should cause, or should aid in causing, a great growth of trade, the rise is sure to be quick, and is apt to be violent.