We should cease too to be surprised at the sudden panics.

During the period of reaction and adversity, just even at the last instant of prosperity, the whole structure is delicate.

The peculiar essence of our banking system is an unprecedented trust between man and man: and when that trust is much weakened by hidden causes, a small accident may greatly hurt it, and a great accident for a moment may almost destroy it.
Now too that we comprehend the inevitable vicissitudes of Lombard Street, we can also thoroughly comprehend the cardinal importance of always retaining a great banking reserve.

Whether the times of adversity are well met or ill met depends far more on this than on any other single circumstance.

If the reserve be large, its magnitude sustains credit; and if it be small, its diminution stimulates the gravest apprehensions.