These savings are first lodged in the local banks, are by them sent to London, and are deposited with London bankers, or with the bill brokers.

In either case the result is the same.

The money thus sent up from the accumulating districts is employed in discounting the bills of the industrial districts.

Deposits are made with the bankers and bill brokers in Lombard Street by the bankers of such counties as Somersetshire and Hampshire, and those bill brokers and bankers employ them in the discount of bills from Yorkshire and Lancashire.

Lombard Street is thus a perpetual agent between the two great divisions of England, between the rapidly-growing districts, where almost any amount of money can be well and easily employed, and the stationary and the declining districts, where there is more money than can be used.
This organisation is so useful because it is so easily adjusted.
Political economists say that capital sets towards the most profitable trades, and that it rapidly leaves the less profitable and non-paying trades.