Long experience has told them to a nicety how much this is, and they do not waste capital and lose profit by keeping more idle.

They send the money to London, invest a part of it in securities, and keep the rest with the London bankers and the bill brokers.

The habit of Scotch and Irish bankers is much the same.

All their spare money is in London, and is invested as all other London money now is; and, therefore, the reserve in the Banking Department of the Bank of England is the banking reserve not only of the Bank of England, but of all London--and not only of all London, but of all England, Ireland, and Scotland too.
Of late there has been a still further increase in our liabilities.
Since the Franco-German war, we may be said to keep the European reserve also.

Deposit Banking is indeed so small on the Continent, that no large reserve need be held on account of it.