A reserve of the same sort which is needed in England and Scotland is not needed abroad.

But all great communities have at times to pay large sums in cash, and of that cash a great store must be kept somewhere.
Formerly there were two such stores in Europe, one was the Bank of France, and the other the Bank of England.

But since the suspension of specie payments by the Bank of France, its use as a reservoir of specie is at an end.

No one can draw a cheque on it and be sure of getting gold or silver for that cheque.

Accordingly the whole liability for such international payments in cash is thrown on the Bank of England.