They say 'I am under an obligation to pay such and such sums of legal currency; how much have I in my till, or have I at once under my command, of that currency ?' In America, for example, it is quite enough for a banker to hold 'greenbacks,' though the value of these changes as the Government chooses to enlarge or contract the issue.

But a practical New York banker has no need to think of the goodness or badness of this system at all; he need only keep enough 'greenbacks' to pay all probable demands, and then he is fairly safe from the risk of failure.
By the law of England the legal tenders are gold and silver coin (the last for small amounts only), and Bank of England notes.

But the number of our attainable bank notes is not, like American 'greenbacks,' dependent on the will of the State; it is limited by the provisions of the Act of 1844.

That Act separates the Bank of England into two halves.

The Issue Department only issues notes, and can only issue 15,000,000 L.on Government securities; for all the rest it must have bullion deposited.