Such a drain arises from a disturbance of credit within the country, and the difficulty of dealing with it is the greater, because it is often caused, or at least often enhanced, by a foreign drain.

Times without number the public have been alarmed mainly because they saw that the Banking reserve was already low, and that it was daily getting lower.

The two maladies--an external drain and an internal-often attack the money market at once.

What then ought to be done?
In opposition to what might be at first sight supposed, the best way for the bank or banks who have the custody of the bank reserve to deal with a drain arising from internal discredit, is to lend freely.

The first instinct of everyone is the contrary.