There are very many more persons under great liabilities than there are, or ever were, anywhere else.

At the commencement of every panic, all persons under such liabilities try to supply themselves with the means of meeting those liabilities while they can.

This causes a great demand for new loans.

And so far from being able to meet it, the bankers who do not keep an extra reserve at that time borrow largely, or do not renew large loans--very likely do both.
London bankers, other than the Bank of England, effect this in several ways.

First, they have probably discounted bills to a large amount for the bill brokers, and if these bills are paid, they decline discounting any others to replace them.