That is as much a part of its daily stock-in-trade as its desks or offices; or at any rate, whatever words we may choose to use, we must carefully distinguish between this cash in the till which is wanted every day, and the safety-fund, as we may call it, the special reserve held by the bank to meet extraordinary and unfrequent demands.
What then, subject to this preliminary explanation, is the amount of legal tender held by our bankers against their liabilities?
The answer is remarkable, and is the key to our whole system.

It may be broadly said that no bank in London or out of it holds any considerable sum in hard cash or legal tender (above what is wanted for its daily business) except the Banking Department of the Bank of England.

That department had on the 29th day of December, 1869, liabilities as follows: Public deposits 8,585,000 L Private deposits 18,205,000 L Seven-day and other bills 445,000 L -- ---------- Total 27,235,000 L and a cash reserve of 11,297,000 L.And this is all the cash reserve, we must carefully remember, which, under the law, the Banking Department of the Bank of England--as we cumbrously call it the Bank of England for banking purposes--possesses.

That department can no more multiply or manufacture bank notes than any other bank can multiply them.

At that particular day the Bank of England had only 11,297,000 L.in its till against liabilities of nearly three times the amount.