When a private person begins to possess a great heap of bank-notes, it will soon strike him that he is trusting the banker very much, and that in re turn he is getting nothing.

He runs the risk of loss and robbery just as if he were hoarding coin.

He would run no more risk by the failure of the bank if he made a deposit there, and he would be free from the risk of keeping the cash.

No doubt it takes time before even this simple reasoning is understood by uneducated minds.

So strong is the wish of most people to see their money that they for some time continue to hoard bank-notes: for a long period a few do so.