But a manager deputed by a single central establishment does so with difficulty.

The worst people will come to him and ask for loans.

His ignorance is a mark for all the shrewd and crafty people thereabouts.

He will have endless difficulties in establishing the circulation of the distant bank, because he has not the local knowledge which alone can teach him how to issue that circulation with safety.
A system of note issues is therefore the best introduction to a large system of deposit banking.

As yet, historically, it is the only introduction: no nation as yet has arrived at a great system of deposit banking without going first through the preliminary stage of note issue, and of such note issues the quickest and most efficient in this way is one made by individuals resident in the district, and conversant with it.
And this explains why deposit banking is so rare.