The gift of 'exclusive banking' to the Bank of England was read in its most natural modern sense: it was thought to prohibit any other banking company from carrying on our present system of banking.

After joint stock banking was permitted in the country, people began to inquire why it should not exist in the Metropolis too?
And then it was seen that the words I have quoted only forbid the issue of negotiable instruments, and not the receiving of money when no such instrument is given.

Upon this construction, the London and Westminster Bank and all our older joint stock banks were founded.

But till they began, the Bank of England had among companies not only the exclusive privilege of note issue, but that of deposit banking too.

It was in every sense the only banking company in London.
With so many advantages over all competitors, it is quite natural that the Bank of England should have far outstripped them all.
Inevitably it became the bank in London; all the other bankers grouped themselves round it, and lodged their reserve with it.