By irresistible tradition the English Government was obliged to deposit its money in the money market and to deposit with this particular Bank.
And this system has plain and grave evils.
1st.

Because being created by state aid, it is more likely than a natural system to require state help.
2ndly.

Because, being a one-reserve system, it reduces the spare cash of the Money Market to a smaller amount than any other system, and so makes that market more delicate.

There being a less hoard to meet liabilities, any error in the management of that reserve has a proportionately greater effect.
3rdly.

Because, our one reserve is, by the necessity of its nature, given over to one board of directors, and we are therefore dependent on the wisdom of that one only, and cannot, as in most trades, strike an average of the wisdom and the folly, the discretion and the indiscretion, of many competitors.
Lastly.