And naturally the public mind was demoralised also.

Since 1797, the public have always expected the Government to help the Bank if necessary.

I cannot fully discuss the suspensions of the Act of 1844 in 1847, 1857, and 1866; but indisputably one of their effects is to make people think that Government will always help the Bank if the Bank is in extremity.

And this is the sort of anticipation which tends to justify itself, and to cause what it expects.
On the whole, therefore, the position of the Chancellor of the Exchequer in our Money Market is that of one who deposits largely in it, who created it, and who demoralised it.

He cannot, therefore, banish it from his thoughts, or decline responsibility for it.