The Government could use its favour as a bounty on prudence, and the withdrawal of that favour as a punishment for culpable folly.
Under a good system of banking, a great collapse, except from rebellion or invasion, would probably not happen.

A large number of banks, each feeling that their credit was at stake in keeping a good reserve, probably would keep one; if any one did not, it would be criticised constantly, and would soon lose its standing, and in the end disappear.

And such banks would meet an incipient panic freely, and generously; they would advance out of their reserve boldly and largely, for each individual bank would fear suspicion, and know that at such periods it must 'show strength,' if at such times it wishes to be thought to have strength.

Such a system reduces to a minimum the risk that is caused by the deposit.

If the national money can safely be deposited in banks in any way, this is the way to make it safe.
But this system is nearly the opposite to that which the law and circumstances have created for us in England.