Mr.
Hankey says that the two ought to be managed on the same principle; but if so, he should have said whether he would assimilate the practice of the Bank of England to that of the other banks, or that of the other banks to the practice of the Bank of England.
Fourthly.

Mr.Hankey should have observed that, as has been explained, in most panics, the principal use of a 'banking reserve' is not to advance to bankers; the largest amount is almost always advanced to the mercantile public and to bill-brokers.

But the point is, that by our system all extra pressure is thrown upon the Bank of England.

In the worst part of the crisis of 1866, 50,000 L.'fresh money' could not be borrowed, even on the best security--even on Consols except at the Bank of England.

There was no other lender to new borrowers.
But my object now is not to revive a past controversy, but to show in what an unsatisfactory and uncertain condition that controversy has left a most important subject.