But in this form the notion scarcely merits serious refutation.

If the Bank reserve has once become low, there are, in a panic, no means of raising it again.

Money parted with at such a time is very hard to get back; those who have taken it will not let it go--not, at least, unless they are sure of getting other money in its place.

And at such instant the recovery of money is as hard for the Bank of England as for any one else, probably even harder.

The difficulty is this: if the Bank decline to discount, the holders of the bills previously discounted cannot pay.
As has been shown, trade in England is largely carried on with borrowed money.