The notion that the Bank of England can stop discounting in a panic, and so obtain fresh money, is a delusion.

It can stop discounting, of course, at pleasure.

But if it does, it will get in no new money; its bill case will daily be more and more packed with bills 'returned unpaid.' The sale of stock, too, by the Bank of England in the middle of a panic is impossible.

The bank at such a time is the only lender on stock, and it is only by loans from a bank that large purchases, at such a moment, can be made.

Unless the Bank of England lend, no stock will be bought.