The end is to stay the panic; and the advances should, if possible, stay the panic.

And for this purpose there are two rules: First.

That these loans should only be made at a very high rate of interest.

This will operate as a heavy fine on unreasonable timidity, and will prevent the greatest number of applications by persons who do not require it.

The rate should be raised early in the panic, so that the fine may be paid early; that no one may borrow out of idle precaution without paying well for it; that the Banking reserve may be protected as far as possible.
Secondly.