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The reserves in favour of other banks. Growth of volumes of crediting could have
Place only in the event that it was called any by the general, simultaneously
The reasons operating on all banks. But after all in accuracy the same effect these
The reasons would render and on unique bank within the limits of unitary system.
Hence, from the point of view of practical, considerable distinctions between two
These systems did not exist. it. V, See "Evidence", Q. 2039)., 1857, with. 592 - 593. See also
Certificates Mile before the English Elective Commission on Bank
To the legislation (English Select Committee on the Bank Acts
That Bejdzhhot, on the contrary, considered distinctions between two systems real and
Considerable, becomes clear of its articles in magazine "Economist", and
Also from published by it in 1873 of the book "Lombard Street". First of all,
Advantage of a considerable quantity of the local consisted in much faster
Distribution of bank business on territory of the country. System of the sprayed
For bank issue prepares soil for depositary business, bringing up at people
Trust to banks. Such trust is much easier for achieving through issue of banknotes,
As to banks in this case belongs much more the initiative, rather than in
Conditions of purely depositary business. Moreover, such system would appear
Better adapted and to credit business. It has been connected by that
Owners of small provincial banks usually were from same places,
Where there were their banks that is why well knew local conditions and, such
In the image, possessed more an advantage-ground at an estimation of degree of riskiness
Crediting of those or other firms or private persons. What were lacks
Local banks of issue, it is necessary to recognise that at the very beginning of the
Existence all of them have played very important role even if we and do not want
Now returnings to such system. Thanks to that England in
Former times possessed the sprayed issue system, told Bejdzhhot,
We managed to outstrip other countries in all spheres of bank business.
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