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For the most part, agricultural counties do not employ as much money as they save; manufacturing counties, on the other hand, can employ much more than they save; and therefore the money of Norfolk or of Somersetshire is deposited with the London bill-brokers, who use it to discount the bills of Lancashire and Yorkshire. The old practice of bill-broking, which Mr.
And if he constantly kept a large hoard of barren money he would soon be found in the 'Gazette. The difficulty is aggravated by the terms upon which a great part of the money at the bill-brokers is deposited with them. Very much of it is repayable at demand, or at very short notice. The demands on a broker in periods of alarm may consequently be very great, and in practice they often, are so.
A great additional strain is thrown upon them just at the moment when they are least able to bear it; and it is thrown by those who under a natural system of banking would not aggravate the pressure on the bill-brokers, but relieve it. And the profits of bill-broking are proportionably raised.
The whole demand for discount was thrown upon the Bank of England. Two bill-brokers had stopped; two others were paralyzed. The Bank of England could discount no longer. Thanks to the Bank Charter, they were safe and their treasury full of bullion, but it appeared that everybody else must fall, for in four-and-twenty hours the machinery of credit would be entirely stopped.
They exercise their calling somewhat like bill-brokers, taking special pains always to secure themselves against loss, and make a trifle of money, while displaying an unbounded philanthropy. Here then is a class of persons most appropriate for our purpose: fathers, uncles, first cousins, even grandfathers, might be made out of these at a moment’s notice.
Most of them would not know how to carry through a great 'Exchange operation, or to 'bring home the returns. They would as soon think of turning silk merchants. The Exchange trade is carried on by a small and special body of foreign bill-brokers, of whom Messrs. Rothschild are the greatest.
They would not be more likely to suffer than other persons; the only difference would be that when they did suffer, having no adequate reserve of their own, they would be obliged to ask the aid of others. But under a one-reserve system of banking, the position of the bill-brokers is much more singular and much more precarious.
The organisation of the private is just like that of the joint stock banks; all the public are interested that it should be good. The want of a good organisation may cause the failure of one or more of these banks; and such failure of such banks may intensify a panic, even if it should not cause one. The Bill-Brokers.
I say to every man, 'Don't come to me: I can get you money on much easier terms than any one else; and what's the result! You come so often that you ruin yourself; whereas a regular usurer without conscience frightens you. 'Cent percent, you say; 'oh, I must pull in. If you have influence over your friend, tell him to stick to his bill-brokers, and have nothing to do with Baron Levy."
Accordingly, in every panic these sums are sure to be called in from the bill-brokers; they were wanted to be used by their owners in time of panic, and in time of panic they ask for them.
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