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• Prefatory Note to the Eleventh Edition
• Prefatory Note to the Twelfth Edition
• Lombard Street To-day By Hartley Withers
• Lombard Street.
• Chapter I: Introductory
• Chapter II: A General View of Lombard Street
• Chapter III: How Lombard Street Came to Exist, and Why It Assumed Its Present Form
• Chapter IV: The Position of the Chancellor of the Exchequer In the Money Market
• Chapter V: The Mode In Which the Value of Money Is Settled In Lombard Street
• Chapter VI: Why Lombard Street Is Often Very Dull, and Sometimes Extremely Excited
• Chapter VII: A More Exact Account of the Mode In Which the Bank of England Has Discharged Its Duty of Retaining a Good Bank Reserve
• Chapter VIII: The Government of the Bank of England
• Chapter IX: The Joint Stock Banks
• Chapter X: The Private Banks
• Chapter XI: The Bill-brokers
• Chapter XII: The Principles Which Should Regulate the Amount of Banking Reserve to Be Kept By the Bank of England
• Chapter XIII: Conclusion
• Appendix I
• Note A. Liabilities and Cash Reserve of the Chief Banking Systems.
• Note B. Extract From Evidence Given By Mr. Alderman Salomons Before House of Commons Select Committee In 1858.
• Note D. Meeting of the Proprietors of the Bank of England. September 13, 1866.(FROM 'economist,' September 22, 1866.)
• Appendix Ii By E. Johnstone
• Note I
• Note Ii

Note I

This pre-eminent position in regard to the relative magnitude of its resources the London Market has not fully maintained. The deposits of the metropolitan banks have indeed enormously increased. They amounted at the end of December, 1905, to £504,000,000; but in this total was comprised (as closely as can be estimated, since, owing to amalgamations, an exact comparison is impossible) about £230,000,000 held by banks which were not included in the statement for December 31, 1872, most of them banks with country branches, and which hold, therefore, a great deal of provincial as well as London money. Allowing for this, a greater relative increase is shown by the New York associated banks, whose deposits at the end of 1905 (including Government deposits) amounted to a little over £195,000,000 as compared with the £40,000,000 held by then in 1873. But, as in the case of the London banks, the deposits of the New York banks include a large amount consisting of the balances of other banks throughout the country. In Germany also there has been a great development of deposit banking, Unfortunately the German statistics are drawn up in a form which renders any comparison with those of the British banks exceedingly difficult, if not impossible. The German banks place under "deposits" only such amounts as are left with them upon call or for specific terms, usually three or six months. There is, however, another heading, "Creditors," under which is included amounts due to account holders on account current business, and apparently some other forms of liability. According to the Frankfurter Zeitung, the "deposits" of the eight largest Berlin banks (exclusive of the Reichsbank) amounted at the end of 1905 to £52,100,000, and their "creditors" to £93,463,000. And, in addition, the Reichsbank at that date owed its current account holders £24,105,000. The Frankfurter Zeitung also gives statistics of the forty leading banks of the Empire—that is, banks having a capital of not less than £500,000 (but not including the Reichsbank). At the end of 1905 these held in "deposits" £73,736,000, and in "creditors" £144,223,000. Nor is it only that the resources of the German banks have greatly increased; these banks now play a much more important part in cosmopolitan finance. Berlin is now an important market for foreign loans, and through the instrumentality of the banks large amounts of German capital have been embarked in foreign industrial enterprises. The growth of these and other markets, however, has not operated to the relief of "Lombard Street." On the contrary, it has added to the delicacy of its position. It has increased the magnitude of the demands for gold that may be made upon us in times of pressure, and thus renders it more necessary than ever that the Bank of England should maintain an adequate reserve.