Front Page Titles (by Subject) System of Two Banks. - Money and the Mechanism of Exchange
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System of Two Banks. - William Stanley Jevons, Money and the Mechanism of Exchange 
Money and the Mechanism of Exchange (New York: D. Appleton and Co. 1876).
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System of Two Banks.
As a second case, let us suppose that there is a town which is able to support two banks. Some of the inhabitants keep their money in one bank and soma in the other, but all whom it is requisite to consider have an account with one or the other. In the diagram,
let P and Q be the two bankers, a, b, c, d, being customers of P, and q, r, s, t, customers of Q. Now, the mutual transactions of a, b, c, d, will, as before, be balanced off in the books of P, and similarly with the customers of Q. But if a has to make a payment to q, the operation becomes somewhat more complex. He draws a cheque upon P, and hands it to q, who may, of course, demand the coin from P. Not wanting coin, he carries the cheque to his own banker, Q, and pays it in to his account in place of coin. It is the banker, Q, who will now have to present the cheque upon P, and it might seem as if the use of coin would be ultimately required. There will be other persons, however, making payments in the town in the same manner, and the probability is very great that some of these will result in giving P cheques upon Q, and some in giving Q cheques upon P. The two bankers, then, will be in the position of the two traders before described (p. 251), who have a running account. At the worst the payment to be made in coin will be only the balance of what is due in opposite directions; but as this balance will probably tend in one direction one day, and in the opposite direction the next day, the balance need only be paid when it assumes inconvenient proportions.