Front Page Titles (by Subject) Competition of Bankers. - Money and the Mechanism of Exchange
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Competition of Bankers. - 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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Competition of Bankers.
It is quite apparent, therefore, that the tendency is to carry on a greater and greater trade upon an amount of metallic currency which does not grow in anything like the same proportion. The system of banking, too, grows more perfect in the sense of increasing the economy with which money is used. The competition of many great banks, leads them to transact the largest possible business with the smallest reserves which they can venture to retain. Some of these banks pay dividends of from 20 to 25 per cent, which can only be possible by using large deposits in a very fearless manner. Even the reserves consist not so much of actual coins or bank-notes in the vaults, as of money employed at call in the Stock Exchange, or deposited in the Bank of England, which again lends the deposits out to a certain extent.
Now the larger the trade which is carried on, the larger will be the occasional demand for gold to make foreign payments; and if the stock of gold kept in London be growing comparatively smaller and smaller, the greater will be the difficulty in meeting the demand from time to time. Such is, I believe, the whole secret of the growing instability and delicacy of the money market in this country. There is a larger and larger quantity of claims for gold, and comparatively less gold to meet them, so that every now and then there is a natural difficulty in paying claims, and the rate of interest has to be suddenly raised to induce those who have gold to lend it, or to induce those who were demanding it to forego their claims for a time. Most people, it is true, attribute all these troubles, either to the much-abused gentlemen who meet weekly in the parlour of the Bank of England, or to Sir Robert Peel, who established the note issue of the Bank upon the partial deposit system already described (p. 222).