simply. They say 'I am under an obligation to pay such and such sums
of legal currency; how much have I in my till, or have I at once
under my command, of that currency?' In America, for example, it is
quite enough for a banker to hold 'greenbacks,' though the value of
these changes as the Government chooses to enlarge or contract the
issue. But a practical New York banker has no need to think of the
goodness or badness of this system at all; he need only keep enough
'greenbacks' to pay all probable demands, and then he is fairly safe
from the risk of failure.

By the law of England the legal tenders are gold and silver coin
(the last for small amounts only), and Bank of England notes. But
the number of our attainable bank notes is not, like American
'greenbacks,' dependent on the will of the State; it is limited by
the provisions of the Act of 1844. That Act separates the Bank of
England into two halves. The Issue Department only issues notes, and
can only issue 15,000,000 L. on Government securities; for all the
rest it must have bullion deposited. Take, for example an account,
which may be considered an average specimen of those of the last few
years--that for the last week of 1869:

_An account pursuant to the Act 7th and 8th Victoria, cap. 32, for
the week ending on Wednesday, the 29th day of December, 1869._

ISSUE DEPARTMENT.

Notes issued 33,288,640 L Government debt 11,015,100 L
Other securities 3,984,900 L
Gold coin and bullion 18,288,640 L
Silver bullion