he were hoarding coin. He would run no more risk by the failure of
the bank if he made a deposit there, and he would be free from the
risk of keeping the cash. No doubt it takes time before even this
simple reasoning is understood by uneducated minds. So strong is the
wish of most people to see their money that they for some time
continue to hoard bank-notes: for a long period a few do so. But in
the end common sense conquers. The circulation of bank-notes
decreases, and the deposit of money with the banker increases. The
credit of the banker having been efficiently advertised by the note,
and accepted by the public, he lives on the credit so gained years
after the note issue itself has ceased to be very important to him.

The efficiency of this introduction is proportional to the diffusion
of the right of note issue. A single monopolist issuer, like the
Bank of France, works its way with difficulty through a country, and
advertises banking very slowly. Even now the Bank of France, which,
I believe, by law ought to have a branch in each Department, has
only branches in sixty out of eighty-six. On the other hand, the
Swiss banks, where there is always one or more to every Canton,
diffuse banking rapidly. We have seen that the liabilities of the
Bank of France stand thus:

Notes L 112,000,000

Deposits L 15,000,000

But the aggregate Swiss banks, on the contrary, stand:

Notes L 761,000