The advantage of this system is such, that two meetings a day
have been recently established--one at twelve, the other at
three o'clock; but the payment of balances takes place once only,
at five o'clock.
If all the private banks kept accounts with the Bank of
England, it would be possible to carry on the whole of these
transactions with a still smaller quantity of circulating medium.
175. In reflecting on the facility with which these vast
transactions are accomplished--supposing, for the sake of
argument, that they form only the fourth part of the daily
transactions of the whole community--it is impossible not to be
struck with the importance of interfering as little as possible
with their natural adjustment. Each payment indicates a transfer
of property made for the benefit of both parties; and if it were
possible, which it is not, to place, by legal or other means,
some impediment in the way which only amounted to one-eighth per
cent, such a species of friction would produce a useless
expenditure of nearly four millions annually: a circumstance
which is deserving the attention of those who doubt the good
policy of the expense incurred by using the precious metals for
one portion of the currency of the country.
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