56 JOURNAL AND PROCEEDINGS 
ment, is entirely a separate and distinct institution. It is not like 
the Bank of France in this respect. The great Joint Stock Banks 
keep only the till money necessary for their daily requirements, 
but the reserve in the Bank of England upholds the deposits of 
the country, amounting to over six hundred million pounds ster- 
ling. The average percentage of the reserve amounts to about 
forty-nine per cent. of its liabilities. Of every pound which is de- 
posited with the Bank, nine shillings is kept in cash and eleven 
shillings is invested in securities. The fluctuations in this reserve 
have enormous influence on the money market and it is the duty 
of the bank to maintain it at all times at a high ratio to its habili- 
ties. It must control the money market and raises its rates from 
time to time when necessary, and the other Joint Stock Banks have 
to follow suit sooner or later for fear they should have to borrow 
from the Bank themselves. If, however, conditions arise that the 
other banks have a plethora of money and do not readily respond 
to the raised rate the Bank itself steps into the market and 
absorbs the surplus funds. ‘This it does by selling consols through 
its official broker and buying them back for the account. 
While this Bank is situated in the centre of London, not a 
vestige of vegetation is to be seen outside the walls of the Bank. 
However, within the courtyards of the same are magnificent trees 
and flowers to delight the eye of those who have the privilege of 
seeing this little bit of country in the centre of London. 
The issue department of the Bank buys fifteen thousand 
reams of paper yearly. It is the only article in connection with 
its issue which is not manufactured upon the premises. ‘The 
water-mark, which is most beautifully designed, is really more 
strietly speaking a wire-mark. ‘The moulds in which the pulp is 
placed have upon their face little bits of wire twisted into a 
beautiful design which reduces the thickness of the paper where 
the pulp comes in contact with the wire, and, consequently, the 
impression of the wire is reproduced upon the paper, as the paper 
is more opaque where these lines appear. Everything else in 
- eonnection with the issuing of the notes is manufactured, and the 
printing of the same done on the premises. Five hundred pieces 
