It must be observed and noted right here, therefore, that streams of gold, of gold, I say, must be constantly and swiftly running through the channels of trade, and so intimately connected with a practically unlimited supply or an inexhaustible reserve of gold, in the form of a central reserve for the whole country, to immediately extinguish any conflagration of credit as soon as it breaks out, precisely as a flood of water extinguishes a fire when it first makes its appearance. For the past ten or fifteen years, the banks of England have realized the necessity of pursuing this principle, by carrying their own individual reserves, and accordingly have been gradually accumulating cash reserves of their own, instead of depending upon the Bank of England, except as a last resort. Germany, too, within the past year, has suffered severely because adequate reserves have not been present in her channels of trade; and having discovered this weakness in her banking practices, appointed a commission to pass upon that and other questions. The commission reported that the individual banks should carry their own reserves; and Herr Havenstein, President of the Imperial Bank, a short time ago demanded that the banks of Germany should carry their own cash reserves up to 15 per cent of their liabilities. How much more important, then, gentlemen, must it be that we, when you consider the extent of our country, our vast and varied banking interests which are being carried on by 25,000 or 30,000 individual or independent banks, should require everyone of these banks to be in a position to test its credits with the touchstone of gold, and at the same time take the precaution of protecting itself by a central reserve of gold far beyond any possible demand that may be made upon it. MR. MERCHANT: Mr. Banker, from what you have been telling us it is perfectly clear that every promissory note, check, draft, or bill of exchange, which are acknowledgments of debt, are just as much property as land, houses, cattle, corn, iron, or anything else material that can be bought and sold. Credit itself is merchandise and the subject of a gigantic commerce of its own. "A well-managed credit amounts to tenfold the funds of a merchant; and he gains as much by his credit as if he had ten times as much money." This maxim is generally received among all merchants. Credit is, therefore, the greatest wealth to every man who carries on commerce. Demosthenes says: "There being two kinds of property, money and general credit, our greatest property is credit." Again he says: "If you were ignorant of this, that credit is the greatest capital of all toward the acquisition of wealth, you would be utterly ignorant." So Melon says: "To the calculation of values in money, there must be added, the current credit of the merchant, and his possible credit."