The money at short notice presumably represents the money lent to the Stock Exchange at settlement times. Those to whom the money is lent owe the money to the bank, and when the bank asks for repayment the money must be got elsewhere, and it can only be got from the Bank of England on a certain class of security. Against these two classes of loans, security is lodged with the lending bank. What class of wealth is this? The security for the money at call is of a higher class than the security for the money at short notice. The latter security consists of all kinds of Stock Exchange securities. The most fleeting kind of wealth we may call the wealth brought into existence by speculation. It is nevertheless wealth, for it satisfies a desire and is exchanged. But as this desire is quickly destroyed, then the wealth is either totally destroyed or partially destroyed with it. Even war produces wealth, but as this wealth satisfies only a fleeting desire its reproductive power is transient. It is like scattering seed on the rocky ground, little of which is able to take deep root. The harvest is scanty, and like all scanty harvests, it brings want and ruin in its train. It lessens the reproductive and, therefore, the consumptive power of labour, and thus directly affects harvests elsewhere. Banks, therefore, in selecting the wealth constituted in Stock Exchange securities must carefully discriminate between the lasting wealth and the fleeting wealth; in other words, between high-class investment securities and speculative stocks and shares. This, of course, calls for intimate knowledge and sound judgment. These are qualifications all bank managers must possess. If they possess the qualifications and exercise the soundest judgment in selecting the highest type of wealth, then they put into practice all the principles of sound banking. Now, there is no suspicion that these qualifications are not possessed and that this sound, selective judgment is not shown by the managers of our great banking institutions. This, therefore, is the basis of the community’s confidence in them. That confidence is justified. We need not minutely examine the bank’s “investments.” Not only do these constitute wealth of the highest class, but it is wealth not represented by loans and immediate liabilities. They may justifiably and safely be placed secondary only to the bank’s gold, forming a portion of its liquid reserve. In the hour of danger or peril to the community, it should be the duty of the Government, should the need arise, immediately to transform this wealth into legal tender money.