Banking Peter goes into the banking business with one dollar capital, and immediately issues bills to the amount of one dollar and twenty-five cents. Let us say that he issues five bills, each of which is to circulate for the amount of twenty-five cents. lames comes to the bank with four of Peter's bills, and says: "Here are four, of your new twenty-five cent notes which purport to be payable on demand, and I will thank you to give me a silver dollar for them" Peter redeems the bills and in so doing pays out his whole capital. Afterward comes John, with the fifth note, and makes a demand similar to that lately made by James. Peter answers, slowly and hesitatingly: "I regret - exceedingly - the forceand has owing to him a dollar and twenty-five cents. John feels, therefore, perfectly safe. What is John's security? Is it the specie capital? Not at all. James has taken the whole of that He has for his security the; debts which are owing to the bank. Peter's bank begins now to be placed in sound, philosophical condition. At first he promised to pay one dollar and twenty-five cents in specie, while he actually possessed only one dollar with which to; meet the demands that might be, made upon him. How could he have made a more unreasonable promise, even if he had tried? Now that he has suspended specie payments, he has escaped from the unphilosophical situation in which he so rashly placed himself. Peter's bank is