" . . . Against such panics, Banks have no security, on
any system; from their very nature they are subject to
them, as at no time can there be in a Bank, or in a country, so
much specie or bullion as the monied individuals of such country
have a right to demand. Should every man withdraw his
balance from his banker on the same day, many times the
quantity of Bank notes now in circulation would be insufficient to
answer such a demand."1a*
Italics in the original.
1 David Ricardo (1772-1823). On
the Principles of Political Economy and Taxation (1817).
Volume I of The Works and Correspondence of David Ricardo.
Edited by Piero Sraffa with the collaboration of M.H. Dobb. The
Royal Economic Society, 1951. Cambridge, England: Cambridge
a On Currency and Banks, at 352-372. See especially