Exercise 231

To an extraordinary extent the modern

Business-man is dependent upon the banker

and the banking system. One enthusiastic

writer, proud of the dominating influence

exercise by the banks, insists that the

cessation even for a day or two of the banker’s

activities would certainly cause a complete

paralysis of the economic life of the nation.

Such a cessation would assuredly be found to

produce swifter and more far-reaching effects

than the strike of the most effective labor

union. The merchant works by means of the

credit facilities he enjoys, and he would have

no facilities either to collect or to pay his

accounts. Unable to discount the bills he held,

unable to cash the cheques paid to him he

could not meet the obligations constantly

falling due, and must eventually become

bankrupt. His signature on a cheque would be

useless. The manufacturer making for a

market distant in time and place, depends

upon the support for the banks: and that

support failing he must cease work, no matter

how sincerely he might desire to carry on