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4. Walter Bagehot argued that in a "natural" banking system under laissez

faire, "none of [the banks] gets so much before the others that the

others voluntarily place their reserves in its keeping."

(a) Does the Bank of England in the nineteenth century, a dominant

private commercial bank that did receive interbank deposits, provide

a counter-example to Bagehot's argument? Why, or why not?

(b) Do the CHAs in the late nineteenth-century US, in whose keeping

commercial banks did voluntarily place their reserves, provide

a counter-example? Why, or why not?

(c) What historical systems, if any, support Bagehot's argument?