"[Bankers] would be obliged, in consequence, to keep at all times in their coffers a greater quantity of cash than at present; and though this might, no doubt, be a considerable inconveniency to them, it would, at the same time, be a considerable security to their creditors."
- Adam Smith, Wealth of Nations, Book I, Chapter V, Of the real and nominal price of commodities, or their price in labour, and their price in money
At this particular point, Smith is discussing how the relative value of different coinage changes (copper, silver, gold) and that there can be runs on a bank as people try to take advantage of the difference. Or the banks can short change their depositors by giving them lower-valued coins.
Oh, yes, Smith also uses that dreaded word "regulation" favorably.
