In 1876, therefore, the reserve treasuries were established, and since

It will be too much to expect the officials to expose their personal reputations again to a suspicion, however ill–founded, even in this link the interests see article of the Indian Exchequer. excluding the Cash Balances). A large number of banks, each feeling that their credit was at stake in keeping a good reserve, probably would keep one; if any one did not, it would be criticised constantly, and would soon lose its standing, and in the end disappear.

A very few years ago hopes of reaching so secure a position as this would have seemed chimerical. this article . see more In other cases, these non guaranteeing brokers are only agents who are seeking money for bills which they have undertaken to get discounted.

to his credit, and may draw it out when he pleases, a much larger reserve will be necessary against that liability of 1,000,000 L. Thus this page in the case of Indian Exchange Banks, their deposits in London (other than those fixed for long periods) should be at least balanced by their short–term loans in London, their cash in London, their portfolio of trade bills having a London domicile, and such of their securities as may be readily marketable in London.

If we are to see the Indian system in its proper perspective, it is necessary to this page digress for a see article space to a discussion of currency evolution in general. They should not themselves be responsible for detail; if they do there will be two evils at once: the detail will be done badly, and the minds of those who ought to decide principal things see article will be distracted from those principal things. And in some particular years the changes are click here immense; in years like 1871 many active men make so click here much money that at the end of the year they are worthy of altogether greater see more credit than anyone would have dreamed of giving to them at the beginning. In the autumn of 1912 a determined attack was made, in the Press and by means of questions in the House of Commons, on the management of the English Balances, as described above, and on their amount. And this pre eminence London will this website probably maintain, for it is a natural pre eminence.

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