But of this amount part was exported, not far short of half was returned to Government, and it was supposed that the greater part of the remainder went into the hands of bullion dealers. Accordingly the whole liability for here click here such international payments in cash is thrown on the Bank of England.
Because that board of directors is, like every other board, pressed on by its shareholders to make a high dividend, and therefore to keep a small reserve, whereas the public interest imperatively requires that they shall keep a large one. Those see article who give much to their customers have of course less left for their shareholders. Upon grounds which we have often stated, we believe that the anomaly of one bank keeping the sole banking reserve is so fixed in our system that we cannot change it if we would. In Lancashire there is little or no circulation this page of country bank notes; but there is a great circulation of bills here drawn upon London at two or three months’ date. If we still make the above illustrative (but not exactly accurate) assumption, when Council Bills are at about 1s.
‘The reason is plain; out of the banks which pay more than 20 per cent, all but one were old established banks, and all those paying between 15 and 20 per cent were see more old see more banks too. Persons who buy to this website sell this page again soon are often liable for amounts altogether much greater see more than their own this page capital; and the power of obtaining those sums depends upon their ‘respectability,’ their ‘standing,’ and their ‘credit,’ as the technical terms express it, and more simply upon the opinion which those who deal with them have formed of them. A ‘board’ can scarcely ever make improvements, for the policy of a board is determined by the opinions of the most numerous class of its members its average members and these are never prepared for sudden improvements.
Of this, however, about see more £1,100,000 was diverted in 1907 for capital expenditure on railways—leaving about £17,500,000 for the Gold Standard Reserve.
The Chancellor of the Exchequer would have no difficulty in getting such security either.