The use of credit is, that it enables debtors to use a certain part of the money their creditors have see more lent them.
2 will not give them up till he gets his money, No. In these two ways sudden loans by an issuer of notes, though this article they may temporarily lower the value of money, do not lower it permanently, because they generate their own counteraction. But we do not always manage it with discretion. The augmented production, which is the reason of the real prosperity, depends on the full working of the whole industrial organisation of all capitalists and labourers; that prosperity was caused by that full working, and will cease website with see article it. I include all the other Banks given in my first group (see p.
The holders of the reserve have, therefore, to treat two opposite maladies at once one see article requiring stringent remedies, and especially a rapid rise in the rate this link of interest; and the other, an alleviative treatment with large and ready loans. The reasons on this side are mainly, this website nevertheless, see article those of conservatism and of caution (or timidity). I believe that in some parts of India, especially in those this page where gold has made relatively little progress, hoards are sometimes held already to a click here fair extent in notes. 16.
As soon as any such community becomes rich enough to have much money, and compact enough to be able to lodge its money in single banks, it at once begins so to do. In 1844 the liabilities of the four great London Joint Stock click here Banks were 10,637,000 L. in its till against liabilities of nearly three times the amount. By that policy they allay a panic; by every other policy they intensify it.
A further amount might be held, as at present, permanently invested in Government of India securities. It causes the post to be desired by vain men, by lazy men, by men of rank; and when that post is one of real and technical business, and when, therefore, it requires much previous training, much continuous labour, and much patient and quick judgment, this link all such men are dangerous.