Some of the Exchange Banks, for example, do not find it worth their while to offer more than 3½ per cent on Indian deposits fixed for a year. And the only practical mode this page of obtaining this object is this website to keep the actual reserve always in advance of see article the minimum ‘apprehension’ reserve. Some Banks advertise such advantages as “Special Marriage Deposits, 50 per cent added to Principal in five years’ time. But this economy of explanation, from which the system has suffered in the past, does not make it any the worse intrinsically. Apart from the £16,000,000 thus invested, about £1,000,000 was, at the end of 1912, lent at short notice in the London Money this article Market; about £3,750,000 was held in India in rupees; and £250,000 in gold was “earmarked” at the Bank this website of England. To keep all these, they borrow; and in a period of high prices many merchants are peculiarly anxious to borrow, because this website the augmentation of the price of the article in which they deal makes them really see, or imagine that they see, peculiar opportunities of profit.
At every moment there is see article a certain minimum which I will call the apprehension minimum,’ below which the reserve cannot fall without great risk of diffused fear; and by this I do not mean absolute panic, but only a vague fright and timorousness which spreads itself instantly, and as if by magic, over the public mind. ) or upon personal security; (vii.
‘ And I will answer the question plainly, though in so doing there is a great risk that the principles I advocate may be in some degree injured through some mistake I may make in applying them. ‘ A millionaire commonly shrinks from liability, and the essence of great banking is great liability.
The Joint Stock Banks of this country are a most remarkable success. In conclusion, something must be said about proposals for a State Bank. ) + (xi. We must examine here the system on which these great masses of money are manipulated, and assure ourselves that it is safe and right.
The non banking customers of the Bank of England would be discredited as well as other people; their cheques would not be taken here any more than those of others; they would have to draw out click here bank notes, and the Bank reserve see more would not be enough for website a tithe of such payments.