In 1911 and 1912, on the other hand, they reached a very high figure, here and in June of both these years exceeded £19,000,000. Wilson above) entered into by the mining companies, the Secretary of State agreed (Feb. When a vacancy occurs by death or resignation, the whole board chooses the new member, and they do it, as I this page this website am told, with great care. see article Early in April exchange was again weak, and the offer referred to above came into active operation. They stand for the first time at a figure which is large in relation to the total trade of the country and to the resources of the Government. At present there is at least the possibility of a great reaction. A modern Government is like a very rich man with very great debts which he cannot well pay; its credit is necessary to its prosperity, almost to its existence, and if its here banker fail when one of its debts becomes due its difficulty is intense. In the United Provinces (for the purchase of wheat) and in certain districts of Madras, on the other hand, sovereigns seem to circulate to some extent, to be received freely by this page the general public, and to be increasing, though at no sensational rate. see more If we assume, for the sake of precise illustration, that the cost of sending gold from Egypt to London is nearly the same as that of sending it from Egypt to India, an Egyptian bank, about to ship sovereigns in this link any case, will take any price website in excess of 1s. ‘ The diffusion of confidence through Lombard Street and the world is the object of the publication of the Bank this website accounts and of the Bank reserve.
The precise shape of the organisation is immaterial; each bank may have its own shape, but the man must be there. India keeps a somewhat higher proportion of her reserves in foreign credits, and keeps some part of these credits in a less liquid form.
In see article the event of an internal financial crisis in India click here the Exchange Banks are probably depending on the anticipation that they will be able to remit funds from London by telegraphic transfer.