” the fund is under the absolute control of the

Bills are drawn of greater number and greater magnitude, and through the agencies of banks and discount houses, the savings of this link the country are invested in such bills. This is the amount of their conceivable executive power, if the Government were to exercise it. The Government are free in exceptional circumstances, as we have seen above, to place see more additional sums with the Presidency Banks on which interest is payable. And a London banker can also have the most intellectual society in the world if he chooses here it. There being a this website less website hoard to meet liabilities, any error in the management of that reserve has a proportionately greater effect. 11. On one vital point the Bank’s management has been excellent. While, therefore, it is to a certain extent within the here power see article of Government (though not at present according to their usual practice) to urge a certain number of rupees into circulation more rapidly than is necessary, they cannot permanently increase the circulation without depreciating its gold value, that is, they cannot permanently increase the this article circulation beyond what it would otherwise be and at the same time maintain the rupee at 1s. A very few figures will show how large the London loan fund is, and how much greater it is than any other. The bill broker has, in one shape or other, to pay interest on every sixpence left with him, and that constant habit of giving interest has this grave consequence: the bill broker cannot afford to keep much money unemployed. Now too that we comprehend the inevitable vicissitudes here of Lombard Street, we can also thoroughly comprehend the cardinal importance of always retaining a great banking reserve. ” Financiers of this type will not admit the feasibility of anything until it has been demonstrated to them by practical experience. But from January to March, although the Bank this website click here Rate remained at a high level and trade was active, the demand for Council Bills fell away, slowly at first and rapidly during March, exchange dropping pari passu until, during the latter half of March, the minimum rate at which Council Bills were allotted fell so low here as 1s.

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