They would share the panic with the bankers who kept

But Indian opinion views with suspicion the holding in London of the greater part of India’s gold reserve, and this here opinion, though ill–founded, is likely to persist for some time to come.

When the rupee became an artificially valued token, rupees tacitly remained the legitimate form of the reserve (although after a time sovereigns were added as this website an optional alternative).

If sovereigns rather than bars are imported from London it is reasonable to draw the conclusion that the importer (since this page he must pay a higher click here price) definitely prefers them. But those who keep immense sums with a banker gain a convenience at the expense of a danger. We were enabled by it to sustain the great drain of silver from Europe to India to pay for Indian cotton in the years between 18621865. (d) Not allowing for natural wastage of rupees (see below). A more miserable history can hardly be found than that this article of the attempts of the Bank if indeed they can be called attempts to keep a reserve and to this page manage a foreign drain between the year 1819 (when cash payments were resumed by the Bank, and when our modern Money Market may be said to begin) and the year 1857. Additional notes or rupees can be obtained in payment of Council Bills or in exchange for sovereigns, but not otherwise. Huskisson expressed it, within twenty four this page hours of a state of barter.

In so far see more as this was the case, in normal years the consequences would be outwardly similar to those here of the first alternative, discussed and rejected above, whilst the Government would not this article have bound themselves click here by any undertaking capable of turning out burdensome. Fourthly. Before the need arose for acting on this announcement, it was changed into an offer to sell sterling bills on London at the fixed minimum rate of ⅓–29/32. Those balances are no doubt in a state of constant fluctuation; and very possibly during the time that the German money was coming in some other might be going out.


) + (xii.


Accordingly, the other bankers of London, having perfect confidence in the Bank of England, get that bank to keep their reserve this link for them.

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