Thus the second provision prevents the sterling value of the

It would be a good thing if this article the Exchange Banks were compelled to distinguish in their balance sheets between their Indian and extra–Indian business, much in the manner set out in the hypothetical balance sheet on p. The Bank cannot stay still and wait till its bills are paid, and so fill its coffers, for unless it discounts equivalent bills, the bills which it has already discounted will not be paid.

The Bank directors this page have almost always been too cheerful as to the Bank’s business, and too little disposed to take alarm. . In a sensitive website state of the English money market the near approach to the legal limit of reserve would be a sure incentive to panic; if one third were fixed by see article law, the moment the banks were close to one third, alarm see article would begin, and would run like magic.

Now wholesale transactions are commonly not cash transactions, but bill transactions. Everyone is aware website that England is the greatest moneyed country in the world; this link everyone admits that it has much more immediately disposable and ready cash than any other country. Nevertheless, I hesitate as to its expediency; at any rate, there are other website plans which, for several reasons, should, I think, first be tried in preference.

They still derived an immense income from it. Nothing can be more natural or more inevitable than this change.

This point is important, for it is often assumed in controversy here regarding the currency and its relation to prices that the issue of rupees into circulation depends in some way upon the amount of Council Bills sold by the Government, and can, therefore, be expanded or contracted by them see more at will, according to the policy of the moment. Thus the lowest note is of the face value of 6s.

Peel by law prevented new joint stock banks from being established. There seems little reason, therefore, see article for over–anxiety lest the Government be caught short of rupees. , and I shall return to it again in Chapters VI. At present the quantity of coin which is hoarded by private this page persons is so small, that it would, if brought forth, make no perceptible addition to the circulation.

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