All which a banker wants to pay his creditors is a sufficient supply of the legal

A cautious man, in a new office, does not like strong measures. I will now proceed to a description of the system of note issue.

For every transfer from the sterling branch of any of the reserves must be balanced by a corresponding transfer into the rupee branch. Both these sources of profit would be gravely jeopardised if the introduction of an Indian gold coin were to meet with any considerable measure of success.

┌──────┬──────────────────–┬────────────–┬──────────–┐ │ │ Total Deposits in │ │ Cash Per │ │ │ India, excluding │ Total Cash │ Cent of │ │ │ Public Deposits.

I suspect that the rates in the two markets may appear to be more different than they really are, and are explicable by the difference of the conditions and of security, subject to which business is transacted.


If a bank groups these liabilities together in the balance-sheet, you cannot tell the amount of reserve it ought to keep. Credit is an opinion generated by circumstances and varying with those circumstances. But if a great number of persons do this very suddenly, the bill brokers will not at once be able to pay without borrowing. Money parted with at such a time is very hard to get back; those who have taken it will not let it go–not, at least, unless they are sure of getting other money in its place. But it will be worth while to describe in rather more detail the most characteristic part of their transactions and the part which is most relevant to the topics of this book. By old usage, the directors of the Bank of England cannot be themselves by trade bankers. The Bank of St. Till a saving is invested or employed it exists only in the form of money: a farmer who has sold his wheat and has 100 L. There will be a continual worry in the bank, and in a worry bad loans are apt to be made and money is apt to be lost. Nor can you certainly determine the amount of reserve necessary to be kept against deposits unless you know something as to the nature of these deposits. The discussion of this question will be concluded in Chapters VI. If telegraphic exchange were fixed at 1s. The “capital employed in London” is (vii. It is in these circumstances that the most difficult question of policy arises.

Though the business of banking has increased so much since 1810, this species of banks is fewer in number than it was then. We can do so in this case. And in exceptional times it may be some protection to the sterling reserves if Council Bills can be sold at a lower rate if necessary. We now have the possibilities before us. But ultimate banks have no similar rear-guard to rely upon. │ 121 │ 116 │ 166 │ │ 1892 │ 125 │ 129 │ 121 │ 167 │ │ 1893 │ 128 │ 132 │ 130 │ 173 │ │ 1894 │. If the Secretary of State’s withdrawal from the market and the consequent scarcity of bills on India is insufficient to support exchange at 1s.

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