Hypothetical history, which explains the past by what is simplest and commonest in the present, is

Further, the management of the Gold Standard Reserve is governed neither by Act nor by Notification, but by administrative practice solely; and the sale of Council Bills on India and of sterling drafts on London is regulated by announcements changeable at administrative discretion from time to time. There is nothing in law, therefore, to prevent exchange from falling indefinitely. 6. These directors are only employing on the business of the Bank the vacant moments of their time, and the spare energies of their minds.

That these loans should only be made at a very high rate of interest. The explanation is simple.

On current accounts 2 per cent is generally allowed, though the eagerness of some of the newest Banks has led them to offer 2½.

_, is worth 1/32d. There is no tendency to a monarchy in the cotton world; nor, where banking has been left free, is there any tendency to a monarchy in banking either. A board of upright and sensible merchants will always act according to what it considers ‘safe’ principles–that is, according to the received maxims of the mercantile world then and there–and in this manner the directors of the Bank of England have acted nearly uniformly.

A surfeit of gold can do at least as much damage as a shortage. .

In 1867 a specific proposal for the amalgamation of the three Presidency Banks was laid before the Government of India in a memorandum of complete grasp and mastery by Mr. This policy may not save the Bank; but if it do not, nothing will save it.

│1906. 31.

This, as need not be at length explained, is a great aid to buying, and consequently a great aid to a rise of price. In consequence, in London, no banker has a chance of being a Bank director, or would ever think of attempting to be one.

A very good manager and very good board of directors can, without unreasonable difficulty, be provided for a bank at present in London. and 15,000,000 L. Negotiations for coinage of sovereigns in India (dropt indefinitely Feb. But if they had continued to be a private partnership they need not have disclosed those losses: they might have written them off quietly out of the immense profits they could have accumulated.

Of the many millions in Lombard street, infinitely the greater proportion is held by bankers or others on short notice or on demand; that is to say, the owners could ask for it all any day they please: in a panic some of them do ask for some of it. At other times, particularly at the quarterly payment of the dividends, an absolute rule which laid down that the bankers’ balances were never to be lent, would be productive of great inconvenience. These are the chief relevant facts of law. The uses of gold coin in Great Britain are now three—as the medium of exchange for certain kinds of out–of–pocket expenditure, such as that on railway travelling, for which custom requires cash payment; for the payment of wages; and to meet a drain of specie abroad. The difficulty is this: if the Bank decline to discount, the holders of the bills previously discounted cannot pay.

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