To transact these two classes of business—though once established they have not limited their transactions to them—a class of Banks has arisen known as the Exchange Banks. 4d.
As was natural, the effects–good and evil–of its constitution are to be seen in every part of the Bank’s history. is all which is really held in actual cash as against the liabilities of the depositing banks. Until 1910 the absorption of sovereigns was not sufficient to restore them to a position of any importance as currency.
Nor is it necessary to accumulate reserves in advance for every eventuality. │ ├─────────────┼───────────────┼──────────────┼───────────────┤ │ 1906 │ £3,209,000 │ £993,000 │ £4,202,000 │ │ 1907 │ 1,289,000 │ 503,000 │ 1,792,000 │ │ 1908 │ 6,457,000 │ 1,234,000 │ 7,691,000 │ │ 1909 │ 6,000,000 │ 3,369,000 │ 9,369,000 │ │ 1910 │ 8,114,000 │ 4,205,000 │ 12,309,000 │ │ 1911 │ 7,114,000 │ 1,439,000 │ 8,553,000 │ │ 1912 │. But on the other hand, there are many men not of much wealth who are trusted in the market, ‘as a matter of business,’ for sums much exceeding the wealth of those who are many times richer. , invested in one way or another, leaving only 2,000,000 L. In consequence, there is a larger balance to be paid in bullion; the store in the bank or banks keeping the reserve is diminished, and the rate of interest must be raised by them to stay the efflux.
In each crisis the set of the storm would be determined by the cause which had excited it, but there would not be anything in the nature of bill-broking to attract the advance of the alarm peculiarly to them. And the profits of bill-broking are proportionably raised. The _variable_ elements in India’s international balance–sheet are chiefly (i. I think I am right in saying that Egypt is now the only country in the world in which actual gold coins are the principal medium of exchange. 3–29/32d.
After a generation or two they retire into idle luxury.
The Government (apart from their deposits in the Presidency Banks, which will be dealt with later on) have no choice between allowing the funds which accumulate in their hands to lie absolutely idle in India and transferring them to London to earn a low rate of interest there. 10 and 50 universal legal tender, and directing the issue of notes in exchange for British gold coins. The holders of the cash reserve must be ready not only to keep it for their own liabilities, but to advance it most freely for the liabilities of others. If the wants of the German Government be urgent, and if the amount of gold ‘arrivals,’ that is, the gold coming here from the mining countries, be but small, that gold will be taken from the Bank of England, for there is no other large store in the country. ) the Indian Joint Stock Banks; and (iv. At this moment, in colonies and all rude countries, there is no large sum of transferable money; there is no fund from which you can borrow, and out of which you can make immense works.