And in exceptional times it may be some protection to the sterling reserves if council bills

Among private people they are the principal depositors in the Bank; they are therefore particularly interested in its stability; they are especially interested in the maintenance of a good banking reserve, for their own credit and the safety of their large deposits depend on it. The public have a right to know whether the Bank of England–the holders of our ultimate bank reserve–acknowledge this duty, and are ready to perform it. Individuals were not permitted, therefore, to take out more than £10,000 at a time; and in this manner the gold dribbled slowly away over a period of a few months. No advances indeed need be made by which the Bank will ultimately lose. It will be asked, what more can be required? I reply, a great deal. │ R. It will lie idle in the banks, as we have often seen it. A man of large wealth, however intelligent, always thinks, more or less ‘I have a great income, and I want to keep it. It might even be necessary for him to remit gold backwards and forwards himself, thus bearing the whole expense of which the Exchange Banks were being relieved. of │ Capital, Reserve, │ Deposits. They are treated as unfunded debt and used for capital expenditure. The second is for the Government or Central Bank to hold resources available abroad, which can be used for maintaining the gold parity of the local currency, when there is the need for it. . And a tardy disclosure even of an admirable constitution would not much help the surviving banks: as it was extracted by necessity, it would be received with suspicion. In its first period, as I have shown, the Bank gave credit to the Government, but afterwards it derived credit from the Government. The Bank’s capital was £117,500, and by 1911, when it failed, deposits had been attracted to the extent of £792,701, a large part of which is said to have come from Bombay and Calcutta. And in the second place, the Secretary of State’s method of selling exchange results in his dealing exclusively with the Exchange Banks and financial houses, and not directly with the trading public.

, though their advances to bankers, whether London or country, were only 8,000,000 L. The evident consequence is that this part of the bankers’ balances is at the mercy of the German Government when it chooses to apply for it. I do not think, however, that the authorities are in fact open to any serious blame up to the present time. And he would have a peculiar power of guidance at such moments from the nature of the men with whom he has most to deal. But just at that time the business of most merchants must be unusually occupying and may be exceedingly critical. But almost always the delay in creating a stringency only makes a greater stringency inevitable. and deposits 8,000,000 L. Applications for assistance were made to the Government, but though it was well known that the Government refused to act, there was not, as far as I know, until lately any authentic narrative of the real facts. 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.

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