But I have written in vain if I require to say now that the problem is delicate, that the solution is varying and difficult, and that the result is inestimable to us all. But the house of Rothschild is represented on the Bank direction.
There are a few well-known exceptions, but according to universal belief the deposits of most private bankers in London tend rather to diminish than to increase. The rates, announced by the three Presidency Banks, are not always identical, but seldom, if ever, differ by more than 1 per cent. On the contrary, the evident and intended implication is that under like circumstances the Bank would act again as it has now acted.  From the gross figures of gold imports into India in 1912 even heavier deductions than usual must be made, therefore, before we have an indication of the extent to which additional sovereigns have really found their way into the currency. If you hold (as in Lombard Street some persons do) millions of other people’s money at interest, arithmetic teaches that you will soon be ruined if you make nothing of it even if the interest you pay is not high. (b) Estimate.
The ball, if we may so say, was set rolling in 1869 and 1870, and a great increase of demand was then created in certain trades and propagated through all trades.
By the conditions of his trade, the bill-broker is forced to belong to a class of ‘dependent money-dealers,’ as we may term them, that is, of dealers who do not keep their own reserve, and must, therefore, at every crisis of great difficulty revert to others. ) they may not borrow, or receive deposits payable, outside India, or maintain a foreign branch or agency for this or similar purposes, and they are thus prevented from raising funds in London for use in India; (iii. As Sir G. In July the cash reserves of the Bank of Bengal might stand, as things now are, at, let us suppose, about 1000 lakhs and its discount rate at 3 per cent. But in this case the trade will not have remained stationary; it will have increased–certainly to some extent, probably to a great extent.
And this can only be effected by advancing on all good Banking securities. Who can define or class the confidential communications of such persons under such circumstances? As I observed before, the line drawn at present against bankers is very technical and exclusively English. ) Trade Bills on │ London negotiated │ (xiii.
A person who loves concise expressions said lately that Overends broke the Bank in 1866 because it went, and in 1857 because it was not let go. 11. ; and so intense was the alarm, that the executive Government issued a letter of licence, permitting the Bank, if necessary, to break the new law, and, if necessary, to borrow from the currency reserve, which was full, in aid of the banking reserve, which was empty. The Bank agrees, in fact, if not in name, to make limited advances on proper security to anyone who applies for it. The pay should be high, for good ability is wanted–but no pay would attract the most dangerous class of people.