, at which figure it has remained without sensible variation ever since

It is clear that a remedy can be sought in one or other of two ways only. We will not help you again. This is in spite of the fact that most of the above, especially in the last decade, have proved enormously successful from the point of view of their shareholders. ‘ This is the history of all great monarchies, and it may be the history of great private banks. Out of seven existing in 1870, only two now survive,—the Bank of Upper India (1863) and the Allahabad Bank (1865). │ │circulation. But in other countries currency evolution has been, chiefly, along different lines. As matters now are, there is something to be said for a new Act, which, while leaving administrative discretion free where there is still good ground for this, might consolidate and clarify the position.

Lord Farrer described it as “far too clever for the ordinary English mind with its ineradicable prejudice for an immediately tangible gold backing to all currencies. Weguelin, the last Bank Governor who has been examined, said that it was sufficient for the Bank to keep from one-fourth to one-third of its banking liabilities as a reserve. Goschen observes, in his book on the Exchanges: ‘Between the rates in London and Paris, the expense of sending gold to and fro having been reduced to a minimum between the two cities, the difference can never be very great; but it must not be forgotten that, the interest being taken at a percentage calculated per annum, and the probable profit having, when an operation in three-month bills is contemplated, to be divided by four, whereas the percentage of expense has to be wholly borne by the one transaction, a very slight expense becomes a great impediment. 58 annas 5 per ounce[44] (payable in silver or notes or sterling drafts on London or in sovereigns, on the present system, if they were available). Every merchant, in consequence of this regulation, was obliged to keep an account with the bank in order to pay his foreign bills of exchange, which necessarily occasioned a certain demand for bank money.

It may happen, of course, that a particular bank may have a special urgency for funds in India, or that the rate for fortnightly loans does not closely agree with the bank rate. But while the stabilisation of the gold value of the rupee has done much for the Indian Money Market, and has rendered a 12 per cent Bank Rate most improbable except at a time of wide–spread crisis and panic, it does not prevent an 8 per cent or even a 9 per cent Bank Rate from being a comparatively common occurrence. ‘Do you not then conceive yourselves to depend in a great measure for the quantity of business which you can perform on the favour of the party lending the money?–Yes, very much so. Three generations earlier, a man who had accumulated wealth in a profession generally purchased real property, or lent his savings on mortgage. And for many years afterwards the existence of that debt was a main reason why the industrial classes never would think of recalling the Pretender, or of upsetting the revolution settlement.

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