Harrison, when he was comptroller of currency, to apply the jevonian method very fully; and he

The principles which underlie the preceding analysis may be illustrated by reference to a hypothetical balance sheet, simplified, but less simplified than those commonly published.

English trade is carried on upon borrowed capital to an extent of which few foreigners have an idea, and none of our ancestors could have conceived. They were so incorporated, and the 1,200,000 L. If the demand is large and the minimum rate of allotment high (say 1s. The rates, announced by the three Presidency Banks, are not always identical, but seldom, if ever, differ by more than 1 per cent.



CHAPTER III. But the mass of English country bankers only give bills on places in England or on London, and in London the principal remittance business has escaped out of the hands of the bankers. The permanent Governor ought to give his whole time to the business of the Bank. 6619] from which I have just quoted. ) = £m1½, may be regarded perhaps as equally available in either centre. These two variable causes are causes of real prosperity. ‘ In order to induce the subscribers to advance the money promptly on terms so unfavourable to the public, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of England. But if this were to happen, it would have no consequences worth thinking about. When Overends failed, as I have said before, they had borrowed in this way very largely. The ultimate solution probably lies in the establishment of a Central Bank for India which shall be the Government Bank and shall hold the banking and currency reserves at the same time. On every sovereign thus drawn out, the Government loses about 1½d.

Even now apologists of the Reichsbank will sometimes speak as if its bank rate were efficacious by itself in the same manner as the Bank of England’s.

In other words, all merchants are dependent on borrowing money, and large merchants are dependent on borrowing much money. The Government of India’s silver policy during the early part of 1907 left them, therefore, in a somewhat worse position to meet the crisis which came at the end of the year, than need have been the case. 2 on Exchequer bills, he, for the most part, cannot pay No. Unless you can stop the foreign export, you cannot allay the domestic alarm.

After a generation or two they retire into idle luxury. Times without number the public have been alarmed mainly because they saw that the Banking reserve was already low, and that it was daily getting lower. │ in India.

Nor is this the only difficulty.

In order to find such great sums, the Bank of England requires the steady use of an effectual instrument.

) might very possibly do something to popularise the use of gold as currency, largely because it would be of a smaller and therefore more convenient denomination. And the method proposed above is, I believe, the right way in which to approach the problem’s solution. In a great panic, Consols cannot be sold unless the Bank of England will advance to the buyer, and no buyer can obtain advances on Consols at such a time unless the Bank of England will lend to him.

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