Stability has been attained already, or is about to be. And nothing can more surely aggravate the panic than to forbid the Bank of England to lend that money. I know, for example, a very conservative Brahmin family, small landowners in Eastern Bengal, where this is the case. They luckily failed. India has taken her coinage in great gulps, and it need not have been difficult to see that the demand of 1905–7 was one of these.
But this is most unlikely to be the case. ‘But the main source of the profitableness of established banking is the smallness of the requisite capital. This Act was completely successful in stopping attempts to economise gold by the use of notes. In the mean time it is very important that large private banks should be well managed. In the case of Nepal, for example, the recorded statistics show a considerable net balance of imports of treasure _into_ India; and in the case of Tibet, Afghanistan and, in fact, all the land frontiers, the official statistics of the export of treasure do not tally with what we know of the circulation of the rupee beyond the frontiers. the rupee throughout):— £ million. All the usual tests indicate that–the state of the Revenue, the Bankers’ Clearing-house figures, the returns of exports and imports are all plain, and all speak the same language. First, the London bankers should not be altogether excluded from the court of directors. . Up to 1844 London private bankers might have issued notes if they pleased, but almost a hundred years ago they were forced out of the field. It is not worth while to discuss here in detail the precise methods which it would be proper for the Government to adopt in lending out funds in India either from the Cash Balances or from the Paper Currency Reserve.
 During the long period for which this policy has been pursued, it has been severely tried more than once, but has stood the test successfully. 3rdly. In his, Mr.
Any foreign state hereafter which wants cash will be likely to come here for it; so long as the Bank of France should continue not to pay in specie, a foreign state which wants it must of necessity come to London for it. While, however, the note issue has managed to evolve an important function for itself, I think the time has come when the usefulness of the Currency Reserve may be much increased by a deliberate consideration of the place it might fill in the organism of the Indian Money Market.
Considerable sums would no doubt be drawn from them, but there would be no special reason why money should be demanded from them more than from any other money dealers. 6. A very large sum of foreign money is on various accounts and for various purposes held here. In 1836 “a large body of merchants interested in the East Indies” submitted to the Court of Directors of the East India Company a project for a “great Banking Establishment for British India. 3–29/32d.
Most of them would not know how to carry through a great ‘Exchange operation,’ or to ‘bring home the returns.