‘it is interesting to compare the facts of joint stock banking with the fears of it

Once established, their activities are not limited. The main variable element in the reserves of the Presidency Banks is the notes, and these are duly allowed for in the above table. But this case is different: the Governor acted on a wrong system; he took upon himself an unnecessary responsibility:’ and so a Governor who incurred disaster by disregarding his skilled counsellor would be thought a fool in the City for ever. . And that instant payment, in the years I speak of, the Bank of England certainly could not have made.

│ │1900│ 8 │ 3 │1907│ 9 │ 3 │ │1901│ 8 │ 3 │1908│ 9 │ 3 │ │1902│ 8 │ 3 │1909│ 8 │ 3 │ │1903│ 8 │ 3 │1910│ 6 │ 3 │ │1904│ 7 │ 3 │1911│ 8 │ 3 │ │1905│ 7 │ 3 │1912│ 8 │ 3 │ │1906│ 9 │ 3 │1913│ 8 │ │ └────┴────────────┴────────────┴────┴────────────┴────────────┘ From this table and the chart it is safe to make the generalisation that the Indian Rate may be expected to reach 8 per cent in the winter or early spring, and to fall to 3 per cent in summer. There should be a clear understanding between the Bank and the public that, since the Bank hold out ultimate banking reserve, they will recognise and act on the obligations which this implies; that they will replenish it in times of foreign demand as fully, and Lend it in times of internal panic as freely and readily, as plain principles of banking require. It may be said to correspond, therefore, to the London rate for some comparatively short period—say for fortnightly loans.

rate in│ │ │ February. A busy season will soon come when the Government might lend some part of its reserves in India without endangering in the least the stability of its system and to the great advantage of Indian trade. The question of the amount of the London assets of the Banks does not lend itself to statistical summary. In an article contributed to the _Contemporary Review_ of 1887, Dr.

But it is not by any means so certain that an attempt at the present time to put a 10–rupee gold coin into circulation would not meet with more success. 1907. . In 1870[81] the public deposits at £3,600,000 fell not far short of the total private deposits and exceeded by 50 per cent the capital and reserve of the Banks; in 1880 they were £1,900,000, and were about one–third of the private deposits; in 1890 the figures were £2,400,000, equal to about a quarter of the private deposits; in 1900, £1,900,000, equal to less than a quarter; in 1912 the Government deposits at £2,500,000 were not much more than a tenth of the private deposits. “This change,” he said, “will pass unnoticed, except by the intelligent few, and it is satisfactory to find that by this almost imperceptible process the Indian currency will be placed on a footing which Ricardo and other great authorities have advocated as the best of all currency systems, viz.

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