These are general truths as to all banks, and they have a very particular application to

At every period of incipient panic the holders of it would perceive that it was of great importance to themselves to support these dependent dealers.

The system still wants elasticity. Gillan again) “of the extent to which sovereigns have established themselves as a regular part of the currency, is to be found in the figures of receipts at Post Offices and Railways.

) + (xi.

4d. and all this would be changed. Peel thought the foundation of joint stock banks so dangerous that he subjected it to grave and exceptional difficulty. Brunyate’s _Account_. But the aggregate of deposits outside India is as nearly as possible useless. The figures given above refer to December 31, which falls in the busy season; and the proportion of cash held affords no ground of complaint.

They might be called on to return what they had borrowed in England, and unable at short notice to bring back what they had lent in India. When we come to consider how this can best be done, it is to be noticed that the position of a country which is preponderantly a creditor in the international short–loan market is quite different from that of a country which is preponderantly a debtor. But in fact the particular interest of single directors is not to be regarded; almost all directors who bring special information labour under a suspicion of interest; they can only have acquired that information in present business, and such business may very possibly be affected for good or evil by the policy of the Bank. It may be lessened; the bill-brokers may, and should, discourage as much as they can the deposit of money with them on demand, and encourage the deposit of it at distant fixed dates or long notice. If, on the other hand, it is intended to act as a banking reserve and to ensure India’s ability to meet her international obligations at all times, then its upper limit is set by the probable maximum amount of the adverse balance which could arise against India for immediate payment. d. on _Paper Currency_ and on the _Present Position of Gold in India and Proposals for a Gold Currency_; and the third in Chapter VI. One of his first duties is to form a hierarchy of inferior officers, whose respective duties are defined, and to see that they can perform and do perform those duties. And bankers are in even greater terror. This question will be more fully dealt with in Chapter VIII. What is necessary to meet their acceptances they will borrow, pay for it what they may; they had better pay any price than permit those acceptances to be dishonoured. But if the size of the banks is augmented and greater ability is required, the constant difficulty of an hereditary government will begin to be felt. │. │ Balances. The effect of this cheapness is great in every department of industry. After the suspension of cash payments in 1797, the directors of the Bank of England could issue what notes they liked. The rise in prices must, therefore, be due to an increased demand, and the first question is, to what is that demand due? ‘We believe it to be due to the combined operation of three causes cheap money, cheap corn, and improved credit.

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