Every great crisis reveals the excessive speculations of many houses which no one before suspected, and which commonly indeed had not begun or had not carried very far those speculations, till they were tempted by the daily rise of price and the surrounding fever. But all of them could be brought about more cheaply without the establishment of a Bombay Mint.
If it were practicable for the Bank to retain money unemployed to meet such an emergency, it would be a very unwise thing to do so. The holders of the Bank reserve ought to lend at once and most freely in an incipient panic, because they fear destruction in the panic.
If, on the other hand, the notes had been made universal legal tender, but only encashable at Presidency towns, there would undoubtedly have been a premium on coin at certain times of the year. The question of what determines the relative advantages of these methods has been discussed in Chapter V.
Hankey says that the two ought to be managed on the same principle; but if so, he should have said whether he would assimilate the practice of the Bank of England to that of the other banks, or that of the other banks to the practice of the Bank of England. 17.
But to get a great number of persons to do exactly the same thing is always very difficult, and nothing but a very palpable necessity will make them on a sudden begin to do it.
_, _excess_ of gross over active circulation. . ‘ No such has been founded in London, or, as far as I know, in the country, for many years. ‘The importance of these declarations by the Bank is greater, because after the panic of 1857 the bank did not hold exactly the same language. It was the owner of many debts from England. The public is never sure what policy will be adopted at the most important moment: it is not sure what amount of advance will be made, or on what security it will be made. For the first forty years of their existence the Government notes, though always of growing importance, took a very minor place in the currency system of the country. The Duke was then on a mission at St.
The calling is hereditary; the credit of the bank descends from father to son: this inherited wealth soon begins inherited refinement. │ Gross. , and that the private deposits were only 17,127,000 L. And in this subject, fortunately, there is a most conspicuous case near at hand.
Paragraph 54 of their Report runs as follows:— We are in favour of making the British sovereign a legal tender and a current coin in India. However the article had at least this use, that it brought out the facts. No one can draw a cheque on it and be sure of getting gold or silver for that cheque. Nor is this the only changeable element in modern industrial societies.
The Gold–Exchange Standard is the only possible means of bringing China on to a gold basis, and the alternative policy (the policy of our own Foreign Office) is to be content at first with a standard, as well as a currency, of silver. Accordingly, Bank directors, when first chosen by the board, are always young men.