And a tardy disclosure even of an admirable constitution would not much help the surviving banks:

If contrary to expectation a collapse occurred, the Government might withdraw, as the American Government actually has withdrawn, its balance from the bankers. The much criticised practice, for example, of holding six crores of coined rupees in the Gold Standard Reserve is probably due to the provision by which that portion of the Currency Reserve, which is held in London, can be held only in gold. it is certainly more profitable to get gold bullion in London, and when they are at 1s. To obtain these deposits the Bank had offered interest at the rate of 6 per cent for deposits placed with it for a year; and many persons, it seems, were deceived by its title into believing that it was in some sense a Presidency Bank. But this idea has no present relation to the constitution of the Bank of England. ” But on more than one occasion the Banks made difficulties when the Government desired to withdraw large sums at short notice. 3rdly. On September 1, 1907, they seem to have been, approximately, as follows:— _Gold_— Currency Reserve in India £4,100,000 Currency Reserve in London 6,200,000 ——————————– £10,300,000 ═══════════ _Money at Short Notice_— Gold Standard Reserve in London £50,000 Cash Balances in London 5,150,000 ——————————– £5,200,000 ═══════════ _Sterling Securities_— In Currency Reserve £1,300,000(a) In Gold Standard Reserve 14,100,000(a) ——————————– £15,400,000 ═══════════ _Aggregate Sterling Reserves_— Gold £10,300,000 Money at Short Notice 5,200,000 Securities 15,400,000 ——————————– £30,900,000 ═══════════ (a) Book value. But the word ‘restriction’ was quite right, and was the only proper word as a description of, the policy of 1797.

All countries, since the practice has been generally adopted of employing a medium of exchange composed of some cheaper material than the standard of value, must keep a monetary reserve. If there is a run in London, liquid assets must be available there equal to (iii.

But even if this were not so, even if the banks were willing to keep their deposits at the Bank while it was not lending, they would soon find that they could not do it. Gillan) and for 1911–12 (written by Mr. And foreign payments are sometimes very large, and often very sudden. They accordingly accumulated a large deposit at the Bank to the amount of 3,000,000 L. I may be asked, ‘What does all this reasoning in practice come to? At the present moment how much reserve do you say the Bank of England should keep? state your recommendation clearly (I know it will be said) if you wish to have it attended to. Business is really a profession often requiring for its practice quite as much knowledge, and quite as much skill, as law and medicine; and requiring also the possession of money.

All sudden trades come to England, and in so doing often disappoint both rational probability and the predictions of philosophers.

Laisser un commentaire

Votre adresse e-mail ne sera pas publiée. Les champs obligatoires sont indiqués avec *