But though the value of money is not settled in an exceptional way, there is nevertheless a peculiarity about it, as there is about many articles. “In the Punjab it is reported (in 1911–12) that large payments for agricultural produce are never made in notes, and that gold is replacing notes to some extent even in ordinary payments among merchants and traders. They renewed India Bills (which were eventually paid off in December 1912) when they could have very well afforded to discharge them. There is no tendency to a monarchy in the cotton world; nor, where banking has been left free, is there any tendency to a monarchy in banking either. This assumption seems to me to be unwarranted and contrary to general experience. The rate ordinarily charged for fine bills of two or three months’ currency may be either higher or lower than the published minimum Bank Rate. In fact, some recent complaints against the existing currency policy have been occasioned by the tendency of prices to rise; whereas it is plain that the great change of 1893 must have tended to make them fall, and that rupee prices would, in all probability, be higher than they now are, if the change had not been effected. . Money is not so efficient in buying as it was, and therefore operators require more money for the same dealings.
We may augment the pay enough to get a good man, without fearing that by such pay we may tempt–as by social privilege we should tempt–exactly the sort of man we do not want. ) the European Exchange Banks; (iii. Weguelin, the last Bank Governor who has been examined, said that it was sufficient for the Bank to keep from one-fourth to one-third of its banking liabilities as a reserve. His words are too vague. And then the plain problem before the great dealers comes to be ‘How shall we best protect ourselves? No doubt the immediate advance to these second-class dealers is annoying, but may not the refusal of it even be dangerous? A panic grows by what it feeds on; if it devours these second-class men, shall we, the first class, be safe?’ A panic, in a word, is a species of neuralgia, and according to the rules of science you must not starve it. At present the possible fluctuation of exchange between what may fairly be termed the “gold points” on either side of 1s. Secondly. A person who has made savings does not know what to do with them. │ ├──────┼──────────────────–┼────────────–┼──────────–┤ │ 1890 │ £16,650,000 │ £11,310,000 │ 68(a) │ │ 1895 │ 19,430,000 │ 7,570,000 │ 39 │ │ 1900 │ 20,970,000 │ 5,750,000 │ 23 │ │ 1905 │ 34,230,000 │ 9,150,000 │ 27 │ │ 1906 │ 38,100,000 │ 11,700,000 │ 31 │ │ 1907 │ 40,880,000 │ 11,350,000 │ 28 │ │ 1908 │ 42,920,000 │ 11,050,000 │ 26 │ │ 1909 │ 48,930,000 │ 12,430,000 │ 25 │ │ 1910 │ 54,870,000 │ 12,340,000 │ 22 │ └──────┴──────────────────–┴────────────–┴──────────–┘ (a) An exceptional year.