As a rule, country bankers only keep so much barren cash as is necessary for their

The same reasons which make it desirable for a private person to keep a banker make it also desirable for every banker, as respects his reserve, to bank with another banker if he safely can. A produces what he thinks B wants, but it may be a mistake, and B may not want it. Certainly in many controversies facts far less striking have been alleged as proving it. 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. 8. 10. 0 0 7-1/4 0 0 8-3/8 No.

The largest account at the Bank of England is that of the English Government; and probably there has never been any account of which it was so easy in time of peace to calculate the course. per rupee more than Council Bills. , and then withdrew it all at once. All persons who wish to pay a large sum in cash trench of necessity on the banking reserve. When these bills are sold at a fairly high rate, the Government gain the premium over and above 1s.

Only in 1792, after nearly thirty years, it began to gain deposits, but from that time they augmented very rapidly. The direction of the Bank of England has, for many generations, been composed of such men. Too much reserve only means a small loss of profit, but too small a reserve may mean ‘ruin.

Hankey should have observed that, as has been explained, in most panics, the principal use of a ‘banking reserve’ is not to advance to bankers; the largest amount is almost always advanced to the mercantile public and to bill-brokers. 11. The one-reserve system is fixed upon us. By the conditions of his trade, the bill-broker is forced to belong to a class of ‘dependent money-dealers,’ as we may term them, that is, of dealers who do not keep their own reserve, and must, therefore, at every crisis of great difficulty revert to others. As a Bill to amend this Act has been to the front for some time, discussion has naturally centred round the question whether this opportunity should not be taken of introducing some suitable restrictions relating specifically to Banks. Each would give security, and the whole public money would be safe.

An immense new borrowing soon follows upon the new and great trade, and the rate of interest rises at once, and generally rises rapidly.

Attempts to estimate the rupee circulation of India have been the occasion of some very interesting calculations.

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