But, such as it is, it provides strong _prima facie_ grounds for doubt and dissatisfaction

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. The remedy is this: a certain number of the directors, either those who have more spare time than others, or those who are more ready to sell a large part of their time to the bank, must be formed into a real working committee, which must meet constantly, must investigate every large transaction, must be acquainted with the means and standing of every large borrower, and must be in such incessant communication with the manager that it will be impossible for him to engage in hazardous enterprises of dangerous magnitude without their knowing it and having an opportunity of forbidding it.

And the excitement of so keen an election would altogether disturb the quiet of the Bank.

│ in Hands │ of │ Hands of │ │ │ Production. This account and the return of the Bank of England, it is true, unhappily appear on different days; but except for that accident our knowledge would be perfect; and as it is, for almost all purposes what we know is reasonably sufficient. For the sake of this object the Government are content to forego the extra profit which might be gained by increasing the investments, and have steadily increased instead (as shown in the table on p. Nor, even if it were possible really to supervise a business by the effectual and constant inspection of fifteen or sixteen rich and capable persons, would even the largest business easily bear the expense of such a supervision. My second point affects the kinship of Indian arrangements to those lately developed in other parts of the world. The Government are naturally afraid of so troublesome a proposal—and one so far removed from what they are used to; while there is no important body which is sufficiently interested in forcing it on their attention. The money therefore taken from the Bank of England could not be soon returned to the Bank; it would not come back on the evening of the day on which it was taken out, or for many days; it would be distributed through the length and breadth of the country, wherever there were bankers, wherever there was trade, wherever there were liabilities, wherever there was terror.

There, as in India, the Government, with immense currency reserves of gold, is normally aloof from the money market. Dickson, celebrated (in his own time) for pre–eminent ability as Secretary and Treasurer of the Bank of Bengal. A tendency was noticed for the returns of one year to resemble those of the previous year more closely than they should, and not infrequently a batch of coins would be attributed to a year in which it is known that none were minted.

Some of the conclusions of this chapter may be summarised. The duration of the bill varies with the custom of the trade; it may be two, three months, or six weeks, but there is always a bill.

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