All the directors would have felt a difficulty in commenting upon, or limiting, or in differing from, a speech of a Governor from the chair. It is by far the richest corporation in the country; its annual revenue payable in money far surpasses that of any other body or person. To illustrate how rare a thing in Europe a perfect and automatic gold standard is, let us take the most recent occasion of stringency—November 1912. In a panic they will not discount a host of new bills; they are engrossed with their own liabilities and those of their own customers, and do not care for those of others. The use of these balances was first granted them in 1862 as compensation for their being deprived of the right of note issue. The diminished use of the Clearing-house, in consequence of the panic, would intensify that panic.
This is a relic of old times.
In answer, it may be said that the duties which press on the Governor and Deputy-Governor of the Bank are not so great or so urgent as those which press upon the heads of official departments. Secondly. It was decided to pay out gold to the public as soon as the stock should exceed five millions sterling, and such payments commenced on January 12, 1900, at the currency offices in Calcutta, Madras, and Bombay.
(i. ‘to the good,’ holds that 100 L. . There is no help for us in the American system; its very essence and principle are faulty. Let us suppose that exchange between London and Calcutta were fixed at 1s. │ Sept. On the one hand the heavy coinages since 1900 are cumulative in their effect and render further coinages in the future less probable; and on the other hand an increased use (it is to be hoped) of other media of exchange will allow an urgent demand for currency to be met in other ways. Fourthly.  More than half of the deposits of the Banks as a whole are probably held on current account or at short notice. They carry from home the idea and the habit of banking, and they take to it as soon as they can in their new world. I am here speaking of bankers in the English sense, and in the sense that would surprise a foreigner. Atkinson’s method is much more satisfactory than for earlier years and, since the doubtful items are in these later years a far smaller proportion of the whole, much less likely to lead us wrong.
The Bank was helping the public, and, more or less confidently, it was believed that the Government would help the Bank. The discussion even of simple practical points by such a number of persons is a somewhat tedious affair. At one period the Bank directors even went farther: they made a distinct step in advance of the public intelligence; they adopted a particular mode of raising the rate of interest, which is far more efficient than any other mode.
In this way, therefore, any artificial reduction in the value of money causes a new augmentation of the demand for money, and thus restores that value to its natural level. The directors of the London and Westminster Bank had, in the panic of 1857, discounted millions of such bills, and they justly said that if those bills were paid they would have an amount of cash far more than sufficient for any demand.