Not possessing the accumulated credit of years, it would have to wind up before it attained

And in the second place, the Secretary of State’s method of selling exchange results in his dealing exclusively with the Exchange Banks and financial houses, and not directly with the trading public. Bank stock will be bought in order to confer the qualification of voting at the election of the ‘chief of the City.

, had ever expected to have to rely on that security, or had ever given much real attention to it. The Governor and the Directors of the Bank of England had been asked by Sir George Lewis severally to give their opinions on the Act of 1844, and all their replies were published. He removed the preservative apprehension which is the best security of all Banks. In Germany the policy of 1876 has been deliberately reversed by a recent revision of the Bank Act, and 20–mark notes are now issued with the deliberate object of keeping as much gold as possible in the bank and wasting as little as possible in circulation. We print at the end of this article the respective profits of 110 banks in England, and Scotland, and Ireland, being all in those countries of which we have sufficient information–the Bank of England excepted. Alfred de Rothschild went so far as to say that “in fact a gold standard without a gold currency seemed to him an utter impossibility. It is absurd for a man with a large balance at his bank to default to his creditors, because a feeling of jealousy, in regard to any one in whose favour he draws a cheque, prevents him from ever drawing one. │ Minimum. As soon, therefore, as the withdrawal of the German money reduces the bankers’ balances, there is a new demand on the Bank for fresh discounts to make up those balances. But I think the time has practically arrived when the whole of the liquid portion of the Paper Currency Reserve is not required, in addition to the Gold Standard Reserve proper, for this purpose. ‘ To our modern ears these words seem to mean more than they did. Inevitably it became the bank in London; all the other bankers grouped themselves round it, and lodged their reserve with it. The mercantile community could not on a sudden bear to lose so large a sum of borrowed money; they have been used to rely on it, and they could not carry on their business without it. Often enough the debenture, or the certificate, or the bond is in the custody of the banker, and he is expected to see when the coupon is due, and to cut it off and transmit it for payment. What then are these extra demands? and how is this extra reserve to be used? Speaking broadly, these extra demands are of two kinds–one from abroad to meet foreign payments requisite to pay large and unusual foreign debts, and the other from at home to meet sudden apprehension or panic arising in any manner, rational or irrational. “At the same time the receipt of notes of the higher denominations in circles other than the circle of issue, in payment of Government dues and in payments to railways, post and telegraph offices, was stopped by executive orders”; and “with a view to minimise any tendency to make use of the new universal notes for remittance purposes, it was decided concurrently with the new Act to offer facilities to bankers and merchants to make trade remittances between the currency centres by means of telegraphic orders granted by Government at a reduced rate of premium.

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