The foreign drain empties the bank till, and that emptiness, and the resulting rise in the

) in India (or Government sterling drafts if trade were depressed), without having to buy Council Bills in London, and these trade bills could then be rediscounted in London. A certain part of his time, and a considerable part of his thoughts, he can readily devote to other pursuits. Indian bankers and merchants can only get at these rupees, so as to obtain a net addition to the currency, by buying sovereigns or Council Bills in London. On November 6 the Secretary of State could only manage to sell even 30 lakhs of rupees by allowing the rate to drop to the minimum figure of 1s. Steady merchants collected in council are an admirable judge of bills and securities. These savings are first lodged in the local banks, are by them sent to London, and are deposited with London bankers, or with the bill brokers. have been very rare. , quite independent of the effective desire of India for gold, and occur merely because gold happens in some circumstances to be a cheaper means of remittance to India than Council Bills or any other method. I am therefore afraid that we must abandon the plan of improving the government of the Bank of England by the appointment of a permanent Governor, because we should not be sure of choosing a good governor, and should indeed run a great risk, for the most part, of choosing a bad one. Further inquiry, however, soon convinced me that they had not the power. │ 128 │ 127 │ 169 │ │ 1896 │. [95] 8. In Austria–Hungary, for example, after the currency reform of 1892, attempts were made to force gold into circulation just as they were in India. [69] 22. A General View of Lombard Street. In other words, in a saving and uninvesting period of the national industry, we accumulate gold, and augment the efficiency of our gold. Control from the India Office is always looked on, from an instinct often founded on wisdom, with jealousy and with suspicion; but in questions of currency they are likely, as things now are, to have the wider knowledge and experience. But I do not think that there is the least reason for supposing that the position is not a strong one. But the word ‘restriction’ was quite right, and was the only proper word as a description of, the policy of 1797. If the Money Market is not a lender in the international market, the Bank itself must be at pains to become to some extent one. had failed, we were in as sound and healthy a position as any banking establishment could hold, and on that day and throughout the succeeding week we made advances which would hardly be credited. It is not profitable to discuss the reserve policy of the Paper Currency under existing conditions in isolation from the other reserves which the Government now hold. And if the public and the shareholder knew that there was such a committee, they would have sufficient reasons for the confidence which now is given without such reasons. with 50 L. The loan by such banker is a re-discount of the bill; that banker cannot obtain repayment of that loan, except by the payment of the bill at maturity.

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