These measures were sufficient during the severe crisis of 1908

without limit of quantity, and since that time he has usually been willing to do so.

, namely, that a temporary premium of ¾ per cent on gold in those European countries where gold is not always freely obtainable, is as effective as a very great increase in the Bank Rate in preventing the remittance of funds abroad and even in attracting an inward flow of funds. By withholding new issues of currency, the Government had succeeded by 1899 in raising the gold value of the rupee to 1s. In India we know the extreme limits of fluctuation in the exchange value of the rupee; we know the precise volume of reserves which the Government holds in gold and in credits abroad; and we know at what moment the Government will step in and utilise these resources for the support of the rupee. In 1844 the liabilities of the four great London Joint Stock Banks were 10,637,000 L.

The Government of India’s silver policy during the early part of 1907 left them, therefore, in a somewhat worse position to meet the crisis which came at the end of the year, than need have been the case. These are general truths as to all banks, and they have a very particular application to the Bank of England. Where the personal security of the borrower is obviously good, there must be a temptation to allow him to value the goods generously, rather than to put the Bank to the inconvenience of housing or watching a greater bulk of merchandise. = Notes. 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. more than usual, it causes a proportionate increase of trade and increase of prices.

New people coming into Lombard Street judge by results; they give to those who have: they take their money to the biggest bank because it is the biggest. The currency notes[22] are in the form of promissory notes of the Government of India payable to the bearer on demand, and are of the denominations Rs.

There was a Copper Company, which proposed to explore the mines of England, and held out a hope that they would prove not less valuable than those of Potosi. Germany, accordingly, when she instituted her gold standard, prohibited the issue of notes of a less denomination than 100 marks, in order that gold might actually circulate from hand to hand to a maximum possible amount. Commerce is curiously conservative in its homes, unless it is imperiously obliged to migrate. His words are too vague. Such a reserve as we have seen is kept to meet sudden and unexpected demands. The increase in Mr. The policy pursued during 1912 of holding large cash balances in London and of lending them out in the London Market provoked widespread criticism both in India and at home. │ │ ├────────────┬────────────┤ ├────────────┬────────────┤ │ │Max.

There is no other large store in the country.

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