Thus, to take a round figure, the crisis found the secretary of state with about £31,000,000

A merchant employing solely or principally his own capital has often a great deal of leisure. And we cannot expect that they should. The question, as soon as one attempts to frame practical suggestions, bristles with difficulties. It has been said, with exaggeration, but not without a basis of truth, that if the Bank directors were to sit for four hours, there would be ‘a panic solely from that. . Apart from the cash, money at call, and investments, which every Bank must hold, a certain part of these funds are employed in making loans either in India or elsewhere. Circumstances may change and may make it less or more, but according to the most careful estimate I can make, that is what I should call it now.

We also consider that, at the same time, the Indian mints should be thrown open to the unrestricted coinage of gold on terms and conditions such as govern the three Australian branches of the Royal Mint. And the able ones among them acquire an almost magical rapidity in effecting the business connected with that routine. Hankey should have observed that we know by the published figures that the joint stock banks of London do not keep one-third, or anything like one-third, of their liabilities in ‘cash’ even meaning by ‘cash’ a deposit at the Bank of England. │ d. And a still worse argument is also used.

). I have tried to show that it is also closely related to the prevailing tendencies in Europe. Under this shifting chief executive, there are indeed very valuable heads of departments.

For Exchange Banks of both groups—the Banks primarily Indian and the agencies of huge European institutions doing business in many parts of the world—are lumped together, so that the total includes the whole of the French deposits of the Comptoir National d’Escompte and of the deposits, in whatever country, of the other Banks with Indian agencies enumerated on p.

This will operate as a heavy fine on unreasonable timidity, and will prevent the greatest number of applications by persons who do not require it.

It is very difficult to estimate the extent to which rupees may have emerged from hoards during the period which succeeded the closing of the Mints. And I believe that the Government would act advisedly if, as a general rule, 5 or 5½ per cent were the highest rate they ever chose to exact from the Banks. ‘We lent it,’ said Mr. And at such instant the recovery of money is as hard for the Bank of England as for any one else, probably even harder. Such an event would have something like the effect of the failure of Overend, Gurney and Co. There was also an old notion that the secrets of the Bank would be divulged if they were imparted to bankers. We also consider that, at the same time, the Indian mints should be thrown open to the unrestricted coinage of gold on terms and conditions such as govern the three Australian branches of the Royal Mint. ) It leads also to a want of elasticity in the system, since in modern conditions this elasticity is most commonly provided by exactly that co–operation between banking and note issue which is lacking in India.

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