Mr. Among private people they are the principal depositors in the Bank; they are therefore particularly interested in its stability; they are especially interested in the maintenance of a good banking reserve, for their own credit and the safety of their large deposits depend on it. Thus he will endeavour to make as certain as possible of selling within the year the amount budgeted for (_i. But in itself it is extravagant. │ ├───────────────–┼────–┼────–┼────–┼────–┼────–┼────–┼────–┼────–┼────–┤ │ │ £m. payable on demand, and pay it back in cheques of 5 L. Such a state, therefore, by reforming its coin, will not always be able to reform its currency. Hardly any capital is enough to employ the principal partner’s time, and if such a man is very busy, it is a sign of something wrong.  More than half of the deposits of the Banks as a whole are probably held on current account or at short notice. But they seldom can get them discounted very much cheaper, for if they did everyone would leave the Bank, and the outer market would have more bills than it could bear. There never was so much borrowed money collected in the world as is now collected in London. In modern English business, owing to the certainty of obtaining loans on discount of bills or otherwise at a moderate rate of interest, there is a steady bounty on trading with borrowed capital, and a constant discouragement to confine yourself solely or mainly to your own capital. ‘ In 1825 there were speculations in companies nearly as wild, and just before 1866 there were some of a like nature, though not equally extravagant. In both cases, the capital is wanted to assure the public and to induce it to trust the concern.
 5. Should this currency, therefore, be at any time worn, clipt, or otherwise degraded below its standard value, the state by a reformation of its coin can effectually re-establish its currency. There have been occasions of movements by 2 per cent, but not recently. A bank with a monopoly of note issue has great sudden power in the Money Market, but no permanent power: it can affect the rate of discount at any particular moment, but it cannot affect the average rate. This did not happen in former panics, because the case we are considering never arose. And at the rate of interest so raised, the holders–one or more-of the final Bank reserve must lend freely.
For the expedient of a loan is always available. But the Gold Standard Reserve, although about £1,000,000 worth of Consols was sold out in order to be ready for use in a more liquid form, was kept so far intact.
The second reserve is the Paper Currency Reserve held against the note issue. │1905. (3) As a matter of administrative practice, the Government is, as a rule, willing to give sovereigns for rupees at this rate; but the practice is sometimes suspended and large quantities of gold cannot always be obtained in India by tendering rupees.