At present the quantity of coin which is hoarded by private persons is so small, that

We know that it is hoarded, used as jewellery, as gilding, even (according to Messrs.

So, on the whole, has economy, though some current opinion in regard to the use of gold puts it in jeopardy. Weguelin, the last Bank Governor who has been examined, said that it was sufficient for the Bank to keep from one-fourth to one-third of its banking liabilities as a reserve. in gold, no merchant or manufacturer considers of what material it is made when he fixes the price of his product.

Let us consider, first, the adequacy of the reserve of coined rupees. In a country such as India, however, there may be great stagnancy in a part of the circulation, and the coins finding their way to the Government Treasuries may be a sample rather of the floating surplus of coinage, which has a relatively high velocity of circulation, than of the total stock, which includes semi–hoards passing from hand to hand comparatively seldom. Some of the directors, as I have said, retire annually, but by courtesy it is always the young ones. But I do not think that there is the least reason for supposing that the position is not a strong one. For their exigencies a moderate degree of ability and an anxious caution will suffice. (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.

Money is economical power. Their old connections will not leave them; there will be no fatal ruin, no sudden mortality. e. But this is evidently a very refined machinery, which a panic will be apt to destroy. The ‘Economist’ did not say that the system of a single bank reserve was a good system, but that it was the system which existed, and which must be worked, as you could not change it. The Government has put itself under an obligation to supply rupees whenever sovereigns are tendered, and it often permits or encourages the tender of sovereigns in London as well as in India; but it has no power or opportunity of forcing rupees into circulation otherwise. , embarked upon a new stage of development, and all this is changed. Fluctuations in the demand in the third use are of greater magnitude and, apart from the regular autumn drain, not so easily foreseen. There was a Tapestry Company, which would soon furnish pretty hangings for all the parlours of the middle class, and for all the bed-chambers of the higher. [106] So far as the Indian deposits are concerned, these returns are very valuable.

There are no doubt others, but they are not quoted even on local Stock Exchange lists, and in most cases publish no reports.

The reserve being very small, it endeavoured to protect that reserve by lending as little as possible. , gold about to be shipped from Australia competes with them as a means of remittance to India. The ‘Economist’ did not say that the system of a single bank reserve was a good system, but that it was the system which existed, and which must be worked, as you could not change it.

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