In very recent years, while the south african mines have been reaching the zenith of their

Indeed, a good many people thought it was right for the Bank of England, but not right for any other bank. Additional currency, whether notes or rupees, can be obtained in two ways only—by buying Council Bills in London or by bringing in sovereigns. The present India Office inherits this independence from the old Board of the Company, which, being mercantile and business-like, used to lend its own money on the Stock Exchange as it pleased; the Council of India, its successor, retains the power.

0 0 7-1/4 0 0 8-3/8 No. A great private bank might easily become very rotten by a change from discretion to foolishness in those who conduct it. CHAPTER VI. Why particular trades settled in particular places it is often difficult to say; but one thing is certain, that when a trade has settled in any one spot, it is very difficult for another to oust it–impossible unless the second place possesses some very great intrinsic advantage. Up to 1898 the whole of the rest was held in silver coin in India. So strong is the wish of most people to see their money that they for some time continue to hoard bank-notes: for a long period a few do so. Thus English capital runs as surely and instantly where it is most wanted, and where there is most to be made of it, as water runs to find its level. He was afraid of certain joint stock banks which he saw rising around him; but the effect of his legislation was to give to these very banks, if not a monopoly, at any rate an exemption from new rivals. Hitherto questions of banking have been so little discussed in comparison with questions of currency, that the duty of the Bank in time of panic has been put on a wrong ground. Many of them have information as to the present course of trade, and as to the character and wealth of merchants, which is most valuable, or rather is all but invaluable, to the Bank. 4. 13. Hankey, one of the most experienced bank directors, not long after, took occasion to observe: ‘The Economist newspaper has put forth what in my opinion is the most mischievous doctrine ever broached in the monetary or banking world in this country; viz, that it is the proper function of the Bank of England to keep money available at all times to supply the demands of bankers who have rendered their own assets unavailable. The direction of the Bank of England has, for many generations, been composed of such men.

│. Two courses were open: to buy openly and pay such extra price as the speculators might find themselves in a position to demand, or to risk charges of venality from any one who might have an interest in discrediting the Government—disappointed speculators, currency malcontents, or members of the political party in opposition. After 1825, there was not again a real panic in the money market till 1847. But if a different system of book–keeping be preferred, no substantial change is involved in what I propose. Starting from this assumption, I have worked out the details given in the following table as a guide to the probable circulation at the present time.

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