Practically, bin-brokers cannot refuse to receive money at call

The actual form in which the Currency Reserve was held at the end of December 1912 was approximately as follows:— Sterling securities £2,500,000 Rupee securities 6,500,000 Gold in London 7,250,000 Gold in India 17,500,000 Rupees in India 8,500,000 Silver bullion in India or in transit 1,500,000 ─—————–──── £43,750,000 ─────—————– 4. An old banker once told me: ‘Sir, I was on Lord Althorp’s committee which decided on the publication of the Bank account, and I voted against it. And that instant payment, in the years I speak of, the Bank of England certainly could not have made. ‘ After a day or two of this treatment, the entire panic subsided, and the ‘City’ was quite calm.

In theory, nothing can be worse than this government for a bank a shifting executive; a board of directors chosen too young for it to be known whether they are able; a committee of management, in which seniority is the necessary qualification, and old age the common result; and no trained bankers anywhere. They had then to buy silver in London hurriedly and at rather a high price.

In cotton spinning, no single firm far and permanently outstrips the others.

Our current political economy does not sufficiently take account of time as an element in trade operations; but as soon as the division of labour has once established itself in a community, two principles at once begin to be important, of which time is the very essence. Between 1894 and 1904[115] no new Banks were founded with as much as 5 lakhs of paid–up capital. The money therefore taken from the Bank of England could not be soon returned to the Bank; it would not come back on the evening of the day on which it was taken out, or for many days; it would be distributed through the length and breadth of the country, wherever there were bankers, wherever there was trade, wherever there were liabilities, wherever there was terror. ) the amount of short–period loans afforded to India by the European Money Market. 2 will not give them up till he gets his money, No. These deposits are received both in India and in London; but it is a principal object of Exchange Banks to obtain as much as they can in London, and they seek to attract such deposits by offering better terms than an English Bank will allow. A tendency was noticed for the returns of one year to resemble those of the previous year more closely than they should, and not infrequently a batch of coins would be attributed to a year in which it is known that none were minted. And the state of credit is thus influential, because of the two principles which have just been explained.

He will have endless difficulties in establishing the circulation of the distant bank, because he has not the local knowledge which alone can teach him how to issue that circulation with safety. That London banker lends what he chooses of it, the rest he leaves at the Bank of England. The lock–up of funds in silver and opium, and the freedom with which India was purchasing foreign goods, probably had something to do with it; and an important contributory influence was the dearness[127] of money in London combined with a sufficient expectation of cheaper money soon, to provide an incentive to delay, wherever delay was possible.

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