Accordingly, in every panic these sums are sure to be called in from the bill-brokers; they were wanted to be used by their owners in time of panic, and in time of panic they ask for them. Both these sources of profit would be gravely jeopardised if the introduction of an Indian gold coin were to meet with any considerable measure of success. Amongst European countries, Russia now keeps the largest aggregate of funds in foreign bills and in balances abroad—amounting in November 1912 to £26,630,000. To force a coin on people is not always the best way to popularise it; and if rupees were to be refused, there would probably be a small premium on them or a small discount on gold—a position which would not help gold. , and that as a rule he finds it necessary to keep at the Bank one-tenth of these liabilities, or 200,000 L. 184, footnote) from that governing the sums at the Head Offices, and are held literally at call, the amounts at particular branches being subject to wide variations. I make it out to be, a serious breakdown there may embarrass the Exchange Banks in London, however intrinsically sound the position of these Banks may really be, in their efforts to assist the Indian market. But I do not think it certain that this sum would be adequate to the necessities of two successive bad years. 16. If Mr. 17. I feel little doubt that India ought to have a State Bank, associated in a greater or less degree with the Government.
Secondly. Tumbling day by day, it reached on November 25 the rate of ⅓–11/16. Now that London is the clearing-house to foreign countries, London has a new liability to foreign countries.
They are calculated to such an extremity of fineness that the change of a decimal may be fatal, and may turn a profit into a loss. 600,00,000). For I have excluded the Public Deposits (amounting in 1910 to £2,820,000), and have included the whole of the cash balances (at the branches as well as the head offices) held by the Presidency Banks against them. They are treated as unfunded debt and used for capital expenditure. ) Miscellaneous assets in London 5½ │ including silver │ bullion ½ │ —————— │ ———— 17½ │ 17½ ══════ │ ════ This would probably be published as follows:— £m. If the interest of money be raised, it is proved by experience that money does come to Lombard Street, and theory shows that it ought to come. The panic of that year for the first time taught the Bank directors wisdom, and converted them to sound principles.  Further attempts to force gold into circulation were, therefore, abandoned, and a large part of the gold which had accumulated in the currency reserve in India was, a little later on, shipped to England in order to be held “ear–marked” at the Bank of England.
‘ The success of the Bank of England on this occasion was owing to its complete adoption of right principles. The London bill brokers do much the same.
And the State, in getting the Bank to keep what money it may chance to have, or in borrowing of it what money it may chance to want, does not hire it to stop a panic or much help it if it tries.