) Capital and │ (vii. 1 will be ruined, because he cannot pay it.
16. This is not a peculiarity of Indian Finance. As the actual reserve is never to be less, and is always, if possible, to exceed by a reasonable amount the ‘minimum’ apprehension reserve, it must when the Bank is quiet and taking no precautions very considerably exceed that minimum.
│ Net. Indeed so long as the currency arrangements are at all like those now in force, this maximum range may fairly be said to be determined by forces outside Government control, namely, by the forces governing the cost of remittance of gold. It unquestionably does make enormous advances in every panic In 1847 the loans on ‘private securities’ increased from 18,963,000 L to 20,409,000 L 1857 ditto ditto 20,404,000 L to 31,350,000 L 1866 ditto ditto 18,507,000 L to 33,447,000 L But, on the other hand, as we have seen, though the Bank, more or less, does its duty, it does not distinctly acknowledge that it is its duty. This was the rate then ruling in the native bazaar both in Bombay and Calcutta, and that, too, while the Exchange Banks were greedy to receive fixed deposits for short periods at 9, 10, and even 11 per cent per annum, and while the Presidency Banks were straining to meet the demands for loans at 12 and 13 per cent per annum.