Imports of gold for this purpose are, for reasons to be explained in chapter v

After a generation or two they retire into idle luxury. Human industry is more efficient, and therefore there is more to be divided among mankind. But I do not think that there is the least reason for supposing that the position is not a strong one.

The Paper Currency Reserve is thus used to provide the gold which is the first line of defence of the currency system as a whole, and hence can hardly be distinguished from the resources of the Gold Standard Reserve proper. Bill-broking, in this which we may call its archaic form, is simply one of the modes in which bankers obtain bills which are acceptable to them and which they re-discount. As that system exists, a logical Frenchman consistently enough argues that the State should watch and manage it. The danger that it will be called for is much less; and therefore the security taken against it may be much less too. Of the rest about £7,000,000 (face value) was in Consols and other stock guaranteed by the British Government, and about £1,500,000 (face value) in various Colonial Government Securities.

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