CHAPTER X. He runs the risk of loss and robbery just as if he were hoarding coin. My second point affects the kinship of Indian arrangements to those lately developed in other parts of the world. The main conclusion is very plain–that English trade is become essentially a trade on borrowed capital, and that it is only by this refinement of our banking system that we are able to do the sort of trade we do, or to get through the quantity of it. 4d. The old notion that one-third, or any other such fraction, is in all cases enough, must be abandoned.
” In England, of course, bankers immediately set themselves to recover the economy and elasticity, which the Act of 1844 banished from the English system, by other means; and with the development of the cheque system to its present state of perfection they have magnificently succeeded. But they have attempted distinctions; have said that the doctrine that the Bank of England keeps the sole banking reserve of the country was not a good way of putting it, was exaggerated, and was calculated to mislead.