Contractors of the canal department are very glad to receive payment of their cheques in gold

That discussion was terminated by the Act of 1844. The abstract thinking of the world is never to be expected from persons in high places; the administration of first-rate current transactions is a most engrossing business, and those charged with them are usually but little inclined to think on points of theory, even when such thinking most nearly concerns those transactions. If there had been, at the existing level of prices, a rapidly expanding demand for currency at the time when the Mints were closed, the measures actually taken might very well have proved immediately successful. And Mr. There is a further argument against it, connected nevertheless with the above, which is of great importance. per rupee, rising in most years as between certain dates as high as 5/32d. And this is very natural. 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.


And yet I propose to retain that system, and only attempt to mend and palliate it. As the Bank of England lends money to keep up the bankers’ balances, at their usual amount, and as by means of that usual amount whatever sum foreigners can get credit for may be taken from us, it is not possible to assign a superior limit (to use the scientific word) to the demands which by means of the bankers’ balances may be made upon the Bank of England. Thus, as in the United States, the Government maintains an independent Treasury system. The partners had great estates, which had mostly been made in the business. The value of money is fixed in Lombard Street in much the same way, only that the upset price is not that of all sellers, but that of one very important seller, some part of whose supply is essential. Indeed, still better to prevent it, the elder members of the board–that is, those who have passed the chair–form a standing committee of indefinite powers, which is called the Committee of Treasury. How much this was in the minds of the founders of the Bank of England may be judged of by the name which they gave it. And part of this certain history is that the best way to diffuse banking in a community is to allow the banker to issue bank-notes of small amount that can supersede the metal currency. But a new man, who has his way to make in the world, knows that such changes are his opportunities; he is always on the look-out for them, and always heeds them when he finds them. In the interval between the allotments on successive Wednesdays, the Secretary of State is usually willing to sell what are known as “specials” at a rate 1/32d. The Treasury’s arguments were, as they deserved to be, successful. [5] CHAPTER II THE GOLD–EXCHANGE STANDARD 1. And this pre-eminence London will probably maintain, for it is a natural pre-eminence. The difficulty of propagating a good management by inheritance for generations is greatest in private banks and discount firms because of their essential secrecy.

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