Several of the defects, outlined above, could be remedied, in part at least, by less drastic

If the Banks get into trouble, there will be much more far–reaching effects than could have been the case formerly. The enormous amount of wealth which the Indian people are now devoting to the barren accumulation of gold is brought out very strikingly by the figures in the third column. Lombard Street is thus a perpetual agent between the two great divisions of England, between the rapidly-growing districts, where almost any amount of money can be well and easily employed, and the stationary and the declining districts, where there is more money than can be used. Thus the authorities are free, if they like, to hold the whole of the Currency Reserve in rupee–tokens, and this reserve has become, therefore (as we shall see below), an important part of the mechanism by which the supply of silver rupees to the currency is duly regulated. They are treated as unfunded debt and used for capital expenditure. These savings are first lodged in the local banks, are by them sent to London, and are deposited with London bankers, or with the bill brokers.

Laisser un commentaire

Votre adresse e-mail ne sera pas publiée. Les champs obligatoires sont indiqués avec *