It would really have been far easier to have maintained the reserve by timely measures than to have replenished it by delayed measures; but new Governors rarely see this. At the same time (1893) the Notification of 1868 was superseded by a new Notification fixing fifteen rupees as the rate at which sovereigns would be accepted at Government Treasuries; and a Notification was issued under the Paper Currency Act of 1882, directing the issue of currency notes in exchange for gold at the Rs. With notes of Rs. And as the number of ‘good’ bills–bills which sound merchants know to be good–does not rapidly increase, and as the market rate of interest was often less than 5 per cent, these checks on over-issue were very effective. It makes everybody else want to borrow money. Gauntlett); and I have made free use of these in what follows. Their capital is not more than 3,000,000 L.
But they seldom can get them discounted very much cheaper, for if they did everyone would leave the Bank, and the outer market would have more bills than it could bear.