From 8 to 3 per cent is an enormous range for the normal seasonal fluctuation. The detail of the business is augmenting with an overwhelming rapidity. A rise in the bank rate is equivalent to putting pressure on these middlemen to diminish their commitments. In September 1907 their silver holdings in one form or another stood at the excessive figure of 3148 lakhs.
Nor is it necessary, for his writings are in everyone’s hands. If the losses by mistake in banking and the losses by fraud were put side by side, those by mistake would be incomparably the greater. If the national money can safely be deposited in banks in any way, this is the way to make it safe. ‘Perhaps it may be interesting,’ said Alderman Salomons, speaking on behalf of the London and Westminster Bank, after the panic of 1857, to the committee, ‘to know that, on November 11, we held discounted bills for brokers to the amount of 5,623,000 L. 18.
The demand for Council Bills, therefore, chiefly depends on how much new business the Exchange Banks are entering into in India.