Even if the bank of england were an ordinary bank, such a constitution would be insufficient;

By October 1912 the aggregate profits arising from coinage amounted to about £18,600,000. 100 universal legal tender it is difficult to see what can prevent the public from using them for purposes of remittance if they should wish to do so. Nor, as I have said, can there be much doubt that such was the intention of its founders.

He was supposed to represent, and often did represent, a certain union of pecuniary sagacity and educated refinement which was scarcely to be found in any other part of society. On the contrary, in times when the public has recently seen the Bank of England exposed to remarkable demands, it is likely to expect that such demands may come again. A crisis of the second kind, due to general depression or bad harvests, in which India has to meet a heavy adverse balance in London, provided that, as in 1907, it is not accompanied by internal banking difficulties of the kind just described, causes, it is true, a drain on the Government’s sterling resources through the necessity of providing remittance on London, but only in proportion to the volume of notes and rupees which are brought to the Government for encashment or in payment of sterling drafts.

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