Even in large cities, as cities then were, it was possible for most persons to ascertain with fair certainty the real position of conspicuous persons, and to learn all which was material in fixing their credit. Now 3/32d. So long as the security of the Money Market is not entirely to be relied on, the Government of a country had much better leave it to itself and keep its own money. There, as in India, the Government, with immense currency reserves of gold, is normally aloof from the money market. Steady merchants collected in council are an admirable judge of bills and securities. was so advanced in three months. worth of Consols, he will not find 500,000 L. They were, to all appearances, influenced by the crude inductive argument that, because there was a heavy demand in 1905–6, it was likely that there would be an equally heavy demand in 1906–7; and, when there actually was a heavy demand in 1906–7, that this made it yet more likely that there would be a heavy demand in 1907–8. And this system has plain and grave evils. I. The essential characteristics of the British monetary system are, therefore, the use of cheques as the principal medium of exchange, and the use of the bank rate for regulating the balance of immediate foreign indebtedness (and hence the flow, by import and export, of gold). But I should be surprised if, even in the case of the Yokohama Specie Bank, it would amount to more than five to ten per cent; and in the case of some of them it must be much less than this. These other sources are either sovereigns in transit from Australia or sovereigns ready for export from Egypt. ‘ But, on the contrary, the main use of the Canal has been by the English. A domestic drain is very different. His ignorance is a mark for all the shrewd and crafty people thereabouts. Suppose, a favourable supposition, that the Banking Department holds more than two-fifths of its liabilities in cash–that it lends three-fifths of its deposits and retains in reserve only two-fifths. When the trade of Banking began to be better understood, when the Banking system was thoroughly secure, the Government might begin to lend gradually; especially to lend the unusually large sums which even under the most equable system of finance will at times accumulate in the public exchequer. My own nerves were educated to smaller figures, because I was trained in times when the demands on us were less, when neither was so much reserve wanted nor did the public expect so much.
In 1903 the Government of the United States introduced a system avowedly based on it into the Philippines. But if, on the other hand, the changing Governor should disregard the advice of his permanent colleague, and the consequence should be bad, he would be blamed exceedingly. These are pushed out, so to say, by the dirty crowd of little men. 8. │ ├─────────┼─────────────────────┼───────────────┼────────────────┤ │ 1895 │ £120,000 │ £152,000 │ £100,000 │ │ 1900 │ 1,270,000 │ 3,540,000 │ 160,000 │ │ 1905 │ 1,580,000 │ 2,490,000 │ 970,000 │ │ 1906 │ 2,060,000 │ 2,990,000 │ 830,000 │ │ 1907 │ 2,223,000 │ 3,000,000 │ 1,130,000 │ │ 1908 │ 3,544,000 │ 6,366,000 │ 977,800 │ │ 1909 │ 5,362,000 │ 7,978,000 │ 2,824,800 │ │ 1910(a) │ 7,032,000 │ 8,855,000 │ 4,893,300 │ └─────────┴─────────────────────┴───────────────┴────────────────┘ (a): Since 1910 these figures have not been stated in the Reichsbank’s annual reports.