2 12 0 2 15 8 –and in other cases there is a tendency upwards in

To fully explain the matter I must go deep into the theory of the exchanges, but the general notion is plain enough. ‘We lent it,’ said Mr. They ought not to do it to serve others; they ought to do it to serve themselves.

. It would be specially unfortunate if a competitor to the paper currency were to be introduced, before the virtual abolition of the system of circles has had time to have its full effect in the direction of popularising the use of notes. This is convenient to bankers, and, if he has the rupees waiting in India, profitable to the Secretary of State. And when London was by comparison a small city, and when by comparison everyone stuck to his proper business, this practice might have been safe. CHAPTER VIII.

If, as we said just now, No. From 1866 to 1870 there was almost an unbroken calm on the money market. Secondly, the rate of interest which the Secretary of State can earn on loans in London is appreciably lower, on account of the short period for which he lends and the nature of the security he requires, than the normal rate at which the Exchange Banks would raise their funds there, and a good deal lower than what would be obtained by direct lending in India.

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