Let us sum up the argument so far, and enforce at the same time the contention, brought up at the end of Chapter I. The criticisms which have had most popular vogue have been mainly directed against the absolute amount of the Gold Standard Reserve, against the investment of a large part of this reserve in securities, and against the maintenance in London of some part of the gold in the Currency Reserve. High rates of 7 or 8 per cent are not obtainable in India all the year round. It is tacitly assumed that the greater part of what has to be withdrawn from the circulation at a time of crisis would come from the gold portion of the circulation. They are issued without limit from any Paper Currency office in exchange for rupees or British gold coin, or (on the requisition of the Comptroller–General) for gold bullion. ) or upon promissory notes bearing less than two independent names; (vi.
These are enough examples for my purpose.
So great was that difficulty that the practice of hoarding was common.