Bagehot raised in England, many years ago, to an impregnable position in the unwritten constitution of this country—the doctrine, namely, that in a time of panic the reserves of the Bank of England must, at a suitably high rate, be placed at the disposal of the public without stint and without delay. The method of telegraphic transfers enables them to act with great despatch on receiving advices from their Indian agents. A firm or a person who have been long known to ‘meet their engagements,’ inspire a degree of confidence not dependent on the quantity of his or their property. 4⅛d.
A purely internal crisis of the first kind might require assistance from the resources of Government, but would involve no claims on their sterling resources specifically, as distinguished from their rupee resources. .
Moreover, in normal times the policy actually followed already approximates closely to this proposal; in the last three years the occasions on which Council Bills have been sold below 1s.