But to establish a note circulation, a large number of persons need only do nothing

Its essence is that a very large number of persons agree to trust a very few persons, or some one person. However, it was a perplexing and unprecedented time for every one, and that it was some weeks before his advisers found their bearings is not to be wondered at. This discredit means, ‘an opinion that you have not got any money,’ and to dissipate that opinion, you must, if possible, show that you have money: you must employ it for the public benefit in order that the public may know that you have it. At a time of crisis it is the fiduciary coins with which the public are most eager to part. They see daily his manner of life, and judge from it that their confidence is deserved. Thus the authorities are free, if they like, to hold the whole of the Currency Reserve in rupee–tokens, and this reserve has become, therefore (as we shall see below), an important part of the mechanism by which the supply of silver rupees to the currency is duly regulated.

1906. The whole problem of the reserves, regarded as a current practical question, is dealt with in Chapter VI.

Laisser un commentaire

Votre adresse e-mail ne sera pas publiée. Les champs obligatoires sont indiqués avec *