│ 121 │ 120 │ 172 │ │ 1897 │.
In July the cash reserves of the Bank of Bengal might stand, as things now are, at, let us suppose, about 1000 lakhs and its discount rate at 3 per cent. Its theoretical advantages were first set forth by Ricardo at the time of the Bullionist Controversy. Dickson, celebrated (in his own time) for pre–eminent ability as Secretary and Treasurer of the Bank of Bengal. But to this there are several objections, some arising from the general nature of the banking trade, and others from the special position of the Bank of England. I can imagine nothing better in theory or more successful in practice than private banks as they were in the beginning. A panic is sure to be caused if that reserve is, from whatever cause, exceedingly low.
The joint stock banks, and the private banks, no doubt, too, keep one sort of reserve, and the Bank of England a different kind of reserve altogether. 2 12 0 2 15 8 –and in other cases there is a tendency upwards in price much more often than there is a tendency downwards.