The foreign drain empties the Bank till, and that emptiness, and the resulting rise in the rate of discount, tend to frighten the market. 11. ) The absence of the advice and experience, which the officers of a State Bank would possess, is a source of weakness to Government itself.
After every panic, the Opposition would say in Parliament that the calamity had been ‘grievously aggravated,’ if not wholly caused, by the ‘gross misconduct’ of the Governor appointed by the ministry.
It is from this source that the sovereigns now circulating as currency are likely to have come.
The crops may be sold for gold, because the cultivator wants gold for his hoard. In their past relations with the Presidency Banks in the matter of temporary loans, the Government of India have sometimes seemed to attach more importance to preventing the Banks from making any profit out of the loans than to any other aspect of the transaction. 4⅛d.
Gold Standard Reserve instituted out of profits of coinage.