The sellers would take payment in sovereigns, notes, or rupees (since the former can always be

These are general truths as to all banks, and they have a very particular application to the Bank of England.

What, then, is the present position of the rupee? 6. This Bank was started in 1904 under European management by a firm engaged in floating oil companies and other highly speculative enterprises. It would really have been far easier to have maintained the reserve by timely measures than to have replenished it by delayed measures; but new Governors rarely see this.

The effects at the lower limit differ in this important respect, that the Government are under no legal obligation to prevent the depreciation of the rupee, and have not undertaken to give sovereigns for rupees in the way that they have undertaken to give rupees for sovereigns. To transact these two classes of business—though once established they have not limited their transactions to them—a class of Banks has arisen known as the Exchange Banks. 3rdly. Till now private banks have been small; small as we now reckon banks.

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