But there is another variable cause which produces far more of apparent than of real prosperity

) Current Accounts │ (ix. But so far from there being a distinct undertaking on the part of the Bank directors to perform this duty, many of them would scarcely acknowledge it, and some altogether deny it. At present there is no machinery for doing this; and the absence of the appropriate arrangements constitutes a serious gap in the country’s financial system.

[61] It is possible that when this figure has been reached, some part of its income may be applied to capital expenditure on railways. The bills and transfers are made payable at the option of the purchaser at Calcutta, Bombay, or Madras.

At other times, particularly at the quarterly payment of the dividends, an absolute rule which laid down that the bankers’ balances were never to be lent, would be productive of great inconvenience. Nothing can be more natural or more inevitable than this change. And these dealers, taking advantage of their peculiar knowledge, borrow immense sums from bankers and others; they generally deposit the bills as a security; and they generally give their own guarantee of the goodness of the bill: but neither of such practices indeed is essential, though both are the ordinary rule.

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