I have ever found that when the official rate rose abnormally high, the rate in the

But I do not believe that such a doctrine as that bankers are justified in relying on the Bank of England to assist them in time of need is generally held by the bankers in London. In time of panic, these subordinate dealers in money will always come to the principal dealers. They still derived an immense income from it. ), being rediscounted or allowed to mature in London, would swell the available funds there automatically. And bankers are in even greater terror. Everybody in business would bow down before him and try to stand well with him, for he might in a panic be able to save almost anyone he liked, and to ruin almost anyone he liked. ‘ The process thus explained is the common process. If general distrust of banking was widely spread, and notes, gold, and rupees were being hoarded in the old–fashioned way on a large scale, the banks would not be able to put their hands on sufficient cash resources of any kind to enable them to pay for the Government’s drafts on a scale adequate to their necessities.

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